Inner Mongolia Energy Engineering Co., Ltd. was recently informed that Mr. Lu Dangzhu, chairman of the Company, is currently under investigation by the supervisory authority due to suspected serious duty crimes. The Company is not aware of any other relevant information on the investigation on him. As of the date, to the knowledge of the Company, having made reasonable enquires, neither the Company nor other directors of the Company has been enquired by the supervisory authority in relation to the abovementioned investigation. The board of directors of the Company believes that the investigation has no impact on the operations of the Company, and the Company continues to conduct its operations as usual. The Board hereby announced that, pursuant to Article 108 of the Articles of Association of the Company, Mr. Chao Ketu, vice chairman of the Company, shall temporarily perform the duties of Mr. Lu Dangzhu as chairman of the Board until there is more certainty of the aforementioned issue.