China Oriental Group Co. Ltd. provided earnings guidance for the six months ended June 30, 2012. For the period, the group expects the net profit will be significantly lower than the net profit recorded in the six months ended 30 June 2011. The reasons for the drop in net profit are the problem of overcapacity in the steel industry in the Mainland China still exists and this led to a compression on average selling prices charged by the market participants. The increment in costs cannot be fully recovered from the end customers thereon; iron ore prices still remained at a high level and the global economy, included the Mainland China, the country where the major source of income of the Group is generated, has attained a more obvious slowdown trend.