Precision Tsugami China : VOLUNTARY ANNOUNCEMENT

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Precision Tsugami (China) Corporation Limited ݵɪၚ੗ዚґ€ʕ਷Ϟࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1651)

VOLUNTARY ANNOUNCEMENT

Reference is made to the announcements of the Company dated 22 March 2018 and 1 August 2019 in relation to the construction of the Anhui Production Plants (the "Announcements"). The capitalised terms used herein shall have the same meanings ascribed to them in the Announcements.

The board of directors of the Company is delighted to announce that the construction of the Anhui Production Plants has been completed and is expected to commence production on or around 1 March 2021.

In addition, the Company is pleased to announce that the local government of Bowang District has shown great support in the development of the CNC high precision machine tools in Bowang District. In this regard, the local government of Bowang District has agreed to grant subsidies in the aggregate amount of RMB18 million to Anhui PTC, in support of the construction of the Anhui Production Plants and Anhui PTC's manufacture of CNC high precision machine tools and the related parts and components. As at the date of this announcement, Anhui PTC has received government subsidies of RMB14.5 million.

By order of the Board of Directors

Precision Tsugami (China) Corporation Limited

Dr. Tang Donglei

Chief Executive Officer and Executive Director

Hong Kong, 1 March 2021

As at the date of this announcement, the executive directors of the Company are Dr. Tang Donglei and Dr. Li Zequn; the non-executive directors of the Company are Mr. Takao Nishijima, Ms. Mami Matsushita and Mr. Seiji Tsuishu; and the independent non-executive directors of the Company are Dr. Eiichi Koda, Dr. Huang Ping and Mr. Tam Kin Bor.