10. 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.

While the retail market remains challenging, the business model of the Group remains sound and the fundamentals including the branding of its core bsuiness remains strong. The Group will undertake to improve its working capital through various means including the divestment and encashment of the non-core assets. Drastic costs cutting also has been implemented across our businesses to improve costs efficiencies.

On 25 July 2012, Aussino entered into a conditional sale and purchase agreement with the shareholder of Max Strategic Investments Pte Ltd (?Max Strategic?) to acquire Max Strategic for a consideration of $70 million. If undertaken and completed, the transaction will result in the reverse take-over of Aussino as defined under Chapter 10 of the SGX-ST Listing Manual. On 28 April 2013, SGX-ST returned the application to the Company due to concerns relating to Max Strategic that have not been adequately resolved. The proposed acquisition has since been terminated on 29 July 2013.