The board of directors of the Li & Fung Limited has conducted a preliminary review of the management accounts of the Group for the full year ended December 31, 2012. Based on the preliminary review of the ongoing restructuring of LF USA's business, including the reduction in the number of brands distributed in the USA which negatively impacted the company's margin, the Group's efforts to improve the second half results will not achieve an improvement in core operating profit, and core operating profit is expected to be lower by approximately 40% (compared to the
corresponding period in 2011). Although there will be write backs of several contingent considerations, it is estimated that profit attributable to shareholders for the full year 2012 is unlikely to exceed the profit attributable to shareholders in 2011.