China Solar Energy Holdings Limited : ANNOUNCEMENT

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.

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(Incorporated in Bermuda with limited liability)

This announcement is made by China Solar Energy Holdings Limited (the "Company", together with its subsidiaries, the "Group") pursuant to the Rule 13.09(2)(a) of the Rules (the "Listing Rules") Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Cap. 571).
Reference is made to the announcements of the Company dated 18 October 2013 and
1 November 2013 (the "Announcements") regarding, among other matters, the Allegations made against the Changzhou Subsidiary, the Dali Subsidiary and the Relevant Directors. Unless otherwise defined, capitalised terms used herein shall have the same meanings as defined in the Announcements.
Subsequent to the publication of the announcement of the Company dated 18 October 2013, the board (the "Board") of directors (the "Directors") of the Company was informed by the Stock Exchange that further complaints have been filed with the Stock Exchange, which alleged that:
(i) as the Changzhou Subsidiary had failed to pass the annual reviews by the PRC authorities since 2010, its business licenses had been revoked according to the relevant PRC regulations which was announced in the website of the PRC government bodies. It was also noted that the Dali Subsidiary failed to pass the annual review by the PRC authorities in 2012 (the "First Allegation");

* For identification purpose only

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(ii) while the paid up capital of the Changzhou Subsidiary and the Dali Subsidiary had not been paid, the two subsidiaries could not operate normally due to lack of capital. The two PRC Subsidiaries were financed by massive lending from governmental bodies and banks through false representations by Mr. Yeung, pledging of the subsidiaries' assets and falsification of their accounts (the "Second Allegation");
(iii) with full awareness of the non-compliances and operating difficulties of the Changzhou Subsidiary and the Dali Subsidiary, Mr. Yeung intentionally sold the two PRC Subsidiaries to the Company in 2011 at inflated price through false representation. Mr. Yeung became the Company's single largest shareholder who held 26.34% share capital of the Company after the transaction (the "Third Allegation");
(iv) the land owned by the Changzhou Subsidiary (the "Land") was pledged in 2012 and
2013 to obtain personal loans for Mr. Yeung and his associates but it has not been approved by the Board and no public disclosures have been made by the Company (the "Fourth Allegation");
(v) the loan lender has applied to the PRC Court to seize the Land as Mr. Yeung and his associates failed to meet the loans repayment obligations. The PRC Court has issued three court orders to seal up the Land (the "Fifth Allegation"); and
(vi) Mr. Yeung and the directors of the Changzhou Subsidiary failed to discharge their fiduciary duties (the "Sixth Allegation", together with the First Allegation, the Second Allegation, the Third Allegation, the Fourth Allegation and the Fifth Allegation, collectively known as the "Further Allegations").
Upon notification of the Further Allegations by the Stock Exchange, the Board has sought advice from its PRC legal advisers in order to ascertain the validity of the Further Allegations. Based on the investigation conducted by the PRC legal advisers of the Company, the Board would like to provide the following information to the shareholders (the "Shareholders") of the Company in connection with the Further Allegations as follows:

As advised by the PRC legal advisers of the Company and as disclosed in the announcement of the Company dated 18 October 2013, the Changzhou Subsidiary and the Dali Subsidiary have not passed the annual review by the relevant PRC authorities since 2010 and for 2012, respectively.
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Based on the search (the "Search") conducted by the PRC legal advisers of the Company on
2 December 2013, the record retrieved from the Industry and Commerce Bureau of
Changzhou concerning the status of the Changzhou Subsidiary shows that it is still "in operation" (tE*), which means the Changzhou Subsidiary remains validly exist and its
business licence has not been revoked. Similar Search has also been conducted on the Dali
Subsidiary and its status is also shown as "in operation" (tE*).
Moreover, the PRC legal advisers discovered that, there was a message shown on a website named "1i+