Nanjing Iron & Steel Co., Ltd. provided earnings guidance for the full year to Dec. 31, 2012. The company announced that based on the preliminary estimation, it is estimated that there is a loss in the operating results of Nanjing Iron & Steel for the year of 2012.

The net loss attributable to the shareholders of Nanjing Iron & Steel is approximately RMB 580 million for the year of 2012. Main Reasons for the expected loss in results is: The steel industry suffered tremendous difficulties in 2012. On one hand, steel price generally stayed at a low level due to markedly weak demand from related downstream industries for steel products and plates in particular.

On the other hand, the price of raw materials remained at a high level attributed to the reason of monopoly in the upstream supply of raw materials. The steel industry kept facing such a passive situation under dual pressure, leading to losses in the performance of Nanjing Iron & Steel.