The board of directors of China National Materials Company Ltd. announced the expected decrease of the results of Sinoma International for the year ended December 31, 2012. Unaudited net profit attributable to the owners of Sinoma International is expected to decrease by approximately 50% as compared to the corresponding period of 2011 (based on the disclosed statistics according to relevant laws). For the year ended December 31, 2011, net profit attributable to the owners of Sinoma International was RMB 1,537,798,114.50 and basic earnings per share was RMB 1.69 (calculated based on the share capital of Sinoma International as at the date of December 31, 2011).

The expected decrease of the results of Sinoma International is mainly attributable to that according to the principle of caution, Sinoma International made relatively large loss provision due to the risk at the repayments, receivables, inventories and notes for the steel trading business of Sinoma Equipment & Engineering Corp., Ltd., a wholly-owned subsidiary of Sinoma International; and the relative decrease in the results of cement equipment engineering, the main business of Sinoma International, as compared to the corresponding period last year. Detailed financial statistics will be disclosed in Sinoma International's annual report of 2012.