Cosmos Machinery Enterprises Ltd. provided consolidated earnings guidance for the year ended December 31, 2013. The company announced that, based on a preliminary review of the consolidated management accounts of the group, with the profit generated from the disposal of equity interest of an associate Hon Kiu Machine Factory Limited in July 2013, the group is expected to record a profit attributable to shareholders for the year ended December 31, 2013 as compared to the loss attributable to shareholders for the year ended December 31, 2012. If such profits were not taken into account, the loss attributable to shareholders of the group for the year ended December 31, 2013 is expected to increase substantially as compared to the same for the year ended December 31, 2012.

The Board believes that such expected loss is mainly attributable to: profit margins were reduced due to the rise in labour cost and fluctuation of raw materials prices; appropriate provisions were made for its machinery manufacturing business after particular production line and product line were discontinued. The Board remains optimistic to the long term growth and development of the Group.