Zhejiang Cangnan Instrument : VOLUNTARY ANNOUNCEMENT WINNING TENDER SELECTED FOR PROJECTS IN THE FIRST QUARTER OF 2020

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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

WINNING TENDER SELECTED FOR PROJECTS IN

THE FIRST QUARTER OF 2020

This announcement is made by Zhejiang Cangnan Instrument Group Company Limited (the "Company") on a voluntary basis to update the Shareholders and potential investors of the Company on the latest business development of the Company.

The board of Directors (the "Board") of the Company is pleased to announce that the Company was selected for the wining tender in project bidding of Ganghua Investment Co.,Ltd., China Resources Gas Group Limited and China National Petroleum Corporation (the "Energy Companies") in the first quarter of 2020, namely, being listed as a supplier of the Energy Companies and the Energy Companies shall purchase products from the Company for the validity period projects according to their own needs ("Selected for Wining Tender"). The basic information of the selected wining tender projects is as follows:

Project Name	Project No.	Tenderer	Scope of	Results of
the Tender	the Tender
Competitive Sourcing of Turbine	HCIL-T-1912032	Ganghua	Turbine flowmeter	Selected
Flowmeters by the Kong WAH		Investment		for Wining
Group for 2020-2021		Co.,Ltd.		Tender
(2020-2021年度港華集團
渦輪流量計之競價採購)
Competitive Sourcing of Rotary	HCIL-T-1912031	Ganghua	Rotary flowmeter	Selected
Flowmeters by the Kong		Investment		for Wining
WAH Group for 2020-2021		Co.,Ltd.		Tender
(2020-2021年度港華集團
羅茨流量計之競價採購)

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Project Name	Project No.	Tenderer	Scope of	Results of
the Tender	the Tender
Supplier Selection of China	-	China Resources	Rotary flowmeter,	Selected for
Resources Gas Group Limited in		Gas Group	turbine flowmeter,	wining tender
2019 (華潤燃氣控股有限公司		Limited	IC card gas flowmeter,	(valid from
2019年供應商評選)			IC card controller,	2020 to 2022)
			intelligent volume
			corrector
Tender Project China National	ZY19-SH02-	China National	Gas turbine flowmeter,	Selected for
Petroleum Corporation for	JC001 (7th and	Petroleum	vortex precession	wining tender
Centralized Sourcing of Flowmeters	8th contracts)	Corporation	flowmeter	(Class A)
for 2020 (中國石油天然氣集團
有限公司2020年流量儀錶
集中採購招標項目)

The Energy Companies are all important comprehensive energy companies in China and each of them is one of the natural gas end users with largest sales volume in China. As distributors connecting downstream users, they are the important guarantors of civic gas projects in China and are creditworthy with strong ability to pay for goods. Over years, the Energy Companies are the important purchasers of commercial flowmeters of the Company. In 2018 and 2019, the Company recorded the respective aggregate amount of approximately RMB100 million for purchases by Ganghua Investment Co.,Ltd. and China Resources Gas Group Limited. After being selected for the wining tender for the above projects, the Company will continue to provide the Energy Companies with flowmeter products with high precision and high intelligence as a quality supplier so as to better meet the demand of gas users, which in turn will amplify the brand image and market share of the Company and help deliver a sound operating performance for the Company.

As the Energy Companies shall purchase products from the Company for the validity period projects according to their own needs, the Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

Zhejiang Cangnan Instrument Group Company Limited

Hong Zuobin

Chairman

Hong Kong, 26 February 2020

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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