CITIC Dameng Holdings (HKG:1091) says that, compared to the corresponding period last year, its profit attributable to shareholders is expected to decrease substantially for the six months ending 31 December 2011 but increase substantially for the year ending 31 December 2011.

The expected decrease of the profit attributable to the shareholders for the six months ending 31 December 2011 as compared to the corresponding period last year is mainly attributable to (i) the option expenses incurred as a result of the grant of share options by the company on 11 January 2011, (ii) the company does not record any material gain on revaluation of investment property for the six months ending 31 December 2011 as compared to the corresponding period last year, and (iii) the impact on the market demand of steel as a result of the continuous tightening of liquidity and other economic control measures in China in the fourth quarter led to the slide in the company's product prices in the fourth quarter but the raw material prices have increased.

The expected increase of profit attributable to the shareholders for the year ending 31 December 2011 as compared to the corresponding period last year is mainly attributable to the one-off gain on bargain purchase upon completion of acquisition of Guizhou Zunyi Hui Xing Ferroalloy Limited company in May 2011, details of which have been disclosed in the company's interim report for the six months ended 30 June 2011.