The board of directors of Chongqing Machinery & Electric Co., Ltd. received a resignation letter from Mr. Wang Yuxiang, the executive director and chairman, on 7 July 2020. Due to work arrangements, Mr. Wang Yuxiang has applied to resign from the positions as the chairman of the fifth session of the Board, an executive director, chairman of the strategy committee and chairman of the nomination committee of the Company. According to the provisions of Article 105 of the Articles of the Company, if the chairman is unable or fails to perform his/her duties, a director jointly elected by more than half members of the Board shall perform the duties of the chairman. A Board meeting was convened by the Company on 7 July 2020 and Ms. Chen Ping was jointly elected by more than half members of the Board to perform the duties of the chairman until the election of a new chairman of the Company.