Beijing Jingcheng Machinery Electric : THIRD INDICATIVE ANNOUNCEMENT ON THE RISK OF DELISTING RISK WARNING THAT MAY BE IMPOSED ON THE A SHARES 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)

THIRD INDICATIVE ANNOUNCEMENT ON THE RISK OF DELISTING RISK WARNING THAT MAY BE IMPOSED ON THE A SHARES OF THE COMPANY

The board of directors of the Company (the "Board") and all directors warrant that this announcement does not contain any false information, misleading statement or material omission and accept joint and several responsibilities 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).

The Company recorded negative net profit attributable to shareholders of the Company in 2018. It is expected that the net profit attributable to shareholders of the Company in 2019 will continue to be negative. In accordance with relevant requirements under the Rules Governing the Listing of Stocks on Shanghai Stock Exchange, the delisting risk warning may be imposed on the A shares of the Company following the disclosure of the A shares 2019 annual report of the Company. The relevant risk is indicated for the third time below:

1. Upon the preliminary calculation by the financial department of the Company, as of 31 December 2019, it is expected to continue to record a loss in the operating results of 2019. Please refer to the Company's announcement in relation to the expected loss for the 2019 annual results and the first indicative announcement on the risk of delisting risk warning that may be imposed on the A shares of the Company dated 21 January 2020 for details.

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1. In the event that the audited net profit attributable to shareholders of the Company continues to be negative in 2019, the audited net profits of the Company would be negative for the recent two consecutive accounting years, and the delisting risk warning may be imposed on the A shares of the Company following the disclosure of the A shares 2019 annual report of the Company in accordance with relevant requirements under the Rules Governing the Listing of Stocks on Shanghai Stock Exchange.
2. The details of specific figures of the Company's audited operating results of 2019 will be disclosed in the A shares 2019 annual report of the Company and the expected disclosure date of which is changed to 28 March 2020. The media for information disclosure designated by the Company are Shanghai Securities News, the websites of the Shanghai Stock Exchange (www.sse.com.cn) and The Stock Exchange of Hong Kong Limited (www.hkexnews.hk). Information disclosed by the Company in the above designated media shall prevail in case of discrepancies. Investors are advised to pay attention to the investment risks.

For and on behalf of the Board

Beijing Jingcheng Machinery Electric Company Limited

Luan Jie

Company Secretary

Beijing, the PRC

12 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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