Xiwang Special Steel Company Limited provided earnings guidance for the six months ended 30 June 2018. For the six months, the company expects that the ended 30 June 2018 may increase approximately by more than 80% as compared with that for the six months ended 30 June 2017. The increase in the consolidated net profit attributable to the shareholders of the company for the six months ended 30 June 2018 was mainly due to the following factors: on the supply side, the favourable government policies on prohibiting the use of intermediate frequency furnace and on alleviating overcapacities of the steel industry have resulted in a significant decrease in production capacities of certain steel enterprises. Meanwhile, the national supervision on environmental inspection has been strengthened and certain enterprises which failed to meet the environmental standards were ordered to close down, leading to a decrease in steel supply; on the demand side, the approval by the government on numerous infrastructure projects, frequent construction activities and steady demand from the property development industry have caused the demand on steel to increase further and the steel price to rise persistently; factors, such as, persistent rise in steel price, moderate increase in raw material price, lead to an increase in profit margin along with an increase in gross profit of steel; and decrease in income tax expense due to recognition as a High and New Technology Enterprise and increase in government subsidy.