The board of directors of Honghua Group Ltd. would like to inform the shareholders and potential investors that based on the unaudited consolidated management accounts of the company and its subsidiaries for the year ended 31 December 2012 and the information currently available to the company, it is expected that the profit attributable to the shareholders of the company for the year ended 31 December 2012 will increase significantly as compared to that for the corresponding period in 2011, primarily due to the substantial increase in the revenue of the sales of the group's products. The company is in the process of finalizing the annual results of the group for the year ended 31 December 2012. The information contained in this announcement is only based on a preliminary assessment by the Board of the unaudited consolidated management accounts of the Group for the year ended 31 December 2012 and the information currently available to the company and is not based on any figures or information that have been audited or reviewed by the company's auditors.