China Star Entertainment Ltd. provided consolidated earnings guidance for the year ended 31 December 2014. For the period, the group is expected to increase the profit by approximately 120% to 140% as compared to HKD 91,339,000 for the year ended 31 December 2013. Based on a preliminary review on the unaudited consolidated management accounts of the group for the year ended 31 December 2014 and information currently available to the board, such increase is mainly attributable to substantial decrease in impairment loss recognised in respect of the intangible assets of the gaming promotion operations to approximately HKD 13 million from HKD 42,727,000 in the previous year; increase in other revenue of approximately HKD 36 million from the previous year which majority included increase in loan interest income; decrease in administrative expenses by approximately 9% to 13% from the previous year which mainly included decrease in depreciation of property, plant and equipment, decrease in casino management fees and the absence of share-based payment expenses this year; and (vi) decrease in finance costs of approximately HKD 25 million from the previous year which mainly caused by the full conversion of the outstanding 8% convertible bonds of the company into shares of the company on 31 March 2014 and thus decrease the interest expenses for the year.

The effect of such increase is partially offset by approximately 3% to 7% decrease in the figure of gross profit as compared to the previous year due to decrease in turnover.