Guangnan (Holdings) Limited provided earnings guidance for the year ended December 31, 2012. The company reported the shareholders of the company and potential investors that the consolidated profit attributable to shareholders of the company for the year ended December 31, 2012 is expected to have a substantial decrease as compared with that for the year of 2011. The factors responsible for the decrease are: the decrease in the other net income due to the significant decrease in the amount of write back of liabilities; the significant decrease in exchange gain due to the slower appreciation of Renminbi against the Hong Kong Dollar and the United States Dollar; and as a result of the substantial increase in the raw materials purchase cost of an associate of the Group, the Group will record share of loss of associates in 2012 as compared with share of profits of associates in 2011.