Neo-Neon Holdings Limited provided earnings guidance for the year ended March 31, 2014. The board announced that, based on the information currently available, the group is expected to record a substantial consolidated loss attributable to owners of the company for the year ended March 31, 2014 more than the audited consolidated loss of approximately HKD 624 million for the year ended March 31, 2013. The board considers that the consolidated loss recorded for the year ended March 31, 2014 is mainly due to the fact that gross margin has shrank due to the surging labor costs and operating expenses; and adjustments to and provisions for slowing moving and obsolete stock and long overdue account receivable have been made in light of the worsening economic conditions.