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)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is issued by China Rongsheng Heavy Industries Group Holdings Limited (the "Company") in accordance with Rules 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Reference is made to the announcement of the Company dated 21 March 2012 in respect of the issue of medium-term notes by its subsidiary, Jiangsu Rongsheng Heavy Industries Co., Ltd. (江 蘇熔盛重工有限公司) ("Jiangsu Rongsheng Heavy Industries"), in the People's Republic of
China (the "PRC").
Pursuant to the relevant rules and regulations in the PRC, the unaudited financial information (the "Unaudited Half-Yearly Financial Information") of Jiangsu Rongsheng Heavy Industries, which is indirectly owned by the Company as to approximately 96.09%, and its subsidiaries for the six months ended 30 June 2014 was published on www.chinabond.com.cnand www.chinamoney.com.cnon 29 August 2014.
Set out below are the key unaudited financial figures of Jiangsu Rongsheng Heavy Industries and its subsidiaries for the six months ended 30 June 2014 as included in the Unaudited Half-Yearly Financial Information, which have been prepared in accordance with the PRC Generally Accepted Accounting Principles and have not been audited:

Renminbi

Current assets

14,361,048,682.53

Non-current assets

20,786,993,490.85

Total assets

35,148,042,173.38

Current liabilities

26,480,825,819.10

Non-current liabilities

5,341,241,566.27

Total liabilities

31,822,067,385.37

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Total equity attributable to owners of Jiangsu

Rongsheng Heavy Industries

2,985,862,994.18

Owner's equity (or shareholders' equity)

3,325,974,788.01

Total liabilities and owners' equity (or

shareholders' equity)

35,148,042,173.38

Operating revenue

378,872,023.79

Operating loss

1,737,068,632.81

Total loss

2,240,129,618.33

Net loss

2,240,129,618.33

Net loss attributable to owners of Jiangsu

Rongsheng Heavy Industries

2,194,348,704.18

Cash inflows from operating activities

3,310,300,544.50

Cash outflows from operating activities

3,957,996,292.38

Cash inflows from investing activities

365,807,921.47

Cash outflows from investing activities

99,296,054.00

Cash inflows from financing activities

7,217,912,496.72

Cash outflows from financing activities

6,683,689,452.93

Net increase in cash and cash equivalents

154,154,307.91

Pursuant to the request of the National Association of Financial Market Institutional Investors
(中國銀行間市場交易商協會) and in accordance with applicable laws and regulations of the
PRC, Jiangsu Rongsheng Heavy Industries has also published an announcement on the websites
of www.chinabond.com.cnand www.chinamoney.com.cnto provide further information with respect to its unaudited financial information for the six months ended 30 June 2014, the key contents of which is set out below in this announcement.
For the six months ended 30 June 2014, Jiangsu Rongsheng Heavy Industries and its subsidiaries recorded an operating loss and a total loss of approximately RMB1,737.1 million and RMB2,240.1 million respectively, and a net loss of approximately RMB2,240.1 million
The net loss incurred for the six months ended 30 June 2014 was primarily due to the lower prices of shipbuilding orders in depressed market conditions, in contrast to rigid cost such as raw materials and labour costs, which did not fall proportionally and diminish profitability of the conventional shipbuilding business. The net loss was also due to the decline of production activities yet considerable fixed production cost. Jiangsu Rongsheng Heavy Industries is adopting measures to improve performance, mitigate the liquidity pressure and improve its financial position. Jiangsu Rongsheng Heavy Industries has been proactively adopting measures to improve operational performance and financial position, and to mitigate liquidity pressure. Those measures include but are not limited to: actively negotiating with principal banks in the PRC on the terms and conditions of the extension and renewal of borrowings; obtaining financial support from a shareholder of its parent-holding company; negotiating for better payment terms and revising up prices of certain existing shipbuilding orders; redesigning operation flow and controlling costs for existing shipbuilding orders; maximizing sales efforts and obtaining the appropriate project-based financing; establishing strategic cooperation with key suppliers with a view to reduce the costs of supplies.

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The Unaudited Half-Yearly Financial Information and the key unaudited financial figures disclosed in this announcement have been prepared in accordance with the PRC Generally Accepted Accounting Principles and have not been audited. Shareholders and potential investors are cautioned not to unduly rely on such information, and should 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, 29 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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