The board of directors of Xinyi Glass Holdings Ltd. announced that the consolidated net profit of the group for the 2012 first six-month Period is expected to decrease by around 40%, as compared with the amount of the net profit of the Group for the six months ended 30 June 2011. The amount of the net profit of the group for the 2012 first six-month period is expected to be higher than the same for the six months ended 31 December 2011. The Board considers that the decrease in the amount of the net profit for the 2012 first six-month period, as compared with the same for the 2011 first six-month period, was primarily due to the global market conditions. The level of demand and the selling prices of float glass and solar glass in China and globally in the 2011 first six-month period remained at high levels. From the beginning of the third quarter of 2011 to the first quarter of 2012, the selling prices of float glass and solar glass in China and globally continued to decrease. The selling prices for these glass products decreased because of the slow-down in the economic development in China and the global economic uncertainty associated with the debt crisis amongst certain European countries. All of these factors continued to affect the performance of the group in the 2012 first six-month period. Despite a decrease in the amount of the net profit for the 2012 first six-month period, as compared with the same for the 2011 first six-month period, the Directors remain optimistic on the continuous business growth of the Group. The amount of the net profit of the group for the 2012 first six-month period is expected to be higher than the same for the 2011 second six-month period.