China Nuclear Industry 23 International Corporation Limited (HKG:0611) announced that it expects a significant increase of profit for the year ended 31 March 2012 as compared to the net loss of approximately HK$889.084 million for the year ended 31 March 2011, which would also materially affect the net asset value of the group as at 31 March 2012.

In compliance with the currently applicable accounting standards adopted by the group, each of the warrants, the 2011 CBs and the acquisition convertible bonds is required to be recognised as derivative financial liabilities and the related gain on net changes in fair value is required to be reflected in the consolidated statement of comprehensive income of the group. The independent professional valuer and the auditor retained by the group have preliminarily assessed the financial liabilities in significant amounts in each of the warrants and the acquisition convertible bonds as at 31 March 2012 and the 2011 CBs as at 5 December 2011.

The gain on net changes in fair value of derivative financial liabilities should be due to the change in the share price of the company as at 31 March 2012 as compared to the share price as at 31 March 2011.

The net changes in the fair value of the aforesaid derivative financial liabilities and the related gain are non-cash in nature and will not have any impact on the cashflow of the group.

The company plans to announce the annual results on 19 June 2012.