Puxing Energy : Announcements and Notices - ANNOUNCEMENT IN RELATION TO COMPLIANCE WITH RULES 13.51B(2) AND 13.51(2) OF THE LISTING RULES

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PUXING普 星ENERGY能 量 有 限LIMITED公 司

(Formerly known as "Puxing Clean Energy Limited 普星潔能有限公司" )

(Incorporated in Cayman Islands with limited liability)

(Stock Code: 90)

ANNOUNCEMENT IN RELATION TO COMPLIANCE WITH RULES 13.51B(2) AND 13.51(2) OF THE LISTING RULES

This announcement is made by Puxing Energy Limited (the "Company", together with its subsidiaries, the "Group") pursuant to rules 13.51B(2) and 13.51(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

The board (the "Board") of directors of the Company (the "Directors") has been informed that Mr. Yao Xianguo ("Mr. Yao"), the independent non-executive Director, received an

"Advance Notice of Administrative Penalties and Prohibition from Access to the Market" (Zhe Chu Fa Zi [2021] No. 2) 《( 行政處罰及市場禁入事先告知書》（浙處罰字[2021]2號）) issued by the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission (the

"Zhejiang Securities Regulatory Bureau") on 26 February 2021 (the "Advance Notice"),

in relation to his role as an independent director of Zhejiang Asia-Pacific Pharmaceutical Co., Ltd.*（浙江亞太藥業股份有限公司）("APP"), a company established in the People's Republic of China (the "PRC") whose shares are currently listed on the Shenzhen Stock

Exchange (Stock Code: 002370).

The Advance Notice states that APP acquired a company which then became its wholly-owned subsidiary (the "Subsidiary") at the end of 2015. The Subsidiary recognised sales revenue from certain of its customers without commencing actual business with such customers and realised cash flow through certain other entities. Such financial information was consolidated into the financial statements of APP and resulted in APP's breach of the PRC Securities Law since the financial information and relevant disclosure in the annual reports of APP for the years 2016, 2017 and 2018 (the "Annual Reports") contained false records (the "Incident"). The Zhejiang Securities Regulatory Bureau proposed to take certain disciplinary procedures against APP and its relevant responsible persons, including issuing a warning and imposing a fine of RMB30,000 against Mr. Yao as he, as the then independent director of APP, should ensure the relevant information disclosed in the Annual Reports is true, accurate and complete. Mr. Yao has the right to respond and dispute the Advance Notice and he has informed the Company that he has exercised such right accordingly. Further announcement(s) will be made on the above matters as and when appropriate in accordance with the Listing Rules.

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Mr. Yao resigned from his duties as an independent director of APP in May 2017.

Mr. Yao is an independent non-executive Director, and is not involved in the daily operation of the Company. To the knowledge and information of the Board, the Incident is unrelated to the Directors or senior management of the Company or any business, financial condition or operations of the Group (except for the fact that Mr. Yao is an independent non-executive Director), and will have no material adverse impact on the Group.

Save as disclosed above, there is no other information in relation to Mr. Yao that shall be disclosed pursuant to rule 13.51(2)(h) to (v) of the Listing Rules, nor is there any other matter that shall be brought to the attention of the shareholders of the Company and The Stock Exchange of Hong Kong Limited in relation to the directorship of Mr. Yao.

By order of the Board

Puxing Energy Limited

WEI Junyong

Chairman

Hong Kong, 16 April 2021

As at the date of this announcement, the Board comprises five Directors, of whom two are executive Directors, namely Mr. Wei Junyong and Mr. Gu Genyong; and three are independent non-executive Directors, namely Mr. Tse Chi Man, Mr. Yao Xianguo and Mr. Yu Wayne W.

• For identification purposes only

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