The board of directors of Christine International Holdings Limited announced that, based on the information currently available to the Board, including the unaudited management accounts, the unaudited annual results of the Group for the year ended 31 December 2013 are expected to deteriorate significantly as compared to that for the year ended 31 December 2012 and may record losses. To the best of the Board's knowledge, the Group's annual results were mainly attributable to the following reasons: The Group's results deteriorated as a result of the lukewarm growth in domestic consumption, fiercer competition from diversified players in the baking industry and undergoing planned transformation for certain existing stores, which were yet to commence business, as well as the insignificant increase in turnover of the Group's existing stores and the slow-down in the number of new stores in 2013. Growth in revenue was restrained by the decrease in revenue from sales of moon cakes as a result of the policy of China that prohibits purchases of moon cakes by public funds.

Similar to 2012, the overall salary costs continued to increase as a result of the rise in salaries payable by the Group at the beginning of the second quarter of 2013 and the social security obligations assumed by the Group in respect of its employees in compliance with the revised requirements in minimum wages and social security regulations of certain local governments. Sales expenses went up due to the addition of new stores and the rising rental fees upon renewal of leases of certain existing stores in various districts.