Tristate Holdings Ltd. provided earnings guidance for the year ended 31 December 2013. For the year, the company expected to record a substantial decrease in profit as compared with 2012 not withstanding the release of certain tax related provisions after finalization of the tax audit with the Hong Kong Inland Revenue Department. The drop in profit is mainly attributable to increase in planned investment on expanding proprietary brand HASKI under branded product distribution and retail business; one-time redundancy and other costs following its strategic plan to close down a factory in Southern China in order to consolidate resources and enhance the strength of the company's remaining factories in China; surge in labour and operating costs in the company's garment manufacturing business; and lack of non-recurring gains in 2012 upon disposals of a subsidiary and a property.