China Environmental Technology : VOLUNTARY ANNOUNCEMENT LOAN FACILITY FROM A SHAREHOLDER

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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)

VOLUNTARY ANNOUNCEMENT

LOAN FACILITY FROM A SHAREHOLDER

The Board is pleased to announce that on 16 September 2020 (after trading hours), the Company and its Subsidiary entered into the Loan Agreement with the Lender pursuant to which the Lender agreed to grant to the Subsidiary the Loan in the aggregate principal amount of RMB 100 million, of which RMB 5 million initial drawn down within 3 working days upon the signing of the Loan Agreement. Future drawn downs are subject to the value of assets pledged. The Loan is secured by the Company's corporate guarantee, carried an annual interest rate of 15% which subject to reduction to 10% provided with asset pledged and repayable in full on the Maturity Date.

REASONS FOR AND BENEFITS OF ENTERING INTO THE LOAN AGREEMENT

As disclosed in the Company's interim results announcement dated 28 August 2020, the Group is currently fund raising to kick off its own research capabilities to develop its own COVID-19 vaccine and new medicine in cell therapy, and the Group is continuing its effort in using long term liabilities to replace its current liabilities exposure. In order to cope with the Group's initiatives, the Lender is willing to grant the Loan to the Subsidiary to meet the Group's imminent working capital requirements.

The Board considers that the provision of the Loan from the Lender is conducted on terms better than normal commercial terms and is beneficial to the development of the business of the Company and thus the entering into the Loan Agreement is in the interests of the Company and its shareholders as a whole.

DEFINITIONS

In this announcement, the following expressions shall have the following meanings, unless the context requires otherwise:

"Board"

the board of directors of the Company

"Company"China Environmental Technology Holdings Limited

"Group"	the Company and its subsidiaries
"Lender"	an individual shareholder of the Company who holds less than 5%
	issued shares of the Company. Apart from being a shareholder of
	the Company, to the best of the Directors' knowledge, information
	and belief having made all reasonable inquiries, the Lender is a
	third party independent of and not connected to the Company and
	its connected persons (as defined in the Listing Rules).
"Loan"	the loan facility granted by the Lender to the Company in
	accordance with the terms and conditions of the Loan Agreement
"Loan Agreement"	the loan agreement entered into between the Company, the
	Subsidiary and the Lender on 16 September 2020
"Maturity Date"	30 September 2025
"Subsidiary"	Beijing Shouqiang Innovative Environmental Protection
	Technology Co., Ltd.# 北京首強創新環保科技有限公司
	# The Company name in English is not the official name but a translation for reference only.

By order of the Board

China Environmental Technology Holdings Limited

XU Zhong Ping

Chairman

Hong Kong, 17 September 2020

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