Northeast Electric Development : Announcement on The Court Ruling

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 THE COURT RULING FOR

ACCEPTANCE OF THE REORGANIZATION OF THE COMPANY'S

LARGEST SHAREHOLDER

This announcement is made by Northeast Electric Development Co., Ltd. (the "Company")

pursuant to Rule 13.09 (2) of the Rules Governing the Listing of Securities (the "Listing Rules") on the Stock Exchange of Hong Kong Limited (the "Stock Exchange"), and Inside Information

Provisions (as defined in the Listing Rules) (the "Inside Information Provisions") under Part

XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Important Notes

•  On 15 March 2021, the Company received a Notice from Beijing Haihongyuan Investment

  Management Co., Ltd. (hereinafter referred to as "Beijing Haihongyuan"), the largest shareholder of the Company, that the Hainan Higher People's Court (hereinafter referred to as the "Court") ruling for acceptance of the reorganization of Beijing Haihongyuan.

•  The court ruling for acceptance of the reorganization of Beijing Haihongyuan, the

  Company's largest shareholder, may has an influence on the Company's shareholding structure. It is uncertain that whether the reorganization of the Company's largest shareholder will be successfully completed.

  Investors are advised to pay attention to investment risks.

I. Information on the court ruling for acceptance of the reorganization of the Company's largest shareholder

On 10 February 2021, HNA Group Co., Ltd. (hereinafter referred to as the "HNA Group", the indirect controlling shareholder of Beijing Haihongyuan Investment Management Co., Ltd.,

the largest shareholder of the Company) had received a Civil Ruling from the Hainan Higher

People's Court, which ruled that the claim for reorganization of HNA Group by relevant creditor has been accepted., For details, please refer to the Announcement on the Court Ruling for Acceptance of the Reorganization of the Indirect Controlling Shareholder was disclosed by the Company On 10 February 2021.

On 15 March 2021, the Company received a Notice from Beijing Haihongyuan Investment

Management Co., Ltd. (hereinafter referred to as "Beijing Haihongyuan"), the largest shareholder of the Company, that the Court ruling for acceptance of the reorganization of

Beijing Haihongyuan.

II. Risk warning

(i) As of the date of this announcement, the Company's largest shareholder Beijing

Haihongyuan is the direct holder of a total of 81,494,850 A shares, representing 9.33% of the entire share capital of the Company. Beijing Haihongyuan entered the reorganization procedure, which may have effects on the shareholding structure of the Company. For details, please refer to the Announcement on the Estimated Result for the Year of 2020 disclosed on 30 January 2021 by the Company.

(ii) The Company has independent and complete businesses and the ability to operate on its

own. The reorganization of shareholder will not materially or adversely affect the daily production and operation of the Company. As of the disclosure date of this announcement, the Company is in normal production and operation state.

(iii) It is uncertain that whether the reorganization of Beijing Haihongyuan will succeed. The

Company will disclose the progress of the above matters in time in strict accordance with the Listing Rules and other related requirements.

(iv) The Board reminds investors to note: The media for information disclosure designated by

the Company are 證券時報 (Securities Times), the websites of the 巨潮資訊網

(www.cninfo.com.cn) and 披露易網站 (www.hkexnews.hk). As to information disclosed by the Company, those published in the above designated media shall prevail.

Investors are advised to pay attention to relevant announcements, exercise caution and be aware of investment risks.

By order of the Board

Zhu Jie Chairman

Haikou, Hainan Province, the PRC

15 May 2021

As at the date of this Announcement, the Board comprises of six executive Directors, namely Mr. Zhu Jie, Mr. Wang Yongfan, Mr. Bao Zongbao, Mr. Su Weiguo, Mr. Guo Qianli and Mr. Li Guoqing; and three independent non-executive Directors, namely Mr. Li Ming, Mr. Fang Guangrong and Mr. Wang Hongyu.