Beijing Jingcheng Machinery Electric : ANNOUNCEMENT ON CANCELLATION OF THE DELISTING RISK WARNING AND THE SUSPENSION OF TRADING OF A SHARES OF THE COMPANY

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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 ON CANCELLATION OF

THE DELISTING RISK WARNING AND THE SUSPENSION OF

TRADING OF A SHARES OF THE COMPANY

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

This announcement is made by Beijing Jingcheng Machinery Electric Company Limited (the "Company") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Hong Kong Listing Rules") and the Inside Information Provisions (as defined under the Hong Kong Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Important notice:

Trading in A shares of the Company will be suspended for one day on 1 April 2021. Trading in H shares of the Company will remain normal.

The commencement date of the cancellation of delisting risk warning: 2 April 2021.

Stock short name of the Company after the cancellation of the delisting risk warning of A shares will be changed from "*ST Jingcheng" to "JCMEC"; and the stock code of the A shares of "600860" will remain unchanged, the limitation on the daily stock price variation of A shares will be changed from 5% to 10%.

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1. Shares classification, stock short name, stock code and the commencement date of the cancellation of delisting risk warning
2. 1. Shares classification and stock short name
      The stock short name of A shares will be changed from "*ST Jingcheng" to "JCMEC";
   2. A shares stock code remains as "600860";
   3. The commencement date of the cancellation of delisting risk warning of A shares: 2 April 2021.

1. The application of cancellation of delisting risk warning
   The Company's 2020 financial report was audited by ShineWing Certified Public Accountants (Special General Partnership), which issued the standard unqualified audit report (XYZH/2021BJAA30103) for the Company. As at 31 December 2020, the Company recorded net assets attributable to the shareholders of the listed company of RMB699,472,630.04; operating income of RMB1,088,296,501.51; operating income after deducting business income unrelated to principal businesses and non-commercial substance income of RMB1,088,296,501.51, net profits attributable to the shareholders of the listed company of RMB156,431,757.57 and net profits attributable to the shareholders of the listed company after deducting non-recurring gains or losses of RMB-127,558,167.27.
   The Company's principal business is the research and development, production, processing and sales of gas storage and transportation equipment. The Company will continue to be market- oriented and, on the premise of maintaining the stable development of traditional products, actively integrate resources and focus on strengthening the layout and cultivation of resources in the hydrogen energy industry chain business, the Type IV cylinder business and the cyrogenic tank business. The principal business of the Company is currently stable and of a relatively large scale, with the ability to continue as a going concern.
   The Company's A shares "2020 Annual Report" and H shares results announcement have been considered and approved at the third meeting of the tenth session of the Board convened on 17 March 2021. For details, please refer to the relevant announcements disclosed by the Company on the website of HKExnews of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk).
   The Company checked the relevant provisions of rule 13.3.2 of the Rules Governing the Listing of Stocks on Shanghai Stock Exchange (revised in December 2020) one by one, the audited net profit indicators in the 2020 financial report that involved delisting risk warnings have been eliminated, and did not trigger other delisting risk warnings or other risk warning situations. At the same time, in accordance with the relevant provisions of rule 13.3.7 of the Rules Governing the Listing of Stocks on Shanghai Stock Exchange (revised in December 2020) and the Company's operations in 2020, the conditions for the application for the cancellation of the delisting risk warning on the shares have been met by the Company.

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Due to the above reasons, on 17 March 2021, the Company had applied to the Shanghai Stock Exchange for cancellation of the delisting risk warning imposed on the Company's A shares, and the "Announcement on Application for the Cancellation of the Delisting Risk Warning on the A Shares of the Company" has been disclosed on the website of HKExnews of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk).

Shanghai Stock Exchange has agreed to cancel the delisting risk warning imposed on the Company's A shares on 31 March 2021.

1. Highlights of issues concerning cancellation of delisting risk warning
   Pursuant to the relevant requirements such as rule 13.3.10 (Revised in December 2020) of the Rules Governing the Listing of Stocks on Shanghai Stock Exchange (revised in December 2020), the trading in the Company's A shares will be suspended for one day on 1 April 2021, trading in the Company's H shares will remain normal. Trading in A shares will resume and the delisting risk warning will be cancelled with effect from the opening of the market on 2 April 2021. After the cancellation of delisting risk warning, the limitation on the daily stock price variation of A shares will be changed from 5% to 10%.

Upon the cancellation of the delisting risk warning, the A shares of the Company will not be traded on the Risk Alert Board.

IV. Other risk warnings or events that need to be brought to investors' special attention

Upon the cancellation of the delisting risk warning on the Company, there will not be material changes in the operations of the Company. Although the Company turned losses into gains in 2020, it may still be exposed to risks posed by changes in macro economy, national policy adjustment, industrial competitions, product markets, etc. Investors are advised to make decision with prudence and pay attention to the investment risks.

By Order of the Board

Beijing Jingcheng Machinery Electric Company Limited

Luan Jie

Company Secretary

Beijing, the PRC

31 March 2021

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 Mr. Xiong Jianhui, Mr. Zhao Xuguang, Mr. Liu Jingtai and Mr. Luan Dalong as independent non-executive directors.

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