CITIC Dameng Holdings Limited announced that based on the preliminary review of the unaudited management accounts of the Group for the twelve months ended December 31, 2012, it is expected that the group may record a more significant decline in its results for the year ended 31 December 2012 as compared with the year 2011, than it estimated at the date of the first profit warning. The reasons of adverse changes are mainly: impairment of an entrusted loan to an independent third party; and write down of deferred tax assets arising from tax losses of certain subsidiaries.