Haitian Energy International : QUARTERLY ANNOUNCEMENT

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HAITIAN ENERGY INTERNATIONAL LIMITED

海 天 能 源 國 際 有 限 公 司

(in provisional liquidation)

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1659)

QUARTERLY ANNOUNCEMENT

This announcement is made by the board (the "Board") of directors of Haitian Energy International Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 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 under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

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Reference is made to (i) the announcement of the Company dated 25 February 2019 in relation to the filing at the Grand Court of the Cayman Islands of a petition for appointment of provisional liquidators for the purpose of solving the cash flow problem of the Group and investigation of an incident about one of its subsidiaries having entered into a letter of intent for a proposed acquisition of a PRC company and paid out RMB120 million as intention money (the "Incident"), and trading suspension in the shares of the Company; (ii) the announcements of the Company dated 6 March 2019 and 14 March 2019 in relation to the appointment of provisional liquidators; (iii) the announcement of the Company dated 21 March 2019 in relation to, among others, the resumption guidance (the "Resumption Guidance") issued by the Stock Exchange; (iv) the announcement of the Company dated 22 March 2019 in relation to the delay in publication of annual results for the year ended

31 December 2018 (the "2018 Annual Results"); (v) the announcement of the Company dated 17 June 2019 in relation to the quarterly announcement of the Company; (vi) the announcement of the Company dated 29 July 2019 in relation to the termination of the letter of intent; (vii) the announcement of the Company dated 22 August 2019 in relation to the delay in publication of interim results (the "2019 Interim Results") and despatch of interim report (the "2019 Interim Report") for the six months ended 30 June 2019; (viii) the announcement of the Company dated 23 August 2019 in relation to the quarterly announcement of the Company; (ix) the announcement of the Company dated 22 November 2019 in relation to the quarterly announcement of the Company; (x) the announcement of the Company dated 24 February 2020 in relation to the quarterly announcement of the Company; and (xi) the announcement of the Company dated 25 May 2020 in relation to the quarterly announcement of the Company. Terms used herein shall have the same meanings as defined in the abovementioned announcements unless otherwise stated.

RESUMPTION GUIDANCE

According to the Resumption Guidance, the Company is required to:

1. demonstrate its compliance with Rule 13.24 of the Listing Rules;
2. have the petition against the Company withdrawn or dismissed and the appointment of any liquidator discharged;
3. conduct an investigation ("Investigation") into the Incident, announce the findings and take appropriate remedial actions;

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1. demonstrate that the Company has in place adequate internal controls and procedures to comply with the Listing Rules;
2. publish all outstanding financial results and address any audit modifications;
3. announce all material information for the Company's shareholders and other investors to appraise the Company's position.

RESUMPTION PLAN OF THE GROUP AND PROGRESS OF RESUMPTION PLAN

In compliance with Rule 13.24A of the Listing Rules, the quarterly update on the Company's progress and development on the resumption of trading of the Shares are set out below.

Key Events

Timeframe

Having the petition against the Company w i t h d r a w n o r d i s m i s s e d a n d t h e appointment of provisional liquidator discharged

W i t h r e f e r e n c e t o t h e C o m p a n y ' s announcement dated 11 June 2020, the Subsidiary entered into the Termination Agreement with the Vendors, pursuant to which the Subsidiary and the Vendors mutually agreed to terminate the Letter of Intent, and with the Intention Money to be fully refunded by the Vendors to the Subsidiary without interest. Up to the date of this announcement, full amount of the Intention Money (equivalent to RMB120,000,000) had been received by the Subsidiary.

The Company may make an application to the Grand Court of the Cayman Islands for the withdrawal or the dismissal of the petition against the Company and the discharge of the provisional liquidators as soon as the Company is able to demonstrate that problems leading to the appointment of the provisional liquidator are resolved and the Company can continued as a going concern.

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Key Events

Timeframe

Conducting Investigation, taking remedial actions in relation to the Incident and completing internal control review, and announcing the findings of the Investigation and remedial actions taken

The Company has obtained support from its creditors for the discharge of the provisional liquidators and shall make such application once other conditions are substantially fulfilled.

The Company has initiated an investigation of the Incident by engaging a professional investigation counsel, which is a firm of solicitors in Hong Kong with relevant past experience in issuing independent investigation reports.

The first draft of the independent investigation report is expected to be completed by 5 October 2020.

The Company has engaged Moore Advisory Services Limited, an independent internal control consultant, to further assess the adequacy of the Group's internal control systems and the effectiveness of the proposed remedial actions in relation to the Incident before implementation.

The Company shall take such necessary remedial actions in terms of the Company's internal control as recommended by the internal control consultant.

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Key Events	Timeframe
Publication of the announcement of the 2018 Annual Results	30 November 2020
Publication of the annual report for the year ended 31 December 2018	30 November 2020
Publication of the announcement of the 2019 Interim Result and	14 September 2020
publication of the 2019 Interim Report
Publication of the announcement of the 2019 Annual Results	30 November 2020
Publication of the annual report for the year ended 31 December 2019	30 November 2020
Resumption of trading in the shares of the Company	31 January 2021

UPDATES ON THE BUSINESS OPERATIONS ON THE GROUP

The Group is principally engaged in the hydropower generation by self-owned and leased plants and provision of operating, repair and maintenance and installation services in relation to electricity supplies in the PRC.

Notwithstanding the suspension of trading in the Company's shares, the Group continued its normal business operations. Since 25 February 2019 and up to the date of this announcement, there has been no major change on the business operations of the Group.

CONTINUED TRADING SUSPENSION OF THE SHARES OF THE COMPANY

Trading in the shares of the Company on the Stock Exchange was suspended with effect from 9:00 a.m. on 25 February 2019 and will remain suspended until further notice. Pursuant to Rule 6.01A(1) of the Listing Rules, the Stock Exchange may cancel the Company's listing if trading in the Shares has remained suspended for 18 continuous months. The 18-month period will expire on 24 August 2020 (the "Resumption Deadline"). On 20 August 2020, the Board filed the application for extension of the Resumption Deadline for 5 months, which is subject to the approval from the Stock Exchange.

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The Board will make further announcement to update its shareholders and the public of the development of its business operations, its resumption plan, the progress of the implementation of the resumption plan (and any material changes thereof), as well as any other relevant matters as and when appropriate and at least on a quarterly basis.

By Order of the Board

HAITIAN ENERGY INTERNATIONAL LIMITED

(in provisional liquidation)

Lin Yang

Chairman

Fujian Province, the PRC, 21 August 2020

As at the date of this announcement, the Chairman and executive director of the Company is Mr. Lin Yang, the other executive directors of the Company are Mr. Chen Congwen and Mr. Wang Xiaoyun; and the independent non-executive directors of the Company are Mr. Hu Ji Rong, Mr. Xie Zuomin and Mr. Zhang Gong.

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