Huazhong Holdings Company Limited provided consolidated earnings guidance for the six months ended June 30, 2012. The board of directors of Huazhong Holdings Company Limited announced that the unaudited interim results of the Group for the six months ended June 30, 2012 is expected to record a significant decline as compared to the corresponding period in 2011. Such decline is mainly due to; the commencement of production and launch of new products and suspension of production of certain old products during the six months ended June 30, 2012 resulted in the decline of gross profit margin of the Group; a one-off gain from a bargain purchase was recorded by the Group during the six months ended June 30, 2011, while no such gain was recognized in the six months ended 30 June 2012; the Group recorded share of loss of its jointly controlled entities during the six months ended June 30, 2012, as compare to a share of profit during the same period last year; and the expenses recorded by the Group during the six months ended June 30, 2012 in connection with the grant of pre-IPO share options to the management and employees of the Company prior to the listing of the Company's shares on The Stock Exchange of Hong Kong Limited on January 12, 2012.