Tse Sui Luen Jewellery (International) Limited provided consolidated earnings guidance for the six months ended August 31, 2012. The board of directors of the company informed the shareholders and potential investors that the sales of the group slightly increased during the six months ended 31 August 2012 despite the unfavorable market sentiment when compared with the high base figure in the corresponding period in 2011. However, it is expected that the group will experience a decline in its net profit attributable to owners of the company for the six months ended 31 August 2012 in the range of 60% to 70% as compared with the corresponding period for 2011, mainly due to (i) a shift in the sales mix towards lower-margin 24-karat gold products; (ii) high diamond and gold prices prior to the market downturn which have increased the cost of goods sold; (iii) a conscious decision to continually improve and invest in the human resources and the infrastructure of the Group, which has resulted in an increase in costs, but which, the Board believes, will benefit the Group in the long run; (iv) the slow down of growth of the economy of Mainland China and the volatility in the global macroeconomic environment have adversely affected the jewellery industry and the demand for the group's jewellery products.