China Environmental Technology : Announcements and Notices - Termination of Major Transaction in Relation to the Acquisition of the Entire Issued Share Capital in Ubaby Holdings Inc. Involving the Issue of Convertible Bonds under Specific 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)

TERMINATION OF MAJOR TRANSACTION IN RELATION TO THE ACQUISITION OF THE ENTIRE ISSUED SHARE CAPITAL IN

UBABY HOLDINGS INC.

INVOLVING THE ISSUE OF CONVERTIBLE BONDS

UNDER SPECIFIC MANDATE

Reference is made to the announcements of China Environmental Technology Holdings Limited (the "Company") dated 25 July 2017, 27 September 2017 and 30 November 2017 (collectively, the "Announcements") in relation to, among other things, the Acquisition. Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcements.

Through amicable discussions and upon mutual agreement, on 1 February 2018 (after trading hours), the Purchaser, the Company, the Vendor and the Warrantor entered into a deed of termination (the "Deed of Termination") to terminate the Agreement. Pursuant to the Deed of Termination, it is agreed that the parties under the Agreement shall be released from all obligations and liabilities whatsoever arising from or related to the Agreement, and none of the parties shall have any claims against the other for or on account of the Agreement. As the Agreement has been terminated, no circular in relation to the transactions contemplated thereunder will be despatched.

The Board is of the view that the termination of the Agreement would not have any material adverse effect on the existing business operations and the financial position of the Group.

By order of the Board

China Environmental Technology Holdings Limited

Li Wang Hing, Nelson

Company Secretary

Hong Kong, 1 February 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.