The board of directors of Guangdong Nan Yue Logistics Co. Ltd. announced that, based on the financial information currently available, it is anticipated that the company will record a substantial decrease of profit for the year ended December 31, 2012 as compared with that for the year ended December 31, 2011, as restated to reflect the asset swap (as defined in the circular of the company dated November 5, 2012). The expected substantial decrease of profit was mainly attributable to (i) the decrease in projects, which resulted in a fall in supplies, and the decrease in the price of materials in the group's material logistics business, which contributed to a decrease in profit from such business during the year ended December 31, 2012; and (ii) the professional fees incurred in connection with the Asset Swap of approximately RMB 24 million after income tax effect.