The board of directors of Xiangyu Dredging Holdings Limited announced the shareholders of the company and potential investors that, based on the preliminary assessment of the Group's unaudited management accounts for the year ended December 31, 2012 and the information currently available to the Board, the group expects to record a considerable decrease in net profit for the year ended December 31, 2012 as compared to that for the year ended December 31, 2011. The Group's revenue for the year ended December 31, 2012 is also expected to record a decrease as compared to that for the year ended December 31, 2011 but at an extent less than the expected decrease in net profit.