Kasen International Holdings Ltd. provided earnings guidance for the year ended December 31, 2012. For the year, the company expected that the Group will experience a substantial decline in its consolidated net profit for the year ended December 31, 2012 as compared with the corresponding period for the year ended December 31, 2011. The Board considers that such decline is primarily attributable to a decrease in a one-off disposal gain resulted from the loss of control of a subsidiary of the Group recognized as compared with the corresponding period for the year ended December 31, 2011 and a loss of a one-off disposal gain resulted from the relocation of a factory recognized for the year ended December 31, 2011 but not for the year ended December 31, 2012.