China Environmental Technology : INSIDE INFORMATION IN RELATION TO PLACEMENT OF PFI CAYMAN UNDER JUDICIAL MANAGEMENT

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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

PLACEMENT OF PFI CAYMAN

UNDER JUDICIAL MANAGEMENT

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).

References are made to the announcements of the Company dated 5 March 2019 in relation to, among other things, the Company's inability to exercise control over PFI Cayman Group, dated 16 June 2019 in relation to applications made to the Grand Court of Cayman Islands (the "Cayman Court"), and dated 23 June 2019 in relation to the appointment of joint provisional liquidators of PFI Cayman (collectively, the "Announcements"). Unless the context required otherwise, terms shall have the same meaning as ascribed to them in the Announcements.

The Company hereby advises that on 24 September 2019, as the result of the substantive hearing in respect of the application in the form Originating Summons (Cause No. FSD 105 of 2019 (IKJ)) filed on 21 July 2019 by the joint provisional liquidators with the Cayman Court seeking an appointment of judicial managers over PFI Cayman, and the other shareholder PFI BVI did not appear to oppose, the Court ordered, inter alia, that PFI Cayman be placed under judicial management and Michael Penner and Tan Wei Cheong of Deloitte & Touche LLP be appointed as the joint and several Judicial Managers of PFI Cayman (the "Judicial Managers").

The Company will work closely with the Judicial Managers to resolve issues (if any) identified by them in PFI Cayman and will make further announcement of any material development as and when appropriate.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

China Environmental Technology Holdings Limited

XU Zhong Ping

Chairman

Hong Kong, 25 September 2019

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 nonexecutive directors are Mr. Tse Chi Wai, Professor Zhu Nan Wen and Professor Li Jun.