Ares Asia Limited provided earnings guidance for the six months ended September 30, 2012. The group expects to record a significant loss for the six months ended September 30, 2012 as compared with a profit for the six months ended September 30, 2011. The Board considers that the deterioration in the performance of the Group is mainly attributable to a decrease in turnover as a result of lower demand in the footwear industry which is caused by the on-going debt crisis in Europe and the sluggish U.S. economy; an increase in administrative expenses as a result of the increase in employee benefit expenses, as well as the legal and professional fees incurred for the proposed acquisition of a mining services company in Indonesia; and the restructuring costs associated with streamlining of manufacturing operation in the PRC during the first half of financial year 2013.