The Board of Directors of China Oriental Group Co. Ltd. announced that, based on the unaudited management accounts of the group for the eleven months ended 30 November 2013 and the performance of the group in December 2013, it is expected that the group is likely to experience a substantial decline in profit or may even incur a loss in the year of 2013 as compared to the profit made in the year of 2012. Such expected substantial decline in profit or may even incur a loss in the year of 2013 was mainly due to: the weak demand in the steel products in the Mainland China which led to a decrease in the sale volume and the average selling prices of the steel products of the group during the year ended 31 December 2013 as compared to that of 2012; and potential impairment and provisions made on certain fixed assets and receivables.

The information contained in this announcement is only a preliminary assessment based on the unaudited management accounts of the group for the eleven months ended 30 November 2013 and the performance of the group in December 2013 which have neither been reviewed nor audited by the company's independent auditor.