Arts Optical International Holdings Limited provided group earnings guidance for the year ending December 31, 2014. For the period, the company's net profit is presently anticipated to be significantly lower than that of 2013. The anticipated effect on the net profit for the year ending 31st December, 2014 is mainly attributable to: the significant increase in labour costs after the statutory minimum wage in Shenzhen City, where the group's manufacturing facilities are located, increased by 13% as from February 2014; the significant increase in other operating costs in Mainland China as compared with 2013; and the net after-tax gain of HKD 19.3 million recorded by the group in 2013 upon the disposal of two wholly-owned subsidiaries that held two pieces of unutilised land in Heyuan City, which raised the group's profit in 2013 and caused the group's profit for the year ending 31st December, 2014 to appear lower in comparison.

Taking into account of the effects of accounting treatment of the Disposal, the Board further anticipates that the group will report a substantial loss for the year ending December 31, 2014.