Yue Yuen Industrial (Holdings) Limited announced that based on the consolidated management accounts of the group, the performance of the group in the first three months ended 31 March 2013 has demonstrated a significant downturn year on year and therefore the group's results are expected to be adversely and materially affected for the first interim period. The change in operating results of the group was mainly due to the following reasons: (i) rising input costs affecting manufacturing operations; ii) relocation and allocation of production capacity for the manufacturing operations which affected operating efficiency and thus operating profit; and (iii) a significant portion of last year's net profit was derived from non-recurrent and one-off items. To deal with the change in operating results of the company, the Board will continue to undertake various production efficiency implementations and try every means to contain the rising costs with the aim to improving its business.