Xiwang Property Holdings Company Limited provided earnings guidance for the year ended December 31, 2013. Based on the preliminary assessment by the Board with reference to (1) the Group's unaudited management account for the year ended 31 December 2013, which has neither been confirmed nor audited nor reviewed by the auditors of the company; and (2) information currently available to the Board, it is expected that although the property development business of the Group is expected to contribute a profit to the Group for the year ended 31 December 2013, the Group would record a substantial loss for the year ended 31 December 2013 which is expected to be more than the audited loss of RMB 18 million for the year ended 31 December 2012. The expected substantial loss for the year ended 31 December 2013 was mainly caused by a number of factors set out in the body of this announcement.

These factors will no longer affect the financial results of the Group after the year ended 31 December 2013 due to the discontinued corn processing business and the full repayment of the Acquisition Promissory Note.