Boer Power : VOLUNTARY ANNOUNCEMENT - POTENTIAL IMPACT OF THE OUTBREAK OF COVID-19 ON BUSINESS OPERATIONS

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BOER POWER HOLDINGS LIMITED

博耳電力控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1685)

VOLUNTARY ANNOUNCEMENT

POTENTIAL IMPACT OF THE OUTBREAK OF COVID-19 ON

BUSINESS OPERATIONS

This announcement is issued by the board of directors (the "Board") of Boer Power Holdings Limited (the "Company", and together with its subsidiaries, collectively referred to as the "Group") on a voluntary basis, for the purpose of keeping the shareholders and potential investors of the Company informed of the latest business development of the Group.

Since the outbreak of the coronavirus disease (COVID-19) in January 2020 (the "Epidemic"), a number of provinces and municipalities in the People's Republic of China have taken emergency public health measures and various actions to prevent the spread of the Epidemic, including but not limited to imposing restriction on the work resumption date after the Chinese New Year Holidays and the lockdown policies on certain cities to prohibit personnel movement between provinces and/or within provinces and cities.

The Group's production factories which are located in the Wuxi City and Yixing City of Jiangsu Province have resumed operations on 12 February 2020 after the Chinese New Year Holidays and the suspension period prescribed by the relevant government authorities. However, due to the restriction of personnel movement between provinces and cities and the quarantine policies imposed by the relevant government authorities, certain employees are unable to return to the production units as planned, which result in a temporary drop in production capacity of the factories. As our employees have gradually returned to work, as at 6 March 2020, the Group's actual production capacity has reached approximately 96% of the Group's original normal production capacity.

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The Board is of the view that the temporary production halt prior to the resumption of operations and the production shortfall have had a temporary impact on the Group's overall productivity. The Group is committed to mitigating such adverse impact and will adopt various measures to make up for the production shortfall, and liaising with the customers and suppliers to adjust production and delivery schedules, and carrying out cost control measures to alleviate the impact of the Epidemic on the Group's operations and financial performance. The Board does not expect the temporary production halt and the production shortfall of the Group's factories will affect the Group's ability to deliver its orders and the working capital of the Group significantly. The Board will continue to assess the impact of the Epidemic on the Group's operations and financial performance, and will make further announcement(s) as appropriate if necessary.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

Boer Power Holdings Limited

Qian Yixiang

Chairman

Hong Kong, 6 March 2020

As at the date hereof, the Board comprises of (i) four executive Directors: Mr. Qian Yixiang, Ms. Jia Lingxia, Mr. Zha Saibin and Mr. Qian Zhongming; and (ii) three independent non- executive Directors: Mr. Yeung Chi Tat, Mr. Tang Jianrong and Mr. Qu Weimin.

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