Xingmin Steel Ring intends to establish a wholly-owned subsidiary in the United States

The company and all members of the board of directors ensure that the contents of the announcement are true, accurate and complete, and bear responsibility for false records, misleading statements or major omissions in the announcement.

On January 16, 2012, the tenth meeting of the Second Board of Directors of Shandong Xingmin Steel Ring Co., Ltd. (hereinafter referred to as the "Company") reviewed and approved the "Proposal on Establishing a wholly-owned Subsidiary in the United States". The announcement of the establishment of a wholly-owned subsidiary is as follows:

I. Overview of foreign investment 1. Basic information of foreign investment The company plans to use its own funds to invest no more than 9 million U.S. dollars to set up a wholly-owned subsidiary in Indianapolis, Indiana, USA. The subsidiary company is provisionally named: Xingmin Steel Circle. United States Limited (names are subject to final registration, hereinafter referred to as "US companies").

2. The examination and approval procedures necessary for the investment This time, the amount of foreign investment is within the decision-making authority of the company's board of directors, and it need not be submitted to the company's general meeting of shareholders for approval. This external investment does not constitute a connected transaction.

II. Introduction to Investment Subjects The Company is the sole investment entity of U.S. companies and has no other investment entities.

III. Basic situation of the proposed subsidiary company 1. Name of the company: Xingmin Steel Circle USA Co., Ltd. (tentative name, subject to final registration);

2. Registered capital: no more than 9 million U.S. dollars (based on the final registration), the company’s contribution ratio is 100%;

3. Legal representative: Gao Henan 4. Source of funds and method of investment: The company will purchase foreign exchange through its own RMB funds as a source of funds for investment in U.S. companies;

5. Proposed business scope: R&D and sales of steel wheels (subject to final registration).

IV. Main Contents of Foreign Investment Contracts This time, the external investment matters are to establish a wholly-owned subsidiary for investment without signing an overseas investment contract.

V. Purpose of the establishment of a wholly-owned subsidiary, its impact on the company and existing risks 1. The purpose of setting up a wholly-owned subsidiary and the impact on the company (1) will be conducive to the further development of the internationalization of the company's business;

(2) The establishment of this wholly-owned subsidiary can promote cooperation and exchange between the company and overseas markets, and timely obtain the latest information on overseas markets.

2. Risks in setting up a wholly-owned subsidiary There are certain differences between the commercial and human environment in the United States and in the United States. After setting up a US company, it needs to adapt to US regulations and policies and the business environment as soon as possible, and it will bring about the establishment and operation of American companies. Certain risks.

VI. Documents for Reference The tenth meeting of the second session of the Board of Directors