China: Guangzhou Shipyard Issues Profit Warning

January 22, 2013

Based on the preliminary estimation of Guangzhou Shipyard International Company Limited，the unaudited net profit of the Group for the year 2012 prepared in accordance with the PRC Accounting Standards for Business Enterprises of the PRC (PRC Accounting Standards and Regulations) is expected to decrease by approximately 80% to 99% compared with the published net profit for the year 2011.

The Group’s net profit attributable to the shareholders of the Company and earnings per share for the year ended December 31, 2011 prepared in accordance with the PRC Accounting Standards and Regulations amounted to RMB 518,333,370.07 (approx $83.33 mln) and RMB 0.81 per share respectively.

During the year 2012, as affected by the decline of the shipbuilding market, the prices of the ships under construction dropped sharply as compared with the same period last year, which resulted in the decrease in profits of the Company derived from shipbuilding. Moreover, the Company has made impairment losses in respect of relevant new secured orders for vessels and relevant ships under construction.

The information contained in this announcement is only based on the preliminary calculations by the Company’s management in accordance with the management accounts of the Company which have not yet been confirmed or audited by the Company’s auditors. Investors are advised to carefully read the annual report for 2012 of the Company, which is expected to be published on the websites of The Stock Exchange of Hong Kong Limited and the Company on March 26, 2013.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

[mappress]

Press Release, January 22, 2013