Kenford Group Holdings Ltd. board of directors announced that the management of the company expects that the Group may record a substantial reduction in its consolidated profit for the financial year ended March 31, 2012 as compared to that for the financial year ended 31 March 2011. The primary reason for the substantial decrease in its consolidated profit is contributed by the decline in turnover and gross profit margin of the Group as a whole. Such decline was mainly attributable to: the decrease in demand from the overseas customers in the second half of the financial year; the increases in material costs; and the increase in operating expenses as a result of the appreciation of Renminbi and the increase in statutory minimum wages in the People's Republic of China during the financial year.