The board of directors of Guangnan (Holdings) Limited announced to the shareholders of the company and potential investors that, based on the preliminary review of the management accounts of the Group for the year ended December 31, 2013, the consolidated profit attributable to shareholders of the company for the year ended December 31, 2013 is expected to have a substantial increase as compared to that for the year of 2012, primarily attributable to (i) the significant increase in exchange gain due to the faster appreciation of Renminbi against the United States Dollar during the year; and (ii) the significant increase in net valuation gains on investment properties due to the continued increase in the prices of commercial properties in Hong Kong during the year.