China Fortune Financial Group Limited provided group earnings guidance for the six months ended September 30, 2012. For the period, the company expects that the group would record a loss as compared to a profit for the corresponding period in 2011 despite the group recorded a net gain on trading of listed securities as compared to a net loss on the same in 2011. The expected loss of the group was mainly attributable to (i) reduction in brokerage commission income and margin interest income from securities brokerage business; (ii) decrease in gain in change of fair value of derivative
component of convertible loan notes; and (iii) the impairment of margin loan receivables.