South China (China) Limited provided consolidated earnings guidance for the year ended 31 December 2014. The group expects to report a significant decrease in profit for the year ended 31 December 2014 as compared with the audited results for the year ended 31 December 2013. According to the available information, the fair value gain on investment property held by an associate recognized in prior year was higher than the amount that the Company is expected to report for the Year; the Group recorded a fair value loss on financial assets at fair value through profit or loss for the Year as opposed to the fair value gain reported for the prior year; the group recorded an increase in finance costs in the year which is mainly attributable to the finance costs incurred in the borrowings to finance the construction of the shopping mall at Shenyang, the People's Republic of China subsequent to the completion of the same; and there was an increase in administrative expenses for the Year, which is mainly attributable to the exchange loss recorded in the Year as opposed to the exchange gain reported in the prior year.

The effect of the abovementioned changes was mitigated in part by the interest income on a loan receivable. The fair value changes as referred to in and arose from re-measurement of the relevant assets as at the reporting period end dates at their market values as at these dates pursuant to the applicable accounting standards.