Yuanda China Holdings Limited announced that the profit of the Group for the twelve months ending December 31, 2012 is expected to experience a noticeable decline as compared with the same period of 2011. The decline in the Group's profit was primarily attributable to the following aspects: (i) the continuous impact throughout the whole year of 2012 of (a) a slowdown in domestic project developments and a delay on the confirmation of the supplementary payment of certain completed projects by contractees due to the tightening of the domestic credit market, even though the domestic economy was experiencing a tepid recovery in the second half of 2012,
(b) an increase in installation and on-site costs due to the slowdown in certain overseas project development, and (ii) lower margins for certain previously awarded overseas orders, the profits of which are recognized in 2012.