The board of directors of Quali-Smart Holdings Limited announced to the shareholders of the company and potential investors that, based on the information currently available, the Group is expected to record a decrease in its net profit for the year ended March 31, 2013 as compared to the net profit of approximately HKD 47.7 million for the year ended March 31, 2012. The expected decrease in net profit was mainly attributable to the (i) one-off financial impact from the expenses related to the initial public offerings of the shares in the company of approximately HKD 16.3 million; and (ii) a loss on derivative financial instruments of approximately HKD 0.1 million for dealing with the Renminbi exchange risk arising from normal operations of the Group as compared with a gain of approximately HKD 8.2 million in the
previous financial year.