China Environmental Technology : INSIDE INFORMATION LOAN FACILITY FROM INDEPENDENT THIRD PARTY

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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

LOAN FACILITY FROM INDEPENDENT THIRD PARTY

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).

Reference is made to the announcement of the Company dated 22 March 2019 and 27 March 2019 (the "Announcements") in relation to the potential investment by a potential investor in the Company. Unless the context otherwise required herein, defined terms shall have the same meaning as ascribed to them in the Announcements.

The Directors are pleased to announce that on 23 September 2019, the Company entered into another loan agreement (the "Loan Agreement") with the Potential Investor, pursuant to which the Potential Investor agreed to grant to the Company a loan in the aggregate principal amount of HK$46,000,000 (the "Loan"). The Loan is unsecured, carries 12% per annum interest and is repayable in full on 31 December 2022.

In the event the Company issues convertible bonds within two (2) years from the date of the Loan Agreement, the Company may after giving the Lender not less than 3 days' prior written notice, prepay the Loan in whole or part by applying all or part of the Loan towards the subscription price of the convertible bonds.

The Group is principally engaged in the environmental protection business and health related products and services segments and is currently making strategic adjustments in its health related products and services. In order to allow the Group has adequate funding to repay for certain loans due within the next few months and continual business development of the Group, the Lender is willing to grant the Loan to the Company to meet its 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.

By order of the Board

China Environmental Technology Holdings Limited

XU Zhong Ping

Chairman

Hong Kong, 23 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 directors are Mr. Ma Tianfu; and the independent nonexecutive directors are Mr. Tse Chi Wai, Professor Zhu Nan Wen and Professor Li Jun.