China Energine International : ANNOUNCEMENT IN RELATION TO INSIDE INFORMATION AND UNDER RULE 13.19 OF THE LISTING RULES

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CHINA ENERGINE INTERNATIONAL (HOLDINGS) LIMITED 中 國 航 天 萬 源 國 際（ 集 團 ）有 限 公 司*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1185)

ANNOUNCEMENT IN RELATION TO INSIDE INFORMATION

AND UNDER RULE 13.19 OF THE LISTING RULES

This announcement is made by China Energine International (Holdings) Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2) and Rule

13.19 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Pursuant to a loan agreement entered into between the Group as borrower and Aerospace Science and Technology Finance Co. Ltd. ("ASTF"), a fellow subsidiary of China Academy of Launch Vehicle Technology ("CALT"), as lender, with the loan amounts of RMB140 million (with guarantee from CALT), the Group is required to repay such loans on 12 September 2020. However, the Group has failed to repay the loan on 12 September 2020 and this constitutes an event of default under the loan agreements (the "Breach").

As CALT has not completed the decision-making procedures for continuous provision of guarantee before the date on which such loan falls due, therefore, it fails to sign the guarantee agreement for renewing the loan with ASTF in relation to the Group's due loan, and the Group fails to complete the repayment and the signing of the contract of renewing the loan. The Group is still on further negotiation with CALT in relation to such loan. The Group has yet to obtain a waiver from ASTF in respect of the Breach and such that ASTF may demand the immediate repayment. As at the date of this announcement, ASTF has not made any demand for immediate repayment of the loans.

• For identification purpose only

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Apart from the loan agreements of RMB140 million, there are also loans from ASTF amounted to aggregate amount of approximately RMB80 million, RMB35 million, RMB187 million, RMB146 million, RMB300 million and RMB30 million will be fall due on/in 20 September 2020, October 2020, November 2020, December 2020, January 2021 and February 2021 respectively.

In order to meet the repayment obligations, the Company has been discussion with ASTF as to the repayment schedule of the loans. The Company will continue to monitor its financial position and will inform and update its shareholders and other investors of any material development in relation to the above by way of announcement as and when appropriate.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the Shares of the Company.

By Order of the Board

China Energine International (Holdings) Limited

Liu Zhiwei

Chairman and Executive Director

Hong Kong, 14 September 2020

As at the date of this announcement, the Board comprises five executive Directors, namely Mr. Liu Zhiwei, Mr. Li Lei, Mr. Han Qingping, Mr. Xu Jun and Mr. Wang Guanghui; and three independent non-executive Directors, namely Mr. Lau Fai Lawrence, Mr. Gordon Ng and Mr. Li Dapeng.

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