Huaxing Reports Consolidated Financial Results for the Six Months Ended June 30, 2012

Huaxing Machinery Corp. (TSX VENTURE:HUA) ("Huaxing" or the "Company") reports
its consolidated financial results as at and for the six months ended June 30,
2012 in accordance with International Financial Reporting Standards ("IFRS").
All dollar amounts are expressed in Canadian dollars.


The Company's consolidated financial results for the six months and three months
ended June 30, 2012 in comparison to those of 2011 are as follows: 




                            ------------------------------------------------
                            Six Months Ended June 30            Changes from
                                    2012        2011            2011 to 2012
                                       $           $           $           %
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Sales                         15,513,721  13,733,529   1,780,192      12.96%
Cost of sales                 11,137,654  11,102,605      35,049       0.32%
Gross profit                   4,376,067   2,630,924   1,745,143      66.33%
Income from operations         2,444,232     925,154   1,519,078     164.20%
Net income (loss)              2,074,852   (165,095)   2,239,947   1,356.76%
Net income attributed to                                                    
 equity holders of the                                                      
 Company                       1,607,769   (344,352)   1,952,121     566.90%
Earnings (loss) per share                                                   
 -basic and diluted                 0.04      (0.01)        0.05        500%
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                          Three Months Ended June 30            Changes from
                                  2012          2011            2011 to 2012
                                     $             $           $           %
----------------------------------------------------------------------------
Sales                        8,456,772     7,889,005     567,767       7.20%
Cost of sales                5,862,953     6,349,126   (486,173)     (7.66%)
Gross profit                 2,593,819     1,539,879   1,053,940      68.44%
Income from operations       1,614,712       468,308   1,146,404     244.80%
Net income                   1,445,170       283,302   1,161,868     410.12%
Net income attributable                                                     
 to:                                                                        
  equity holders of the                                                     
   Company                   1,129,521       189,739     939,782     495.30%
Earnings per share -                                                        
 basic and diluted                0.03          0.00        0.03     300.00%
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For the six months ended June 30, 2012, consolidated income from operations and
net income were $2,444,232 (2011 - $925,154) and $2,074,852 (2011 - loss of
$165,095), respectively. 


Following the Company's successful research and development of the large scale
Robotic Welding System (the "System") for fabrication of corrugated web beams,
and sale of the first component of the System for $1.8million in December, 2011,
the Company sold other significant components of the System for $3.275million
during the six months ended June 30, 2012. 


"In the face of global economic slowdown," said Mr. Xianhua Sun, Chairman of
Huaxing, "Huaxing has maintained its growth momentum in the first half of 2012
by achieving a 12.96% increase in sales and 66.33% increase in gross profit. Our
new product of Robotic Welding System has helped Huaxing weather the impact of
economic slowdown and also helped the end users of the product substantially
reduce their operating costs and enhance their competitiveness." 


As a result of the sale of the high profit margin System, the Company's gross
profit margin increased from 19.16% for the six months ended June 30, 2011 to
28.21% for the six months ended June 30, 2012.


During the six months ended June 30, 2011, the Company recorded one-time
non-cash listing costs of $769,308, which were incurred specifically to take the
Company public. 


The Board of Directors did not declare dividends for the six months ended June
30, 2012.


The foregoing reflects a selected extract of the Company's financial performance
only, and must be viewed with the Company's consolidated financial statements
and management's discussion and analysis on SEDAR for further details at
www.sedar.com under the Company's profile. 


About Huaxing Machinery Corp.

Huaxing is engaged in the business of machinery manufacturing, and became listed
on TSX.V on January 21, 2011 upon completing the Qualifying Transaction with
Samurai Capital Corp., a CPC. Through its wholly owned subsidiary Gold Rhino
Limited, Huaxing holds an 80% controlling equity interest in Shandong Gold Rhino
Huaxing Machinery Corp., the operating entity that holds the manufacturing
facilities located in Boxing County, Shandong province, China. Its main products
are stone cutting, polishing and processing machinery and equipment for the
building and construction industry, and Robotic Welding System for the steel
structure industry. 


Forward-Looking Statements 

Certain information regarding Huaxing Machinery Corp. contains herein may
constitute forward-looking statements within the meaning of applicable
securities laws. Forward-looking statements may include estimates, plans,
expectations, opinions, forecasts, projections, guidance or other statements
that are not statements of fact. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable, it can
give no assurance that such expectations will prove to have been correct. The
Company cautions that actual performance will be affected by a number of
factors, many of which are beyond the Company's control, and that future events
and results may vary substantially from what the Company currently foresees. The
Company assumes no obligation to update such forward-looking statements, except
as required by applicable securities laws or exchange regulations. The Company's
forward-looking statements are expressly qualified in their entirety by this
cautionary statement. The Company seeks safe harbour.