Wednesday, 25 October 2017, 07:30 HKT/SGT

Further Realized the Expansion in Promising Shale Gas Market

HONG KONG, Oct 25, 2017 - (ACN Newswire) - Honghua Group Ltd. ("Honghua") (Stock Code: 196.HK), a leading global land drilling rig manufacturer, is pleased to announce that Honghua's wholly-owned subsidiaries, namely Sichuan Honghua Petroleum Equipment Co., Ltd ("Sichuan Honghua") entered into a 6,000HP electric fracturing pumps sales contract with China Aerospace Leasing Company Ltd. ( "CASLC"), with a total amount of approximately RMB 120 million. Pursuant to the contract, Sichuan Honghua will provide CASLC the new model of self-developed electric fracturing pumps by the end of 2017.

This sales contract was the first order of the newly developed electic fracturing pump by Honghua after its trial success in Sichuan Basin with SINOPEC East China Oil and Gas Company ("East China Branch").

CASLC, the finance leasing joint venture of China Aerospace Science and Technology Corporation("CASTC"), is a critical industry and finance platform for the service industry development of CASTC.CASLC mainly engages in finance leasing and operating leasing business in the areas of aerospace products, high-end equipment manufacturing, delivery tools, information services, new materials and new energy, and infrastructure projects.

Mr. Chen Yajun, Chairman of Honghua commented: "We are pleased to collaborate with CASLC. Leveraging on CASLC as a new platform, we are able to tap into demand of industrial investment and promote the sales of Honghua's high-end equipment. As one of the major components of the shale gas development plan, the sales of electric fracturing pump represents that Honghua further realized and deepened its expansion in the promising shale gas market. It also provides great motivation to solidify Honghua's position in domestic shale gas market and expand the sales of related components. With continuous development of shale gas market and recovery of oil and gas equipment industry, Honghua will gain more business expansion opportunities in the future, by leveraging on the strong comprehensive strength of CASLC, the leading edge in equipment manufacturing and the cooperation between the internal and external financing institutions of the Group."

About Honghua Group Limited (Stock Code: 196.HK)
Honghua is the only overseas listed platform controlled by China Aerospace Science and Industry Corporation ("CASIC"), and positioned as the energy equipment business platform of CASIC. As one of the leading land drilling equipment manufacturers in the world and the largest land drilling rig exporter in PRC, Honghua 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, Honghua's 80% products have been sold to a large number of famous enterprises all over the world, including major oil-production regions such as North America, Middle East, and emerging markets including South America, India, Russia, China and Africa. In the future, Honghua and CASIC will have in-depth cooperation in advanced energy equipment manufacturing and oil & gas field services field and achieve synergy in R&D, project execution and market expansion, to become an international leading combining equipment manufacturing provider in oil & gas industry.

Topic: Press release summary Sectors: Daily Finance, Energy, Alternatives, Daily News
http://www.acnnewswire.com
From the Asia Corporate News Network