The board of directors of Chiho-Tiande Group Limited announced that the group expects to record a significant decrease in net profit for the year ended December 31, 2012 as compared with the previous financial year. The decrease in net profit is mainly attributable to (i) the global economic turmoil which resulted in the market volatility and decrease in commodity prices during the year, (ii) the decrease in the sales volume of the group during the year; and (iii) the significant increase in finance cost mainly due to an increase in the interest expenses as a result of the issue of the convertible bonds of the company at the beginning of 2012.