The Board of Directors of Fabchem China Limited announced to caution their shareholders that the group's revenue and profit are expected to be significantly lower for the second quarter ending 30 September 2015, as compared to the corresponding quarter in the previous financial year. This is mainly attributed to two factors, closure of ports activities due to the explosions at the unrelated warehouses situated at the Port of Tianjin; China has been experiencing a slowdown in its economic growth and the broad-based weakness in global commodity prices continues to impact mining activities in China. Moreover, due to the challenging market conditions for ammonium nitrate, the company's subsidiary Hebei Yinguang Chemical Co.

Ltd. is expected to incur an operating loss. Due to the mentioned factors, the impact on the group's financial performance for second quarter 2016 and for the financial year ending 31 March 2016 may be significant. The management will continue to closely monitor the situation and update shareholders on a timely basis.