China National Electric Engineering Co., Ltd (hereinafter referred to as “CNEEC” or the “Company”) is a large state-owned international engineering company specialized in EPC contracting of large-scale domestic and overseas engineering projects. China Electric Design and Research Institute Co., Ltd. (hereinafter referred to as “CEDRI”), as CNEEC’s subsidiary, is a large-scale state-owned comprehensive design institute.

The company has always been committed to building a model enterprise of honesty, integrity and legal compliance in all aspects of its business operation. The Company is acutely aware that compliance management is the fundamental guarantee for building a first-class enterprise and maintaining corporate image, and is also the inherent requirement for ensuring the sustainable and steady development of the Company.

Recently, due to the misconduct of an individual employee of CEDRI in the process of joint-venture bidding of Lusaka Transmission and Distribution Rehabilitation Project financed by the World Bank Group (the “WBG”), the WBG initiated investigation against CNEEC and CEDRI. The Company management attached great importance to this incident, and so far the Company has conducted thorough internal investigation, taken immediate corrective measures, and actively communicated and closely cooperated with the WBG. As a result of the aforesaid efforts, the WBG, CNEEC and CEDRI have reached a Settlement Agreement and the subsequent compliance work is proceeding in due course.

In view of the above, the Company is determined to establish and strictly implement the compliance management rules on bidding in line with the international standards, and will conduct compliance trainings for all employees. CNEEC hereby seriously requires all employees to diligently study the Company’s compliance management rules and policies which will be published in the near future, pay particular attention to and actively participate the upcoming compliance trainings for all the employees, and strictly abide by the highest ethical standard in all business activities.

In addition to the adoption of compliance management rules and the conduct of compliance trainings, the Company will also establish a specialized Compliance Office, appointing dedicated personnel to guide and supervise the implementation of the compliance management rules. In the meantime, the Company’s Compliance Office will work closely with the compliance departments of all affiliates so as to enhance the Company’s compliance management level, prevent any form of compliance risks, ensure the integrity and compliance operation, and continuously cultivate the Company’s compliance culture.

According to the WBG’s requirements, the Company’s employees are obligated to report any misconduct including corruption, fraud, coercion, collusion, and obstruction, which may be suspected of violating the WBG’s compliance rules, to the Company’s Compliance Office or directly to the WBG anonymously or with real name. The Company’s Compliance Office will keep strict confidential the identity of the whistle-blower and the content of the report.

We believe that, under the strong leadership of the Company’s management and through the joint efforts of all the employees, the Company will strictly observe the business ethics, operate in accordance with relevant laws, regulations and compliance requirements, promote the sustainable development of the Company, and further improve the Company’s compliance management both at home and abroad.

Whistleblowing Hotline of CNEEC’s Compliance Office: 010-68798488

Whistleblowing Email Address of CNEEC’s Compliance Office:

compliance@cneec.com.cn

Whistleblowing Website of the WBG：http://www.worldbank.org/fraudandcorruption

China National Electric Engineering Co., Ltd

October 29, 2020