Texwinca Holdings Ltd. provided earnings guidance for the six months ending September 30, 2012. For the period, the company expects that the group may record a significant decrease in net profit as compared with the corresponding period in 2011. Based on the information currently available, the Board considers that the decrease in net profit is primarily attributable to the decline in gross profit in the textile business of the group.

Such decline was mainly due to the deterioration in the market conditions of the textile industry of the Mainland China as caused by the incompetitiveness of its cotton price compared with that of the other countries. The Board believes that this unfair price difference will be corrected by the market in the near term and the group will regain its momentum in achieving better financial results after the correction.