Guangdong Tannery Limited Comments On H1 2012 Earnings Guidance

Guangdong Tannery Limited announced that for the first half of 2012, it expects to record a loss as compared with a profit for the same period in 2011. Such decrease is primarily attributable to the reduction in sales volume as a result of a continuous decrease in the sales market of footwear leather in Mainland China; significant decrease in gross profit margin of the group’s products brought about by an increase in unit cost of raw materials and manufacturing expenses and an increase in operating costs as a result of an increase in statutory minimum wages in Mainland China.