Northeast Electric Development : Announcement on Resignation of Independent Non-Executive Director

The 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.

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

（Stock Code:0042）

Announcement

On Resignation of Independent Non-Executive Director

This announcement is made in accordance with the provision specified in Article 13.51(2) of the

Listing Rule of the Stock Exchange of Hong Kong Limited.

The Board of Directors (the "Board") of Northeast Electric Development Co., Ltd. (the "Company")

has recently received the resignation application from Mr. Qian Fengsheng, an independent

non-executive director of the Company. Due to his personal reasons, Mr. Qian Fengsheng has

submitted his resignation from the Board of Director as an independent non-executive director of

the Company and from the Special Committees of the Board as the member of Audit Committee

and the Remuneration Committee. Upon his resignation, Mr. Qian Fengsheng will cease to hold any

positions in the Company.

Mr. Qian Fengsheng has confirmed to the Company that he has no disagreement with the Board,

and there is no matter relating to his resignation that needs to be brought to the attention of the

holders of the securities of the Company.

According to the relevant provisions of the Company Law and the Listing Rules, the resignation of Mr. Qian Fengsheng as independent executive director will result in the number of independent non-executive director of the Company falling below the minimum quorum, the resignation report of independent non-executive director shall take effect upon election of new independent non-executive director at the general meeting of the Company. The Company will appoint additional independent non-executive director as soon as practicable in accordance with relevant provisions of the Company Law and the Articles of Association. Prior to the addition of independent non-executive director, Mr. Qian Fengsheng shall continue to perform the relevant duties as independent non-executive director and members of the special committees of the Board.

As of the date of this announcement, none of the above-mentioned persons holds any shares of the Company, and there are no commitments that should have been fulfilled.

The Company and the Board hereby express sincere gratitude to Mr. Qian Fengsheng for his valuable contributions to the Company during his tenure of office.

By order of the Board

Zhu Jie

Chairman

Haikou, Hainan Province, the PRC

9 December 2019

As at the date of this Announcement, the Board comprises of five executive Directors, namely Mr. Zhu Jie, Mr. Li Rui, Ms. Ma Yun, Mr. Bao Zongbao and Mr. Su Weiguo; and three independent non-executive Directors, namely Mr. Li Ming, Mr. Qian Fengsheng and Mr. Fang Guangrong.