Good Friend International Holdings Inc. provided preliminary unaudited consolidated earnings guidance for the six months ended June 30, 2012. For the period, the company estimates to decrease significantly as compared to that for the same period in 2011. The significant decline in the profit was primarily attributable to the increase in raw material prices and labour costs in Mainland China, which in turn resulted in the decline of the gross profit.
Despite the estimated decrease of the profit, the Board considers that the overall financial position of the Group remains solid, and the Board is positive on the long term prospect of the Group.