The board of directors of Sinotruk (hong Kong) Ltd. announced to shareholders and bondholders of the company and potential investors that, based on
the company's preliminary review of the unaudited consolidated management accounts of the Group for the year ended December 31, 2012, the profit of the Group for the year ended December 31, 2012 is expected to record a substantial decrease as compared to that for the same period in 2011. Based on the information currently available to the company, such substantial decrease in profit is mainly attributable to the substantial decrease in the sales of the Group's heavy duty trucks due to the decrease in the overall demand of heavy duty trucks in the PRC in 2012 given the fixed operation costs of the Group is relatively stable. Despite the above, the Board considers that the cash flow of the Group remains sufficient and the overall financial condition of the Group remains stable.