The board of directors of CITIC Dameng Holdings Limited announced that based on the preliminary review of currently available information, including the unaudited management accounts of the Group for the ten months ended October 31, 2015, it is expected that the Group will record a loss attributable to shareholders in the second half of the year 2015 not less than that in the first half as disclosed in the company's 2015 interim report. Accordingly, as compared with the profit attributable to Shareholders of HKD 15,488,000 for the year ended December 31, 2014, the financial performance of the Group for the year ending December 31, 2015 will be a significant deterioration and a sharp turnaround into a loss attributable to shareholders of the company. Such a sharp turnaround and the major reasons of the loss are mainly attributable to the following factors in the year ending December 31, 2015: Significant drop in the selling price of manganese products of the company in line with commodity market as there was no improvement in the steel sector from the previous year; Continuous price drop significantly eroded the gross profit margin of manganese products during 2015 and up to the date of this announcement; substantial decrease in external sales of manganese carbonate ores mined in the People's Republic of China due to weakening ore demand; temporary suspension of production of certain manganese processing plants upon periodic major repair and maintenance and therefore expenses previously accounted for as cost of sales have been charged to the profit and loss account directly; and decrease in Government subsidies.