Xiwang Special Steel Company Limited provided consolidated earnings guidance for the year ended December 31, 2017. The unaudited consolidated profit attributable to the shareholders of the company for the year ended December 31, 2017 is expected to increase by more than 150% as compared with that for the year ended December 31, 2016 (RMB 332.6 million). The increase in the consolidated net profit attributable to the shareholders of the company for the year ended 31 December 2017 was mainly due to the following factors: on the supply side, the favourable government policies on prohibiting the use of intermediate frequency furnace and on alleviating overcapacities of the steel industry have resulted in a significant decrease in production capacities of certain steel enterprises. Meanwhile, the national supervision on environmental inspection has been strengthened and certain enterprises which failed to meet the environmental standards were ordered to close down, leading to a decrease in steel supply; on the demand side, the approval by the government on numerous infrastructure projects, frequent construction activities and steady demand from the property development industry have caused the demand on steel to increase further and the steel price to rise persistently; and factors, such as, persistent rise in steel price, growth in revenue and moderate increase in raw material price, lead to an increase in profit margin along with an increase in gross profit of steel. The company expects sales volume of self-manufactured steel products of approximately 3.0 million tonnes, gross profit per tonne of self-manufactured steel products of approximately RMB 630 per tonne and consolidated net profit attributable to the shareholders of the company approximately RMB 840 million.