Xingda International Holdings Ltd. provided earnings guidance for the year ended December 31, 2012. For the period, the group is expected to record a substantial decrease in the net profit attributable to the owners of the company as compared with the net profit attributable to the owners of the company for the year ended December 31, 2011. The expected decline in the net profit attributable to the owners of the company for the year ended 31
December 2012 was primarily attributable to the following reasons: the decrease in average selling prices of radial tire cords products and sawing wires products in China market due to the price pressure in the industry, which led to gross profit margin erosion; the decrease in government grant received during the year ended 31 December 2012 of approximately RMB 46 million; the provision of deferred tax charge; and the increase in impairment loss recognized on trade receivables.