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DONGJIANG ENVIRONMENTAL COMPANY LIMITED*

東江環保股份有限公司

(a joint stock limited company incorporated in the People's Republic of China)

(Stock Code: 00895) CAPITAL REDUCTION ANNOUNCEMENT INSIDE INFORMATION

This announcement is made pursuant to Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
At the 13th meeting of the 5th session of the board of directors and the 6th meeting of the 5th session of the supervisory committee of Dongjiang Environmental Company Limited (hereinafter referred to as the "Company") held on 20 November 2014, the "Resolution in relation to the repurchase and cancellation of granted but not yet unlocked restrictive shares held by former incentive participants" was passed. Since the original incentive participants of the Company Su Shiyong, Chen Jinfang, Xue Chengbing and Chen shi had left office and are not qualified under the conditions of the incentive scheme, the Company decided to repurchase and cancel a total of 390,000 restrictive shares granted to them but not yet unlocked. Therefore, the total capital of the Company will decrease to 346,956,941shares (comprising 266,901,841 A shares and 80,055,000 H shares) from 347,346,841 shares (comprising 267,291,841 A shares and 80,055,000 H shares). At the same time, the registered capital of the Company will decrease from RMB347,346,841 to RMB346,956,841. For details, please refer to the "Announcement on the repurchase and cancellation of granted but not yet unlocked restrictive shares held by former incentive participants" published on the Securities Times, China Securities Journal, Shanghai Securities News, Securities Daily and the Cninfo website at www.cninfo.com.cn on 21
November 2014.
According to the requirements of relevant laws and regulations, including the Company Law of the People's Republic of China, the Company hereby notifies its creditors that they are entitled to request the Company to repay relevant debts or provide corresponding guarantee within 45 days from the date of this announcement.
Methods of declaring debts:
Creditors of the Company who intend to claim the above rights may present the contracts,
agreements and originals and copies of other proofs evidencing the existence of the creditor-debtor relationship to the Company for declaring the debts. For a legal entity creditor, it is required to bring along both the originals and copies of the duplicate of the business license and the identity document of the legal representative; for other authorised declarers, in addition to the aforementioned documents, he is required to bring along the original of the power of attorney of the legal representative and the original and copy of the valid identity document of the authorised declarer. For a natural person creditor, he is required to bring along both the original and copy of the valid identity document; for other authorised declarers, in addition to the aforementioned documents, he is required to bring along the original of the power of attorney and the original and copy of the valid identity document of the authorised declarer.
1. By mail (postmark date as declaring date), please send the claims information to the following address:
Mailing address: 10th Floor, Dongjiang Environmental Building, No. 9 Langshan Road, Nanshan District, Shenzhen, Guangdong Province, the People's Republic of China
Attention: Finance Department, Dongjiang Environmental Company Limited* Postal code: 518057
Note: Please mark "Debts declaration" on the envelope
2. By facsimile, please send the claims information to the following fax no.: Fax no.: (+86) 0755-86676002
Note: Please mark "Debts declaration" on the cover page
Tel no.: (+86) 0755-86676092
Announcement is hereby made.

Investors and shareholders are advised by the board of directors to exercise caution when dealing in the shares of the Company.

By order of the Board

Dongjiang Environmental Company Limited * Zhang Wei Yang

Chairman

Shenzhen, the People's Republic of China, 20 November 2014

As at the date of this announcement, the board of directors (the "Directors") of the Company comprises three executive Directors, being Mr. Zhang Wei Yang, Mr. Chen Shu Sheng and Mr. Li Yong Peng; two non-executive directors, being Mr. Feng Tao and Ms. Sun Ji Ping; and three independent non-executive Directors, being Mr. Qu Jiu Hui, Mr. Wong Hin Wing and Mr. Wang Ji De.

* For identification purpose only

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