Xingfa Aluminum Industry Co., Ltd. Comments On FY 2011 Profit Guidance

 Xingfa Aluminum Industry Co., Ltd. announced that it is expected to record a considerable reduction in profit for fiscal 2011 as compared to that of the Company for fiscal 2010. The Board believes that such expected reduction is primarily attributable to (i) the drop of gross profit margin; (ii) the increase in the administrative expenses as a result of additional recruitment of staff and a rise of the pre-operating expenses for the new production plants of the Company, and (iii) the increase in the average borrowings and interest rates which led to a rise in finance costs.