Ta Yang Group Holdings Limited provided earnings guidance for the six months ended January 31, 2012. For the period, the company expects to record a loss as compared to the profit recorded for the six months ended January 31, 2011. The Board considers that the loss for the period was primarily attributable to lower revenue records than anticipated due to the economic downturn arose from European sovereign debt crisis; decrease in gross profit margin is resulted from surging raw material costs and the rising labour costs in Mainland China; and increase in depreciation due to the significant additions of plant and machinery catering for business expansion.