Xiangyu Dredging Holdings Limited reported that based on a preliminary assessment on the unaudited management accounts of the company the result of the company for the year ended December 31, 2011 is expected to increase significantly as compared to the corresponding period in 2010. The significant increase in the financial results of the company for the year ended December 31, 2011 was mainly attributable to the increase in turnover as a result of the increase in the total contract sums under dredging contracts.