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CHINA QINFA GROUP LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 00866) PROFIT WARNING

This announcement is made by China Qinfa Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09 of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "SFO").
The board (the "Board") of directors of the Company (the "Directors") wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that, based on the information currently available to the Company and the preliminary review on the Group's unaudited consolidated management accounts for the year ended 31 December 2014, the Group expects that the revenue may significantly decrease and the loss attributable to equity holders of the Company for the year ended 31 December 2014 may be significantly higher than that for the year ended 31 December 2013. Based on the relevant information currently available to the Company, the Board considers that the decrease in revenue and corresponding increase in loss are primarily attributable to the continuing downturn of coal market, substantial decline in the price of coal and the decrease in the average selling price of coal of the Group caused by various factors such as slowdown in the macroeconomic growth and sluggish demand growth from downstream industries.
The Group's annual results for the year ended 31 December 2014 have yet to be finalised. Hence, the information contained in this announcement is only a preliminary assessment performed by the management of the Company and is not based on any figures or information which has been audited or reviewed by the Company's auditor. Shareholders and potential investors are advised to read carefully the annual results announcement of the Company for the year ended 31 December
2014, which is expected to be published before the end of March 2015 in accordance with the requirements under the Listing Rules.
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Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company.

By Order of the Board

China Qinfa Group Limited Mr. XU Jihua

Chairman

Guangzhou, 17 February 2015
As at the date of this announcement, the Board comprises:-

Executive Directors:

Mr. XU Jihua (Chairman)
Ms. WANG Jianfei
Mr. WENG Li
Mr. XU Da
Mr. MA Baofeng
Mr. BAI Tao

Independent Non-executive Directors:

Mr. HUANG Guosheng
Mr. LAU Sik Yuen
Mr. XING Zhiying
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