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Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Web Proof Information Pack, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Web Proof Information Pack. Web Proof Information Pack of CHINA LIANSU GROUP HOLDINGS LIMITED 中國聯塑集團控股有限公司* (Incorporated in the Cayman Islands with limited liability) WARNING This Web Proof Information Pack is being published as required by The Stock Exchange of Hong Kong Limited (the “HKEx”)/the Securities and Futures Commission solely for the purpose of providing information to the public in Hong Kong. This Web Proof Information Pack is in draft form. The information contained in it is incomplete and is subject to change which can be material. By viewing this document, you acknowledge, accept and agree with China Liansu Group Holdings Limited (the “Company”), any of its affiliates, sponsors, advisors and members of the underwriting syndicate that: (a) this Web Proof Information Pack is only for the purpose of facilitating equal dissemination of information to investors in Hong Kong and not for any other purposes. No investment decision should be based on the information contained in this Web Proof Information Pack; (b) the posting of this Web Proof Information Pack or any supplemental, revised or replacement pages on the website of HKEx does not give rise to any obligation of the Company, its affiliates, sponsors, advisors and members of the underwriting syndicate to proceed with any offering in Hong Kong or any other jurisdiction. There is no assurance that the Company will proceed with any offering; (c) the contents of this Web Proof Information Pack or any supplemental, revised or replacement pages may or may not be replicated in full or in part in the actual prospectus; (d) this Web Proof Information Pack is in draft form and may be changed, updated revised by the Company from time to time and the changes, updates and/or revisions could be material, but each of the Company and its affiliates, advisors, sponsors or members of the underwriting syndicate is under no obligation, legal or otherwise, to update any information contained in this Web Proof Information Pack; (e) this Web Proof Information Pack does not constitute a prospectus, notice, circular, brochure, advertisement or other document offering to sell any securities to the public in any jurisdiction, nor is it an invitation to the public to make offers to subscribe for or purchase any securities, nor is it calculated to invite or solicit offers by the public to subscribe for or purchase any securities; (f) this Web Proof Information Pack must not be regarded as an inducement to subscribe for or purchase any securities, and no such inducement is intended; (g) neither the Company nor any of its affiliates, advisors, sponsors or members of the underwriting syndicate is offering, or is soliciting offers to buy, any securities in any jurisdiction through the publication of this Web Proof Information Pack; (h) neither this Web Proof Information Pack nor anything contained herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever; (i) neither the Company nor any of its affiliates, advisors, sponsors or members of its underwriting syndicate makes any express or implied representation or warranty as to the accuracy or completeness of the information contained in this Web Proof Information Pack; (j) each of the Company and any of its affiliates, advisors, sponsors or members of its underwriting syndicate expressly disclaims any and all liability on the basis of any information contained in, or omitted from, or any inaccuracies or errors in, this Web Proof Information Pack; (k) the Company has not and will not register the securities referred to in this Web Proof Information Pack under the United States Securities Act of 1933, as amended, (the “Securities Act”) or any state securities laws of the United States, and securities of the Company may not be offered or sold in the United States without registration under, or without an applicable exemption from the registration requirements of the Securities Act; and (l) as there may be legal restrictions on the distribution of this Web Proof Information Pack or dissemination of any information contained in this Web Proof Information Pack, you agree to inform yourself about and observe any such restrictions applicable to you. THIS WEB PROOF INFORMATION PACK IS NOT FOR PUBLICATION OR DISTRIBUTION TO PERSONS IN THE UNITED STATES. NEITHER THIS WEB PROOF INFORMATION PACK NOR THE INFORMATION CONTAINED HEREIN CONSTITUTES AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN THE UNITED STATES OR IN ANY OTHER JURISDICTIONS WHERE SUCH OFFER OR SALE IS NOT PERMITTED. THIS WEB PROOF INFORMATION PACK IS NOT BEING MADE AND MAY NOT BE DISTRIBUTED OR SENT INTO CANADA OR JAPAN. No offer or invitation will be made to the public in Hong Kong until after a prospectus of the Company is registered with the Registrar of Companies in Hong Kong in accordance with the Companies Ordinance (Chapter 32 of the Laws of Hong Kong). If an offer or an invitation is made to the public in Hong Kong in due course, prospective investors are reminded to make their investment decisions solely based on a prospectus of the Company registered with the Registrar of Companies in Hong Kong, copies of which will be distributed to the public during the offer period. * For identification purposes only. THIS WEB PROOF INFORMATION PACK IS IN DRAFT FORM. The information contained in it is incomplete and is subject to change. This Web Proof Information Pack must be read in conjunction with the section headed “Warning” on the cover of this Web Proof Information Pack. CONTENTS This Web Proof Information Pack contains the following information relating to the Company: • Summary • Definitions • Glossary of Technical Terms • Forward-looking Statements • Risk Factors • Directors and Parties Involved • Corporate Information • Industry Overview • History and Development • Business • Relationship with the Controlling Shareholder • Directors and Senior Management • Financial Information • Future Plans • Regulation • Appendix I Accountants’ Report • Appendix III Profit Forecast • Appendix IV Property Valuation • Appendix V Summary of the Constitution of the Company and Cayman Islands Company Law • Appendix VI Statutory and General Information YOU SHOULD READ THE SECTION HEADED “WARNING” ON THE COVER OF THIS WEB PROOF INFORMATION PACK. THIS WEB PROOF INFORMATION PACK IS IN DRAFT FORM. The information contained in it is incomplete and is subject to change. This Web Proof Information Pack must be read in conjunction with the section headed “Warning” on the cover of this Web Proof Information Pack. SUMMARY OVERVIEW 3rd Sch1&3 We are a manufacturer of plastic pipes and pipe fittings in China. We currently have 11 operational production facilities for plastic pipes and pipe fittings that are strategically located across China. Through these facilities and our sales network which consists of 29 sales offices and over 600 independent distributors, we cover customers across China. Range of products. We offer a comprehensive range of plastic pipes and pipe fittings. We are able to produce over 70 series and over 7,000 specifications of plastic pipes and pipe fittings with dimensions generally ranging from 16 mm to 3,000 mm in diameter. We primarily use PVC, PE, PP-R and other plastic resins to manufacture our products. Our plastic pipes and pipe fittings are used in a variety of piping systems, including those used for water supply, drainage, power supply and telecommunications, agriculture, gas supply, floor heating and fire-fighting. In addition, we provide our customers with a range of ancillary services, including pre-sale consultation, after-sales services, on-site guidance and technical support. Production facilities. We have a geographically-diverse network of production facilities in China. As of the Latest Practicable Date, we had 11 operational production facilities for plastic pipes and pipe fittings located in eight provinces across China. For the years ended 31 December 2007, 2008 and 2009, the effective annual production capacity of our production facilities was 298,100 tonnes, 426,000 tonnes and 661,800 tonnes of plastic pipes and pipe fittings, respectively. For the years ended 31 December 2007, 2008 and 2009, our production facilities for plastic pipes and pipe fittings achieved an average utilization rate of 86.1%, 87.6% and 87.5%, respectively, as calculated by actual production volume of such production facilities as of the end of the respective year divided by their effective annual production capacity. We have expanded our production capacity throughout the period consisting of the years ended 31 December 2007, 2008 and 2009 to try to capture the growing demand for our products and increase our market share. We completed a major capacity expansion at our Guangdong facility in 2008. We commenced operations at our new facilities in Hebei and Henan in 2008 and in Sichuan and Nanjing in 2009. As of 31 December 2009, the design annual production capacity of our production facilities was approximately 905,700 tonnes of plastic pipes and pipe fittings. We are in the process of constructing two additional production facilities: (1) one in Urumqi, which is expected to become operational in the fourth quarter of 2010 with a design annual production capacity of approximately 12,000 tonnes and which we plan to increase to 22,000 tonnes and 34,000 tonnes by 2011 and 2012, respectively, and (2) another in Changchun, which is expected to become operational in the first quarter of 2011 with a design annual production capacity of approximately 33,300 tonnes and which we plan to increase to 66,300 tonnes by 2012.