The board of directors of Chongqing Machinery & Electric Co. Ltd. announced that the board received the resignation letter from Mr. Yu Gang on 4 March 2016. He has resigned from the positions of an executive director, the general manager and a member of the Strategy Committee of the company because he will work in Chongqing Light Textile Holding (Group) Co.

Ltd. due to work reallocation. The resignation of Mr. Yu took effect immediately. Prior to the appointment of the new general manager by the Board, Mr. Wang Yuxiang, the chairman of the company, will assume the position of the general manager temporarily until the new general manager has been appointed by the Board.

Mr. Yu has confirmed that he has no disagreement with the Board and that there are no matters relating to his resignation that need to be brought to the at tention of the shareholders of the company.