The Sincere Company, Limited announced that the unaudited interim results of the Group for the six months ended August 31, 2013 is expected to record a significant increase in loss as compared to the corresponding period ended 31 August 2012. The loss was mainly attributable to the initial costs for entering into new leases and the rental expenses which was caused by the compliance with relevant accounting standard to recognize the effective rent during the rent free period for the new stores. This resulted a substantial increase in rental for the leasing of the new stores since the second quarter of 2013 but some of the new stores only commenced trading in the third quarter of 2013 while one of the new stores is expected to be commenced trading in the fourth quarter of 2013.