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)

INSIDE INFORMATION AND RESUMPTION OF TRADING

This announcement is made by China Rongsheng Heavy Industries Group Holdings Limited (the "Company", and together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
Reference is made to (i) the announcement of the Company dated 29 August 2014 regarding the halt of trading in the shares of the Company on the Stock Exchange with effect from 9:00 a.m. on 29 August 2014 pending the release of an announcement in relation to inside information of the Company in respect of the restructuring of the Group; and (ii) the holding announcements of the Company dated 5 September 2014, 15 September 2014, 22 September
2014 and 29 September 2014 (the "Holding Announcements"). Defined terms used in this announcement shall have the same meanings as those defined in the Holding Announcements unless otherwise specified.
The Company would like to inform shareholders that the Company has asked a government authority to assist in procuring the negotiations with independent third party(ies) on the investment and restructuring of Jiangsu Rongsheng Heavy Industries. With the assistance of the local government, the Company and the relevant financial institutions will use great effort to proactively explore and discuss with the relevant parties various possibilities in relation to the Potential Restructuring. On 26 September 2014, Jiangsu Rongsheng Heavy Industries has appointed an independent asset appraisal company as the independent and professional valuer of the Potential Restructuring responsible for the valuation of relevant assets of Jiangsu Rongsheng Heavy Industries. Such valuation has recently achieved initial results and the fieldwork conducted by the independent and professional valuer has achieved progress at the first stage. The relevant parties have reached a consensus on the scope and valuation basis of the Potential Restructuring, which shall form the basis and foundation for the Potential Restructuring.
The objectives of the Potential Restructuring are to improve the overall financial position of the Group, enhance its operating performance and protect the interests of the shareholders of the Company. Besides, after friendly negotiations with relevant financial institutions, the relevant parties have reached an intent to continuously support the development of Jiangsu Rongsheng Heavy Industries. Certain subsidiaries of the Group including Hefei Rong An Power Machinery Co., Ltd. (a subsidiary of Jiangsu Rongsheng Heavy Industries), Rongsheng Machinery Company Limited and Hefei Zhenyu Engineering Machinery
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Company Limited have signed debt optimization framework agreements with a syndicate of domestic banks in Hefei of Anhui Province, with Shanghai Pudong Development Bank as the lead bank to organize and coordinate the debt optimization and extension of the repayment and renewal terms to the end of 2015 in order to mitigate the liquidity pressure on the Group.
The Company expects that, once the parties confirm the implementation of the Potential Restructuring, the parties will strive to complete the Potential Restructuring by the end of June in 2015 and accelerate the process of debt optimization. Other than the information disclosed in the Holding Announcements and in this announcement, no confirmed details on the Potential Restructuring are available to be disclosed at this stage. The Company will continue to closely monitor the status of the Potential Restructuring and the progress of debt optimization, and will make further announcement(s) on any material development in a timely manner as and when necessary.

RESUMPTION OF TRADING

Trading in the Shares of the Company on the Stock Exchange was halted at the request of the Company with effect from 9:00 a.m. on 29 August 2014 pending the release by the Company of an announcement in relation to inside information in respect of the restructuring of the Group. The Company has applied for a resumption of trading in the Shares with effect from
9:00 a.m. on 30 October 2014.

Shareholders of the Company and potential investors should note that the Potential Restructuring mentioned above may or may not proceed. Investors and the public should be cautious about the investment risks in relation to the securities of the Company.

By Order of the Board

China Rongsheng Heavy Industries

Group Holdings Limited LEE Man Yee Company Secretary

Hong Kong, 29 October 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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