Nanjing Iron & Steel Co., Ltd. provided earnings guidance for the full year of 2013. For the year, the company in accordance with the preliminary calculations, it is expected that there is a continuous loss in the results, realizing a net profit attributable to shareholders of the listed company of approximately RMB 630 million. The company demolished its obsolete production facilities and part of the public auxiliary facilities in 2013, so as to enhance its product structure and realizing green and environment-friendly production.

The loss from assets demolishment of this period resulted a decrease in the net profit of approximately RMB 270 million. Further, due to the demolishment of the assets, the production scale of the company reduced significantly compared with the same period last year. As a result, fixed costs and period expenses attributable to per tonne of steel increased significantly compared with the same period last year and as a result of which, the net profit decreased by approximately RMB 470 million.

Structural adjustment programs like heavy plate mill for restructuring and development were still under construction in 2013, and are expected to be put into production successively in the first half of 2014.