Announcement

Unaudited Preliminary Interim Results 2016

The major accounting data for the first half of 2016 contained in this announcement are preliminary accounting data and are unaudited. Specific data to be disclosed by the Company in its interim report 2016 shall prevail. Investors are advised to pay attention to investment risks.

1. Major accounting data and indicators for the first half of 2016

   Unit：RMB'000

   Items	Current reporting period	The same period last year	Increase/decrease (%)
   Total operating income	38,889,900	38,832,440	0.15
   Operating profit	609,660	1,913,000	-68.13
   Profit before tax	612,020	1,906,690	-67.90
   Net profit attributable to owners of the parent	530,000	1,341,160	-60.48
   Basic earnings per share (RMB)	0.025	0.062	-59.68
   Weighted average return on net assets (%)	2.01%	4.73%	Decreased by 2.72 percentage points
   End of the current reporting period	Beginning of the current reporting period	Increase/decrease (%)
   Total assets	86,977,160	83,914,030	3.65
   Equity attributable to owners of the parent	26,569,440	27,537,170	-3.51
   Share capital	2,154,070	2,154,320	-0.01
   Net assets per share attributable to owners of the parent (RMB)	1.233	1.278	-3.52

   Note: 1. The figures of the beginning of the current reporting period are the same as the figures of the end of last year disclosed statutorily;

2. The above figures are at consolidated level of the Company;

3. The nominal value of the shares of the Company is RMB0.10 each;

4. The Company continued its repurchase of H shares in the first half of 2016, the basic earnings per share for the first half of 2016 is calculated based on the weighted average total number of shares after deduction of the H shares repurchased.

5. Explanations of the operating results and financial condition

1. In the first half of 2016, the Company remained focused on "clinging to reforms, maintaining growth and boosting development" as the goal of work. By carrying out a series of measures such as unleashing potentials and capacity expansion, lowering costs by efficiency enhancement, etc., production and sales volume of key metal products grew steadily, results of ordinary production and operation also indicated a rather significant growth compared with the same period last year. Nevertheless, under the influence of hedging, the income of certain products did not benefit from the price rise, resulting in decline in the overall profit of the Group.

2. Reasons regarding the fluctuations for items with changes of 30% or more in the above table

Reasons for changes in operating profit and profit before tax: It was mainly attributable to the impact of hedging.

The announcement is written in both Chinese and English. In the case of any discrepancies, the Chinese version shall prevail over its English version.

Investors and shareholders are advised by the board of directors to exercise caution when dealing in the shares of the Company.

Fujian, the PRC, 15 July 2016

*The Company's English name is for identification purpose only