Inner Mongolia Energy Engineering : QUARTERLY UPDATE ON RECENT DEVELOPMENT ON SUSPENSION OF TRADING

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INNER MONGOLIA ENERGY ENGINEERING CO., LTD.

內蒙古能源建設投資股份有限公司

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

(Stock Code: 01649)

QUARTERLY UPDATE ON RECENT DEVELOPMENT ON

SUSPENSION OF TRADING

This announcement is made by the board of directors (the "Board") of Inner Mongolia Energy Engineering Co., Ltd. (the "Company", together with its subsidiaries, the "Group") pursuant to Rules 13.09(2)(a) and 13.24A of the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

References are made to the announcements of the Company dated 14 June 2019, 13 September 2019, 13 December 2019, 13 March 2020, 11 June 2020, 11 September 2020 and 11 December 2020.

BUSINESS OPERATION

The Group's main business operations include:

Construction Contracting:

In the fourth quarter of 2020, the completed business volume of the construction contracting business increased as compared with the third quarter. The Company fully consolidated its market presence of power grid in the western Inner Mongolia, focused on developing the power transformation and transmission engineering market in the eastern Inner Mongolia, Tibet, Xinjiang and Hainan regions, as well as explored domestic and foreign power construction market through multiple channels.

Survey, Design and Consultancy Operation:

In the fourth quarter of 2020, the completed business volume of the survey, design and consultancy operation remained basically steady with that of the third quarter. On the basis of fully expanding the traditional electric power design market, the Company actively developed non-electricity businesses such as information engineering, environmental protection, municipal administration, etc., and increased scientific research efforts to continuously enhance the influence of design

brands.

Power Operation:

In the fourth quarter of 2020, the new energy power stations of the Company ran normally.

Goods Trading Operation:

In 2020, the Company continued to insist on following the market-oriented policy, gave preference to its trade operation and chains, and maintained appropriate efforts in development of trading operation in due course. In the fourth quarter of 2020, the trading business did not carry out business on a large scale.

FURTHER ANNOUNCEMENT(S) ON MATERIAL INFORMATION AND PROGRESS

The Company has published announcements from time to time in accordance with the Listing Rules and on a voluntary basis to inform its shareholders and the market of the status and latest development of the Group so that the shareholders and the public investors can obtain important information necessary for assessing the status of the Group. The Company will make further announcement(s) on the material development and progress in relation to the fulfillment of the resumption conditions (as defined in the announcements of the Company dated 10 May 2019, 9 September 2019, 8 April 2020 and 11 September 2020) in due course.

CONTINUED SUSPENSION OF TRADING

Trading in the shares of the Company on the Stock Exchange has been suspended with effect from 9:00 a.m. on 18 March 2019 and will remain suspended until further notice, pending the publication of the 2018 annual results of the Company, which is subject to subsequent necessary further actions.

Potential investors and shareholders of the Company should exercise caution when dealing in the shares of the Company.

By order of the Board

Inner Mongolia Energy Engineering Co., Ltd.

Niu Jirong

Chairman

Inner Mongolia, PRC, 11 March 2021

As at the date of this announcement, the executive directors of the Company are Mr. Niu Jirong and Mr. Chao Ketu; the non-executive director of the Company is Mr. Chen Ming; and the independent non-executive directors of the Company are Mr. Yue Jianhua, Mr. Yao Tongshan and Mr. Mui Chok Wah.