Shirble Department Store Holdings (China) Limited provided group earnings guidance for the six months ended June 30, 2012. The board of directors of the company informed the shareholders of the company and potential investors that it is currently anticipated that there may be a substantial decrease in the net profit of the group for the six months ended 30 June 2012 as compared to the six months ended 30 June 2011. The decrease was principally attributable to a number of non-recurring or economic factors, including: the increases in the administrative expenses and operating costs (mainly rental expenses and personnel costs) incurred for the 10 department stores opened in 2010, 2011 and 2012 were more than the increases in the sales generated during the period; the decrease in the sales generated from the existing department stores amid the economic slowdown; the decrease in the commission income from the concessionaire sales as a result of increasing competition in the retail businesses in Shenzhen; the decrease in the advertising and promotion income as a result of stringent governmental policy effective from December 2011; the lack of recognition of the deferred income in respect of the long-aged pre-paid gift cards issued by the group; and the one-off impairment loss in respect of a property acquired by the group.