The board of directors of Xinjiang Xinxin Mining Industry Co.,Ltd informed the shareholders of the Company and potential investors that, based on a preliminary assessment of the unaudited consolidated management accounts of the Group and the information currently available to the Board, the Group is expected to record a loss attributable to owners of the Company for the year ended 31 December 2015 of approximately RMB 522 million. The Board believes that the Group records a consolidated net loss for the year as compared to a consolidated net profit for last year, mainly attributable to the fact that affected by the continuing decline in the prices of nickel cathode and copper cathode in both international and domestic markets, the average selling prices of nickel cathode and copper cathode, the principal products of the Group, declined by approximately 24.2% and 16.8%, respectively, during the Year as compared with 2014; Xinjiang Wuxin Copper Mining Co. Ltd., a subsidiary of the Company, recorded a substantial loss during the Year as the 100,000 tonne copper cathode smelting project of Wuxin Copper, which was completed and commenced commissioning in June 2014, has not yet reached its designed capacity and standards.