South China Financial Holdings Limited provided preliminary unaudited consolidated earnings guidance for the six months ended June 30, 2013. The group is expects to record a larger loss as compared with the unaudited results for the corresponding period in 2012. The increase in loss for the Period, which has been partially offset by the fair value gain on investment property, primarily reflects the increase in fair value loss on financial assets through profit or loss and the decrease in net profit on trading of securities and other financial instruments recognized in the first half of 2013 in which the Hong Kong stock market was relatively slow.

The Group did not recognize any fair value gain on investment property in the first half of 2012 as the property was self-occupied.