The board of directors of China Sunshine Paper Holdings Company Limited is expected that the profit of the company and its subsidiaries for the year ended December 31, 2012 may experience a significant decline as compared with those for the corresponding period in 2011. The decline in the profit of the Group for the year ended December 31, 2012 is mainly attributable to the relatively significant increase in finance cost due to higher bills discount charges from more frequent uses of discounted bills facilities by the Group during the year.