CGN Mining Company Limited announced that the group discovered that since June 2011, there has been a substantial drop in the sales of Osteoform compound calcium amino acid chelate food capsule (Osteoform Food Product). The food hygiene licence obtained by the group was expired on 25 November 2011. Due to the change of relevant rules and regulations relating to food hygiene, the food hygiene licence for Osteoform Food Product was unable to obtain its renewal and therefore the group has stopped the production of Osteoform Food Product. As a result of the above events and after reviewing the available financial information of the group, the Board is of the view that the profits of the group for the year ended 31 December 2011 are expected to record a substantial decrement when compared with that of the year ended 31 December 2010, as a result of impairment for goodwill and inventory, staff compensation, impairment loss for property, plant and equipment of subsidiaries of the company as a result of integration of production lines.