Guangdong Tannery Ltd. announced that, based on the company' preliminary review of the management accounts of the Group, which have not yet been audited by the company' auditors, the consolidated profit attributable to shareholders of the company for the year ended December 31, 2011 is expected to decline significantly as compared with that for the year 2010. Such decrease was primarily attributable to the following factors: a significant decrease in other income and gains as compared with 2010, mainly due to a substantial decrease in government subsidies and no disposal of investment properties in 2011 (gain on disposal of an investment property in 2010 was HKD 1,570,000); a decrease in gross profit margin of the Group products brought about by an increase in the cost of raw materials.