The board of directors of China Machinery Engineering Corporation announced that the Company entered into a contract with the owner of Erbil, Iraq in respect of the Harir cement plant project in Erbil, Iraq on September 24, 2020. The Company recently received the original of the Contract. Pursuant to the Contract, the scope of the Project includes the construction of the Harir cement plant in Erbil, Iraq and supporting facilities. The Company, as the general contractor, will be responsible for the design, supply, construction, warranty, operation and maintenance and other works of the Project. The Contract value amounts to approximately $210 million. The Contract has become effective immediately upon its signing. As stipulated in the Contract, the Project will commence construction upon the satisfaction of certain conditions precedent. The total construction period of the Project is expected to last for approximately 30 months upon commencement of the construction.