China Zhongwang Confirms Accuracy of Relevant Information Disclosed in the Prospectus on Completion of Independent Review Report

Jan 05, 2010, 07:34 ET from China Zhongwang Holdings Limited

HONG KONG, Jan. 5 /PRNewswire-Asia/ -- China Zhongwang Holdings Limited ("China Zhongwang" or the "Company", together with its subsidiaries the "Group", stock code: 1333) announced that the independent review conducted by Ernst & Young (China) Advisory Limited ("Ernst & Young") engaged by the Company's Audit Committee to perform on the Group's sales transactions with the 10 major customers during the period from 1 January 2008 to 30 June 2009 and the annual corporate income tax filing documentation and the corporate income tax payment records for the financial year ended 31 December 2008 ("Review Period") has been completed. Ernst & Young has submitted the independent review report to the Company's Audit Committee. The Audit Committee has reviewed the independent review report and the Audit Committee is in the opinion and confirms that there had not been any deficiencies in the Company' sales transactions with the "Major 10 customers" during the review period, and there had not been any deficiencies in annual corporate income tax filing documentation and the corporate income tax payment records during the review period. Meanwhile, the Board of Directors has confirmed the accuracy of transactions and other information disclosed in the Prospectus of the company.

In order to further demonstrate China Zhongwang's confidence in its business operations, and its commitment to safeguarding the interests of investors, the Company has also engaged Moores Rowland (Beijing) Certified Public Accountants ("Moores Rowland") to test the effectiveness of the Company's material internal control measures on a quarterly basis for at least 12 months after the listing of the Company on The Stock Exchange of Hong Kong Limited on 8 May 2009. Moores Rowland has reviewed the Company's material internal control measures, including internal controls on sales, trade receivables and prepaid income tax for the third quarter of 2009 (1st July to 30th September 2009) and has not identified any material operating ineffectiveness of those controls.

Mr. Liu Zhongtian, the Chairman and President of China Zhongwang said, "China Zhongwang keeps a close relationship with our customers by providing high quality value added products and thoughtful customer services. With the adorable trust and support from our customers, we have achieved outstanding performance in our business. I would like to express my heartfelt gratitude for their long-term support. We took the initiative to appoint Ernst & Young and Moores Rowland to conduct the independent review report and the internal controls review. These revealed the endless efforts of China Zhongwang in keeping high standards of corporate governance and the commitment to safeguarding the interests of our investors. Looking ahead, we will continue to expand our business for the sake of creating better returns to our shareholders, and to strive for open and transparent management, in order to provide investors with a better understanding of the Company's operations and investment value. We welcome investors to come visit China Zhongwang to get to know more about our operations."

China Zhongwang has a diverse base of domestic and international customers which includes companies in the transportation, machinery equipment and infrastructure operators in the railway, metropolitan conductor rail, shipbuilding, automobile, aircraft industries, as well as manufacturers of machinery equipments. Most of them are well-known enterprises.

About China Zhongwang Holdings Limited

China Zhongwang was listed on the Stock Exchange of Hong Kong Limited on 8 May 2009, is the largest aluminum extrusion products manufacturer in Asia and China, with a particular focus on the transportation, machinery and equipment and infrastructure sectors for its industrial aluminum extrusion products. It has strong research and development capabilities. According to CRU Strategies Limited (CRU), China Zhongwang was the world's third largest and Asia's and China's largest aluminum extrusion products manufacturer in terms of production capacity in 2007. The Company possesses 66 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, which enable the Company to produce plain, sizable, large- section and high-precision industrial aluminum extrusion products tailored to its customers. These products are widely used as components for end products of the transportation sector such as railway, metropolitan railway, automobiles, vessels, aviation, and machinery equipments. The Company has been appointed by the Ministry of Railway as one of a few qualified suppliers for manufacturing carriages of wagon and passenger trains and subway conductor rail. By the end of 2008, the Company's designated production capacity and production volume reach over 535,000 tons and 419,000 tons respectively.

    For further information, please contact:

    Porda International (Finance) PR Group
     Ms. Harriet Lau
     Tel:   +852-3150-6761

     Ms. Alman Loong
     Tel:   +852-3150-6731

     Ms. Ada Leung
     Tel:   +852-3150-6732

     Ms. Christine Fong
     Tel:   +852-3150-6755

     Fax: +852-3150-6728

SOURCE China Zhongwang Holdings Limited