Sinoma International Engineering Co., Ltd. provided earnings guidance for the full year ended December 31, 2014. For the period, unaudited net profit attributable to the shareholders of the company is the amount within the range from RMB 100,000,000 to RMB 150,000,000, expected to increase to certain extent as compared to the same period of last year. The expected increase in the results for the year ended December 31, 2014 compared to the results for the corresponding period of 2013 is mainly attributable to: the results of Sinoma International decreased significantly in 2013 due to the dual influences of the large amount of loss provision for steel trading business of Sinoma Equipment & Engineering Corp., Ltd. and the decrease in the gross profit margin of the main business of Sinoma International.

The amount of loss provision for steel trading business has dropped substantially in 2014 as compared to the same period of last year, which impaired the adverse impact to Sinoma International.