China Environmental Investment Holdings Limited provided earnings guidance for the year ended December 31, 2012. The board of directors informed the shareholders of the company and potential investors that, based on the information currently available, the Group is expected to record a loss for the year ended December 31, 2012 as compared to a profit for the year 2011. The expected loss is mainly attributable to impairment of trade receivables; increase in finance costs; and increase in gross profit is less than increase in expenses.