The board of directors of Shun Cheong Holdings Limited informed shareholders of the company and potential investors that the Group is expected to record a loss for the year ended 31 March 2014. Such expected loss was mainly attributable to a large scale of the decoration has been initiated and accomplished in Guangxi Wharton Hotel in the financial year ended 31 March 2014, which covered totally twelve floors of the Hotel. The decoration has significant impact on the Hotel operation, and the management believes that the Hotel will provide improved customer service and better hotel facilities in coming years.

On 5 June 2014, the wholly owned subsidiary, Open Land Holdings Limited, received the Civil Judgment ((2013) Nan Shi Min San Chu Zi No. 41), and it does not agree with the Civil Judgment and intends to file appeal with lawyers. For the prudential purposes, the management of the Company made provision for the litigation issue.