Asia Resources Holdings Limited (HKG:0899) expected that the consolidated financial results for the year ended 31 March 2012 may record a substantial loss as compared with that of previous year.

The Company stated that the loss was due to the impairment loss recognition of the mining right in Mongolia; the potential written off on outstanding balance of HK$64 million in relation to the Group's disposal of 30% of the entire issued share capital of Skyyield Holdings Limited pursuant; the possible impairment loss recognition of mining business in Indonesia; and increase in the loss in pharmaceutical segment due to further narrowing of the gross profit margin which is attributable to keen competition.

It said that the Company aware that the laws governing mining industry in Indonesia have recently been amended and modified. The Company is preliminarily advised by its Indonesia legal advisers that the major impact as a results of amendments on the Group is that all the raw mineral output in form of ore from the mining area cannot be directly exported after 6 May 2012. Under the amendments, the owners and operators of mineral or coal mines in Indonesia has to increase the value-added to minerals through processing and refining before the processed minerals or coal can be exported. All the value-added processing and refining programs shall be finalized before 2014. Further, mine owners can export all the mineral raw materials (ores) if they have already obtained the recommendation from the Ministry of Energy and Mineral Resources of Indonesia through the Director General. The Board believes that the amendments will affect the mining business of the Group in Indonesia carrying out by DGI.

Source:chinesestock.org