Dragonite International Limited provided group earnings guidance for the full year ended December 31, 2012. The company expects to record a loss for the year ended December 31, 2012. Based on the preliminary assessment of the group's unaudited management accounts for the year and information currently available to the Board, to the best of the Directors' knowledge, the expected loss for the year was primarily attributable to the (i) loss incurred by the Ruyan atomizing cigarettes business; (ii) fair value losses on derivative financial instruments, (iii) provision made for the loan receivable; (iv) unrealized losses on financial assets at fair value through profit or loss and; (v) increase in professional and legal costs.

The group expects a substantial decrease in loss for the year as compared to the year ended December 31, 2011 as the losses on change in fair value of financial assets at fair value through profit or loss for the year decreased to approximately HKD 11.1 million, subject to audit.