Hengxin Technology Ltd. — Interim / Quarterly Report 2012

May 9, 2012

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.

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HENGXIN TECHNOLOGY LTD. 亨鑫科技有限公司 *

(carrying on business in Hong Kong as HX Singapore Ltd.) (Incorporated in Singapore with limited liability) (Singapore Registration No.: 200414927H)

(Hong Kong Stock Code: 1085)

(Singapore Stock Code: I85)

OVERSEAS REGULATORY ANNOUNCEMENT FIRST QUARTER FINANCIAL STATEMENTS ANNOUNCEMENT FOR THE PERIOD ENDED 31 MARCH 2012

This overseas regulatory announcement is a reproduction of the announcement made by Hengxin Technology Ltd. (the “Company”) regarding the first quarter results of the Company and its subsidiaries (collectively the “Group”) for the period ended 31 March 2012 pursuant to the Listing Manual of the Singapore Exchange Securities Trading Limited (the “SGX-ST”). In compliance with Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, please refer to the attached announcement on the next page issued on the SGX-ST on 9 May 2012.

This quarterly report is prepared in accordance with relevant regulations of the SGX-ST. The financial information set out in this quarterly report has been prepared in accordance with Singapore Financial Reporting Standard and has not been audited nor reviewed by auditors. Shareholders of the Company and public investors should exercise caution when trading in the shares of the Company.

By order of the Board Cui Genxiang Chairman and Executive Director

Hong Kong, 9 May 2012

As at the date of this announcement, the executive Directors of the Company are Mr. Cui Genxiang and Mr. Xu Guoqiang; the non-executive Director of the Company is Ms. Zhang Zhong; and the independent non-executive Directors are Mr. Tay Ah Kong Bernard, Mr. Chee Teck Kwong Patrick and Mr. Tam Chi Kwan Michael.

• For identification purpose only

Hengxin Technology Ltd.

The directors are pleased to announce the unaudited operating results of the Group and the Company for the first quarter ended 31 March 2012.

• 1(a)(i) An income statement and statement of comprehensive income, or a statement of comprehensive income, for the Group, together with a comparative statement for the corresponding period of the immediately preceding financial year.

INCOME STATEMENT FOR THE FIRST QUARTER ENDED 31 MARCH 2012

Revenue Cost of Sales Gross profit Other income Selling & distribution expenses Administrative expenses Other operating expenses Finance costs Profit before income tax Income tax expense Net profit Gross profit margin Net profit margin	Group 3 months ended 31 March 2012 2011 Change RMB’000 RMB’000 % 259,601 278,526 (6.8) (214,902) (227,378) (5.5) 44,699 51,148 (12.6) 7,360 2,379 209.4 (12,064) (15,240) (20.8) (9,353) (9,972) (6.2) (3,311) (2,485) 33.2 (5,475) (1,395) 292.5 21,856 24,435 (10.6) (3,275) (3,830) (14.5) 18,581 20,605 (9.8) 17.2% 18.4% 7.2% 7.4%

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• 1(a)(ii) The following items (with appropriate breakdowns and explanations), if significant, must either be included in the income statement or in the notes to the income statement for the current financial period reported on and the corresponding period of the immediately preceding financial year:-

Profit before income tax is determined after charging (crediting) the following: -

Depreciation of property, plant and equipment Gain on disposal of available-for-sale investment Loss on disposal of property, plant and equipment Amortisation of prepaid lease payments Foreign exchange gains Interest expense Interest income Research and development expenses1	Group 3 months ended 31 March 2012 2011 Change RMB’000 RMB’000 % 4,347 4,103 5.9% — (690) –100.0% 7 1 N.M. 140 140 0.0% (2,747) (823) N.M. 5,475 1,395 N.M. (1,209) (623) 94.1% 2,804 1,983 41.4%

N.M.: Not meaningful

• 1 Included in Other Operating Expenses

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1(a)(iii) Statement of Comprehensive Income

1(a)(iii) Statement of Comprehensive Income
RMB’000 Net profit Other comprehensive income/(expense): Exchange differences arising from consolidation of foreign operations Total comprehensive income for the period N.M. — Not meaningful	Group 3 months ended 31 March Change 2012 2011 % 18,581 20,605 –9.8% (204) (6) N.M. 18,377 20,599 –10.8%

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(1)(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year (in RMB)

Current assets Cash and bank balances Pledged cash deposits Trade receivables Other receivables and prepayments Amount due from subsidiary Inventories Prepaid lease payment Total current assets Non-current assets Subsidiaries Available-for-sale investment Deposit for acquisition of land use right Prepaid lease payment Property, plant and equipment Deferred tax assets Total non-current assets TOTAL ASSETS Current liabilities Short-term loans Trade payables Other payables Income tax payable Total current liabilities Non-current liability Deferred tax liabilities Capital and reserves Share capital General reserves Special reserve Translation reserves Accumulated profits Total equity TOTAL LIABILITIES AND EQUITY	Group 31-Mar-12 31-Dec-11 RMB’000 RMB’000 246,353 323,710 18,404 52,883 741,932 734,596 42,255 28,256 — — 124,290 135,911 560 560 1,173,794 1,275,916 — — 10,000 10,000 5,760 5,760 19,322 19,461 156,699 157,889 2,523 2,523 194,304 195,633 1,368,098 1,471,549 250,000 230,000 138,051 258,489 16,371 28,719 3,639 12,771 408,061 529,979 2,686 2,596 295,000 295,000 125,676 122,889 (6,017) (6,017) (498) (294) 543,190 527,396 957,351 938,974 1,368,098 1,471,549	Group 31-Mar-12 31-Dec-11 RMB’000 RMB’000 246,353 323,710 18,404 52,883 741,932 734,596 42,255 28,256 — — 124,290 135,911 560 560 1,173,794 1,275,916 — — 10,000 10,000 5,760 5,760 19,322 19,461 156,699 157,889 2,523 2,523 194,304 195,633 1,368,098 1,471,549 250,000 230,000 138,051 258,489 16,371 28,719 3,639 12,771 408,061 529,979 2,686 2,596 295,000 295,000 125,676 122,889 (6,017) (6,017) (498) (294) 543,190 527,396 957,351 938,974 1,368,098 1,471,549	Company 31-Mar-12 31-Dec-11 RMB’000 RMB’000 60,862 63,085 — — — — 147 128 5,357 9,955 — — — — 66,366 73,168 361,081 354,793 — — — — — — 3 5 — — 361,084 354,798 427,450 427,966 — — — — 2,680 2,126 — — 2,680 2,126 — — 295,000 295,000 — — — — — — 129,770 130,840 424,770 425,840 427,450 427,966	Company 31-Mar-12 31-Dec-11 RMB’000 RMB’000 60,862 63,085 — — — — 147 128 5,357 9,955 — — — — 66,366 73,168 361,081 354,793 — — — — — — 3 5 — — 361,084 354,798 427,450 427,966 — — — — 2,680 2,126 — — 2,680 2,126 — — 295,000 295,000 — — — — — — 129,770 130,840 424,770 425,840 427,450 427,966
	246,353 18,404 741,932 42,255 — 124,290 560	323,710 52,883 734,596 28,256 — 135,911 560	60,862 — — 147 5,357 — —	63,085 — — 128 9,955 — —
	1,173,794	1,275,916	66,366	73,168
	— 10,000 5,760 19,322 156,699 2,523	— 10,000 5,760 19,461 157,889 2,523	361,081 — — — 3 —	354,793 — — — 5 —
	194,304 1,368,098	195,633 1,471,549	361,084 427,450	354,798 427,966
	250,000 138,051 16,371 3,639	230,000 258,489 28,719 12,771	— — 2,680 —	— — 2,126 —
	408,061	529,979	2,680	2,126
	2,686	2,596	—	—
	295,000 125,676 (6,017) (498) 543,190	295,000 122,889 (6,017) (294) 527,396	295,000 — — — 129,770	295,000 — — — 130,840
	957,351 1,368,098	938,974 1,471,549	424,770 427,450	425,840 427,966

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• (1)(b)(ii) In relation to the aggregate amount of the group’s borrowings and debt securities, specify the following as at the end of the current financial period reported on with comparative figures as at the end of the immediately preceding financial year:-

• (A) the amount repayable in one year or less, or on demand;

(B) the amount repayable after one year;

• (C) whether the amounts are secured or unsecured; and

(D) details of any collaterals.

Amount repayable in one year or less, or on demand:

As at 31 March 2012 As at 31 December 2011 Secured Unsecured Secured Unsecured RMB’000 RMB’000 RMB’000 RMB’000 — — 250,000 230,000

As at 31 March 2012, all bank borrowings are unsecured.

There is no amount repayable after one year.

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• (1)(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year

Group RMB’000 Cash flows from operating activities Profit before income tax Adjustments for: Depreciation of property, plant and equipment Amortisation of prepaid lease payments (Gain)loss on disposal of property, plant and equipment Gain on disposal of available-for-sale investments Interest expense Interest income Exchange differences arising on foreign currency translation Operating profit before working capital changes Trade receivables Other receivables and prepayments Inventories Trade and bill payables Other payables and accruals Cash used in operations Interest paid Interest received Income tax paid Net cash used in operating activities Cash flows from investing activities Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Proceeds from disposal of available-for-sale investment Net cash used in investing activities Cash flows from financing activities Dividend paid (Increase) decrease in pledged bank deposits Proceeds from bank loans Repayment of bank loans Net cash generated from financing activities Net decrease in cash and cash equivalents Effects of foreign exchange translation Cash and cash equivalents at the beginning of the financial period Cash and cash equivalents at the end of the financial period

1-Jan-2012 to 31-Mar-2012 1-Jan-2011 to 31-Mar-2011 21,856 24,435 4,347 4,103 140 140 7 1 — (690) 5,475 1,395 (1,209) (623) (1,928) 202 28,688 28,963 (7,336) (41,098) (13,999) (13,983) 11,621 (17,688) (120,438) (28,874) (12,348) (11,713) (113,812) (84,393) (5,475) (1,395) 1,209 623 (12,317) (5,255) (130,395) (90,420) (2,693) (3,027) — — — 2,690 (2,693) (337) — — 34,479 17,004 40,000 20,000 (20,000) — 54,479 37,004 (78,609) (53,753) 1,252 (208) 323,710 247,078 246,353 193,117

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(1)(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalization issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.

(i)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2012 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2012 295,000 122,889 (6,017) (294) 527,396 938,974 Total comprehensive income for the period — — — (204) 18,581 18,377 Transfer to reserves — 2,787 — — (2,787) — Balance at 31.03.2012 295,000 125,676 (6,017) (498) 543,190 957,351 (ii)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2011 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2011 295,000 104,839 (6,017) (4) 458,891 852,709 Total comprehensive income for the period — — — (6) 20,605 20,599 Transfer to reserves — 3,091 — — (3,091) — Balance at 31.03.2011 295,000 107,930 (6,017) (10) 476,405 873,308	(i)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2012 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2012 295,000 122,889 (6,017) (294) 527,396 938,974 Total comprehensive income for the period — — — (204) 18,581 18,377 Transfer to reserves — 2,787 — — (2,787) — Balance at 31.03.2012 295,000 125,676 (6,017) (498) 543,190 957,351 (ii)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2011 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2011 295,000 104,839 (6,017) (4) 458,891 852,709 Total comprehensive income for the period — — — (6) 20,605 20,599 Transfer to reserves — 3,091 — — (3,091) — Balance at 31.03.2011 295,000 107,930 (6,017) (10) 476,405 873,308	(i)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2012 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2012 295,000 122,889 (6,017) (294) 527,396 938,974 Total comprehensive income for the period — — — (204) 18,581 18,377 Transfer to reserves — 2,787 — — (2,787) — Balance at 31.03.2012 295,000 125,676 (6,017) (498) 543,190 957,351 (ii)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2011 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2011 295,000 104,839 (6,017) (4) 458,891 852,709 Total comprehensive income for the period — — — (6) 20,605 20,599 Transfer to reserves — 3,091 — — (3,091) — Balance at 31.03.2011 295,000 107,930 (6,017) (10) 476,405 873,308	(i)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2012 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2012 295,000 122,889 (6,017) (294) 527,396 938,974 Total comprehensive income for the period — — — (204) 18,581 18,377 Transfer to reserves — 2,787 — — (2,787) — Balance at 31.03.2012 295,000 125,676 (6,017) (498) 543,190 957,351 (ii)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2011 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2011 295,000 104,839 (6,017) (4) 458,891 852,709 Total comprehensive income for the period — — — (6) 20,605 20,599 Transfer to reserves — 3,091 — — (3,091) — Balance at 31.03.2011 295,000 107,930 (6,017) (10) 476,405 873,308	(i)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2012 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2012 295,000 122,889 (6,017) (294) 527,396 938,974 Total comprehensive income for the period — — — (204) 18,581 18,377 Transfer to reserves — 2,787 — — (2,787) — Balance at 31.03.2012 295,000 125,676 (6,017) (498) 543,190 957,351 (ii)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2011 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2011 295,000 104,839 (6,017) (4) 458,891 852,709 Total comprehensive income for the period — — — (6) 20,605 20,599 Transfer to reserves — 3,091 — — (3,091) — Balance at 31.03.2011 295,000 107,930 (6,017) (10) 476,405 873,308	(i)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2012 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2012 295,000 122,889 (6,017) (294) 527,396 938,974 Total comprehensive income for the period — — — (204) 18,581 18,377 Transfer to reserves — 2,787 — — (2,787) — Balance at 31.03.2012 295,000 125,676 (6,017) (498) 543,190 957,351 (ii)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2011 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2011 295,000 104,839 (6,017) (4) 458,891 852,709 Total comprehensive income for the period — — — (6) 20,605 20,599 Transfer to reserves — 3,091 — — (3,091) — Balance at 31.03.2011 295,000 107,930 (6,017) (10) 476,405 873,308	(i)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2012 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2012 295,000 122,889 (6,017) (294) 527,396 938,974 Total comprehensive income for the period — — — (204) 18,581 18,377 Transfer to reserves — 2,787 — — (2,787) — Balance at 31.03.2012 295,000 125,676 (6,017) (498) 543,190 957,351 (ii)Consolidated Statement of Changes in Equity for the 3 months ended 31 March 2011 GROUP Share capital General reserves Special reserves Translation reserves Accumulated profits Total —RMB’000 Balance at 01.01.2011 295,000 104,839 (6,017) (4) 458,891 852,709 Total comprehensive income for the period — — — (6) 20,605 20,599 Transfer to reserves — 3,091 — — (3,091) — Balance at 31.03.2011 295,000 107,930 (6,017) (10) 476,405 873,308
	Share capital 295,000 — — 295,000	General reserves 104,839 — 3,091 107,930	Special reserves (6,017) — — (6,017)	Translation reserves (4) (6) — (10)	Accumulated profits 458,891 20,605 (3,091) 476,405
						873,308

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(1)(d)(i) (continued)

(iii)Statement of Changes in Equity of the Company for the 3 months ended 31 March 2012
Share Accumulated
COMPANY capital profits Total
RMB’000 RMB’000 RMB’000
Balance at 01.01.2012 295,000 130,840 425,840
Total comprehensive income for the period — (1,070) (1,070)
Balance at 31.03.2012 295,000 129,770 424,770
(iv)Statement of Changes in Equity of the Company for the 3 months ended 31 March 2011
Share Accumulated
COMPANY capital profits Total
RMB’000 RMB’000 RMB’000
Balance at 01.01.2011 295,000 131,648 426,648
Total comprehensive income for the period — (2,423) (2,423)
Balance at 31.03.2011 295,000 129,225 424,225
(1)(d)(ii) Details of any changes in the company’s share capital arising from rights issue, bonus issue,
share buy-backs, exercise of share options or warrants, conversion of other issues of equity
securities, issue of shares for cash or as consideration for acquisition or for any other purpose
since the end of the previous period reported on. State also the number of shares that may be
issued on conversion of all the outstanding convertibles, as well as the number of shares held
as treasury shares, if any, against the total number of issued shares excluding treasury shares
of the issuer, as at the end of the current financial period reported on and as at the end of the
corresponding period of the immediately preceding financial year.

	No. of shares
Share capital — Ordinary Shares	’000	RMB’000
Balance as at 31 December 2011 and 31 March 2012	388,000	295,000

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• 1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.

As above. As at 31 March 2012 and 31 December 2011, there were no treasury shares.

• 1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.

Not applicable.

2. Whether the figures have been audited or reviewed, and in accordance with which auditing standard or practice (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard).

The figures have not been audited or reviewed by the Company’s auditors.

3. Where the figures have been audited or reviewed, the auditors’ report (including any qualifications or emphasis of a matter).

Not applicable.

4. Whether the same accounting policies and methods of computation as in the issuer’s most recently audited annual financial statements have been applied.

The Group has applied the same accounting policies and methods of computation in the financial statements for the current financial period reported on, as in the recently audited consolidated financial statements for the financial year ended 31 December 2011.

5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.

Not applicable.

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6. Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends:-

Earnings per share (RMB cents) — Basic — Diluted Weighted average no. of shares applicable to basic EPS Weighted average no. shares based on fully diluted basis	Group 3 months ended 31-Mar-12 31-Mar-11 0.05 0.05 0.05 0.05 388,000,000 388,000,000 388,000,000 388,000,000	Group 3 months ended 31-Mar-12 31-Mar-11 0.05 0.05 0.05 0.05 388,000,000 388,000,000 388,000,000 388,000,000
		0.05
		388,000,000 388,000,000

7. Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the (a) current period reported on; and (b) immediately preceding financial year.

Net Assets (RMB’000) Number of ordinary shares (’000) Net Asset Value per share (RMB)	Group 31-Mar-12 31-Dec-11 957,351 938,974 388,000 388,000 2.47 2.42	Company 31-Mar-12 31-Dec-11 424,770 425,840 388,000 388,000 1.09 1.10	Company 31-Mar-12 31-Dec-11 424,770 425,840 388,000 388,000 1.09 1.10
			1.10

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8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group’s business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.

1st Quarter of FY2012 (“1Q2012”) vs 1st Quarter of FY2011 (“1Q2011”)

Material fluctuations of items are explained below:

Revenue

Revenue decreased by RMB 18.9 million from RMB 278.5 million in 1Q2011 to RMB 259.6 million in 1Q2012. The Group experienced a slightly lower revenue generated from overseas markets during the period.

Gross profit margin

Gross profit margin decreased from 18.4% in 1Q2011 to 17.2% in 1Q2012, mainly affected by stiff competition and as part of the Group’s overall strategy in maintaining market share.

Other income

Other income increased by RMB 5.0 million from RMB 2.4 million in 1Q2011 to RMB 7.4 million in 1Q2012 due to favourable foreign exchange adjustments and higher government grants received during the period.

Operating expenses

Overall operating expenses decreased by RMB 2.9 million from RMB 27.7 million in 1Q2011 to RMB 24.8 million in 1Q2012. The changes in the respective expenses are detailed below.

(i) Selling & distribution expenses

Selling and distribution expenses decreased by RMB 3.1 million in line with the decrease in sales activities during the period.

(ii) Administrative expenses

Administrative expenses was relatively stable, decreasing by RMB 0.6 million.

(iii) Other operating expenses

Other operating expenses increased by RMB 0.8 million arising from more customer requests for new product specifications during the period.

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Finance costs

Finance costs comprise of bank interest expenses.

Finance costs increased by RMB 4.1 million in 1Q2012 compared to that in 1Q2011 due to an increase in borrowings obtained in the PRC and higher interest rates arising from the PRC government’s credit tightening policy.

Profit before income tax

Profit before income tax decreased by RMB 2.6 million to RMB 21.9 million due to lower revenue, lower gross margins and an increase of finance costs in 1Q2012.

Income tax expense

The Group’s main subsidiary is subject to an incentive tax rate of 15% in accordance to its award as a high-tech enterprise in September 2011.

Net profit

In view of the above, net profit decreased by RMB 2.0 million to RMB 18.6 million in 1Q2012 compared to RMB 20.6 million in 1Q2011.

STATEMENT OF FINANCIAL POSITION

Material fluctuations of items are explained below:

Pledged bank deposits

Pledged bank deposits are used as a pledged against commercial bills used for payment to suppliers. Pledged deposits decreased by RMB 34.5 million from RMB 52.9 million as at 31 December 2011 to RMB 18.4 million as at 31 March 2012 as the Group had lower amount of commercial bills during the period.

Trade receivables

Trade receivables increased by RMB 7.3 million from RMB 734.6 million as at 31 December 2011 to RMB 741.9 million as at 31 March 2012.

Average trade receivables turnover days are 253 days as at 31 March 2012 compared to 179 days as at 31 December 2011. The higher turnover days is due to a lower revenue base used, coupled with a lengthening of payment period by our major customers during 1Q2012. Most of the trade receivables balances are within the average credit period given to our customers, and our major customers have no history of bad debts. The Group continue to step up its collection efforts.

Other receivables and prepayments

Other receivables and prepayments increased by RMB 14.0 million to RMB 42.3 million as at 31 March 2012 compared to RMB 28.3 million as at 31 December 2011. Due to a recent tender exercise requiring the Group to increase its manufacturing pace and adhere to strict delivery schedules, the Group made deposits to raw material suppliers amounting RMB 33.2 million as at 31 March 2012 compared to RMB 16.6 million as at 31 December 2011 so as to ensure customer requirements can

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be met. The increase in deposits made to these suppliers was offset by the decrease in value-added tax and special additional customs duty receivables from RMB 4.0 million as at 31 December 2011 to RMB 2.2 million as at 31 March 2012.

Short-term bank loans

Short-term bank loans increased by RMB 20.0 million from RMB 230.0 million as at 31 December 2011 to RMB 250.0 million as at 31 March 2012 as the PRC government’s credit tightening policies makes it necessary for the Group to secure additional credit in anticipation for its ongoing operations.

Trade payables and Other payables

Trade payables decreased by RMB 120.4 million from RMB 258.5 million as at 31 December 2011 to RMB 138.1 million as at 31 March 2012 as most of the commercial bills payable to suppliers had matured and payment made.

Other payables and accruals decreased by RMB 12.3 million from RMB 28.7 million as at 31 December 2011 to RMB 16.4 million as at 31 March 2012 as the cumulated full-year accruals made in 2011 were paid during the period.

Income tax payable

Income tax payable decreased by RMB 9.1 million as the balances for prior period taxes owing had be paid during the period.

Cash and bank balances

Cash and bank balances decreased by RMB 77.3 million from RMB 323.7 million as at 31 December 2011 to RMB 246.4 million as at 31 March 2012 due mainly to the payment of trade payables during the period.

9. WHERE A FORECAST, OR A PROSPECT STATEMENT, HAS BEEN PREVIOUSLY DISCLOSED TO SHAREHOLDERS, ANY VARIANCE BETWEEN IT AND THE ACTUAL RESULTS.

No forecast or a prospect statement has been previously disclosed.

10. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.

The Group sees the coming quarters to be challenging in its overall business environment. Although orders continue to be steady, telecom operators are seeking ways to reduce their costs, and this directly exert selling price pressures for the Group. Notwithstanding the above, the Group remains committed to refining its sales mix and seek other avenues for growth, while focusing in the PRC as its main market driver.

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11. Dividend

• (a) Current Financial Period Reported On

Any dividend recommended for the current financial period reported on?

No.

• (b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year?

No.

(c) Date payable

Not applicable.

• (d) Books closure date

Not applicable.

12. If no dividend has been declared (recommended), a statement to that effect.

Not applicable.

13. If the Group has obtained a general mandate from shareholders for Interest Person Transactions (“IPTs”), the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect.

The Group did not obtain a general mandate from shareholders for IPTs.

PART II ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT

14. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer’s most recently audited annual financial statements, with comparative information for the immediately preceding year.

Not applicable.

15. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments.

Not applicable.

16. Breakdown of sales

Not applicable.

17. Total annual dividend

Not applicable.

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Hengxin Technology Ltd.

18. Negative assurance

We, CUI GENXIANG and XU GUOQIANG, being two directors of Hengxin Technology Ltd. (the “Company”), do hereby confirm on behalf of the Board of Directors of the Company (“Board”) that, to the best of the Board’s knowledge, nothing has come to the attention of the Board which may render the 1Q2012 financial results to be false or misleading in any material aspect.

On behalf of the board of directors

Cui Genxiang Xu Guoqiang Executive Chairman Executive Director

Singapore 9 May 2012

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