Megalogic Technology Holdings Limited expected to record a significant loss for the six months ended June 30, 2012 against a profit recorded for the comparative period for the six months ended June 30, 2011. The estimated significant loss was primarily attributable to the expenses incurred in connection with the listing of approximately HKD 9.3 million, which are non-recurrent in nature, to be charged to the group's profit and loss account upon of the completion of the listing on January 19, 2012. In addition, the group also recorded a drop in revenue and gross profit of the group as a result of increasing competition in the IC industry and the debt crisis in Europe, and an increase in administrative expenses to cope with the need of listing over the period under review.