Shenzhen Kaifa Technology Co., Ltd. provided earnings guidance for the third quarter and nine months ended September 30, 2012. For the quarter, the company is expected that the net profit/loss attributable to the shareholders of the company to be around a loss of RMB 10.81 million to a profit of RMB 7.66 million as compared with a net profit of approximately RMB 77.64 million for the corresponding period last year. The earnings/loss per share is expected to be around a loss of RMB 0.0082 to earnings of RMB 0.0058 as compared with earnings per share of RMB 0.0589 for the corresponding period last year.

For the nine months, the company is expected that the net profit attributable to the shareholders of the company to be around RMB 55.35 million to RMB 73.82 million, representing a decrease of approximately 60% to 70% as compared with the profit attributable to the shareholders of approximately RMB 184.53 million for the corresponding period last year. The basic earnings per share are expected to be around RMB 0.042 to RMB 0.0559 as compared with RMB 0.1339 for the corresponding period last year. The decrease in profit for the reporting period as compared with the corresponding period last year was attributed to the further loss recorded by Shenzhen Kaifa Magnetic Recording Co., Ltd., a 57%-owned subsidiary of Great Wall Kaifa, the continued sluggish global economy and euro sovereign debt crisis which had resulted in a fall in the overall business of Great Wall Kaifa, as well as the rising labour costs which had reduced the profit margin of products.