Sinoref Holdings Limited provided earnings guidance for the six months ended June 30, 2014. The company anticipated that the group will record a loss for the six months ended June 30, 2014 as compared to a profit for the six months ended 30 June 2013. The board of directors of the company to inform the shareholders of the company and potential investors that the sustained deterioration of the global market condition and the volatility of iron ore prices have brought enormous pressure and challenges for the production and operations of steel manufacturers which continuously and adversely impacted the average selling price of the Group's products and the gross profit margin of the Group.

Further, more costs were incurred for the Group's research and development, and selling and distribution due to increase in sales volume. Accordingly, the Group's business operation and financial performance for the six months ended June 30, 2014 were adversely affected.