The board of Yue Da Mining Holdings Limited announced that principally due to a general decline in the price of metals in the international commodity market during the year ended 31 December 2015 and the related price outlook; and the tightening of safety and environmental requirements by government of the People's Republic of China on mining industry which increased the complexity of production processes and thus the direct production costs, it is expected that the mining rights; and the property, plant and equipment held by subsidiaries of the company, are to record impairment losses of approximately RMB 117.1 million and RMB 36.6 million respectively on the consolidated financial statement of the group for the year ended 31 December 2015. With respect to the impairment losses, approximately RMB 40.8 million and RMB 27.3 million were charged to mining rights and property, plant and equipment, respectively, in the unaudited consolidated financial statements for the six months ended 30 June 2015. In addition, as compared to a gross loss of approximately RMB 10 million for the year ended 31 December 2014, the group is expected to record a gross profit for the year ended 31 December 2015 as a result of suspension of production of Tengcheng Ruitu, which operated in gross loss in 2014; and increase in production volume of stone for construction which has high profit margin.

The company is still expected to record a loss attributable to owners of the company for the year ended 31 December 2015, based on the information currently available to the board and a preliminary assessment.