YUE DA INTERNATIONAL HOLDINGS LIMITED Yue Da Mining Holdings Limited announced that based on the information currently available to the board and the preliminary unaudited consolidated management accounts of the group for the year ended December 31, 2014, the group is expected to record revenue from continuing operation of approximately RMB 128 million, representing a decrease of approximately 33% as compared to the revenue from continuing operation of approximately RMB 191 million for the year ended December 31, 2013. The group is also expected to record gross loss from continuing operation of approximately RMB 10 million for the year ended December 31, 2014 as compared to the gross profit of approximately RMB 23 million for the year ended December 31, 2013. The Board considers that the main reasons for the decrease in revenue and change in gross profit position to gross loss position from continuing operation of the group include: (i) continued the decrease in the price of gold and iron during the year ended December 31, 2014; (ii) the production of certain subsidiaries of the company were temporarily reduced in the first half of the year for technology improvement and optimization of production process; and (iii) temporary suspension in the mine operation of Tengchong Ruitu Mining and Technology Company Limited, a subsidiary of the company, from June 2014 to November 2014 in order to facilitate safety inspection which was completed in early November 2014.
Based on information currently available to the Board, the group is expected to record a loss for the year ended December 31, 2014. Should there be impairment losses on the related assets of property, plant and equipment and mining rights of the group recognized by the group and/or provision made for the amount receivables under the Sao Mai Acquisition and the loan agreement for the year ended December 31, 2014, further loss will be recorded for the group for the year ended December 31, 2014. Accordingly, the loss of the group for the year ended December 31, 2014 may or may not be more than those for the year ended December 31, 2013.
