Beijing Jingcheng Machinery Electric Company Limited provided financial guidance for the year ended December 31, 2013. Upon the preliminary calculation of the Company's financial department, the Company is expected to record loss in operating results and realize net loss attributable to the shareholders of the Company of RMB 105,000,000 to RMB 110,000,000 (among which the net loss of outgoing assets was approximately RMB 60,000,000 and the net loss of incoming assets was RMB 45,000,000 to RMB 50,000,000) in 2013. The Company estimated that the profits of incoming assets in 2013 did not attain 50% of the profit forecast figures under the material asset reorganization.