As stated in the 2011 annual report of Symphony Holdings Ltd., the company has been migrating the manufacturing facilities to Vietnam and Henan to improve cost efficiency. The board of directors of the company informed shareholders of the company that the group's manufacturing facilities in Fuzhou and Pangyu in China (PRC Manufacturing Facilities) had ceased operation in the first half of 2012. Based on the information currently available, the Board presently expects that the interim results of the group for the period ending 30 June 2012 will record a loss as compared to a profit for the corresponding period ended 30 June 2011. This loss is mainly attributable to the severance and termination costs incurred as a result of the cessation of operations of the PRC Manufacturing Facilities. The company will continue to pursue low cost production growth opportunities inside and/or outside China.