Leader Environmental Technologies Limited announced unaudited group earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported revenue of RMB 8,229,000 against RMB 14,339,000 a year ago. Loss before tax was RMB 2,649,000 against profit before tax of RMB 3,260,000 a year ago. Loss for the year attributable to owners of the company was RMB 2,649,000 against profit for the year attributable to owners of the company of RMB 2,010,000 a year ago. Net asset value per ordinary share was 81.91 cents against 82.48 cents a year ago. Net cash flows used in operating activities amounted to approximately RMB 30.6 million attributed mainly to: an increase in prepayments of RMB 42.3 million due to advance payments made to suppliers of raw materials; a decrease in trade and other payables of RMB 10.8 million which was in line with the decrease in business activities; an decrease in other liabilities of RMB 2.2 million which was also in line with decrease in business activities; and interest paid of RMB 1.7 million in respect of the short term loan obtained from China Merchants Bank. The decrease was partly offset by: a decrease in gross amount due from customers for work-in-progress of RMB 3.2 million as a result of completion of contracts.; a decrease in inventory of RMB 0.1 million; a decrease in trade and other receivable of RMB 23.0 million due to collections from customers as well as in line with the decrease in business activities; and interest income received of RMB 28,000 derived from deposit placed with the banks.

Leader Environmental Technologies Limited provided Group earnings guidance for the first quarter ended March 31, 2013. The harsh winter conditions in the Northern part of China prevented the company from completing the remaining work-in-progress relating to desulphurization and industrial wastewater contracts. In addition, as part of its credit control and risks management, the Group has been selective and only undertakes those projects which offered better payment terms and/or gross profit margin. These accounted mainly the reasons for the decline in revenue and bottom line. In the light of the above-mentioned reasons, the Group is expected to report a small loss for the first quarter ended 31 March 2013 as compared with the corresponding period in 2012.

Leader Environmental Technologies Limited announced that they will report Q1, 2013 results on May 14, 2013