China Water Industry : FULFILLMENT OF PROFIT GUARANTEE IN RELATION TO THE DEEMED DISPOSAL

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.

(Incorporated in Cayman Islands with limited liability)

(STOCK CODE: 1129)

FULFILLMENT OF PROFIT GUARANTEE

IN RELATION TO THE DEEMED DISPOSAL

Reference is made to the announcement of China Water Industry Group Limited (the ''Company'') dated 27 December 2019 in relation to the deemed disposal of 3.8462% equity interest in New China Water (Nanjing) Renewable Resources Investment Company Limited (the ''Announcement''). Unless otherwise specified, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

Pursuant to the Profit Guarantee Agreement, the Current Shareholder and the Company irrevocably and unconditionally guaranteed that the audited net profit excluding extraordinary items of the Target Group for the year ended 31 December 2019 (the ''Audited 2019 Net Profit'') prepared in accordance with accounting principles generally accepted in the PRC shall not be less than RMB130,000,000 (the ''2019 Annual Guaranteed Profit'').

The Board is pleased to announce that the Audited 2019 Net Profit of the Target Group is more than the 2019 Annual Guaranteed Profit. As the aforesaid 2019 Annual Guaranteed Profit has been fulfilled, no compensation is required to be paid by the Current Shareholder and the Company to the Investor pursuant to the Profit Guarantee Agreement.

By order of the Board

China Water Industry Group Limited

Lin Yue Hui

Chairman and CEO

Hong Kong, 4 August 2020

As at the date of this announcement, the Board comprises Mr. Lin Yue Hui (Chairman and CEO), Mr. Zhong Wei Guang (COO), Mr. Liu Feng, Ms. Chu Yin Yin, Georgiana, Ms. Deng Xiao Ting, Mr. Ho Chi Ho and Mr. Zhu Yongjun, all being executive Directors, and Mr. Wong Siu Keung, Joe, Mr. Guo Chao Tian, Ms. Qiu Na and Mr. Lam Cheung Shing, Richard, all being independent non-executive Directors.

• For identification purpose only