China Environmental Technology : Announcements and Notices - Completion of Subscription of Convertible Bonds Due 2020 in the Aggregate Principal Amount of US$7,000,000 under General Mandate

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CHINA ENVIRONMENTAL TECHNOLOGY HOLDINGS LIMITED 中國環保科技控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 646)

COMPLETION OF SUBSCRIPTION OF CONVERTIBLE BONDS DUE 2020 IN THE AGGREGATE PRINCIPAL AMOUNT OF US$7,000,000

UNDER GENERAL MANDATE

Reference are made to the announcements of China Environmental Technology Holdings Limited (the "Company") dated 29 December 2017 (the "Announcement") in relation to the proposed issue, and subscription of convertible bonds due 2020 in the aggregate principal amount of US$7,000,000 (equivalent to HK$54,600,000) and the announcement of the Company dated 14 January 2018 in relation to the subscription of the Convertible Bonds. Unless otherwise expressly indicated, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

COMPLETION OF SUBSCRIPTION OF THE CONVERTIBLE BONDS

The Board is pleased to announce that all Conditions Precedent in relation to the issue of the Convertible Bonds have been fulfilled in accordance with the Subscription Agreement. Completion took place on 15 January 2018 and the Convertible Bonds were issued to the Subscriber.

The approval for the listing of, and permission to deal in, the Conversion Shares upon conversion of the Convertible Bonds has been granted, on a conditional basis, by the Listing Committee.

To the best of the Directors' knowledge, information and belief, having made all reasonable enquires, as at the date of this announcement, the Subscriber and its ultimate beneficial owners are Independent Third Parties.

The net proceeds from the issue of the Convertible Bonds, after deduction of expenses payable in connection with the issue of the Convertible Bonds, are HK$54,300,000.

EFFECT ON SHAREHOLDING OF THE COMPANY

For illustration purposes only, assuming there is no other change in the shareholding structure of the Company after the Completion, the following table sets out the shareholding structures of the Company (i) as at the date of this announcement and (ii) assuming the Convertible Bonds are fully converted into Conversion Shares at the initial Conversion Price:

Assuming the Convertible Bonds are fully converted into Conversion

Name of ShareholderAs at the date of this announcement

Shares at the initial Conversion Price

%	Shares	%
Xu Zhong Ping (Note)	1,264,098,431	34.63	1,264,098,431	32.29
Xu Xiao Yang	20,000,000	0.55	20,000,000	0.51
Pacific Fertility Institutes
Holding Company Limited	718,608,000	19.69	718,608,000	18.35
Subscriber	---	---	265,048,000	6.77
Public Shareholders	1,647,652,330	45.13	1,647,652,330	42.08
3,650,358,761	100.00	3,915,407,304	100.00
Note:

Shares

1,200,000,000 Shares were held under the name of Gentle International Holdings Limited ("Gentle").

Classy Jade Limited owns 60% of the issued share capital of Gentle. Mr. Xu Zhong Ping is the sole shareholder of Classy Jade Limited. Mr. Xu Zhong Ping was therefore deemed to be interested in the said 1,200,000,000 Shares held by Gentle under Part XV of the SFO. Mr. Xu Zhong Ping is the beneficial owner of the remaining 64,098,431 Shares.

By order of the Board

China Environmental Technology Holdings Limited

Li Wang Hing, Nelson

Company Secretary

Hong Kong, 16 January 2018

As at the date of this announcement, the executive directors are Mr. Xu Zhong Ping, Mr. Xu Xiao Yang and Ms. Hu Yueyue; the non-executive director is Mr. Ma Tianfu; and the independent nonexecutive directors are Mr. Tse Chi Wai, Professor Zhu Nan Wen and Professor Li Jun.