Yongxin Intl : Yong Xin Narrows Losses To RMB8.5 Million For 1H2011

Yong Xin International Holdings Ltd.

(Co. Reg. No.200515483H)

112 Robinson Road,

#12-04

Singapore 068902

Tel: [phone]

Fax: [phone]

FOR IMMEDIATE RELEASEYong Xin narrows losses to RMB8.5 million for1H2011

• 1H2011 revenue decline 2.5% to RMB80.5 million due to decrease in revenue from chrome-plated steel strips and cold-rolled steel strips

• Sales of stainless steel strips continued to be the Group’s major revenue contributor

• The Board of Director foresees current macroeconomic condition to

persist and our operating performance to remain the same

Financial Highlights (in RMB’000)	6 months ended 30 June
Financial Highlights (in RMB’000)	1H2011	1H2010	% Change
Revenue	80,537	82,607	(2.5)
Gross Profit	(669)	6,457	N.M
Gross Profit Margin	-0.83	7.82	8.7pts
Loss Before Tax	(8,759)	(2,838)	208.5%
Total Comprehensive Loss	(8,509)	(24,950)	(65.9%)
EPS (RMB cents)	(4.23)	(11.76)	(64.0%)

SINGAPORE - 12 August 2011 - Mainboard-listed Yong Xin International Holdings Ltd (“Yong Xin”, or the “Group”), a leading value-added high precision steel strips manufacturer in the PRC, is pleased to announced its

results for six months of financial period ended 30 June 2011 (“1H2011”).

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For the 6 months ended 30 June 2011, the Group posted a net loss of RMB8.5 million as compared with a loss after tax of approximately RMB25.0 million previously which included loss of RMB21.7 million from discontinued operations.

Group’s revenue declined marginally from approximately RMB82.6 million to approximately RMB80.5 million due mainly to decrease in revenue from chrome- plated steel strips and cold-rolled steel strips.

During 1H2011, sales of stainless steel strips continued to be the major revenue contributor to the Group. Accounted for 45.6% of the Group’s revenue, sales from stainless steel strips increased 5.4% year-on-year. Both chrome-plated steel strips and cold-rolled steel strips saw a decrease in sales of 7.8% and 8.8% year-on-year respectively, due to lower sales volume achieved during the first half of the year.

The Group’s gross profit margin reduced to -0.8% from 7.8% due to higher raw material costs and labour wages.

Based on the latest results, net loss per share amounted to 4.23 RMB cents compared to a loss per share of 11.76 RMB cents previously.

Total assets stood at RMB268.7 million and net assets at RMB146.6 million translating to a net asset per share of RMB68.92 cents as compared to RMB72.92 cents previously.

Commenting on the 1H2011 results, Mr Pu Yongfa, Chief Executive Officer and Executive Chairman says, “Due to our continuous efforts in improving our product quality and expanding our sales network, revenue from our Group’s high precision stainless steel strips became the largest revenue contributor for our Group. Demand for our cold-rolled steel strips remained strong since the

beginning of last year.”

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The Group believes that its consistent and conscientious efforts in improving product quality as well as increasing its operating efficiencies will enable the Group to compete effectively in the current challenging environment.

Looking Forward

The Group will continue to place great emphasis on technology innovation and new product development to improve its customer satisfaction as well as to raise the Group’s profitability. “We have started to deliver product samples to customers for our new cold-rolled steel strips used in the automobile rechargeable batteries. We are awaiting for our customers’ feedback. In the meantime, small orders for our new scratch-resistant matte surface stainless steel strips have been delivered to our customers. We believe that these two new products will improve the Group’s competitive edge as we garner greater market acceptance for our new products.” Says Mr Pu.

“The Chinese economy has witnessed high inflationary pressure in recent years which caused prices of raw materials and labour wages to increase in tandem. In addition, higher interest rates and stringent credit environment will create a challenging macro environment for the Group. Nevertheless, the Group is determined to further lower production cost, improve product quality as well as to expand sales network in order to improve the Group’s overall performance.” Assures Mr Pu.

- End -

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About Yong Xin International Holdings

Yong Xin is a leading PRC value-added high precision steel strips manufacturer. Our products, chrome-plated steel strips, stainless steel strips and cold-rolled steel strips are widely applied across diverse industries such as high energy batteries, optic fiber communication cable, OPGW (Optical Power Ground Wire), medical, textile, automobile, precision electronics and aerospace products.

Our subsidiary is located with the economically developed Yangtze Delta of the PRC in Wuxi City, Jiangsu Province. Our Group is capable of producing 40,000 MT of high-precision steel strips annually with the commenced operation of the stainless steel strips production line in June 2007 which put into operation a new high-precision rolling mill.

We are the leading manufacturer for the supply of chrome-plated steel strips in the production of optic fiber communication cables and one of the largest producers of high- precision steel strips in the PRC. Yong Xin is also one of the few manufacturers in the PRC to produce ultra-thin electro chrome-plated steel strips.

Our products are sold to over 100 customers in provinces throughout the PRC such as Jiangsu, Zhejiang, Shanxi and Hebei and the municipal city of Shanghai. We mainly sell our products to manufacturers who further process into components of wide variety of products such as high energy batteries, optic fiber communication cables, air-conditioners, medical equipment and textile equipment.

www.yongxin-international.com

Contact Information:Yong Xin International Holdings Ltd

Tel: [phone] Fax: [phone]

Qian Yunxia, CFO, [e-mail]

Compass Financial Pte LtdStef Yong, Investor Relations Consultant,

[e-mail]

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