The board of directors of Comba Telecom Systems Holdings Ltd. informed the shareholders of the company and potential investors that the group anticipates to report a loss in the results for the year ended 31 December 2012, which is primarily attributable to the factors: The overall gross profit margin of the group may fall due to the increase in the cost of sales caused by the inflation, the increasingly fierce competition in the telecommunications industry and the unrealized sales scalability of new products and new businesses; Continuous global expansion of the sales and service networks of the group resulted in the surge in operating costs; Inventories write-off and other assets impairment resulted in the decrease in the overall gross profit margin and the increase in the expenses of the group.