The board of directors of Far East Holdings International Limited informed the shareholders of the company and potential investors that it is anticipated that the Group will record a loss in total comprehensive income in the unaudited interim results of the Group for the six months ended 30 June 2012. Based on the information currently available to the company, the Board believes that the loss was mainly due to a significant decrease in sales of Jiangsu Bang Bang Silky Fashion Manufacturer Co. Ltd., a subsidiary of the Company, as a consequence of poor economic condition in Japan and also the loss contributed from the fair value loss on available-for-sale investments.