Solartech International Holdings Ltd. provided consolidated earnings guidance for the year ended June 30, 2012. Based on preliminary review by the board of directors of the company of the unaudited consolidated management accounts of the Group, the Board informed the shareholders of the company and potential investors that the Group is expected to record a loss for the year ended 30 June 2012 as compared to the profit recorded in the same period in 2011. Based on the relevant information currently available to the company, the Board considers that such loss was mainly attributable to the reduction in turnover caused by the recent deterioration in the global macro economic environment; the decrease in overall gross profit margin caused by the increased competition and downward prices; and the loss on change in fair value of derivative financial instruments.