Honghua Announced the "Sino-US Integrated Solution to LNG Industry" and Entered into the First Offshore LNG platform Construction HOA

BEIJING, Oct. 28, 2016 /PRNewswire/ -- Honghua Group Limited ("Honghua" or the "Group") (Stock Code: 196.HK), announces that the Group held the Sino-US LNG industry development seminar in Beijing today, and the "Sino-US Integrated Solution to LNG Industry" leading by the Group along with the Sino-US top companies in LNG industry. Shanghai Honghua Offshore Oil and Gas Equipment Co., Ltd. ("Honghua Offshore"), a wholly-owned subsidiary of the Group, entered into the first offshore LNG platform ("PLNG") construction Heads of Agreement (HOA) with Argo LNG Partners, LLC. ("ARGO"), with a total amount of approximately US$1.8 billion.

Honghua, the creative leading corporation along with Sino-US top partners, including GE, Braemar, Wood Group and China Aerospace (Shanghai) etc, announced the "Sino-US Integrated Solution to LNG Industry". Honghua together with Sino-US top partners initially introduced fixed platform technology into LNG factory design and developed the PLNG. PLNG has unique advantages, including: establishment in American federal waters to avoid approval period; the integration of port and factory, converting overseas EPC project to Chinese manufacturing to achieve low cost, controllable cycle, and convenient construction.

Mr. Zhang Mi, Chairman of Honghua commented, "We are pleased to announce 'Sino-US Integrated Solution to LNG Industry' and enter into the first PLNG construction HOA. We always adhere to the concept of 'Creative Manufacturing' and have successfully developed the new 'Super Offshore' model with integrated construction of offshore platform, implemented the concept of 'Offshore Equipment Manufactured Onshore' and the unique advantage of "Honghai" crane this time, as well as expanded the global market in advance."

About Honghua Group Limited (Stock Code: 196.HK)

Honghua is one of the largest land drilling equipment manufacturers in the world, which is primarily engaged in manufacturing conventional land drilling rigs, digital drilling rigs, accessories of drilling rigs, as well as the parts and components for the drilling rigs or for the maintenance of the drilling rigs in operation. Leveraging on the strong R&D strength, high-quality production facilities and mature international sales network, the Group's 80% products have been sold to a large number of famous enterprises all over the world. In 2014, Honghua has obtained sales orders of offshore drilling platform and started to manufacture in its Qidong offshore equipment production plant.