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.

CHINA RONGSHENG HEAVY INDUSTRIES GROUP HOLDINGS LIMITED

中國熔盛重工集團控股有限公司

(Incorporated in the Cayman Islands with limited liability) (stock code: 01101)

ANNOUNCEMENT - FURTHER UPDATE ON STATUS OF DISCLOSEABLE TRANSACTION

Reference is made to the announcements of China Rongsheng Heavy Industries Group
Holdings Limited (the ''Company'') dated 26 April 2011, 1 June 2012, 5 June 2012, 17 July
2012, 17 August 2012, 21 August 2012 and 2 December 2012, 11 July 2013 and 21
November 2013, respectively (the ''Announcements''). Unless otherwise defined herein, terms defined in the Announcements shall have the same meanings when used herein.
On 27 August 2014, Jiangsu Rongsheng Heavy Industries received a civil mediation agreement (民事調解書) (the "Civil Mediation Agreement") issued by the Anhui Province
Higher People's Court, which acknowledged the settlement agreement entered into between Jiangsu Rongsheng Heavy Industries, Anhui Province Property Rights Exchange Co., Ltd (the "Anhui Province Property Rights Exchange") and the Vendor regarding settlement of both the Proceedings and the Counter-claim (the "Settlement Agreement"). The Civil Mediation Agreement confirms that the Settlement Agreement complies with the relevant legal requirements.
The key terms of the Settlement Agreement regarding the Proceedings and the Counter-claim can be summarized as follows:
1. Jiangsu Rongsheng Heavy Industries and the Vendor agreed to terminate the
Agreement;
2. After deducting a settlement fee of RMB86,000,000 to be paid to the Vendor, the balance of the Deposit (the Deposit being the RMB630,000,000 payment previously made by Jiangsu Rongsheng Heavy Industries to Anhui Province Property Rights Exchange) shall be returned to Jiangsu Rongsheng Heavy Industries, save for a sum of RMB6,450,000, which shall be temporarily retained by Anhui Province Property Rights Exchange pending further negotiations between the relevant parties;
3. Jiangsu Rongsheng Heavy Industries shall be responsible for the court fees for the Proceedings in the amount of RMB1,610,908. The Vendor shall be responsible for the court fees for the Counter-claim in the amount of RMB2,663,856.3; and

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4. Jiangsu Rongsheng Heavy Industries, Anhui Province Property Rights Exchange and the Vendor confirmed that each of the parties has no further disputes and that the Settlement Agreement is legally binding on each of them.
As such, both the Proceedings and the Counter-claim are considered to have been fully settled.
Further announcement(s) will be made by the Company to update its shareholders as and when required by the Listing Rules.
Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By Order of the Board

China Rongsheng Heavy Industries

Group Holdings Limited LEE Man Yee Company Secretary

Hong Kong, 28 August 2014
As at the date of this announcement, the directors of the Company are: Executive directors:
Mr. CHEN Qiang (Chairman), Mr. WU Zhen Guo, Mr. HONG Liang, Mr. Sean S J WANG, Mr. WANG Tao, Mr. WEI A Ning and Ms. ZHU Wen Hua;
Independent non-executive directors:
Mr. XIA Da Wei, Mr. HU Wei Ping, Mr. WANG Jin Lian and Ms. ZHOU Zhan.

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