The board of directors of Hengdeli Holdings Limited informed to shareholders and potential investors of the company that, based on the preliminary review of the unaudited consolidated management accounts of the group, the group expects the unaudited net profits for the six months ended June 30, 2013 will record a decrease as compared to that for the corresponding period in 2012. Such decrease is mainly attributable to: since early 2013, there was a substantial drop in the share price of Ming Fung Jewellery Group Ltd. after the group acquired Ming Fung's shares and in accordance with the relevant accounting standards, the group had to make corresponding impairment provision on the shares of Ming Fung; the relatively substantial impact on the non-recurring gain from the disposal of OMAS in early 2012; and the decrease in the overall gross profit margin of the group due to adverse economic condition.