Beijing Jingcheng Machinery Electric : ANNOUNCEMENT ON THE RESOLUTION PASSED AT THE FOURTH MEETING OF THE TENTH SESSION OF THE SUPERVISORY COMMITTEE

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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)

ANNOUNCEMENT ON THE RESOLUTION PASSED AT THE FOURTH MEETING OF THE TENTH SESSION OF THE SUPERVISORY COMMITTEE

The supervisory committee and all supervisors of the Company warrant that this announcement does not contain any false information, misleading statement or material omission and accept joint and several responsibility for the truthfulness, accuracy and completeness of the contents herein contained.

The fourth meeting of the tenth session of the supervisory committee of Beijing Jingcheng Machinery Electric Company Limited (the "Company") was held at the Conference Room of the Company on 31 July 2020. The meeting was presided over by Mr. Miao Junhong, the chairman of the supervisory committee. All of the three eligible supervisors attended the meeting. In compliance with the relevant requirements of the Company Law and the Articles of Association of the Company, the following resolution was considered and approved by the supervisory committee:

To consider and approve the resolution in relation to the establishment of Hydrogen Fuel Cell Commercial Vehicle Industry Innovation Center jointly by Beijing Tianhai Industry Co., Ltd. ("Beijing Tianhai") and Beiqi Foton Motor Co., Ltd. ("Beijing Foton") and the participation of Beiqing Zhichuang (Beijing) New Energy Automobile Technology Co., Ltd. (tentative name).

As a leading whole vehicle manufacturing enterprise in the Beijing-Tianjin-Hebei region, Beiqi Foton has joined forces with a total of 10 enterprises including Beijing Tianhai, a subsidiary of the Company, to establish the Hydrogen Fuel Cell Commercial Vehicle Industry Innovation Center, and jointly establish the Beiqing Zhichuang (Beijing) New Energy Automobile Technology Co, Ltd. (tentative name).

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The establishment of Hydrogen Fuel Cell Commercial Vehicle Industry Innovation Center jointly by Beijing Tianhai and Beiqi Foton and the participation in the establishment of Beiqing Zhichuang (Beijing) New Energy Automobile Technology Co., Ltd. (tentative name) was approved.

The capital contribution of RMB10 million by Beijing Tianhai was approved, representing 10% of the shareholding.

30% of the capital contribution will be completed before December 2020, 30% of the capital contribution will be completed before December 2021 and 40% of the capital contribution will be completed before December 2022.

"The Proposal for the Establishment of Hydrogen Fuel Cell Commercial Vehicle Industry Innovation Center jointly by Beijing Tianhai and Beiqi Foton and the Participation in the Establishment of Beiqing Zhichuang (Beijing) New Energy Automobile Technology Co., Ltd. (tentative name)" was approved.

The "Joint Venture Agreement of Beiqing Zhichuang (Beijing) New Energy Automobile Technology Co., Ltd. (tentative name)" and the "Articles of Association of Beiqing Zhichuang (Beijing) New Energy Automobile Technology Co., Ltd. (tentative name)" were approved.

The number of valid votes for this resolution: 3; Affirmative votes: 3; Dissenting vote: 0; Abstention

vote: 0.

The establishment of the joint venture company is still subject to the approval of the industrial and commercial administrative authorities. The external investment may be subject to risks arising from uncertain factors in various aspects such as industry's policies, progress of product research and development, market environment, operation and management. The joint venture company may be subject to risks arising from uncertain factors in various aspects such as the changes in industry's policies, market competition and operation management in the future, and its profitability is subject to the test of the market. Investors are reminded to exercise reasonable judgment and pay attention to investment risks.

The Supervisory Committee of

Beijing Jingcheng Machinery Electric Company Limited

Beijing, the PRC

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

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