Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.



CHANGFENG AXLE (CHINA) COMPANY LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1039) VARIATION TO TERMS OF JOINT VENTURE

Reference is made to the announcements of Changfeng Axle (China) Company Limited (the
"Company") dated 11 November 2010, 30 December 2010, 30 December 2011, 31 December 2012 and
27 May 2013 (collectively, the "Announcements") in respect of the formation of a joint venture (the "Joint Venture") with Lonking (Jiangxi) Machinery Co., Ltd. (formerly known as Lonking (Jiangxi) Gear Co., Ltd.) ("Lonking Machinery") and the variation of terms of the Joint Venture. Save as defined herein, terms used in this announcement shall have the same meanings as used in the Announcements.
In light of recent change of the development plan of the Joint Venture, there will be further delay to the original capital contribution schedule. As such, on 28 December 2013, Fujian Changfeng Machinery Manufacturing Co., Ltd. ("Fujian Changfeng") and Lonking Machinery entered into a fifth supplemental agreement (the "Fifth Supplemental Agreement") to further amend the capital contribution schedule to the Joint Venture. Pursuant to the terms of the Fifth Supplemental Agreement, the remaining payment of the Capital Injection (i) in the sum of RMB60,000,000 (equivalent to HK$76,200,000) will be paid by Fujian Changfeng before 31 December 2014 (previously 31 December 2013), and (ii) in the form of Assets shall be transferred by Lonking Machinery to the Joint Venture before 31 December 2014 (previously 31 December 2013).
Save for the above changes, all other terms of the Cooperation Agreement shall remain unchanged.
By Order of the Board

Changfeng Axle (China) Company Limited Mr. Wong Kwai Mo

Chairman

Hong Kong, 29 December 2013

As at the date of this announcement, the executive Directors are Mr. Wong Kwai Mo, Ms. Wu Ching and Mr. Lai Fengcai; the non-executive Director is Ms. Dong Ying, Dorothy; and the independent non-executive Directors are Mr. Zhu Weizhou, Dr. Li Xiuqing and Mr. Chong Ching Hei.

1

distributed by