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 of the group and after preliminary assessment, the unaudited interim results of the group for the six months ended June 30, 2013 are expected to decrease as compared to that for the corresponding period last year, and further losses may be recorded for the six months ended June 30, 2013. The group's interim results were mainly affected by the following factors: (1) the revenues for the six months ended June 30, 2013 increased as compared to that for the corresponding period in 2012 due to the group's business expansion efforts of opening new stores. As a result of opening new stores, additional costs were incurred by the group in respect of wages of newly hired store staff and rental costs for the premises of the new stores. In addition, the rental costs for the renewal leased premises of existing stores have increased in response to market conditions; therefore the increase in operating Revenue was less than the increase in the overall sales expenses; (2) the payroll expenses increased at the beginning of the second quarter of 2013 as a result of higher salaries, which were paid in compliance with the consequently revised requirements under minimum wages and social security regulations in Jiangsu, Zhejiang and Shanghai in China.

The company reported revenue results for the six months ended June 30, 2013. The revenues for the six months ended June 30, 2013 increased as compared to that for the corresponding period in 2012 due to the group's business expansion efforts of opening new stores.