Tai Ping Carpets International Ltd. is expected to record a significant increase in profits for the year ended December 31, 2012 as compared to the corresponding period in 2011. The improvement in the Group's results is primarily due to an accounting profit relating to a very substantial disposal of the equity interest in three PRC joint ventures, which was previously reported and an accounting gain relating to insurance recovery due to the flood in Thailand in 2011. Total insurance recovery is still under discussion with the insurers.