The board of directors of Asia Fashion Holdings Limited announced that it is expected that the group will report a loss for the first quarter of 2012 due to the following reasons: Lower revenue was recorded due mainly to the general decline in the demand of abrics in the existing customers in their manufacturing of sports and leisure apparels, hoes and other segments, compared to the corresponding period last year. Lower average selling prices of products due mainly to the severe competition towards scarce market demand, compared to the corresponding period last year. Lower level of production facilities utilization rate due to insufficient production orders which in turn adversely affected the Company's gross margin.