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（A joint stock limited company incorporated in the People's Republic of China with limited liability）
（Stock Code:0042）
PROPOSED SUPPLEMENTARY AMENDMENTS TO
ARTICLES OF ASSOCIATION
The Board of Directors (the "Board") of Northeast Electric Development Co., Ltd. (the "Company") hereby announces that, at the meeting of the Board held on 6 December 2019, the Board considered and approved the resolution in relation to the proposed supplementary amendments to the Articles of Association of the Company (the "Articles of Association"). The resolution shall be submitted to the extraordinary general meeting as a special resolution for consideration and approval.
To meet the regulatory requirements of Shenzhen Stock Exchange and The Stock Exchange of Hong Kong and the requirements of annual audit of NEE, the Company proposed on supplement of amendments in accordance with the applicable provisions on the PRC GAAP and the IAS.
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The specific supplement of amendments are as follows:
Before Supplement of Amendment
Article 251 The Company shall formulate its financial and accounting system in accordance with the relevant requirements of PRC laws, administrative regulations and the PRC accounting principles formulated by the financial supervisory authority of the State Council.
Article 256 The financial statements of the Company shall be prepared in accordance with PRC accounting standards for Business Enterprises and the relevant guidelines and standards issued by the regulatory authorities.
Article 257 If the securities of the Company are listed on the Exchange, during the period on which its securities remain listed, the financial statements placed before the shareholders shall be prepared in accordance with PRC accounting standards and the relevant guidelines and standards issued by the regulatory authorities.
Article 258 Any interim results or financial information published or disclosed by the Company shall be prepared in accordance with PRC accounting standards and the relevant guidelines and standards issued by the regulatory authorities.
After Supplement of Amendment
Article 249 The Company shall formulate its financial and accounting systems in accordance with laws, administrative regulations and the relevant state regulatory department.
Article 254 The financial statements of the Company shall, in addition to being prepared in accordance with the PRC accounting standards and regulations, be prepared in accordance with either international accounting standards, or that of the place outside the PRC where the Company's shares are listed. If there is any material difference between the financial statements prepared respectively in accordance with the two accounting standards, such difference shall be stated in the financial statements. When the Company is to distribute its after-taxprofits, the lower of the after tax profits as shown in the two financial statements shall be adopted.
Article 255 If the relevant securities of the Company are permitted to be listed on the Exchange, during the period on which its securities remain listed, the financial statements placed before the shareholders shall, in addition to complying with PRC accounting standards and regulations, be prepared in accordance with either international accounting standards or Hong Kong accounting standards.
Article 256 Any interim results or financial information published or disclosed by the Company must also be prepared and presented in accordance with the PRC accounting standards and regulations,
and also in accordance with either international accounting standards or that of the overseas place where the Company's shares are listed.
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Shareholders' Approval
The proposed supplementary amendments to the Articles Amendments are subject to
the approval by the shareholders of the Company (the "Shareholders") at the
forthcoming 2019 second extraordinary general meeting of the Company to be held
on 23 December 2019 at 10:00 a.m. (the "EGM") by way of a special resolution.
By order of the Board
Zhu Jie
Chairman
Haikou, Hainan Province, the PRC
6 December 2019
As at the date of this Announcement, the Board comprises of five executive Directors, namely Mr. Zhu Jie, Mr. Li Rui, Ms. Ma Yun, Mr. Bao Zongbao and Mr. Su Weiguo; and three independent non-executive Directors, namely Mr. Li Ming, Mr. Qian Fengsheng and Mr. Fang Guangrong.
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