Heng Tai Consumables Group Limited provided earnings guidance for the year ended June 30, 2013. The board of directors of the company announced that the shareholders of the company and potential investors that the consolidated financial results of the Group for the financial year ended June 30, 2013 are expected to record a loss. The Board notes that there has been a decrease in customers' demand and postponements of orders of the products and services of the Group, which were believed to be due to the challenging operating environment as a result of the fierce competition from local brands; the weakening demand arising from the uncertainties in the global and domestic economic environments during the year; and a more stringent credit control adopted by the Group to reduce taking orders from customers with weak credibility for the purpose of averting chances of material uncollectible debts.

In view of these, the Group had been reducing the selling price for certain products, which also had an impact on the Group's overall gross profit margin during the year. Further, it is expected that the 2013 Results will also be affected by the increase in the agricultural raw materials costs, labour costs and certain provision for perishable inventories for the trading and upstream farming businesses; and the charging of fair value of the share based payment arising from the grant of share options under the existing share option scheme of the company.