Hidili Industry International Development Ltd. provided earnings guidance for the year ended December 31, 2012. The board estimated that based on a preliminary review of the group's unaudited consolidated management accounts for the year ended December 31, 2012 and the information currently available to the board, the board currently estimated that for the year ended December 31, 2012 to record a substantial decrease in profit after taxation, as compared to the profit after taxation for the year ended December 31, 2011. The substantial decrease is mainly attributable to the sales volume and selling prices of the company's principal products maintained at a low level in the second half of 2012.

Also, the company's coking plant in Panzhihua with annual capacity of 200,000 tonnes has ceased production as there was no sufficient clean coal supplied for coking resulting from the industry policy implemented by the PRC government and the ongoing coal mine consolidation. The company therefore expects to make respective provision for impairment.