The board of directors of Fountain Set Holdings Ltd. informed the shareholders of the company and potential investors that based on preliminary review of the unaudited consolidated management accounts of the Group, it is expected that the Group will record a net profit for the six months ended 30 June 2013 as compared to a net loss for the six months ended 31 August 2012. The net profit for the six months ended 30 June 2013 was mainly attributable to the improvement in operation efficiency through adopting a series of measures by the Group to reduce operating and management costs; together with a decline in international cotton prices resulting in relatively stable costs of raw materials; and the increase in the Group's operational efficiency gained by constantly optimizing the management structure and operational processes.