Shanghai Prime Machinery : PRECAUTIONARY MEASURES FOR THE ANNUAL GENERAL MEETING AND CLARIFICATION ON THE LATEST REGISTRATION DATE

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.

上 海 集 優 機 械 股 份 有 限 公 司

Shanghai Prime Machinery Company Limited

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

(Stock Code: 02345)

PRECAUTIONARY MEASURES FOR THE ANNUAL GENERAL MEETING

AND CLARIFICATION ON THE LATEST REGISTRATION DATE

PRECAUTIONARY MEASURES FOR THE ANNUAL GENERAL MEETING

Reference is made to the circular (the ''Circular'') and the notice (the ''Notice'') of the annual general meeting (the ''AGM'') of Shanghai Prime Machinery Company Limited (the ''Company'') both dated 16 April 2020 and the form of proxy (the ''Proxy Form''), regarding the AGM of the Company to be held at Meeting Center, North 6th Floor, 2747 Songhuajiang Road, Hongkou District, Shanghai, PRC at 1:00 p.m. on Friday, 19 June 2020. Unless otherwise stated, capitalized terms used herein shall have the same meaning as defined in the Circular and the Notice.

Save as detailed below, the information set out in the Circular, Notice and Proxy Form, including the date, venue and time of the AGM, the purposes of the AGM and the resolutions to be considered at the AGM remain unchanged.

In view of an ongoing pandemic of coronavirus disease 2019 (''COVID-19''), the Company will implement the following prevention and control measures at the AGM against the COVID-19 to protect the Shareholders from the risk of infection:

1. every Shareholder or proxy is required to bring ID card or other equivalent identity document and applicable Health QR Code (健康碼) to register at the reception prior to being granted access to the venue;
2. compulsory body temperature check will be conducted for every Shareholder or proxy at the entrance of the venue and anyone with abnormal body temperature will not be given access to the venue;
3. every Shareholder or proxy is required to bring and wear facial surgical mask during their attendance of the AGM; and
4. no refreshment will be served.

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Furthermore, the Company strongly recommends the Shareholders intending to attend the AGM to vote by filling in and submitting the Proxy Form. The Proxy Form were dispatched to Shareholders and can otherwise be downloaded from the website of the Company at http://www.pmcsh.com or HKEXnews at www.hkexnews.hk. If Shareholders intend to appoint a proxy to attend the AGM, they are requested to complete, sign and return the Proxy Form in accordance with the instructions printed thereon not less than 24 hours before the time fixed for holding the AGM or any adjournment thereof (as the case may be).

We sincerely apologize for any inconvenience caused to any participants in the AGM due to the measures taken at the AGM against the COVID-19 to protect the Shareholders from the risk of infection.

CLARIFICATION ON LATEST REGISTRATION DATE FOR THE SHAREHOLDERS' ENTITLEMENT OF THE PROPOSED FINAL DIVIDEND

Reference is made to the annual results announcement (the ''Annual Results Announcement'') dated 29 March 2020. Given that 25 June 2020 is a Hong Kong public holiday, the latest registration date for the shareholders' entitlement of the proposed final dividend is in practice 24 June 2020. Therefore, the second paragraph under the section ''CLOSURE OF BOOKS'' on page 47 of the Annual Results Announcement is revised as below, the rest of the Annual Results Announcement remains the same with no change. The Company has also made the same revision in the Circular.

''In addition, the Company's register of members will be closed from Friday, 26 June 2020 to Monday, 6 July 2020 (both dates inclusive) for the purpose of ascertaining the shareholders' entitlement to the proposed final dividend of the Company. In order to be qualified for the proposed final dividend, all transfer documents, accompanied by the relevant share certificates, must be lodged at the Company's H Share Registrars, Tricor Investor Services Limited at 54/F, Hopewell Centre, 183 Queen's Road East, Hong Kong no later than 4:30 p.m. on Wednesday, 24 June 2020.''

By order of the Board of

Shanghai Prime Machinery Company Limited

Ng Kwong, Alexander

Company Secretary

Shanghai, the PRC

16 April 2020

As at the date of this announcement, the Board consists of Executive Directors, namely Mr. Zhou Zhiyan, Mr. Zhang Mingjie, Mr. Si Wenpei and Mr. Xiao Yuman, Non-executive Director, namely Mr. Dong Yeshun, and Independent Non-executive Directors, namely Mr. Ling Hong, Mr. Chan Oi Fat and Mr. Sun Zechang.

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