The board of directors of Guojin Resources Holdings Limited informed the shareholders of the company and potential investors that the group is expected to record a considerable loss for the year ended December 31, 2011. However, it is expected that the loss for the year ended December 31, 2011 would be significantly lower than that for the last year. The decrease in loss of the Group for the year ended December 31, 2011 was mainly due to the discontinuation of the loss making business of the group in remanufacturing and sales of computer printing and imaging products during the year thereby improving the overall performance of the group; an improvement in the profit margin of the continuing operations of the group, coupled with a reduction in the overhead expenses of the group for the year; a decrease in impairment losses and change in fair value of derivative and embedded derivative components of a convertible bond for the year ended December 31, 2011 compared to the previous year; and a one-off gain on redemption of convertible bonds and on liquidation of subsidiaries recorded for the year ended December 31, 2011.