Beijing News on August 7, 2015: today, the international energy giant shell, the domestic diversified industry group HUO'S GROUP and the global alternative asset management company Carlyle Investment Group jointly announced that shell transferred 75% of shell's equity in Monarch lubricants to HUO'S GROUP and Carlyle investment group. The equity transfer is subject to the approval of relevant government departments, and the transaction is expected to be completed by the end of 2015 or the beginning of 2016.

Monarch lubricants is a joint venture between shell and HUO'S GROUP, and is also a leading brand in China's lubricant market. It has lubricant blending plants in Beijing, Xianyang in Shaanxi Province and Wuxi in Jiangsu Province. Shell acquired 75% of Monarch lubricants from HUO'S GROUP in 2006, and HUO'S GROUP retained 25% as a shareholder.

As one of the leading domestic suppliers in China's lubricating oil market, Monarch lubricant has established a vast distributor network in China, and has become a well-known lubricant brand for many consumers. These are the reasons for the success of Monarch lubricant and the increasing profits in recent years.

This transaction is the continued development of the energy industry after the acquisition of the Greater China business of Top1 oil company in the United States in 2012, which means that after nine years, HUO'S GROUP, the founder of Monarch lubricants, once again takes charge of the Monarch brand and business. It shows thatHUO'S GROUP has confidence in the domestic lubricating oil market. Horst group has always stressed the responsibility of serving the local market in China, and continues to strive to grow in the field of lubricants. HUO'S GROUP will own and operate two independent lubricating oil brands, TOP1 lubricant and Monarch lubricant, with separate positioning and independent team operation.

Huo Zhenxiang, chairman of the HUO'S GROUP, the founder of Monarch lubricants, said: "the company has been working with shell for nine years. I'm glad to see that this signing will bring new development opportunities to Monarch. Since our team and I founded Monarch in 1993, we have become the first private brand in China's lubricant industry. In the future, we will continue to work with Carlyle to forge a new unity.

Zhang Xinsheng, chairman of Shell China group, said: "nine years ago, when shell acquired Monarch lubricants, we had a win-win cooperation with Holtz group. The acquisition of Monarch has expanded shell's market position. Through close cooperation, shell and HUO'S GROUP have worked together to enhance profitability and consumer value in the Chinese market for Monarch, a strong domestic lubricant brand. "

Mr. Zhang Shuguo, managing director of Carlyle's Asia M & a team, said: "Carlyle's investment in China is focused on the opportunities brought about by the rising middle class. The deep popularization of automobile in China has promoted the growth of lubricating oil market. With a strong brand and nationwide marketing network, these advantages help us to fully explore the market potential. As a long-term investor, we are looking forward to working closely with HUO'S GROUP and Monarch team to make full use of Carlyle's global resources and industry expertise to push the development of Monarch to a new height. "

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About the HUO'S GROUP

HUO'S GROUP company was founded in 1983, headquartered in Beijing. After 32 years of rapid development, it has grown into a large diversified comprehensive industrial group in China. The group has three core businesses - modern warehousing and logistics, energy, and financial investment business, with a high-quality talent team of more than 1000 people. In recent years, its member enterprises have achieved rapid and steady development, and constantly explore the most forward-looking new business and new fields, providing reliable products and services for Chinese customers.

About Carlyle Investment Group

Carlyle investment group (NASDAQ listed company, stock code: CG) is a global alternative asset management company. As of June 30, 2015, Carlyle's asset management scale was $193 billion, with 128 funds and 159 master funds. Carlyle's mission is to "invest wisely and create value" for investors, many of whom are public pension agencies. Carlyle mainly invests in four major types of assets - private equity, physical assets, global market strategy and investment solutions, with investments in Africa, Asia, Australia, Europe, the Middle East, North and South America. Carlyle has deep professional knowledge in various industries, including aviation, defense and government services, consumption and retail, energy, financial services, medicine and health, industry, science and technology and business services, telecommunications and media, transportation and other industries. Carlyle Investment Group has more than 1700 employees in 35 offices on six continents. As of June 30, 2015, Carlyle Investment Group has made more than 80 investments in China, with an equity investment amount of about US $6.3 billion.