South China Financial Holdings Limited provided group earnings guidance for the year ended December 31, 2013. The board of directors of the company informed the shareholders of the company and potential investors that, based on the preliminary review of the management accounts of the group, the group is expected to report a significant decrease in profit for the year ended 31 December 2013 as compared with the audited results for the year ended 31 December 2012. The group has recorded a fair value loss on financial assets at fair value through profit or loss in year 2013 as opposed to a fair value gain as reported in year 2012.

Although certain business segments have recorded revenue growth in year 2013, there was a significant decrease in profit on trading of securities and other financial instruments as compared with year 2012. As such, the revenue of the group decreased in year 2013. Given the above, it was expected that the group will report a significant decrease in profit for year 2013 as compared with the profit for year 2012 notwithstanding the significant increase in fair value gain on investment properties recognized in year 2013, which only partially offset the combined effect.