The board of the directors of Xiao Nan Guo Restaurants Holdings Limited announced that the group is expected to record significant decline in its unaudited net profit for the six months ended 30 June 2013 as compared to that for the corresponding period in 2012. Based on the information currently available, the decline of the unaudited net profit is mainly attributable to the drop in same store sales of the group triggered by the government policy of restrictions on entertainment and hospitality; the impact of avian flu; and the continuous slower growth of macro-economy.