Xiwang Sugar Holdings Co. Ltd. announced that net profit for the six months ended 30 June 2012 is expected to record a substantial decline as compared to that for the corresponding period ended 30 June 2011. The deteriorated financial results was primarily caused by the continual rise in corn cost, which was the major production cost of the Group. However, due to the uncertainties in the global and domestic economic environments and the macro-economic measures imposed by the Chinese government in particular those against real estate speculation, the demand for many industries such as food and beverage and construction etc. were directly impacted. Under this situation, the selling prices of the Group's major products starch sugars and sodium gluconate were lowered, and as a result, the Group's overall gross profit margin squeezed.