Chinese Food and Beverage Group Limited provided earnings guidance for the year ended April 30, 2012. The group is expected to record an increase in loss for the financial year ended 30 April 2012 as compared with the audited loss for the year ended 30 April 2011. Based on the information currently available, the increase in loss is mainly due to the loss on the possible impairment of the convertible note receivable and the loan receivable for the amount of approximately HKD 36 million and HKD 30 million, respectively, and the cease to share the results of an associate which had been classified as assets held for sale during the year ended 30 April 2011. Despite the loss, the Board considers that the financial position of the Company remains solid.