The Board of The Sincere Company Limited estimated that the Group will record a significant increase in loss for the six months ended August 31, 2014 as compared with that for the corresponding period in last year. The expected substantial increase in loss was mainly attributable to the closure of central district store which was the biggest store before the lease expiry in August 2013; the closure of grand century place store which has the high sales per square foot and the lease was expired in April 2014; the revenue for the three new stores opened within the last twelve months were still on their learning curves and yet to match with the revenue previously contributed by the central district and grand century place stores; and increase in the operating costs on the above mentioned three new stores, in particular the occupancy and advertising expenses.