China Harmony New Energy Auto : GRANT OF SHARE OPTIONS

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

China Harmony New Energy Auto Holding Limited

中 國 和 諧 新 能 源 汽 車 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 03836)

GRANT OF SHARE OPTIONS

This announcement is made pursuant to Rule 17.06A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

The board of directors (the "Board") of China Harmony New Energy Auto Holding Limited (the "Company", together with its subsidiaries, the "Group") announces that on December 17, 2019, the Company offered to grant share options (the "Share Options") to certain eligible employees of the Group (the "Grantees") under the share option scheme of the Company adopted on June 26, 2015, entitling them to subscribe for a total of 20,000,000 ordinary shares of HK$0.01 each of the Company (the "Shares"). The grant of the Share Options will be subject to the acceptance of the Grantees. Details of the Share Options are set out below:

Offer date	:	December 17, 2019 (the "Offer Date")
Exercise price of Share	:	HK$4.00 per Share, which represents no less than the
Options offered		highest of (i) the closing price of HK$3.86 per Share
		on the date of grant; (ii) the average closing price of
		HK$3.686 per Share as stated in the daily quotations
		sheets issued by The Stock Exchange of Hong Kong
		Limited for the five business days immediately
		preceding the date of grant; and (iii) the nominal value
		of each of the Shares, which is HK$0.01.

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Closing market price	:	HK$3.86 per Share
of the Shares on the
date of offer of Share
Options
Validity period of the	:	The new Share Options are valid from the date of grant
Share Options		till the earlier of (i) the day on which the relevant
		Grantee ceases to be an employee of the Group, and (ii)
		December 17, 2025.

None of the Grantees of the Share Options are the directors, chief executives or substantial shareholders of the Company, nor an associate (as defined under the Listing Rules) of any of them.

The Board confirms that all outstanding share options granted by the Company on December 15, 2017 with an exercise price of HK$4.80 per Share have already lapsed as of the date of this announcement.

By Order of the Board

China Harmony New Energy Auto Holding Limited

FENG Changge

Chairman and Executive director

Hong Kong, December 17, 2019

As of the date of this announcement, the executive directors of the Company are Mr. Feng Changge, Mr. Liu Fenglei, Ms. Ma Lintao, Ms. Feng Guo and Mr. Han Yang; and the independent non-executive directors of the Company are Mr. Wang Nengguang, Mr. Liu Zhangmin, Mr. Xue Guoping and Mr. Lau Kwok Fan.

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