The board of directors of Chongqing Machinery & Electric Co. Ltd. announced that, on January 25, 2013, Mr. Xie Hua Jun tendered his resignation as an executive director, the chairman, the chairman of the Strategic Committee, the chairman of the Nomination Committee and other positions to the Board due to personal reasons and changes of his position in the Chongqing Machinery and Electronic Holding (Group) Co. Ltd. According to Article 105 of the Articles of Association of Chongqing Machinery & Electric Co.

Ltd. as jointly elected by more than half members of the Board, Mr. Yu Gang, an executive director of the company, will temporarily perform the duties of the chairman of the company until the new chairman of the company is elected. The resignation of Mr. Xie as an executive Director will take effect upon being approved by the shareholders' general meeting in due course.