The Board of directors of Xingda International Holdings Limited is expected to record a significant increase in profit attributable to owners of the Company for the year ended 31 December 2016 as compared to those for the year ended 31 December 2015. Based on the preliminary review of the unaudited consolidated management accounts of the Group, the profit attributable to owners of the Company increased by not less than 50% when compared with the profit of RMB 173,754,000 in the corresponding period in 2015. The expected increase in the net profit attributable to the owners of the Company for the year ended 31 December 2016 was primarily attributable to the following reasons: an increase in annual sales volume and a rebound of the average selling prices of the Group's products from the second quarter of 2016 onwards led to an increase in revenue; higher utilisation rate led to a lower operating costs per tonne; and decrease in an impairment loss recognised on trade and other receivables.