Beijing Jingcheng Machinery Electric : CONTEMPLATION OF MATERIAL MATTERS SUSPENSION OF TRADING IN A SHARES

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)

CONTEMPLATION OF MATERIAL MATTERS

SUSPENSION OF TRADING IN A SHARES

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

CONTEMPLATION OF MATERIAL MATTERS

The Company is contemplating certain material matters which may involve issuance of consideration

shares and cash payment by the Company to acquire the control of Qingdao BYTQ United Digital Intelligence Co., Ltd. (青島北洋天青數聯智能股份有限公司) from its shareholders namely Li Hong, Zhao Qing and Qingdao Eternal Economic Information Consulting Co., Ltd (青島艾特諾經濟信息諮詢

有限公司) etc., and fund raising by non-public issuance of shares (the "Possible Transactions").

SUSPENSION OF TRADING IN A SHARES

At the request of the Company, trading of A shares of the Company listed on the Shanghai Stock Exchange (the "Shanghai Stock Exchange") will be suspended with effect from 9:00 a.m. on Tuesday, 4 August 2020. As of the date of this announcement, the Possible Transactions are still being contemplated. The Company is in the process of discussing the feasibility of the Possible Transactions

with relevant parties and regulatory authorities. Pursuant to the "Business Guide for Suspension and Resumption of Trading for Planning of Material Matters of Listed Companies" (《上市公司籌劃重大 事項停復牌業務指引》) promulgated by the Shanghai Stock Exchange, the trading of A shares of the

Company will remain suspended in order to ensure fair information disclosure, protect the interest of investors and avoid unusual fluctuations in the price of A shares of the Company. It is expected that the Company will apply for resumption of trading in its A shares within ten trading days on the Shanghai Stock Exchange from the date of suspension of trading (including the day of suspension).

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CONTINUATION OF TRADING IN H SHARES

As at the date of this announcement, the Company has not entered into any agreement or contract in relation to the Possible Transactions. The Company will publish further announcement(s) in relation to the Possible Transactions as and when necessary in accordance with the applicable regulatory requirements.

Save as disclosed in this announcement, the board of directors of the Company confirms that it is not aware of any inside information that needs to be disclosed under Part XIVA of the SFO. Accordingly, the Company will continue the trading of its H shares listed on the Stock Exchange.

The Possible Transactions may or may not proceed and if it proceeds, it may be subject to shareholders' approval, regulatory approvals and various conditions precedent. Shareholders of the Company and potential investors are advised to exercise caution when dealing in the securities of the Company.

For and on behalf of the Board

Beijing Jingcheng Machinery Electric Company Limited

Luan Jie

Company Secretary

Beijing, the PRC

3 August 2020

As at the date of this announcement, the board of directors of the Company 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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