Arts Optical International Holdings Ltd. provided earnings guidance for the six months ending June 30, 2012. For the period, the company's net profit anticipated to be significantly lower than that of the corresponding period in 2011. The board believes that the significant decrease in the net profit of the group is attributable to various factors, including (i) the increase in labor costs after the minimum wage in Shenzhen, where the group's manufacturing facilities are located, increased by 20% in April 2011 and 14% in February 2012; (ii) the appreciation of Renminbi by around 4% in the first four months of 2012 as compared with the corresponding period of 2011.