Xinjiang Xinxin Mining Industry Co,.Ltd provided earnings guidance for the six months ended June 30, 2015. For the period, the group expects that its consolidated revenue will have an increase of approximately 7.8% as compared with the revenue of RMB 1,139 million of the corresponding period of last year. Nevertheless, the consolidated results of the Group are expected to record a net loss as compared with the consolidated net profit of RMB 53.57 million for the corresponding period of last year.

The board believes that the increase in revenue as compared with the corresponding period of last year was mainly attributable to the fact that the sales volume of copper cathode for the period increased by approximately 6.7 times while the sales of nickel cathode decreased by approximately 86%, as compared with that of the corresponding period of last year. The Group records a consolidated net loss for the period as compared to a consolidated net profit for same period last year, mainly attributable to the fact that: affected by the decline in the prices of nickel cathode and copper cathode in both the international and domestic markets, the average selling price of nickel cathode and copper cathode, the principal products of the Group, declined by approximately 11.4% and 11.8%, respectively, during the period as compared with the same period of last year; Xinjiang Wuxin Copper Mining Co. Ltd. recorded a substantial loss during the period as the 100,000-tonne copper cathode smelting project of Wuxin Copper which was completed and commenced commissioning in June 2014 is still at the commissioning stage and therefore has not reached its designed capacity and standards, resulting in relatively low efficiency in production and high production cost of its copper cathode products.

In addition, such loss was also attributable to the impact from the decline in market prices on the principal products.