Lonking Holdings Ltd. provided earnings guidance for the year ended December 31, 2011. For the year, the company was expected to record a decline in the net profit after deducting the fair value changes in the derivative financial instruments relating to the convertible loan notes as compared with corresponding period last year. The change is primarily attributable to the increase in overall operating costs due to the impact of macro-economic policies and the increasing cost pressure in the industry; the decrease in gross profit margin due to the adjustment of operating mode after having considered the market risk of excavators by the management.