Perception Digital Holdings Limited provided earnings guidance for the year ended December 31, 2012. For the year, the company expected that the company and its subsidiaries may record an increased loss for the year ended December 31, 2012 as compared with the loss recorded for the year ended December 31, 2011, which was mainly caused by (i) the overall decrease in gross profit margin of the Group as affected by the intensification of the European economic crisis during 2012; (ii) potential impairment on receivables from certain customers arising from disputes with those customers; and (iii) an impairment of inventory in connection with certain raw materials previously stored in a subcontracted warehouse, which were found to be lost during the stock taking process.