The board of directors of Ningxia Building Materials Group Co., Limited is expected to suffer loss for the six months ended 30 June 2015, and the estimated net profit attributable to shareholders of the company is approximately RMB 42,000,000. For the six months ended 30 June 2014, the estimated net profit attributable to shareholders of the company and the estimated earnings per share of Ningxia Building Materials were RMB 113,763,400 and RMB 0.24, respectively. The estimated significant decline in the results of Ningxia Building Materials for the six months ended 30 June 2015 compared to the results for the corresponding period of last year is mainly attributable to the decline of sales volume and sales price of cement and commercial concrete from January 2015 to June 2015 as compared with the corresponding period of last year due to the factors such as regional cement overcapacity and sluggish of market demands.

Although the estimated performance of Ningxia Building Materials declines significantly as compared to the results for the corresponding period of last year, the board of directors of the company expects that the overall financial condition and business operation of the Group for the first half of 2015 still maintain a solid development trend.