China Shanshui Cement Group Ltd. provided earnings guidance for the six months ending June 30, 2012. The Group is expected to record a significant decrease in net profit for the six months ending June 30, 2012 as compared with that for the corresponding period in 2011. Such decrease is mainly attributable to the high sales price recorded in the first half of 2011 and macro-economic downturn in China. During the first half of 2012, despite the fact that cement price remained high and stable in Shandong and Liaoning, the core markets of the Group, and cement demand significantly rebounded in the second quarter, the overall cement price during the first half of 2012 was slightly dragged by the substantial decline in cement demand in the first quarter while sales are similar to the same period last year. Therefore, the Board expects that the net profit of the Group for the six months ending June 30, 2012 will decrease by not less than 40% compared with that of corresponding period last year.