China Zhongwang Announces Proposed Listing on the Main Board of the HKEx

Offer Price between HK$6.80 and HK$8.80 per share

Raising Up to HK$12.32 billion

Focuses in Transportation Sectors while Enhancing Leading Position in Market

HONG KONG, April 23 /PRNewswire-Asia/ -- The largest industrial aluminum extrusion products developer and manufacturer in Asia and China, with a particular focus on the transportation sectors - China Zhongwang Holdings Limited (“China Zhongwang” or the “Company”) - today announced its proposed listing on the Main Board of The Stock Exchange of Hong Kong Limited (“HKEx”).

China Zhongwang plans to offer a total of 1,400,000,000 Shares with 90% International Placing Shares and 10% Hong Kong Offer Shares, at an Offer Price within the range between HK$6.80 per share and HK$8.80 per share. The Public Offer is expected to begin on 24 April 2009 (Friday) and close on 29 April 2009 (Wednesday) at noon. Dealings in the Shares of the Group are expected to commence on 8 May 2009 (Friday). The Shares, with the stock code of 1333, will be traded in board lots of 400 Shares. The Over-allotment Option will be up to 210,000,000 additional new Shares (“Over-allotment Option”), representing 15% of the Initial Offer Shares.

In relation to the listing of the Company, CITIC Securities Corporate Finance (HK) Limited and UBS Investment Bank are the Joint Sponsors; CITIC Securities Corporate Finance (HK) Limited, J.P. Morgan Securities Limited and UBS Investment Bank are the Joint Global Coordinators and Joint Bookrunners; and CITIC Securities Corporate Finance (HK) Limited, J.P. Morgan Securities Limited, Macquarie Capital Securities Limited and UBS Investment Bank are the Joint Lead Managers.

China Zhongwang is principally engaged in the research and development, production and sale of a diversified portfolio of high quality industrial aluminum extrusion products. The Company has strong research and development capabilities and places particular focus on the rapidly growing transportation sectors in China. It was the largest aluminum extrusion developer and manufacturer in Asia and China and the third largest in the world in 2007, in terms of production capacity. The Company’s plain, sizable, large-section and high-precision aluminum extrusion products are primarily used as parts and components for the transportation industry including railways (cargo and passenger carriages), metro, automobiles, vessels and aviation. Headquartered in Liaoyang City, Liaoning, the Company has a large-scale production base equipped with 64 extrusion production lines, including a 125MN oil-driven dual action extrusion press which is currently the largest of its kind in China and the most advanced extrusion press in the world, and other advanced facilities imported from overseas manufacturers. Advanced and efficient equipment, together with a streamlined production process, greatly reduce cost and increase operating efficiency, hence boosting the Company’s competitiveness. At present, the designated annual production capacity of the Company is over 535,000 tons.

Commenting on the Company’s upcoming listing, Mr. Liu Zhongtian, Chairman and President of the Company, said: “Having accumulated a wealth of industry experience over the past 16 years, China Zhongwang has a thorough knowledge of the operation and production of aluminum extrusion products and has recorded outstanding achievements in the areas of production, research and development, and product promotion. Management seized a market opportunity in 2002 to move into the industrial aluminum extrusion industry. Fully capitalizing on our strengths as an industry pioneer, we have built up a strong customer base to become the leading player in the industrial aluminum extrusion industry in China in terms of production capacity, research and development standard and operating efficiency. The rapid development of industries and infrastructures in mainland China and the unprecedented allocation of resources by both the central and local governments into transportation and infrastructure sectors such as railways, metropolitan rail systems, aviation, expressways and vessels boost the long-term demand for industrial aluminum extrusion products, creating immense growth potential for the industry.”

Global aluminum extrusion consumption has been growing rapidly and China was the largest aluminum consuming market in 2007, accounting for approximately 39% of global aluminum extrusion products consumption. The utilization of these products in the transportation sector increased by a CAGR of approximately 26.4% from 2001 to 2007. It is estimated that consumption in the industrial aluminum extrusion market will grow rapidly from 2007 to 2010. In the past three years, China Zhongwang has experienced outstanding financial growth. For the year ended 31 December 2008, the revenue of the Company grew by nearly 50% from 2007, to approximately RMB11.3 billion, profit for the year also recorded significant growth, surging by 124.2% to more than RMB1.9 billion.

The customers of China Zhongwang come from various industries across the country including railway, subway, vessel, aircraft and automobile and machinery manufacturers. In particular, well-known corporations like China South Locomotive & Rolling Group Limited and China Northern Locomotive & Rolling Stock Industry (Group) Corporation have become customers of the Company. The Company’s high quality products are recognized by the Ministry of Railways of the PRC, which has consistently designated China Zhongwang as one of the few qualified suppliers for the manufacture of cargo and passenger carriages in the mainland since 2004. In addition, the Company entered into strategic agreements with China South Locomotive & Rolling Co. Ltd, China North Locomotive & Rolling Co. Ltd and other major metropolitan rail manufacturers and operators in China in early 2009, further laying a solid foundation for future development.

In order to strengthen product quality, China Zhongwang has been focusing on R&D and has established a research and development center equipped with advanced facilities. Professional and experienced international technical staff is responsible for supervising the process of product design and quality control to customize aluminum extrusion products according to the specifications and standards of quality required by customers. The Company currently holds 176 design patents in China. China Zhongwang also cooperates with leading research institutions and universities including Northeastern University of China, Xi’an Heavy Machinery Research Institute and First Aircraft Institute of AVIC-1 for improvement of production technology. Moreover, the Company has participated in various large-scale projects in the industry and is the only private enterprise in China which was invited to participate in materials research and development for an aviation technology project designed to produce large-bodied aircraft.

In its efforts to achieve sustainable business growth and maintain its competitiveness, China Zhongwang has formulated a series of business development strategies, aiming to consolidate its leading position in the industrial aluminum extrusion industry in China. With regards to expansion of production capacity, the Company will enlarge the production scale of its industrial aluminum extrusion products in order to increase its market share in the transportation sector. China Zhongwang will invest in new production lines and may selectively acquire reputable aluminum extrusion products manufacturers that have growth potential. The Company expects to increase its production capacity to approximately 800,000 tons by 2011. To strengthen its research and development capability, the Company plans to leverage its strong emphasis on product quality and its layout and die design capabilities to further consolidate its role as a leading industrial aluminum extrusion producer in China. The Company will continue to focus its research and development efforts on improving manufacturing techniques, increasing product quality, reducing costs and broadening product portfolio. China Zhongwang also plans to develop additional value-added products and expand sales in the transportation sectors, as well as purchase manufacturing equipment and facilities for the production of downstream value-added industrial aluminum extrusion products.

“Looking forward, the RMB4 trillion economic stimulus package put forward by the central government with increasing efforts to be placed on the development of the transportation sectors together with the economic stimulus packages launched by provincial governments create enormous business opportunities for our industrial aluminum extrusion products. We will continue to follow a proven course in enhancing and strengthening our R&D capabilities, enlarging our production capacity, expanding the market share of our products in the transportation sectors and extending our sales coverage. This will consolidate and further enhance our leading position in the industrial aluminum extrusion industry in China as we pursue our goal of becoming the flagship industrial aluminum extrusion manufacturer in the world, while bringing the best returns to our investors,” Mr. Liu concluded.