The Company received today a statement from its controlling shareholder, Zhongwang International (the “Controlling Shareholder”) refuting fraudulent and groundless allegations against the Controlling Shareholder contained in a recent Wall Street Journal article titled “Aluminum Billionaire Planning Escape From China: Lawyer” (the “Article”). The misrepresentation has caused serious damage to the Controlling Shareholder’s reputation.

The Controlling Shareholder and China Zhongwang (collectively, the “Zhongwang Group”) have been attacked by certain international players and The Wall Street Journal in a number of media reports with serious allegations following the Controlling Shareholder"s announcement of acquiring Aleris Corporation (“Aleris”) through Zhongwang USA, LLC, a subsidiary of the Controlling Shareholder, on 29 August 2016. The Controlling Shareholder expresses concern and reserves the right to take legal action against them.

 As a leading fabricated aluminum product developer and manufacturer in the world, Zhongwang Group has been focusing primarily on the mainland China market, supplemented with expansion overseas over the years. With the investment and construction of a number of major projects located in Tianjin, Liaoyang, Panjin and Yingkou successively, Zhongwang Group aims to facilitate the development of high-end manufacturing in China. Furthermore, the Controlling Shareholder is also proactively tapping into overseas markets. Zhongwang USA has entered into an acquisition agreement with Aleris, a world’s leading high-end aluminum flat-rolled product manufacturer. Upon completion, Zhongwang Group will become the second largest comprehensive fabricated aluminum product developer and manufacturer in the world as well as one of the Chinese companies that enjoys strong competitive edge on a global scale, offering customized products to various high-end transportation industries, including aerospace and aviation, automobiles and vessels.

China Zhongwang Holdings Limited

30 December 2016