Top Form International Ltd. as stated in the 2012 interim report of the company, the company was continuing to migrate part of the high cost production in China to low cost regions outside of China. The board of directors of the company announced that following this strategic plan, it was announced that the Group's manufacturing operations in Shenzhen, China will cease on July 31, 2012. Some functions such as product development and logistics will remain in that location. The Board also announced that it is presently expected that the audited final results of the Group for the year ended June 30, 2012 will record a loss as compared to a profit for the corresponding year ended June 30, 2011. This loss is mainly attributable to the Shenzhen closure together with continued weak sentiment in the US and EU markets and operational issues in Regional Thailand plant.