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



(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 646)

STRATEGIC CO-OPERATION FRAMEWORK AGREEMENT

This announcement is made by China Environmental Technology Holdings Limited (the
''Company'' and together with its subsidiaries, the ''Group'') pursuant to the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the SFO and Rule 13.09 of the rules governing the listing of securities on the Stock Exchange of Hong Kong Limited (the ''Listing Rules'').
The board of directors (the ''Board'') of the Company is pleased to announce that on 22 May
2014, the Company has entered into a non-binding strategic cooperation framework agreement (戰略合作框架協議) (the ''Framework Agreement'') with Mekorot, Huizhou Water Affairs Investment Group Limited* (惠州水務投資集團有限公司), Beijing Capital Environment Construction (Hong Kong) Company Limited (首創環保建設(香港)有限公司) and Huizhou Beijing Capital Investment Development Limited* (惠州首創投資發展有限公司)
in relation to environmental protection and water and sewage treatment works in China.
The Framework Agreement
Under the Framework Agreement, the parties shall cooperate to introduce the latest environmental protection technology and equipment in key areas including but not limited to (1) water treatment, (2) desalination; and (3) wastewater treatment and effluent reuse, from Israel to China. To achieve this goal, the parties agree to establish an environmental science
and technology industrial park (環保科技產業園區) in Huizhou (惠州).
The parties also agree to begin their cooperation in projects regarding water conservation, treatment, purification and protection in Huizhou, as well as the Huizhou Marine Ecological
Park* (惠州海洋生態園) BOT project.
The parties further agree that the Company and Beijing Capital Co. Ltd* (北京首創股份有限

公司) shall initiate the creation of an environmental protection fund (生態環保基金) of USD5

billion to fund the above.
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Background Information
Mekorot is Israel's national water company and one of the world's most advanced water companies, a leader in water resources management, desalination, wastewater treatment and effluent reuse, rain enhancement, water quality, water security and water project engineering.
Huizhou Water Affairs Investment Group Limited* (惠州水務投資集團有限公司) is a state- owned enterprise under Huizhou City's State-Asset Committee* (惠州市國資委) responsible
for coordinating the investment, construction, operation and development in water resources protection, safety and treatment of the City of Huizhou.
Beijing Capital Environment Construction (Hong Kong) Company Limited (首創環保建設(香

港)有限公司) is a joint venture company established by the Company and Beijing Capital

(Hong Kong) Limited, a wholly owned subsidiary of Beijing Capital Co. Ltd, where each party has 50% shareholding. This joint venture company has 40% shareholding in Huizhou Beijing
Capital Investment Development Limited* (惠州首創投資發展有限公司).
Huizhou Beijing Capital Investment Development Limited* (惠州首創投資發展有限公司) is incorporated by Beijing Capital Environment Construction (Hong Kong) Company Limited
(首創環保建設(香港)有限公司) to conduct the Huizhou Marine Ecological Park* (惠州海洋生

態園) BOT project.

* English translation is for reference only

By Order of the Board
CHINA ENVIRONMENTAL TECHNOLOGY HOLDINGS LIMITED Li Wang Hing, Nelson
Company Secretary
Hong Kong, 23 May 2014
As at the date of this announcement, the executive directors are Mr. Xu Zhong Ping, Mr. Zhang Fang Hong, Mr. Pan Yutang and Mr. Xu Xiao Yang; the non-executive directors are Mr. Ge Ze Min and Mr. Ma Tianfu; and the independent non-executive directors are Mr. Wong Kam Wah, Mr. Xin Luo Lin, Professor Zhu Nan Wen and Professor Zuo Jiane.
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