Fittec International Group Limited. provided group earnings guidance for the six months ended December 31, 2011. The board of directors of the company informed its shareholders and potential investors that the company and its subsidiaries is expected to record a substantial loss for the six months ended December 31, 2011 as compared to the result of the six months ended December 31, 2010. The company considers that the expected loss and decrease in revenue of the group for the six months ended 31 December 2011 was mainly attributable to (i) Flooding forces suspension of hard disk drive production in Thailand Factory since October 2011; (ii) The unfavorable business environment that persisted during the period, namely, shortage of labor, rising the minimum wages and raw material cost and appreciation of Renminbi; (iii) impairment loss on production facilities of Thailand subsidiary after the flood, amount to approximately HKD 68,685,000, which the insurance coverage is adequate to cover the loss, and insurance claims process is in progress; (iv) loss arising from the embezzlement approximately HKD 14,717,000 which the two criminal suspects has been arrested and the investigation is still on-going.