The Board of Directors of CSSC Offshore & Marine Engineering (Group) Company Limited has recently received a resignation report from executive director Mr. Zhou Dusheng and non-executive director Mr. Wang Jun on 24 June 2016. Due to age issue, Mr. Zhou Dusheng shall resign from the position of the director of the company and a member of the Strategy committee, and due to job re-assignment, Mr. Wang Jun shall resign from the position of the director of the company and a member of the Audit Committee. According to the relevant provisions of the Company Law and Articles of Association of the Company, the resignation of executive director Mr. Zhou Dusheng and non-executive director Mr. Wang Jun shall become effective on the date of their tendering the resignation to the Board of the company. The resignation of Mr. Zhou Dusheng and Mr. Wang Jun would not cause the number of members of the Board of the company to fall below the minimum level as required by the Articles of Association of the company, nor would it impact on the normal operation of the Board of the company. The company shall appoint new directors as soon as possible in accordance with the relevant provisions of the company Law and Articles of Association of the company. Mr. Zhou Dusheng and Mr. Wang Jun were diligent and responsible, independent and impartial during their terms of office, playing active roles in the Company’s standard operations and sustainable development. The Company would like to extend its appreciation to both of the directors for their contribution to the company during their terms of office. Mr. Zhou Dusheng and Mr. Wang Jun confirmed that they had no disagreement with the board of directors of the company and that there are no matters in relation to their resignation that should be brought to the attention of the company’s shareholders.