Hong Leong Asia Ltd. provided earnings guidance for the full year of ended December 31, 2012. For the period, the Group expects to report a loss as compared to the profit reported for full year of 2011, subject to the finalization of the unaudited financial statements of the Group for full year of 2012. The expected loss is mainly attributable to the estimated loss on impairment of assets amounting to RMB 290 million arising from an impairment assessment in respect of Xinfei; and the additional tax liability of approximately RMB 35 million as a result of the Chinese tax authority disagreeing with Xinfei on the application of the high tech incentive status granted for full year of 2008 and 2009.

The Xinxiang National Tax Bureau has issued notice requesting for payment of this additional tax.