Shougang Concord Century Holdings Ltd. provided consolidated earnings guidance for the full year ending December 31, 2014. The company announced that based on the preliminary review of the currently available information which includes, but without limitation to, the unaudited management accounts of the group for the eleven months ended 30 November 2014, it is expected that the group will record a consolidated loss in the range of HKD 105,000,000 to HKD 115,000,000 for the year ending 31 December 2014 as compared to a consolidated loss of HKD 16,590,000 for the year ended 31 December 2013, representing an increase of 533% to 593%. The expected discernible loss was mainly due to the significant decline in the selling price of steel cords especially during the second half year, which was attributable to the further slowdown in economic growth and business activities in the PRC during the said period that intensified market competition in the steel cord industry.

Such significant decline in selling price of steel cords has severe negative impact to the gross profit margin of the Group.