China Environmental Technology : Announcements and Notices - Supplemental Announcement

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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)

SUPPLEMENTAL ANNOUNCEMENT

References are made to the announcements (the "Announcements") of China Environmental Technology Holdings Limited (the "Company") dated 29 December 2017 in relation to (i) the lapse of the subscription agreement for the proposed issue and subscription of convertible bonds due 2020 in the aggregate principal amount of US$10,000,000 (equivalent to HK$78,000,000) dated 1 November 2017 (the "Subscription Agreement A"); (ii) the lapse of the subscription agreement for the proposed issue and subscription of convertible bonds due 2020 in the aggregate principal amount of US$9,000,000 (equivalent to HK$70,200,000) dated 1 November 2017 (the "Subscription Agreement B", together with the Subscription Agreement A, collectively the "Subscription Agreements"); and (iii) 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) dated 29 December 2017 (the "New Subscription Agreement"), respectively.

The Board would like to provide the following supplementary information in relation to the Announcements:

The Subscription Agreements were lapsed because the subscriber and the Company were not able to reach an agreement on certain terms of the respective share charge to be made in favor of the subscriber before the then completion date (i.e. on or around 15 December 2017) pursuant to the Subscription Agreements and additional time was required for the Company to fulfill the pledge and custodian procedure. As the subscriber and the Company subsequently reached consensus to resolve the issue by first reducing the principal amount of the convertible bonds to US$7,000,000, meanwhile rendering both parties more time for further negotiation, the subscriber and the Company mutually agreed to enter into the New Subscription Agreement and made publication of the Announcements accordingly.

By order of the Board

China Environmental Technology Holdings Limited

Li Wang Hing, Nelson

Company Secretary

Hong Kong, 14 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.