China Aluminum International Engineering : ANNOUNCEMENT PROPOSED ALIGNMENT IN THE PREPARATION OF FINANCIAL STATEMENTS IN ACCORDANCE WITH THE CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES AND PROPOSED CESSATION OF APPOINTMENT OF THE INTERNATIONAL AUDITOR

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CHALIECO

中鋁國際工程股份有限公司

China Aluminum International Engineering Corporation Limited

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

(Stock Code: 2068)

ANNOUNCEMENT

PROPOSED ALIGNMENT IN THE PREPARATION OF FINANCIAL STATEMENTS IN ACCORDANCE WITH THE CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES

AND

PROPOSED CESSATION OF APPOINTMENT OF

THE INTERNATIONAL AUDITOR

PROPOSED ALIGNMENT IN THE PREPARATION OF FINANCIAL STATEMENTS IN ACCORDANCE WITH THE CHINA ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES

The board of directors (the "Board") of China Aluminum International Engineering Corporation Limited (the "Company") announced that the Company has been preparing its financial statements in accordance with the International Financial Reporting Standards and the China Accounting Standards for Business Enterprises respectively since the date on which the H shares of the Company became listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 6 July 2012. A shares of the Company were issued and listed on the Shanghai Stock Exchange on 31 August 2018. As of 30 June 2019, the Company prepared financial statements for the H share annual and half-year reports in accordance with the International Financial Reporting Standard, and prepared financial statements for the A share annual and half-year reports in accordance with the China Accounting Standards for Business Enterprises.

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According to the regulations of the "Consultation Conclusions on Acceptance of Mainland Accounting and Auditing Standards and Appointment of Mainland Audit Firms for Mainland Incorporated Companies Listed in Hong Kong" 《( 有關接受在香港上市的內地註冊成立 公司採用內地的會計及審計準則以及聘用內地會計師事務所的諮詢總結》) published by the Stock Exchange in December 2010, the PRC incorporated issuers listed in Hong Kong are allowed to prepare their financial statements in accordance with the China Accounting Standards for Business Enterprises and the PRC audit firms approved by the Ministry of Finance and the China Securities Regulatory Commission are allowed to audit these financial statements in accordance with the China Accounting Standards for Business Enterprises.

In view of the issuance and listing of A shares of the Company on the Shanghai Stock Exchange in August 2018 and in order to improve the efficiency and reduce the cost of disclosure and audit expenses, the Company proposed alignment in the preparation of financial statements in accordance with the China Accounting Standards for Business Enterprises and disclosure of the corresponding financial reports. The change of accounting standard is subject to the approval of shareholders by way of an ordinary resolution at the general meeting.

Subject to the approval at the general meeting, it is expected that the 2019 financial report of the Company and the subsequent financial reports in compliance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited will be prepared in accordance with the China Accounting Standards for Business Enterprises. The Company believes that the change of accounting standard will not have a material effect on the financial position, operating results and cash flow of the Company in 2019 and in the future.

PROPOSED CESSATION OF APPOINTMENT OF THE INTERNATIONAL AUDITOR

PKF Hong Kong has been engaged by the Company as the international auditor to audit the financial statements of the Company prepared in accordance with the International Financial Reporting Standards. In light of the proposed change of accounting standard, the Board proposes to cease to appoint PKF Hong Kong as the international auditor of the Company, subject to the approval by the shareholders by way of an ordinary resolution at the general meeting. PKF Hong Kong has confirmed that there are no matters regarding its retirement as the international auditor of the Company that need to be brought to the attention of the shareholders of the Company.

By Order of the Board

China Aluminum International Engineering Corporation Limited

ZHANG Jian

Joint Company Secretary

Beijing, PRC, 27 November 2019

As at the date of this announcement, the non-executive directors are Mr. WANG Jun and Mr. LI Yihua; the executive directors are Mr. WU Jianqiang, Mr. ZONG Xiaoping, Mr. WU Zhigang and Mr. ZHANG Jian; and the independent non-executive directors are Mr. GUI Weihua, Mr. CHEUNG Hung Kwong and Mr. FU Jun.

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