Datang Environment Industry Group Co., Ltd. — Capital/Financing Update 2016

Nov 2, 2016

Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited (the “ Stock Exchange ”) and Hong Kong Securities Clearing Company Limited (“ HKSCC ”) 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.

This announcement is for information purposes only and does not constitute an offer or an invitation to induce an offer by any person to acquire, purchase or subscribe for securities. This announcement is not a prospectus. Potential investors should read the prospectus dated November 3, 2016 (the “ Prospectus ”) of Datang Environment Industry Group Co., Ltd. (the “ Company ”) for detailed information about the Global Offering described below before deciding whether or not to invest in the Offer Shares.

This announcement is not for release, publication, distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia).

This announcement does not constitute and is not an offer to sell or form a part of any offer or a solicitation of any offer to buy or subscribe for any securities in Hong Kong, the United States or elsewhere. The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933 (as amended from time to time) (the “ U.S. Securities Act ”) or any state securities laws of the United States and may not be offered, sold, pledged or transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act. The H Shares have not been, and will not be, registered under the U.S. Securities Act or any state securities laws of the United States. There is not and it is not currently intended for there to be any public offering of securities of the Company in the United States.

In connection with the Global Offering, CLSA Limited, as the stabilizing manager (the “ Stabilizing Manager ”), its affiliates or any person acting for it, on behalf of the Underwriters, may effect transactions with a view to stabilizing or supporting the market price of the H Shares at a level higher than that which might otherwise prevail in the open market for a limited period beginning on the Listing Date and expected to end on the 30th day after the last day for lodging of applications under the Hong Kong Public Offering. However, there is no obligation on the Stabilizing Manager, its affiliates or any person acting for it, to conduct any such stabilizing action, which, if commenced, will be done at the sole and absolute discretion of the Stabilizing Manager, its affiliates or any person acting for it, and may be discontinued at any time. Any such stabilization activity is required to be brought to an end on the 30th day after the last day for the lodging of applications under the Hong Kong Public Offering. Such stabilization action, if commenced, may be effected in all jurisdictions where it is permissible to do so, in each case in compliance with all applicable laws, rules and regulatory requirements, including the Securities and Futures (Price Stabilizing) Rules, as amended, made under the Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong).

Potential investors should be aware that stabilization action cannot be taken to support the price of the H Shares for longer than the stabilization period which begins on the Listing Date and is expected to expire on December 8, 2016, being the 30th day after the date of closing of the application lists under the Hong Kong Public Offering. After this date, no further stabilizing action may be taken. Demand for the H Shares, and therefore the price of the H Shares, could fall.

Unless otherwise defined herein, terms used in this announcement shall have the same meanings as those defined in the Prospectus.

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Datang Environment Industry Group Co., Ltd.* 大唐環境產業集團股份有限公司

(a joint stock company incorporated in the People’s Republic of China with limited liability)

GLOBAL OFFERING

Number of Offer Shares under the Global : 540,000,000 H Shares (subject to the Over-allotment Offering Option) Number of International Offer Shares : 486,000,000 H Shares (subject to adjustment and the Over-allotment Option) Number of Hong Kong Public Offer Shares : 54,000,000 H Shares (subject to adjustment) Maximum Offer Price : HK$4.74 per H Share, plus brokerage fee of 1%, SFC transaction levy of 0.0027% and Stock Exchange trading fee of 0.005% (payable in full on application in Hong Kong dollars and subject to refund on final pricing) Nominal value : RMB1.00 per H Share Stock code : 1272 Sole Sponsor

Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers

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Joint Bookrunners and Joint Lead Managers

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Application has been made by the Company to the Listing Committee of the Stock Exchange for the granting of listing of, and permission to deal in (i) the H Shares to be issued pursuant to the Global Offering (including any additional H Shares which may be issued pursuant to the exercise of the Over-allotment Option); and (ii) the H Shares which will be converted from Domestic Shares which are to be held by the NSSF pursuant to the relevant PRC regulations relating to the disposal of state-owned shares. Assuming that the Hong Kong Public Offering becomes unconditional at or before 8:00 a.m. in Hong Kong on November 15, 2016, it is expected that dealings in the H Shares on the Stock Exchange will commence at 9:00 a.m. on November 15, 2016. In the event that the Over-allotment Option is exercised, an announcement will be made by the Company on the website of the Stock Exchange at www.hkexnews.hk and the website of the Company at www.dteg.com.cn .

The Global Offering comprises the Hong Kong Public Offering of initially 54,000,000 H Shares (subject to adjustment) and the International Offering of initially 486,000,000 H Shares (subject to adjustment and the Over-allotment Option) representing 10% and 90% of the total number of Offer Shares initially being offered under the Global Offering, respectively. The allocation of the Offer Shares between the Hong Kong Public Offering and the International Offering will be subject to adjustment as described in the section headed “Structure of the Global Offering” in the Prospectus. In connection with the Global Offering,

* For identification purposes only

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the Company is expected to grant the Over-allotment Option to the International Underwriters, which is exercisable by the Joint Global Coordinators, to require the Company to allot and issue up to 81,000,000 Offer Shares, representing 15% of the total number of Offer Shares initially available under the Global Offering, in connection with, among others, over-allocation in the International Offering, if any, subject to the same terms and conditions as the other Offer Shares.

Subject to the granting of the approval for listing of, and permission to deal in, the H Shares on the Stock Exchange and compliance with the stock admission requirements of HKSCC, the H Shares will be accepted as eligible securities by HKSCC for deposit, clearance and settlement in the CCASS with effect from the Listing Date or such other date as may be determined by HKSCC. Settlement of transactions between participants of the Stock Exchange is required to take place in CCASS on the second Business Day after any trading day. All activities under CCASS are subject to the General Rules of CCASS and CCASS Operational Procedures in effect from time to time. All necessary arrangements have been made to enable the H Shares to be admitted into CCASS.

The Offer Price will not be more than HK$4.74 per Offer Share and is expected to be not less than HK$3.55 per Offer Share unless otherwise announced. Applicants under the Hong Kong Public Offering are required to pay, on application, the maximum Offer Price of HK$4.74 per Offer Share plus the brokerage of 1%, SFC transaction levy of 0.0027% and Stock Exchange trading fee of 0.005% payable on each Offer Share, equal to a total of HK$4,787.77 for one board lot of 1,000 H Shares, subject to refund if the Offer Price as finally determined is less than HK$4.74 per Offer Share.

Applications for the Hong Kong Public Offer Shares will only be considered on the basis of the terms and conditions set out in the Prospectus, the Application Forms and the designated website (www.eipo.com.hk) for the White Form eIPO.

Applicants who would like to be allotted Hong Kong Public Offer Shares registered in their own names should either (i) complete and sign the WHITE Application Forms, or (ii) submit applications online through the designated website of the White Form eIPO Service Provider at www.eipo.com.hk through the White Form eIPO service. Applicants who would like to have the allotted Hong Kong Public Offer Shares issued in the name of HKSCC Nominees Limited and deposited directly into CCASS for credit to their CCASS Investor Participant stock accounts or the stock accounts of their designated CCASS Participants maintained in CCASS should either (i) complete and sign the YELLOW Application Forms, or (ii) give electronic application instructions to HKSCC via CCASS.

Copies of the Prospectus, together with the WHITE Application Forms, may be obtained during normal business hours from 9:00 a.m. on Thursday, November 3, 2016 until 12:00 noon on Tuesday, November 8, 2016 from:

1. the following office of the Hong Kong Underwriters:

CLSA Limited

18/F One Pacific Place 88 Queensway Hong Kong

Deutsche Bank AG, Hong Kong Branch

52/F, International Commerce Centre 1 Austin Road West Kowloon Hong Kong

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China Merchants Securities (HK) Co., Ltd.

48/F, One Exchange Square Central Hong Kong

Haitong International Securities Company Limited

22/F, Li Po Chun Chambers 189 Des Voeux Road Central Hong Kong

The Hongkong and Shanghai Banking Corporation Limited

1 Queen’s Road Central Hong Kong

ABCI Securities Company Limited

10/F Agricultural Bank of China Tower 50 Connaught Road Central Hong Kong

BNP Paribas Securities (Asia) Limited

62/F, Two International Finance Centre 8 Finance Street Central Hong Kong

1. any of the following branches of the receiving banks:

Bank of China (Hong Kong) Limited

District Branch Address Hong Kong Island Bank of China Tower Branch 3/F, 1 Garden Road Sheung Wan Branch Shop 1–4 G/F, Tung Hip Commercial Building 244–248 Des Voeux Road Central North Point (King’s Centre) Branch 193–209 King’s Road, North Point Chai Wan Branch Block B, Walton Estate 341–343 Chai Wan Road Chai Wan Kowloon Mong Kok Branch 589 Nathan Road, Mong Kok Whampoa Garden Branch Shop G8B, Site 1, Whampoa Garden Hung Hom Lam Tin Branch Shop 12, 49 Kai Tin Road, Lam Tin New Territories Citywalk Branch Shop 65, G/F, Citywalk 1 Yeung Uk Road, Tsuen Wan Kau Yuk Road Branch 18–24 Kau Yuk Road, Yuen Long Ma On Shan Plaza Branch Shop 2103 Level 2, Ma On Shan Plaza Sai Sha Road, Ma On Shan

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Wing Lung Bank Limited

District	Branch	Address
Hong Kong Island	Head Office	45 Des Voeux Road Central
	Johnston Road Branch	118 Johnston Road
	Kennedy Town Branch	28 Catchick Street
Kowloon	Mongkok Branch	B/F Wing Lung Bank Centre
		636 Nathan Road
	Tsim Sha Tsui Branch	4 Carnarvon Road
	San Po Kong Branch	8 Shung Ling Street
New Territories	Tsuen Wan Branch	251 Sha Tsui Road

Copies of the Prospectus, together with the YELLOW Application Forms, may be obtained during normal business hours from 9:00 a.m. on Thursday, November 3, 2016 until 12:00 noon on Tuesday, November 8, 2016 at the Depository Counter of HKSCC at 1/F, One & Two Exchange Square, 8 Connaught Place, Central, Hong Kong or from your stockbroker.

The WHITE or YELLOW Application Forms completed in accordance with the instructions printed thereon, together with a cheque or banker’s cashier order payable to “BANK OF CHINA (HONG KONG) NOMINEES LIMITED — DATANG ENVIRONMENT PUBLIC OFFER” should be deposited in the special collection boxes provided at any of the branches of receiving banks referred to above on such dates and during such time as specified in the Prospectus and the Application Forms.

Applicants applying through the White Form eIPO service may submit applications through the White Form eIPO service at the designated website at www.eipo.com.hk (24 hours daily, except on the last application day) from 9:00 a.m. on Thursday, November 3, 2016 until 11:30 a.m. on Tuesday, November 8, 2016 or such later time as described in the section headed “ How to Apply for Hong Kong Public Offer Shares — 10. Effect of Bad Weather on the Opening of the Application Lists ” in the Prospectus.

CCASS Participants can input electronic application instructions from 9:00 a.m. on Thursday, November 3, 2016 until 12:00 noon on Tuesday, November 8, 2016 except on Saturday, November 5, 2016 and Sunday, November 6, 2016 or such later time as described in the section headed “ How to Apply for Hong Kong Public Offer Shares — 10. Effect of Bad Weather on the Opening of the Application Lists ” in the Prospectus.

Please refer to the sections headed “ Structure of the Global Offering ” and “ How to Apply for Hong Kong Public Offer Shares ” in the Prospectus for details of the conditions and procedures of the Hong Kong Public Offering.

The Company expects to announce the final Offer Price, the level of indication of interest in the International Offering, the level of applications in the Hong Kong Public Offering and the basis of allocation of Hong Kong Public Offer Shares on November 14, 2016 in the South China Morning Post (in English) and the Hong Kong Economic Times (in Chinese), and on the websites of the Company at www.dteg.com.cn and the Stock Exchange at www.hkexnews.hk . The results of allocations (with the successful applicants’ identification document numbers, where applicable) under the Hong Kong Public Offering will be made available through a variety of channels at the times and dates and in the manner specified in the section headed “ How to Apply for Hong Kong Public Offer Shares — 11. Publication of Results ” in the Prospectus.

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The Company will not issue temporary documents of title or receipt for application fees received. Share certificates will only become valid certificates of title provided that the Hong Kong Public Offering has become unconditional in all respects and the right of termination described in the section headed “ Underwriting — Hong Kong Underwriting Arrangements — Hong Kong Public Offering — Grounds for Termination ” has not been exercised, which is expected to be at 8:00 a.m. on November 15, 2016.

Dealings in the H Shares on the Stock Exchange are expected to commence at 9:00 a.m. on November 15, 2016. The H Shares will be traded in board lots of 1,000 H Shares each under the Company’s stock code 1272.

By order of the Board of Directors Datang Environment Industry Group Co., Ltd.* Jin Yaohua Chairman

Hong Kong, November 3, 2016

As of the date of this announcement, the executive Directors are Mr. Deng Xiandong and Mr. Lu Shengli, the non-executive Directors are Mr. Jin Yaohua, Mr. Liu Chuandong, Mr. Liu Guangming and Mr. Liang Yongpan, and the independent non-executive Directors are Mr. Ye Xiang, Mr. Mao Zhuanjian and Mr. Gao Jiaxiang.

• For identification purposes only

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