The board of directors of West China Cement Limited announced that based on the preliminary review of the unaudited management accounts of the group, it is expected that the group will experience a substantial decline in its net profit for the six months ending June 30, 2012 as compared with the corresponding period for the six months ended June 30, 2011. The board considers that such decline is primarily attributable to the decrease in the selling prices of cement products in Shaanxi Province since the beginning of the third quarter of 2011. Whilst there has been a rebound in cement prices in Shaanxi Province in the second quarter of 2012, selling prices of cement products for the six months ending June 30, 2012 have been significantly lower compared with the corresponding period in 2011. The board therefore estimates that there will be a decline of not less than 50% in the group's net profit for the six months ending 30 June 2012 as compared with the corresponding period last year.