Sage International Group Limited provided group earnings guidance for the nine months ended 30 September 2013. The board of directors of the company informed the shareholders of the company and potential investors that based on the preliminary review of the unaudited financial information for the nine months ended 30 September 2013, the loss of the group for the reporting period may increase significantly as compared with the loss recorded for the corresponding period in 2012. Based on information currently available, the board believes that the loss was primarily attributable to the impairment loss of the cemetery assets use rights.

The Board considers that as the impairment loss of the cemetery assets use rights is non-cash items and does not have an impact on the operating cash flows of the group.