The board of directors of China Zhongsheng Resources Holdings Limited to announced the shareholders of the company and potential investors that based on preliminary review by the Group's management of the unaudited management accounts of the Group for the six months ended June 30, 2013, the Group is expected to record a substantial increase in total comprehensive income for the six months ended June 30, 2013 as compared to the six months ended June 30, 2012. The Board considered that the expected increase in the total comprehensive income of the Group was primarily attributable to the one-off gain on bargain purchase as a result of acquisition of 95% of the equity interests of Linyi Luxing Titanium Co. Ltd, which was completed in the first quarter of 2013.

The one-off gain on bargain purchase was mainly derived from the difference between the fair value of 95% of Luxing Titanium's identifiable net assets and consideration paid by the Group for the Acquisition.