The board of directors of Top Spring International Holdings Limited announced that it is expected that the company and its subsidiaries may record a consolidated net loss for the six months ended 30 June 2014 as compared to a consolidated net profit for the corresponding period in 2013. During the six months ended 30 June 2014, the expected consolidated net loss of the group was mainly due to the following reasons: there was a decrease in the group's turnover by approximately 25.3% which was primarily resulted from a reduction in the sales of properties recognised during the six months ended 30 June 2014 as compared to the six months ended 30 June 2013. Barring unforeseeable circumstances, the Board expects that the group's sales of properties to be recognised in the second half of 2014 will likely be more than that of the first half of 2014 and the second half of 2013 in accordance with the planned projects completion and delivery schedule of the group; there was an investment property, namely Nanchang Fashion Mark, which was added to the group's investment properties portfolio and contributed a valuation gain of approximately HKD 222.9 million during the six months ended 30 June 2013, but there was no significant valuation change for Nanchang Fashion Mark during the six months ended 30 June 2014.

The cashflow of the Group was not affected by the valuation change which is not classified as an operating cash flow item; and there was a disposal of all of the issued shares in, and the shareholder's loan owed by, Top Spring International (Taihu Bay) Development Limited, during the six months ended 30 June 2013, which resulted in a net gain of approximately HKD 186.6 million, but there was no such similar disposal during the six months ended 30 June 2014.