Zhejiang Shibao Company Limited announced that its net profit attributable to the owners of the parent for the year of 2012 would be in between RMB 78,000,000 and RMB 82,000,000, representing a decrease of approximately 27.35% to 30.89% as compared to the same period in the previous year. The company hereby expects that its net profit attributable to the owners of the parent for the year of 2012 will be in between RMB 71,000,000 and RMB 78,000,000, representing a decrease of approximately 30.89% to 37.10% as compared to the same period in the previous year. The income derived from the export of steering system business to Iran was not received on time under the influence of the international economic sanctions.

In order to control the risks, the company reduced the exports, which resulted in a decrease of profit deviating from the expectation made earlier by the company.