Shougang Concord International Enterprises Co. Ltd. provided earnings guidance for the year ended December 31, 2015. For the period, the company expects loss attributable to the shareholders to further increase to the range of HKD 3,300 million to HKD 3,350 million Such increase is mainly due to the share of additional impairment loss to be made by the company's major associate, Shougang Fushan Resources Group Limited and the additional impairment loss to be made by the group on the goodwill in relation to the investment in Shougang Resources.

On 4 March 2016, Shougang Resources has issued an announcement in respect of inside information. Shougang Resources would make a total impairment loss of approximately HKD 791 million on goodwill, mining rights and property, plant and equipment for the financial year of 2015, of which approximately HKD 516 million is attributable to the shareholders of Shougang Resources. The group would therefore share an additional HKD 102 million loss of the results of associates in addition to the HKD 40 million loss already shared during the interim period ended 30 June 2015.

Thus, the total loss to be shared by the group on Shougang Resources' impairment loss on its goodwill, mining rights and property, plant and equipment is expected to be approximately HKD 142 million for the financial year of 2015. Because of the persistently weak coking coal market, it is also expected that an additional impairment loss of approximately HKD 557 million on the goodwill in relation to the group's investment in Shougang Resources will be made. Together with the impairment loss of HKD 395 million made for the six months ended 30 June 2015, the aggregate impairment loss on the goodwill in relation to the group's investment in Shougang Resources for the financial year of 2015 will be approximately HKD 2 million.

All the impairment loss mentioned above is only accounting related adjustments and non-cash in nature. Therefore, it will not have any impact on the cash flow of the group.