JLF Investment Co Ltd Comments On FY 2012 Profit Guidance

JLF Investment Co Ltd announced that for fiscal 2012, it expects that the profit is likely to decline significantly as compared with that for fiscal 2011. Based on the preliminary review of the information currently available, such decrease was mainly attributable to: the decrease in general sales volume compared with last year as a result of slower economic growth in China which lead to a weaker demand of domestic wine and baijiu products; the decrease in gross profit margin on the winery business compared with last year because of: (i) increase in costs of production due to higher material and labour costs; and (ii) fierce competition from imported wine; and the increase in general costs of operation especially labour costs, marketing and rental.