Beijing Jingcheng Machinery Electric : ANNOUNCEMENT IN RELATION TO THE RESIGNATION OF INDEPENDENT NON-EXECUTIVE DIRECTOR OF THE COMPANY

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北 京 京 城 機 電 股 份 有 限 公 司

Beijing Jingcheng Machinery Electric Company Limited

(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 0187)

ANNOUNCEMENT IN RELATION TO THE RESIGNATION OF

INDEPENDENT NON-EXECUTIVE DIRECTOR OF THE COMPANY

The board of directors of the Company and all directors warrant that this announcement does not contain any false information, misleading statement or material omission and accept joint and several responsibility for the truthfulness, accuracy and completeness of the contents herein contained.

The board of directors of Beijing Jingcheng Machinery Electric Company Limited (the "Company") has recently received the written resignation letter tendered by Mr.Yang Xiaohui, an independent non- executive director of the Company. Due to job changes, Mr. Yang Xiaohui is no longer qualified to be an independent non-executive director of the Company. He tendered his resignation from the positions of independent non-executive director and the chairman of the audit committee of the board. Upon his resignation taking effect, Mr. Yang Xiaohui will no longer hold any position in the Company.

Mr. Yang Xiaohui confirmed that there is no other matter relating to his resignation that needs to be brought to the attention of the shareholders of the Company. The Board and Mr. Yang Xiaohui have confirmed that they are not aware of any unfulfilled personal obligations of Mr. Yang Xiaohui towards the Company and its subsidiaries, nor any impact on such obligations as a result of his resignation, and there is no disagreement between Mr. Yang Xiaohui and the Company which has led to his resignation.

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Since the number of independent non-executive directors of the Company is less than one third of the members of the board after the resignation of Mr. Yang Xiaohui during his term of office, according

to relevant regulations including the Guidance on Establishment of Independent Directors System by Listed Companies（《關於在上市公司建立獨立董事制度的指導意見》）of the China Securities

Regulatory Commission and the articles of association of the Company, the resignation will take effect upon the election of a new independent non-executive director in a general meeting of the Company to fill his vacancy. Before the resignation takes effect, Mr. Yang Xiaohui will still perform the duties of an independent non-executive director and the chairman of the audit committee of the board in accordance with relevant laws and regulations and various rules and regulations of the Company.

The board of directors of the Company will nominate an independent non-executive director candidate as soon as practicable and propose the same to the general meeting of the Company for election upon approval from the Shanghai Stock Exchange.

Mr. Yang Xiaohui performed his duty independently, impartially and earnestly during his tenure as an independent non-executive director of the Company, and made an active impact on the compliant operation and healthy development of the Company. The board of the Company would like to express its sincere gratitude to Mr. Yang Xiaohui for his significant contribution to the Company and the work of the board during his tenure as an independent non-executive director of the Company.

For and on behalf of the board of

Beijing Jingcheng Machinery Electric Company Limited

Luan Jie

Company Secretary

Beijing, the PRC

27 February 2020

As at the date of this announcement, the Board comprises Mr. Wang Jun, Mr. Li Junjie and Mr. Zhang Jiheng as executive directors, Ms. Jin Chunyu, Mr. Wu Yanzhang, Mr. Xia Zhonghua and Ms. Li Chunzhi as non-executive directors and Ms. Wu Yan, Mr. Liu Ning, Mr. Yang Xiaohui and Mr. Fan Yong as independent non-executive directors.

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