JLF Investment Company Limited announced that based on the preliminary review of the Group's unaudited management accounts, it is expected that the profit of the Group for the year ended December 31, 2012 is likely to decline significantly as compared with that for the year ended December 31, 2011. Based on the preliminary review of the information currently available, such decrease was mainly attributable to: the decrease in general sales volume compared with last year as a result of slower economic growth in China which lead to a weaker demand of domestic wine and baijiu products; the decrease in gross profit margin on the winery business compared with last year because of: increase in costs of production due to higher material and labour costs and fierce competition from imported wine; and the increase in general costs of operation especially labour costs, marketing and rental.