China Environmental Technology : INSIDE INFORMATION IN RELATION TO POTENTIAL INVESTMENT BY POTENTIAL INVESTORS IN THE COMPANY

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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)

INSIDE INFORMATION

IN RELATION TO POTENTIAL INVESTMENT

BY POTENTIAL INVESTORS IN THE COMPANY

This announcement is made by China Environmental Technology Holdings Limited (the "Company") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules).

POTENTIAL INVESTMENT IN THE COMPANY

The board of directors (the "Directors") of the Company is pleased to announce that on 19 September 2019, the Company signed a Memorandum of Understanding ("MOU") with Hope Bio-Technology (Suzhou) Company Limited ("Hope Bio-tech"), pursuant to which 1) Hope Bio- tech shall introduce potential new investors (the "New Investors") with an intention to invest in the Company by making equity and/or debt investments, for an aggregate amount up to HK$90,000,000 within the next 6 months from the date of the MOU, of which majority of the proceeds shall be used in the Company's health products and services sector; and 2) the Company and Hope Bio-tech shall cooperate in new health products and services targeting Mainland China, Hong Kong and South-East Asia mid to high income groups, and may further consider in setting up GMP standard laboratory and clinics for stem cells and immunocyte in Hong Kong and the Kingdom of Cambodia (the "Potential Investment") together.

To the best of the Directors' knowledge, information and belief having made all reasonable inquiries, Hope Bio-tech and the New Investors are third parties independent of and not connected to the Company and its connected persons (as defined in the Listing Rules).

Except for the confidentiality and legal jurisdiction clauses, the MOU is non-legally binding and the Company, Hope Bio-tech and the New Investor will negotiate with each others in good faith in respect of the Potential Investment. The Potential Investment is subject to, among other things, the execution of the definitive agreement with the Hope Bio-tech.

As the terms of the formal definitive agreement for the Potential Investment have yet to be determined, the Potential Investment may or may not proceed. Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.