The board of directors of Fairson Holdings Limited announced that it is expected the group will record a net loss for the year ended March 31, 2012 as compared to a net profit for the year ended 31 March, 2011. The net loss was mainly attributable to: (i) the operating loss from the manufacturing and sale of copper wires which are yet to achieve economies of scale for the year ended 31 March 2012; (ii) the decrease in gross profit margin as a result of increasing market competition under the global economic downturn; (iii) the impairment of goodwill due to the drop in turnover and profit margin of the raw cables and its related power and data cords for mobile handsets under the global economic downturn and fierce competition; and (iv) the provision for aged inventories.