Meike International Holdings Limited provided consolidated earnings guidance for the year ending December 31, 2012. The board of directors of the company informed the shareholders of the company and potential investors that the Group's financial results for the year ending December 31, 2012 is likely to be deteriorated due to the Group's record of a loss of RMB 65,403,000 (equivalent to approximately HKD 8,347,000) as a result of the resale. Based on preliminary review of the unaudited consolidated management accounts of the Group, the Group is expected to incur a substantial loss for the year ending December 31, 2012 as compared to the profit for the corresponding period in 2011, as the repurchase of inventories from the distributors and retailers in the amount of RMB 9,09,000 (equivalent to approximately HKD 3,320,000) has been completed and the repurchased inventories were subsequently resold for an aggregated amount of approximately RMB 25,706,000 to overseas customers through various independent third party export companies not connected with the group.