China Tienianshat Light rail project is expected to lose 4.153 billion yuan

NetEase Finance October 25 News China Railway construction evening announcement, China Tienia Shate Matsafa to Mugodasha light rail project in the implementation process, because the actual number of projects than contracted when the expected increase in the amount of work is expected to occur large losses, according to the September 30, 2010 exchange rate conversion,　　The total loss is estimated at 4.153 billion. According to the exchange rate of September 30, 2010, the project contract is estimated to be 12.07 billion yuan, the total cost of the contract is 16.069 billion yuan, and the contract loss is 3.999 billion yuan.　　Plus the financial cost of 154 million yuan, the total loss of the project is expected to be 4.153 billion yuan.　　According to the accounting period, the project in 2009 to confirm the loss of 294 million yuan, in the first half of 2010 to confirm the loss of 254 million yuan in the third quarter of 2010 will be confirmed loss of 3.605 billion yuan. The company said that the changes resulted in a significant increase in the total cost of the contract, the company has submitted to the owners of the contract changes and claims information, the owner promised to set up a special committee after the project to discuss the relevant claims and compensation issues.　　So far, the company is still in the above changes in the claims to negotiate with the owners, has not been approved by the owners. The company said the project would have a significant impact on the company's three-quarter profit. The project is expected to have a significant impact on the company's 2010 profit if it is not possible to obtain the owner's approval for the change and claim prior to the 2010 Annual performance report.