The board of directors of China Oriental Group Co. Ltd. announced that the group is expected to record a substantial loss for the year ended 31 December 2015 as compared to a profit of approximately of RMB 66 million recorded for the year ended 31 December 2014. The expected losses were mainly for certain property, plant and equipment in the manufacturing plant of Foshan Jinxi Jinlan Cold Rolled Sheets Company Limited in view of the low utilisation rate of the production capacity of Jinxi Jinlan; a large unrealised exchange loss arising from US Dollars denominated monetary liabilities as compared to an unrealised exchange loss of approximately of RMB 21 million for the year ended 31 December 2014; and there was a significant decline in the group's revenue due to the challenging condition in steel industry, which was alleviated by the active measures implemented by the Group to reduce the selling, general and administrative expenses.