The board of directors of Sun Century Group Limited announced that based on the preliminary review of the unaudited consolidated management accounts of the Group for the period from January 1, 2012 to June 30, 2012, the Group is expected to record a loss for the six months ended June 30, 2012, as compared to the profit recorded in the corresponding period in 2011. Such expected loss was principally due to the following reasons: the decrease in the Group's turnover, was due to a significant decrease in gross floor area sold and delivered of the Shenzhen Hong Long Century Plaza in Shenzhen, in the six months ended June 30, 2012 as compared with the corresponding period of 2011; and as disclosed in the interim report 2011 of the Group, a gain on de-recognition of available-for-sale financial assets of RMB 33,306,000 and a gain on disposal of subsidiaries of RMB 82,594,000 were recognised as an income of the Group for the six months ended 30 June 2011, where no such amount would be recognised in the current period.