"China Flooring's Big Sale Promotion" Held in Chongqing Successfully

Innovative One-stop Shopping Concept

Strategically Cooperate with Suning

Creates Brand-new Customer Experience

HONG KONG, Sept. 20, 2012 /PRNewswire/ -- The largest wood flooring brand in China in terms of market share by retail sales value of branded wood flooring products - China Flooring Holding Limited ("China Flooring" or the "Company", together with its subsidiaries, the "Group"; HKEx Stock Code: 2083), announced that "China Flooring's Big Sale Promotion" was held in Chongqing successfully. The big sale was unprecedented by its scale and reached an exceptionally grand occasion. It proved the success of the Group's sales strategy and the brand recognition in the market.

A series of big sale promotion activities was launched in June 2012. Apart from Chongqing, it has already been held in 13 major cities in different provinces in China, including Shandong, Sichuan, Hubei, Jiangxi, Anhui and Heilongjiang, etc. Up to 100,000 customers were benefited from this promotion. Since the event was first held, it has caught the industry's wide attention. At Chongqing's big sale promotion, China Flooring has adopted a one-stop promotion of "Flooring, Wood doors and Home Appliances" and has implemented the idea of strategic cooperation with Suning. Over 10,000 participants joined this big sale promotion in Chongqing, and the event also provided free shuttle bus service, free taste of Lingnan style snacks and classic activities such as vintage cars show, represented innovative furniture culture in China. In Heilongjiang province, customers in remote areas could even enjoy free flight service during the event.

Mr. She Jian Bin, Executive Director and Vice President of China Flooring said, "The big sale promotion aims at creating excellent brand recognition by high-quality products and sincere service. In conjunction with the cooperation of Suning, the Group strives to explore a multi-channel sales model. Compared to last year, even the building material industry experienced fluctuations; the Group is confident in achieving ideal sales performance through a series of promotional activities. As the government is carrying out various projects and citizens' living standard is improving, it is expected that China's real estate market will recover next year. Looking forward, the future development of the wood flooring market will experience an increase in demand gradually with a tendency of steady growth. At present, the Group is actively expanding our retail networks and market shares. We believe our financial results will rebound as the market recovered. The Group will continue to be innovative and optimize the strategy of product diversification. Through the rich product line and lower carbon environmental friendly development mode, our overall competitiveness will be strengthened so as to generate more returns to our shareholders."

About China Flooring Holding Company Limited

China Flooring is the largest wood flooring brand in China in terms of market share by retail sales value of branded wood flooring products. According to Frost & Sullivan, the Group's "Nature" branded products accounted for 6.5% market share in terms of China's total retail sales value of branded wood flooring products in 2009. The Group's branded products are manufactured through a combination of its own manufacturing facilities and exclusive authorized manufacturers.

According to Frost & Sullivan, in 2009, the Group's branded products ranked second in laminated flooring with a 7.2% market share, first in multi-layered engineered flooring with a 5.3% market share and first in solid wood flooring with a 7.4% market share, in terms of retail sales value in China. The Group is the only company to achieve a top two market share position across the three primary wood flooring product categories in China in 2009. Leveraging its strong brand, extensive distribution network, comprehensive product portfolio and flexible manufacturing model, the Group grew rapidly and gained market share in China from 2008 to 2010.

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