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.

DONGJIANG ENVIRONMENTAL COMPANY LIMITED*

東江環保股份有限公司

(a joint stock limited company incorporated in the People's Republic of China)

(Stock code: 00895) OVERSEAS REGULATORY ANNOUNCEMENT INSIDE INFORMATION

This announcement is made pursuant to Rules 13.09 and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). The document attached hereof is the announcement posted on the website of Shenzhen Stock Exchange by Dongjiang Environmental Company Limited* (the "Company") in relation to "Preliminary Announcement of 2014 Half-yearly Results".
The aforesaid announcement is originally prepared in Chinese. In case of any inconsistency between the Chinese version and the English version, the Chinese version shall prevail.
By order of the Board

Dongjiang Environmental Company Limited* Zhang Wei Yang

Chairman

Shenzhen, the People's Republic of China, 21 July 2014

As at the date of this announcement, the board of directors (the "Directors") of the company comprises three executive Directors, being Mr. Zhang Wei Yang, Mr. Chen Shu Sheng and Mr. Li Yong Peng; two non-executive Directors, being Mr. Feng Tao and Ms. Sun Ji Ping; and three independent non-executive Directors, being Mr. Wong Hin Wing, Mr. Qu Jiu Hui and Mr. Wang Ji De.

* For identification purpose only

Stock Code: 002672 Stock Abbreviation: DONGJIANG ENV. ANN NO.: 2014-67

DONGJIANG ENVIRONMENTAL COMPANY LIMITED Preliminary Announcement of 2014 Half-yearly Results

The Company and its board of directors confirm the truth, accuracy and completeness of the information disclosed, and that there is no false statement, misleading representation or material omission.

Special Notice:

Financial data for the first half of 2014 contained in this announcement is only preliminary financial data that has been reviewed by the internal audit department of the Company but has not been audited by the Company's auditors. There may be discrepancies between the information contained herein and the final data to be disclosed in the interim report. Investors are advised to beware of the investment risks.

I. Major Financial Data and Indicators for the first half of 2014

Unit: Renminbi(RMB)

Item

The reporting period

The same period last year

Change (%)

(approximate)

Total operating revenue

849,239,934.23

708,155,046.07

19.92%

Operating profit

171,927,135.52

138,422,156.96

24.20%

Total profit

173,971,627.00

145,500,947.09

19.57%

Net profit attributable to shareholders of the Company

136,164,196.39

115,921,998.76

17.46%

Basic earnings per share

(in RMB)

0.39

0.34

14.71%

Weighted average return on net assets

5.66%

5.39%

0.27%

As at the end of the reporting period

As at the beginning of the reporting period

Change (%)

(approximate)

Total assets

3,750,167,968.37

3,267,457,572.29

14.77%

Owners' equity attributable to shareholders of the Company

2,430,426,075.52

2,241,767,620.47

8.42%

Share capital

347,346,841.40

225,714,561.40

53.89%

Net assets per share attributable to

7.00

9.93

-29.51%

shareholders of the

Company (in RMB)

Notes: The above data are prepared based on the consolidated statements of the Company.

II. Discussion of Operating Results and Financial Position

For the period from January to June 2014, although the domestic economic situation was worse than expected and the metal prices have declined as compared with the corresponding period of the previous year, through the implementation of measures such as exploiting new market, enhancing technological capabilities and strengthening cost control, the total operating revenue, operating profit and net profit attributable to shareholders of the Company increased by approximately 19.92%, 24.20% and 17.46%, respectively, as compared to the corresponding period in the previous year.
The Company's financial position and asset quality are healthy. During the reporting period, net assets per share attributable to shareholders of the Company recorded a decrease of approximately 29.51% as compared to the beginning of the year due to the distribution of a cash dividend of RMB 3.00 (inclusive of tax) for every 10 shares, the total amount of cash dividend distributed was RMB69,469,368.30 and the issuance of 5 shares for every 10 shares by way of conversion of capital reserve, thereby issuing a total of 115,782,280 shares.

III. Discussion of Differences with Previously Disclosed Results Forecast

There is no differences between the operating results disclosed in this announcement and the results forecast in The 2014 First Quarterly Report.

IV. Documents Available for Inspection

1. The comparative balance sheet and income statements signed by the current Legal Representative, Chief Financial Officer, and Head of Financial Section of the Company, and stamped with the corporate seal;
2. The internal audit report signed by the head of the internal audit department. Notice is hereby given.
The Board of Director of
Dongjiang Environmental Company Limited
22 July 2014

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