In an unrelated circular dated 16 September 2008, the directors expressed a view that there were “no material adverse changes in the company during the year up to 9 September 2008”. This contradicts the profit warning which indicated the Company had known of the losses as early as 7 September 2008. This indicates a possible false and misleading statement, which may subject directors to liability under section 298 of the Securities and Futures Ordinance.