The board of directors of Eyang Holdings Group Co. Ltd. announced that after a preliminary review on the group's unaudited consolidated management accounts for the six months ended June 30, 2012, it is expected that the interim results of the group for the year 2012 will record a loss. This is mainly attributable to the continuous increase in production costs and downward pressure on the selling prices of major MLCC products as a result of the international counterparts' aggressive competition strategies, causing a drastic drop in gross profit; and the falling selling prices result in a considerable provision for the inventory. As the company is still in the process of finalizing the group's results for six months ended June 30, 2012, the information contained in this announcement is based on the management's preliminary review on the management accounts of the group and the current available information which have not been reviewed or confirmed by the company's auditors.