Guangdong Tannery Ltd. provided earnings guidance for the full year ended December 31, 2014. The Group' profit for the year ended December 31, 2014 is expected to decline significantly, which may result in either a significantly lower net profit or even a net loss as compared to the corresponding period in 2013. Such decline was mainly due to the following factors: decrease in gross profit margin of the Group' products resulting from the increment in unit cost of raw materials being greater than that in selling price per unit, though there is an increase in sales volume; and exchange loss arising from the depreciation in RMB against USD.

However, as the company is still in the process of finalising its consolidated results for the year ended 31 December 2014, the information contained in this announcement is only a preliminary assessment by the management of the company based on the latest available information and is subject to possible adjustments following further internal review as well as end of year adjustments, if any, and is not based on any figure or information which has been reviewed by the company' auditors or audit committee.