The Board of Directors of Northeast Electric Development Co. Ltd. announced that it is predicted that the Company is in a deficit of net profit attributable to shareholders of listed Company of approximately RMB 9,000,000 - RMB 11,000,000, basic loss per share of RMB 0.0103 - RMB 0.0126 in the first half ended June 30, 2021 according to the primary calculation from the financial department of the Company, while the consolidated negative equity attributable to the equity owners of the Company in the range of RMB 198 million to RMB 196 million. The accurate financial data will be fully disclosed in the interim results announcement before 31 August 2021.

The announcement is made in accordance with Rule 13.10B of the Listing Rules. Reasons for Change in Results: During the reporting period, due to the increase in the Company's gross profit margin and the decrease in management fees, the net profit was reduced by approximately RMB 0.82 million to RMB 2.82 million compared with the same period last year. In addition, there were not non-operating profit or loss items that affect the net profit during the reporting period.

Due to the net asset of the Company was negative at the end of 2020 and the Company made loss during the reporting period, the net asset of the Company remained negative during the reporting period.