The Board of Directors of China Kangda Food Company Limited announced that following a preliminary assessment of the unaudited financial results for the nine months ended September 30, 2012, it is expected that the Group will report a lower unaudited net profit for the nine months ended 30 September 2012 compared to the corresponding period last year. The expected decline in the unaudited net profit of the Group is mainly attributable to: a decrease in demand for rabbit meat of the certain countries in the European Union because of the economic uncertainty emanating from Europe; the intense competition of chicken meat in the PRC market; and the increased labour costs in compliance with the revised requirements in minimum wages and social security regulations.