BII Railway Trnsprtn Tech Hldg : SUPPLEMENTAL AGREEMENT TO THE DISCLOSEABLE TRANSACTION IN RELATION TO CAPITAL INJECTION IN BEIJING METRO

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

京 投 軌 道 交 通 科 技 控 股 有 限 公 司

BII Railway Transportation Technology Holdings Company Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1522)

SUPPLEMENTAL AGREEMENT TO

THE DISCLOSEABLE TRANSACTION IN RELATION TO

CAPITAL INJECTION IN BEIJING METRO

Reference is made to the announcement of the Company dated 4 December 2018 ("Capital Injection Announcement") in relation to, among others, the Capital Injection which constituted a discloseable transaction for the Company under Chapter 14 of the Listing Rules. Terms used in this announcement shall have the same meanings as those defined in the Capital Injection Announcement.

As set out in the Capital Injection Announcement, the Company and Beijing Subway Operation entered into the Capital Injection Agreement to improve the financial strength of Beijing Metro, thereby helping Beijing Metro to meet its capital requirements for operations and investments in public-private partnership projects ("PPP Projects"). Pursuant to the Agreement, the Company and Beijing Subway Operation shall make payments of RMB500.0 million (i.e. RMB245.0 million to be paid by the Company and RMB255.0 million to be paid by Beijing Subway Operation) for the Capital Injection in a lump sum within three months from the date of the Capital Injection Agreement.

In 2018, Beijing Metro urgently needed capital injection as it had made breakthroughs in the PPP Projects. However, after the signing of the Capital Injection Agreement, due to the changing external environment, the originally planned PPP Projects of Beijing Metro were terminated through several rounds of negotiations. Currently, Beijing Metro is actively exploring other new projects. Considering its actual operation and business development progress, Beijing Metro no longer has urgent capital demand. Through arm's length negotiation, the Company and Beijing Subway Operation decided to sign a supplementary agreement to the Capital Injection Agreement ("Supplemental Agreement") to suspend the Capital Injection and further negotiate the payment for future capital injection(s).

The Board announces that on 27 December 2019 (after trading hours), the Company and Beijing Subway Operation entered into the Supplemental Agreement pursuant to which the Capital Injection in Beijing Metro shall be suspended. Neither party to the Capital Injection Agreement shall be liable for a breach of contract or any compensation arising therefrom, and they shall further negotiate the payment for future capital injection(s).

- 1 -

From January to November 2019, the average daily passenger volume of Beijing Subway Capital Airport Express was 34,700 people, representing a year-on-year increase of 3.67%, while the operation of Beijing Metro was relatively stable. The Directors consider that, taking into account the stable income of Beijing Metro, suspending the Capital Injection in Beijing Metro is conducive to maintaining a relatively stable return on investment and continuously creating value for shareholders. At the same time, the Supplemental Agreement will not have any material adverse impact on the business, operation and financial position of the Group. The Company will keep the Shareholders and potential investors informed of any material development in connection with the above matter by way of further announcement(s) as and when appropriate.

By order of the Board

BII Railway Transportation Technology Holdings Company Limited

Xuan Jing

Executive Director

Chief Executive Officer

Hong Kong, 27 December 2019

As at the date of this announcement, the executive Directors are Mr. Cao Wei and Ms. Xuan Jing; the non-executive Directors are Mr. Zhang Yanyou, Mr. Guan Jifa, Mr. Zheng Yi and Mr. Ren Yuhang; and the independent non-executive Directors are Mr. Bai Jinrong, Mr. Luo Zhenbang and Mr. Huang Lixin.

- 2 -