Honghua Group Limited — Director's Dealing 2011

Jul 8, 2011

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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)

SUPPLEMENTAL ANNOUNCEMENT

Reference is made to the Announcement of the Company dated 20 June 2011.

The Board announces that Mr. Siegfried Meissner, the non-executive director of the Company, has declined the Share Options for subscribing 850,000 Shares granted by the Company on 20 June 2011 to avoid conflict of interest.

Reference is made to the announcement of Honghua Group Limited（the “Company” ） dated 20 June 2011 in relation to the Grant of Share Options (the “ Announcement ”). This announcement is made supplemental to the Announcement. Capitalized terms used herein have the same meanings as defined in the Announcement unless otherwise specified.

As disclosed in the Announcement, on 20 June 2011 the Company granted Share Options to subscribe for a total of 8,450,000 Shares to the Grantees subject to acceptance of the Grantees under the share option scheme adopted on 21 January 2008.

As further disclosed in the Announcement, 6,050,000 Shares out of the total 8,450,000 Shares to be subscribed under the Share Options were granted to the directors of the Company, amongst which Share Options to subscribe for 850,000 Shares were granted to Mr. Siegfried Meissner, the non-executive director of the Company.

The board of the Company (the “ Board ”) announces that Mr. Siegfried Meissner has declined the Share Options for subscribing 850,000 Shares granted by the Company on 20 June 2011 to avoid conflict of interest. In this regard, after deducting the Share Options declined by Mr. Siegfried Meissner, the total number of Shares to be subscribed under the Share Options granted by the Company on 20 June 2011 have reduced to 7,600,000 Shares, amongst which the Share Options to subscribe for 5,200,000 Shares were granted to the directors of the Company whose names and number of Shares to be subscribed have already been disclosed in the Announcement. Save for Mr. Siegfried Meissner, all the other Grantees have accepted the Share Options granted by the Company.

By order of the Board Honghua Group Limited Zhang Mi Chairman

PRC, 8 July 2011

As at the date of this announcement, the executive directors of the Company are Mr. Zhang Mi, Mr. Ren Jie and Mr. Liu Zhi; the non-executive directors of the Company are Mr. Huang Dongyang and Mr. Siegfried Meissner; and the independent non-executive directors of the Company are Mr. Liu Xiaofeng, Mr. Qi Daqing, Mr. Tai Kwok Leung, Alexander, Mr. Shi Xingquan, Mr. Chen Guoming and Mr. Guo Yanjun.