group during the current financial period reported on.

Group sales increased to S$3.487 million for the 3

million recorded for the same period of the previous year. The sales for Q3 FY2013 were mainly derived from

income of business hotels in Japan and sales of completed apartment units in Oppama, Japan.

The increase in sales of Q3 FY2013 vs Q3 FY2012 was attributed to the following from Japan:

i) completed apartment units (Oppama project) available for sale since Q2 FY2013

ii) contribution from the fifth business hotel ? nest HOTEL kumamoto and sixth business hotel ? Resol HOTEL

Sapporo, where completion of purchase were in Q4 FY2012 and

iii) contribution from the seventh business hotel, nest HOTEL sapporo ekimae, where completion of purchase was

on 1

iv) contribution from the eighth business hotel, nest HOTEL naha, where completion of purchase was on 1

2013.

Correspondingly, gross profit has increased by 73.3% to S$3.141 million as compared to S$1.812 million of the

same quarter last year.

The Group?s other gains of S$0.354 million were mainly attributed to gains of S$2.391 million from the revaluation of

investment property in Japan and other gains after off setting unrealised foreign exchange losses of S$2.122 million

resulting from the strengthening of exchange rate of Japanese Yen against Singapore dollars on the Group?s

Japanese Yen loans.

The gross profit of S$3.141 million coupled with other gains and other income have resulted a Group profit before

tax of S$1.732 million and an after-tax profit of S$0.545 million for the 3rd quarter ended 30 September 2013 when compared to S$2.890st May 2013.st Julyrd quarter ended 30 September 2013.

A commentary at the date of the announcement of the significant trends and competitive conditions

of the industry in which the group operates and any known factors or events that may affect the group

in the next reporting period and the next 12 months.

The main highlight for the quarter under review was the purchase of the eighth business hotel in Naha, Okinawa

(?Okinawa Hotel?), in Japan. Completion of the purchase and delivery of the hotel to the Company was on 1

2013. The Okinawa Hotel, a 10-storey building with 193 guest rooms, is leased to Nest HOTEL Japan Corporation

(?NHJ?) with a fixed term and has been renamed as ?nest HOTEL naha? on 1

The Group has on 11 October 2013 made an announcement that it has purchased the ninth business hotel in

Osaka, Japan. The hotel is currently being operated under the name of Chisun Hotel Shinsaibashi (?Osaka Hotel?).

The Osaka Hotel, a 13-storey building, has 302 guest rooms, and shall be renamed as ?nest HOTEL osaka

shinsaibashi? in February 2014.

For the current Q4, sales are ongoing for the completed units from the Oppama project.

The Group is working towards the completion of condominium project in Oiso, Japan by Q4 FY2013.

Concurrently, work is in progress to furnish a boutique hotel under its own brand, Grand nest, in Zhuhai, PRC of

over 200 rooms and completion is expected to be in Q4 FY2013.

The Group is continuously seeking and evaluating opportunities to expand its hotel portfolio in Japan, China and

other countries.st Julyst October 2013.