Changfeng Axle (China) Company Limited provided group earnings guidance for the year ended December 31, 2011. The net profit of the group for the year ended December 31, 2011 is expected to record a significant decline as compared with the corresponding year ended December 31, 2010. Based on the information currently available, the Board considers that such significant decline is primarily attributable to the decrease in sales volume of the group's products as a result of the weak market of medium and heavy duty truck; the decrease in unit selling price of the group's products under the keen competition in the aftermarket industry; and the increase in allowance for trade receivables after having considered the deterioration of the truck industry and the operating pressure on the group's customers.