On Real International Holdings Limited provided earnings guidance for the third quarter ended 31 December 2015. The company has recently been informed by its customer that the customer has reformulated and changed their sales strategy to license its brand for the consumer two way radios exclusively to a third party (the Licensee), and to the best knowledge of the Directors, the licensee will have discretion to select vendors and the strategies for the business behavior for the consumer two way radios under its brand. As a result, the customer has ceased to place orders of consumer two way radios to the company directly.

The customer continues to place other models of two way radios to the company and did not withdraw their preliminary sale forecasts of other models of two way radios submitted to the company. The loss of the consumer two way radios orders from the customer is expected to result in significant decrease in revenue of the company for the third quarter ended 31 December 2015 as compared to the corresponding period in 2014 and may also have negative impact on the financial results for the year ending 31 March 2016.