Varroc Engineering Ltd Receives RMB 310.5 Million from Enforcement Award

Varroc Engineering Ltd has received the consideration of RMB 310.5 million less applicable withholding tax against the transfer of its 50% shareholding in Varroc TYC Corporation, British Virgin Islands. This is in accordance with the Enforcement Award passed by the Eastern Caribbean Supreme Court, British Virgin Islands in connection with the enforcement proceedings initiated by VarrocCorp Holding B.V. and Varroc Engineering Limited against Beste Motors Co. Ltd. and Varroc TYC Corporation, British Virgin Islands. The enforcement proceedings were initiated due to disputes with TYC arising out of TYC's breaches of the shareholders’ agreement dated January 29, 2013 and the articles of association of their joint venture companies.