Hao Wen Holdings Limited provided group earnings guidance for the year ended December 31, 2013. The board of directors of the company informed the shareholders of the company and potential investors that it is expected that the results of the group for the year ended 31 December 2013 may experience a significant decline compared with that for the corresponding period in 2012. Based on the information currently available, such decline is mainly due to the rise in raw material costs and sub-contracting charges as a result of the escalating raw material prices and labour costs.

Such increases have weakened the competitiveness of the company's products. In addition, the strong appreciation of Renminbi and the economic downturn in Europe also have had adverse impact on the Group's results. In view of the unsatisfactory results, the board will make a substantial provision for an asset impairment loss in respect of the intangible assets of the group.

Such substantial provision is expected to have a material negative impact on the company's final results. The board state that the aforementioned provision is non-cash in nature, and therefore will not have any significant impact on the cash flow of the group.