Deyu Agriculture Corp. provided preliminary unaudited consolidated earnings guidance for the year ended December 31, 2013. The company announced, based on its preliminary review of the company's unaudited consolidated financial statements, it was expected that the company would record a loss of between $24 million and $28 million for the fiscal year ended December 31, 2013 as compared to a profit of $16 million for fiscal year ended December 31, 2012.

The expected loss was mainly attributable to: the substantial decrease in the gross margin of corn sales caused by a decrease in demand in the corn market; the increase in cost of raw materials for grain products; the increase in operating expenses including, without limitation, freight costs, warehouse and handling expenses and allowance of bad debts; and the nonrecurring losses that occurred in 2013, which included impairment losses of certain assets and corn inventory damages due to weather related conditions.