Xinjiang Xinxin Mining Industry Co., Ltd. provided earnings guidance for the year ended December 31, 2019. Based on the preliminary review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2019, the Group expects to record a net profit for the Year amounting to approximately RMB 20 million as compared to the net loss of approximately RMB 134 million for the year ended 31 December 2018. The Board believes that the significant increase in operating results of the Group for the Year as compared to that for the Previous Year was mainly attributable to: (1) the average selling price of nickel cathode, one of the main products of the Company, increased by approximately 2.1% for the Year as compared to the Previous Year; (2) the average cost of sales of copper cathode decreased by approximately 6.7% for the Year as compared to the Previous Year due to the Company's efforts in enhancing its own capabilities, e.g. the improvements in cost control, production indicators and capacity of self-produced raw materials; and (3) the net loss of approximately RMB 134 million for the Previous Year included a provision of approximately RMB 162 million for the pending litigation in respect of the claim involving Shaanxi Xinxin Mining Co., Ltd.