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CHANGFENG AXLE (CHINA) COMPANY LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1039) DELAY IN DESPATCH OF CIRCULAR MAJOR TRANSACTION IN RELATION TO DISPOSAL OF A PRC SUBSIDIARY

Reference is made to the announcement issued by Changfeng Axle (China) Company Limited (the "Company") dated 16 December 2013 (the "Announcement") in relation to the disposal of the entire equity interests in Fujian Changfeng Axle Manufacturing Company Limited (the "Disposal"). Unless otherwise stated herein, capitalised terms used herein shall have the same meanings as those defined in the Announcement.
As at the date of the Announcement, Changfeng Axle Holdings Limited holds approximately 50.59% of the issued share capital of the Company. Pursuant to Rule 14.44 of the Listing Rules, the Company has obtained the written approval from Changfeng Axle Holdings Limited in lieu of holding a general meeting to approve the Disposal. Pursuant to Rule 14.41(a) of the Listing Rules, a circular (the "Circular") is required to be despatched to the Shareholders within 15 business days after publication of the Announcement (i.e. on or before 9 January 2014). The Circular will contain, among other things, an indebtedness statement and a statement as to the sufficiency of working capital which will be subject to a letter of comfort from the accountants.
As additional time is required for the accountants to prepare the issuance of the letter of comfort, the Company has applied for and the Stock Exchange has granted to the Company a waiver from strict compliance with Rule 14.41(a) of the Listing Rules such that the despatch date of the Circular has been postponed to a date not later than 28 January 2014.
Hong Kong, 9 January 2014
By Order of the Board

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

Chairman

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.

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