The board of directors of China Zhongsheng Resources Holdings Limited to inform the shareholders of the company and potential investors that based on the unaudited management accounts of the Group and the management's estimate, the Group is expected to record a significant decrease in the profit for the six months ending June 30, 2014 as compared with that for the six months ended June 30, 2013. The Board considered that the expected significant decrease in the profit of the Group for the six months ending June 30, 2014 as compared with that for the six months ended June 30, 2013 was primarily attributable to, among others, (i) the non-occurrence of the one-off gain on bargain purchase (negative goodwill) of approximately RMB60.3 million arising from the acquisition of 95% of the equity interests of Linyi Luxing Titanium Co. Ltd. which has been completed in the first quarter of 2013; and (ii) decrease in average selling price of products in the first quarter of 2014.