The board of directors of Herald Holdings Ltd. informed the shareholders of the company and potential investors that it is expected that the results of the Group for the year ended 31 March 2012 may experience a significant decline as compared to the year ended 31 March 2011. Based on the information currently available, the board considers that the decline is mainly due to the following factors: as a result of the downturn in global stock markets, the Group recorded significant net realized and unrealized losses on trading securities for the year ended 31 March 2012 as compared to net gains of HKD 6.1 million in the previous year; and both sales volume and profit margin of the Group dropped for the year ended 31 March 2012 amid global economic uncertainty and rising costs of production.