Harbin Electric Company Limited announced that, Mr. Qu Zhe ("Mr. Qu") has tendered to the Company his resignation from the position of the shareholder representative supervisor and the chairman of the supervisory committee of the Company (the "Supervisory committee") as he has attained the statutory retirement age, which will become effective from the date of this announcement. Upon the resignation of Mr. Qu, the number of the Supervisory Committee has fallen below the quorum as required under the Articles of Association of the Company. The Company will complete the election to fill the vacancies and other subsequent works in accordance with the legal procedures as soon as possible.

Mr. Qu has confirmed that he has no disagreement with the Board and the Supervisory Committee, and there is no other matter in relation to his resignation which has to be brought to the attention of the shareholders of the Company.