China High Speed Trnsmsn Eqpt : PROPOSED CHANGE OF AUDITOR AND NOTICE OF EXTRAORDINARY GENERAL MEETING

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

If you are in doubt as to any aspect of this circular, you should consult your stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other professional adviser.

If you have sold or transferred all your shares in China High Speed Transmission Equipment Group Co., Ltd. (the "Company"), you should at once hand this circular and the accompanying proxy form to the purchaser or transferee or to the bank, stockbroker or other agent through whom the sale or transfer was effected for transmission to the purchaser or the transferee.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, 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 circular.

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 658)

PROPOSED CHANGE OF AUDITOR

AND

NOTICE OF EXTRAORDINARY GENERAL MEETING

A notice convening the EGM to be held at No.30, Houjiao Road, Jiangning High-Tech Industrial Park, Nanjing, the PRC at 10 a.m. on 3 January 2019 is set out on pages 6 to 7 of this circular. A proxy form for use at the EGM is also enclosed. Such form of proxy is also published on the designated website of the Stock Exchange (http://www.hkexnews.hk) and the website of the Company (www.chste.com).

Whether or not you intend to attend the EGM, you are requested to complete the proxy form in accordance with the instructions printed thereon and return the same to the branch share registrar of the Company in Hong Kong, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong as soon as possible and in any event not less than 48 hours before the time appointed for holding of the EGM or any adjournment thereof.

Completion and return of the proxy form will not preclude you from attending, and voting in person at, the meeting or any adjourned meeting thereof should you so wish.

* for identification purposes only

11 December 2018

CONTENTS
Page
DEFINITIONS ............................................................	1
LETTER FROM THE BOARD ...............................................	3
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
PROPOSED CHANGE OF AUDITOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
VOTING BY WAY OF POLL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
CLOSURE OF REGISTER OF MEMBERS AND ASCERTAINING
OFELIGIBILITYFORATTENDINGTHEEGM .............................	5
RECOMMENDATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5
EGM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5
RESPONSIBILITYSTATEMENT ...........................................	5
NOTICE OF EGM ........................................................	6
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DEFINITIONS

In this circular, the following expressions have the following meanings unless the context otherwise requires:

"Appointment"	the appointment of PwC as the Group's auditor, in
replacement of EY for the remainder of EY's term (i.e. until
the conclusion of the next annual general meeting of the
Company), subject to the Shareholders' approval at the EGM
"Articles"	the articles of association of the Company as may be amended
from time to time
"Audit Committee"	the audit committee of the Board, comprising Mr. Jiang Xihe
(as the chairman of the committee), Dr. Chan Yau Ching, Bob
and Mr. Nathan Yu Li, all of whom are independent
non-executive Directors
"Board"	the board of Directors
"Change of Auditor"	collectively, the Termination and the Appointment
"Company"	China High Speed Transmission Equipment Group Co., Ltd.,
a company incorporated in the Cayman Islands with limited
liability and the Shares of which are listed on the Stock
Exchange (stock code: 658)
"controlling Shareholder"	has the meaning ascribed thereto under the Listing Rules
"Director(s)"	the director(s) of the Company
"EGM"	the extraordinary general meeting to be convened and held by
the Company at 10 a.m. on 3 January 2019 to consider and, if
thought fit, to approve the resolutions in relation to the
proposed Change of Auditor, or any adjournment thereof
"EGM Notice"	the notice convening the EGM as set out on pages 6 to 7 of
this circular
"EY"	Ernst & Young Certified Public Accountants, the auditor of
the Group as at the Latest Practicable Date
"Fullshare"	Fullshare Holdings Limited (stock code: 607), the controlling
Shareholder
"Fullshare Disclosure"	the announcement and circular dated 6 December 2018 and 7
December 2018, respectively, published by Fullshare in
relation to, amongst other things, the proposed change of
auditor of Fullshare
"Group"	the Company and its subsidiaries
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DEFINITIONS
"Hong Kong"	the Hong Kong Special Administrative Region of the PRC
"Latest Practicable Date"	7 December 2018, being the latest practicable date prior to the
printing of this circular for ascertaining certain information
contained herein
"Letter of Termination"	the letter of termination dated 7 December 2018 issued by the
Company to EY in relation to the Termination
"Listing Rules"	the Rules Governing the Listing of Securities on the Stock
Exchange
"PRC"	the People's Republic of China, which for the purpose of this
circular, excludes Hong Kong, the Macau Special
Administrative Region of the People's Republic of China, and
Taiwan
"PwC"	PricewaterhouseCoopers Certified Public Accountants, an
auditing firm to be appointed as the Group's auditor in
replacement of EY, subject to Shareholders' approval at the
EGM
"Share(s)"	ordinary share(s) of US$0.01 each in the share capital of the
Company
"Shareholder(s)"	the holder(s) of the Share(s)
"Stock Exchange"	The Stock Exchange of Hong Kong Limited
"subsidiary(ies)"	has the meaning ascribed thereto under the Listing Rules
"Termination"	the termination of EY as the Group's auditor, subject to the
Shareholders' approval at the EGM
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LETTER FROM THE BOARD

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 658)

Executive Directors:
Mr. Chen Yongdao
Mr. Wang Zhengbing	103 South Church Street
Mr. Zhou Zhijin	George Town
Mr. Hu Jichun (Chief Executive Officer)	Grand Cayman KY1-1002
Ms. Zheng Qing	Cayman Islands
Non-executive Directors:	Head office and principal place of business in
Mr. Hu Yueming (Chairman)	Hong Kong:
Mr. Yuen Chi Ping	Room 1302, 13th Floor, COFCO Tower
No. 262 Gloucester Road, Causeway Bay
Independent non-executive Directors:	Hong Kong
Dr. Chan Yau Ching, Bob
Ms. Jiang Jianhua
Mr. Jiang Xihe
Mr. Nathan Yu Li
11 December 2018
To the Shareholders
Dear Sir or Madam,

Registered office:

4th Floor, Harbour Place

PROPOSED CHANGE OF AUDITOR

AND

NOTICE OF EXTRAORDINARY GENERAL MEETING

INTRODUCTION

Reference is made to the announcement of the Company dated 7 December 2018 in relation to, amongst others things, the proposed Change of Auditor.

The purpose of this circular is to provide you with, amongst other things, the details of the proposed Change of Auditor and to give you the EGM Notice.

* for identification purposes only

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