The board of directors of Harmonic Strait Financial Holdings Limited announced that, based on the information currently available, the loss of the group for the year ended December 30, 2012 is expected to increase significantly as compared with that of 2011. The Board considers that the anticipated increase in the group's loss is primarily attributable to the impairment loss on the goodwill of the credit guarantee and investment business recorded during the 2012 interim results and further possible impairment loss on the goodwill of the same segment; significant drop in both the turnover and the segment result of export business due to reduce in customer orders of the exporting business, consequential to its high staff turnover, difficult industry environment and dwindling bank support; and significant drop in both the turnover and gross profit of financial planning services due to intense market competition.