Zhejiang Cangnan Instrument : VOLUNTARY ANNOUNCEMENT ENTERING INTO OF THE STRATEGIC COOPERATION FRAMEWORK AGREEMENT

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Zhejiang Cangnan Instrument Group Company Limited

浙江蒼南儀錶集團股份有限公司

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

(Stock code: 1743)

VOLUNTARY ANNOUNCEMENT

ENTERING INTO OF THE STRATEGIC COOPERATION

FRAMEWORK AGREEMENT

This announcement is made by Zhejiang Cangnan Instrument Group Company Limited (the "Company") on a voluntary basis.

The board of directors of the Company (the "Board") is pleased to announce that on 9 October 2019, the Company and LongShine Technology Co., Ltd. ("LongShine Technology") entered into a strategic cooperation framework agreement (the "Strategic Cooperation Framework Agreement"), pursuant to which, the Company and LongShine Technology have established the strategic cooperative partnership to cooperate in various areas such as gas, products, commerce, technology and pre-sales in accordance with the terms and provisions of the Strategic Cooperation Framework Agreement.

Leveraging more than forty years of industry experience, the Company has achieved a leading position in the PRC industrial and commercial gas flowmeter market and has a reputation as an established flowmeter manufacturer within the PRC gas measurement instrument industry. The entering into of the Strategic Cooperation Framework Agreement aims to establish a normal cooperation mechanism in respect of technology and products between the Company and LongShine Technology, which is helpful for both parties to jointly enhance their technology innovation and product promotion capabilities, and to achieve their maximum benefits and a win-win development.

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The Strategic Cooperation Framework Agreement does not constitute a transaction under Chapter 14 and Chapter 14A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

By order of the Board

Zhejiang Cangnan Instrument Group Company Limited

Hong Zuobin

Chairman

Hong Kong, 24 October 2019

As of the date of this announcement, the Board comprises Mr. Hong Zuobin, Mr. Huang Youliang, Mr. Yin Xingjing, Mr. Zhang Shengyi, Ms. Lin Zichan, Mr. Lin Zhongzhu and Mr. Lin Jingdian as executive Directors, Mr. Ye Xiaosen and Mr. Hou Zukuan as non-executive Directors and Mr. Ng Jack Ho Wan, Mr. Wong Hak Kun, Mr. Wang Jingfu, Mr. Li Jing and Mr. Su Zhongdi as independent non-executive Directors.

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