CPH Ltd. provided earnings guidance for the year ended March 31, 2012. For the period, the group is expected to report a net loss mainly due to the group's printed circuit boards operations continued to face difficult business conditions in the second half of 2012, and consequently the sales for PCB products reduced as compared to the first half of 2012. Gross profit margin of the group was also negatively affected due to the weaker market demand. In view of the unfavorable business conditions faced by the group, commercial production of research and development initiatives of the Group is likely to be delayed. Therefore, the group will be accelerating its amortization charge of its capitalized research and development expenditure. The group's results were also adversely affected by the initial operating loss, including preliminary and preoperating expenses, for the Group's newly incorporated 51.51% owned subsidiary, Cheer Garden Restaurant Co. Ltd. in Chongqing, China which commenced business in October 2011.