China Rongsheng Heavy : Announces Proposed Issue of Unlisted Warrants and Proposed Change of Company Name

(29 October 2014, Hong Kong) - China Rongsheng Heavy Industries Group Holdings Limited ("China Rongsheng Heavy Industries", the "Company" or "We", and together with its subsidiaries, the "Group"; stock code: 01101.HK) is pleased to announce that the Company has entered into a Subscription Agreement (the "Subscription Agreement") with Kingwin Victory Investment Limited (the "Subscriber") today. The Company has agreed to, at an issue price of HK$510,000,000, issue warrants (the "Warrants") which entitle the holders thereof to subscribe for up to 1,700,000,000 new shares of the Company to the Subscriber, with an expected net proceeds (including the allotment and issue of subscription shares) approximately ranging from HK$2,550,000,000 to HK$3,230,000,000. The Company believes such issue will strengthen the financial position and the shareholders base of the Company. The aggregate net proceeds are intended to be used for, amongst others, funding capital expenditure of existing and new energy projects and would allow us to seize suitable investment opportunities in the energy resources exploitation sector
Besides, to better reflect the expansion of business scope and more accurately display the strategic positioning of the Group, the board of directors of the Company (the "Board") proposes to change the
name of the Company to "China Huarong Energy Company Limited" and to adopt "中國華榮能源股份
有限公司" as the Chinese name of the Company.

Pursuant to the Subscription Agreement, the Warrants will entitle the holders thereof to subscribe for up to 1,700,000,000 new shares of the Company at the initial subscription price of HK$1.60 per Share, provided that if the warrantholder exercises its subscription right at any time during the period commencing from the date of issue of Warrants up to the date falling six months from the date of issue of Warrants, it shall have the right to subscribe for up to 1,700,000,000 new shares of the Company at HK$1.20 per Share. Assuming the subscription rights is exercised in full, at the issue price of HK$0.30 per Warrant, it is expected that net proceeds (including the allotment and issue of subscription shares) will be approximately ranging from HK$2,550,000,000 to HK$3,230,000,000.
The aggregate net proceeds is intended to be used for funding capital expenditure, general working capital, potential acquisition for existing and/or new energy projects and general corporate purposes of the Group. The directors of the Company consider that the issue of Warrants is a suitable opportunity

China Rongsheng Announces Proposed Issue of Unlisted Warrants and Proposed Change of Company Name

29 October, 2014 / P.2

to raise capital for the Company. Not only the Warrants are not interest bearing, it also raises funds immediately upon completion of the issue of Warrants. If the Warrants are exercised, further funds will be raised for general working capital, which would allow the Company to seize suitable investment opportunities in the energy resources exploitation sector and develop into a more comprehensive energy service provider. The financial position and our shareholders base of the Company will be strengthened upon the issue of the subscription shares.

Besides, the Board proposes to change the name of the Company from "China Rongsheng Heavy Industries Group Holdings Limited" to "China Huarong Energy Company Limited" and to adopt "中國華 榮能源股份有限公司" as the Chinese name of the Company to replace the existing Chinese name of the Company "中國熔盛重工集團控股有限公司".
The Board believes that the change of company name would better reflect the expansion of the Group's business scope and diversified operations with a more accurate display of the Group's strategic positioning, and offer the Company a new corporate identity and image. The Board also believes that the change of company name is in the best interest of the Company and our shareholders as a whole.
China Rongsheng Heavy Industries is currently a large PRC heavy industries group with a focus on oil-and-gas-related customers and markets, and produce vessels, marine engines and offshore engineering products related to oil and gas transportation and exploration. In order to strategically position ourselves as a more comprehensive energy service provider, we have already completed the acquisition of 60% interest in the Kyrgyzstan Project in September 2014 and have been working to identify suitable investment opportunities in the energy resources exploitation sector.

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Mr. Michael Cheng Tel: (852) 3900 1822 Email: michaelcheng@rshi.cn

Ms. Catherine Tsang Tel: (852) 6675 5167 Email: catherinetsang@irregularconsulting.com

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