Yuanda China Holdings Limited provided earnings guidance for the year ended December 31, 2013. For the period, the company expects to return to profit for the entire financial year ended December 31, 2013, with an estimated net positive operational income flow of about RMB 610 million, for the following primary reasons: a large portion of low-margin projects contracted by the company before 2011 were recognized as completed in the first half of the year. As for the income recognized in the second half of 2013, there was an increase in the proportion of income from projects contracted after 2011.

Therefore, the profit of the company increased in the second half of 2013; the completion of the services contracts entered into in the second half of the year with Yuanda Group had made a positive contribution to the profits of the company for the second half of the year; and during the second half of 2013, the company adopted a series of measures to restore profits, including retrenching surplus employees, introducing cost control measures, improving payment collection and currency hedging, the effects of which have preliminary been seen. Despite the recovery achieved by the company in the second half of 2013, it is expected that the consolidated profits of the Group for the entire financial year ended December 31, 2013 will still experience a significant decline as compared to that in 2012, which is primarily due to following reasons: labour, installation and on-site costs of the company increased as compared with 2012; projects contracted before 2011 with relatively low profit margin which were completed, nearly completed or under settlement in 2013 represented a substantial proportion of the sales revenue recognized in 2013.