Harbin Electric : SUPPLEMENTAL ANNOUNCEMENT ENTERING INTO THE EQUITY TRANSFER AGREEMENTS WITH CHINA HUARONG ASSET MANAGEMENT CO., LTD.

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(a joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1133)

SUPPLEMENTAL ANNOUNCEMENT

ENTERING INTO THE EQUITY TRANSFER AGREEMENTS WITH CHINA HUARONG ASSET MANAGEMENT CO., LTD.

Reference is made to the announcement of Harbin Electric Company Limited (the "Company") dated 28 November 2019 (the "Announcement") in relation to entering into the Equity Transfer Agreements with China Huarong Asset Management Co., Ltd.. Unless the context otherwise requires, the terms used in this announcement shall have the same meanings as those defined in the Announcement.

The Board hereby provides further information about the Equity Acquisition:

INFORMATION ABOUT HUARONG

The ultimate beneficial owner of Huarong is the Ministry of Finance of the PRC.

By Order of the Board

Harbin Electric Company Limited

Si Ze-fu

Chairman

Harbin, PRC

5 December 2019

As at the date of this announcement, the executive directors of the Company are Mr. Si Ze-fu, Mr. Wu Wei-zhang and Mr. Zhang Ying-jian; and the independent non-executive directors of the Company are Mr. Zhu Hong-jie, Mr. Yu Wen-xing, Mr. Hu Jian-min and Mr. Tian Min.