China ITS : UPDATE ON DELAY IN SETTLEMENT OF THE OUTSTANDING AMOUNTS

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China ITS (Holdings) Co., Ltd. 中 国 智 能 交 通 系 统（控 股）有 限 公 司

(Incorporated in the Cayman Islands with limited liability) (Stock code: 1900)

UPDATE ON DELAY IN SETTLEMENT

OF THE OUTSTANDING AMOUNTS

Reference is made to the announcements of China ITS (Holdings) Co., Ltd. (the ''Company'') dated 9 April 2018, 3 May 2018 and 2 July 2018 and the circular of the Company dated 6 September 2018 (the ''Circular'') and the announcements of the Company dated 1 July 2019, 8 May 2020 and 30 June 2020 (the ''Announcements''). Unless otherwise stated, terms defined in the Circular and the Announcements shall have the same meanings when used in this announcement.

As disclosed in the Announcements, the Outstanding Amounts and the interest accrued thereon as at 30 June 2019 totaled approximately RMB340.8 million (consisting of the principal amount of approximately RMB316.1 million and accrued interest amount of approximately RMB24.7 million). The Company would like to update the Shareholders and potential investors that as at the date of this announcement, RMB34.2 million of the Outstanding Amounts has been settled.

In the announcement of the Company dated 30 June 2020, it was disclosed that the Directors expected that the terms of the Proposed Amendment would be finalized on or before 31 August 2020. The Directors would like to update the shareholders of the Company and the investment public that as at the date of this announcement, the Company and the Purchaser Group have not reached consensus on the terms of the Proposed Amendment, while the Company and the Purchaser Group are continuing their negotiation and assessment of the feasibility of different proposals.

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According to information provided by the Purchaser Group, it is in discussion with several investors regarding potential sale of some of its assets, the proceeds from which would be utilized for the settlement of the Outstanding Amounts. As at the date of this announcement, however, the Purchaser Group has not entered into any binding contracts regarding such potential disposals. Accordingly, more time is required for the Company and the Purchaser Group to agree on the terms of the Proposed Amendment and the Directors currently expect that the terms of the Proposed Amendment will be finalized on or before 31 October 2020.

By order of the Board of Directors

China ITS (Holdings) Co., Ltd.

Mr. Liao Jie

Chairman

Beijing, 31 August 2020

As at the date of this announcement, the executive directors of the Company are Mr. Liao Jie and Mr. Jiang Hailin, and the independent non-executive directors of the Company are Mr. Ye Zhou, Mr. Wang Dong and Mr. Zhou Jianmin.

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