China Automation : Appointment of Chief Executive Officer

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Reference is made to the announcement of China Automation Group Limited (the "Company", together with its subsidiaries, the "Group") dated 26 August 2016 in relation to, among others, the resignation of the chief executive officer of the Company.

The board (the "Board") of directors (the "Directors") of the Company is pleased to announce that Mr. Xuan Rui Guo ("Mr. Xuan"), the Chairman and an executive Director of the Company, has been appointed as the chief executive officer of the Company with effect from 14 September 2016. The biographical details of Mr. Xuan are set out below:

Mr. Xuan, aged 47, is the Group's founder, an executive Director, the Chairman and the chief executive officer of the Company. Mr. Xuan graduated from Renmin University of China* (中國人民 大學) with a bachelor's degree in international politics. He is an incumbent director of Yabuli

Entrepreneur Association and Deputy Chairman of China Instrument and Control Society. Mr. Xuan is also one of the winners of Ernst & Young Entrepreneur of The Year 2009 China. Mr. Xuan is also

a director and deputy chairman of Guangdong Kaiping Chunhui Co., Ltd.* (廣東開平春暉股份有限

公司), which is a company listed on the Shenzhen Stock Exchange (Stock Code: 000976). He has

extensive experience in management, administration and business development in different industries including industrial automation, biotechnology, telecommunication and trading in the PRC. He previously served as General Manager of Boda Telecommunication and Electronics Company Ltd. in Yunnan, China, Manager of Beijing Invention Biology Company Ltd. and General Manager of Beijing Consen Automation Control Co., Ltd., etc.

As at the date of this announcement, Mr. Xuan has personal and corporate interests in 1,000,000 shares and 763,931,296 shares of the Company respectively, representing approximately 0.1% and 74.44% of the entire issued share capital of the Company. The foregoing 763,931,296 shares of the Company are owned by Araco Investment Limited, a wholly-owned subsidiary of Brightex Enterprises Limited which is in turn wholly-owned by Mr. Xuan.

Save as disclosed above, Mr. Xuan (i) does not have any relationship with any directors, senior management, substantial or controlling shareholders of the Company; (ii) does not have any interests in shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance

(Chapter 571 of the Laws of Hong Kong); (iii) does not hold other positions with the Company and its subsidiaries; and (iv) has not held any directorship in other public listed companies in the last three years preceding the date of this announcement.

Mr. Xuan has not entered into any service contract with the Company and he is appointed for an initial term of three years as the chief executive officer of the Company. Mr. Xuan is entitled to a remuneration of RMB2,200,000 per annum as the executive Director and chief executive officer of the Company, which is determined by his responsibilities, qualifications, performance and experience and the related industrial practices.

Save as disclosed above, there are no other matters that need to be brought to the attention of the shareholders of the Company in connection with Mr. Xuan's appointment, and there is no other information to be disclosed pursuant to Rule 13.51(2)(h) to (v) of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

Code provision A.2.1 of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules states that the roles of chairman and chief executive officer should be separate and should not be performed by the same individual. Notwithstanding the deviation from code provision A.2.1, the Board believes that with the support of the management, vesting the roles of both chairman and chief executive officer by the same person can facilitate execution of the Group's business strategies and boost effectiveness of its operation. In addition, under the supervision by the Board which currently consists of two executive Directors and three independent non-executive Directors, the interests of the shareholders of the Company will be adequately and fairly represented.

By order of the Board of

Chairman

Hong Kong, 14 September 2016

As at the date of this announcement, the Board comprises Mr. Xuan Rui Guo and Mr. Wang Chuensheng as executive Directors; and Mr. Wang Tai Wen, Mr. Zhang Xin Zhi and Mr. Ng Wing Fai as independent non-executive Directors.

* For identification purpose only