The board of directors of Centron Telecom International Holding Ltd. announced shareholders of the company and potential investors that, based on the unaudited consolidated management accounts of the company for the financial year ended December 31, 2012, the Group expects to record a significant decline in its net profits for the financial year ended December 31, 2012 as compared to its net profits for the financial year ended December 31, 2011. Such estimated decline in net profits is primarily attributable to: a decline in sales prices as a result of more intense competition in the telecommunication industry; an increase in management expenses as a result of strengthened investments in research and development for addressing to market competition; a decline in the overall gross profit margin of the Group as a result of increased staff costs and sales costs due to inflation; and an increase in management expenses as a result of the additional provision for accounts receivable for the second half of 2012.