Honghua Group Limited — Capital/Financing Update 2015

Oct 28, 2015

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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HONGHUA GROUP LIMITED

宏華集團有限公司

(a company incorporated in the Cayman Islands with limited liability)

(Stock Code: 196)

VOLUNTARY ANNOUNCEMENT

This is a voluntary announcement made by Honghua Group Limited (the “ Company ”).

The board of directors of the Company (the “ Board ”) is pleased to announce that FSP LNG BV, a joint venture company of the Company, is taking the FSP LNG Flat Panel Semi-membrane Prismatic Type B containment system（“ FSP ”）through General

Design Approval with the American Bureau of Shipping in Houston, and is projecting that construction of the first tank will begin early next year. The approval, construction and test-completion of the first tank is projected for the end of the first quarter of 2016.

Introduction of FSP

The FSP system, a new flat-panel, semi-membrane, prismatic-shaped LNG tank-containment system Type B, uses new flat plate technology to overcome the issues associated with partial filling and sloshing. At the cutting edge of development in this field, the system employs a unique high tech process taken from the aerospace industry, the ‘friction stir welding’ technique, offering optimum integral strength. FSP can be used in a wide range of applications: LNG liquefaction plants, Floating

Production and Storage platforms; Floating Storage Regasification Units, LNG transportation and LNG marine fuel tanks. It can even be used as offshore storage. The new Type B containment system has been designed to be constructed, outfitted, insulated and tested off hull and lifted complete onto the platform. The use of on shore construction facilities ensures the highest standards of quality care and repeatability.

Compared with the existing technology in the market, the new advanced FSR LNG technology that the Company participated with global leaders this time has made significant improvements. It is more anti-sloshing, possesses high effective capacity ratio and can be partial filled during transportation. It could also be constructed independently and results in high - economy and cost advantages. Apart from the breakthrough the Company made in the turnkey service of overseas oilfield services business recently and its continued development in offshore engineering business, The Company expands its footprint in LNG industry chain by taking this new advanced FSP LNG containment system as the entry point. LNG industry will become the focus of strategic development of the Company. By virtue of the Company’s excellent in-house R&D capability and advanced technique as well as the competitive edges of the giant hoisting equipment ‘Honghai Crane’, The Company will participate in the core valued sub-divisions of LNG industry, which could also leverage the advantages in the pre-investment in Offshore manufacturing base of the Company and make synergy effects, thus to improve the diversified business layout of the Company.

Information of FSP LNG BV

FSP LNG BV, a joint venture company incorporated in the Holland, founded by the Company and several global leaders in the industry such as Braemar Engineering. It is principally engaged in the research and development, design and sales of the FSP.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

On behalf of the Board Honghua Group Limited Zhang Mi Chairman

PRC, 28 October 2015

As at the date of this announcement, the executive directors of the Company are Mr. Zhang Mi (Chairman), Mr. Ren Jie and Mr. Liu Zhi, the non-executive director of the Company is Mr. Siegfried Meissner （ Mr. Popin Su as his alternate ） and the independent non-executive directors of the Company are Mr. Liu Xiaofeng, Mr. Qi Daqing, Mr. Chen Guoming, Mr. Shi Xingquan and Mr. Guo Yanjun.