China Water Industry : DISCLOSABLE TRANSACTION IN RELATION TO THE FORMATION OF A JOINT VENTURE

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(Incorporated in Cayman Islands with limited liability)

(Stock code: 1129)

DISCLOSABLE TRANSACTION IN RELATION TO

THE FORMATION OF A JOINT VENTURE

Reference is made to the announcement of China Water Industry Group Limited (the "Company") dated 23 December 2019 (the "Announcement"). Capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement.

The board of directors of the Company is pleased to announce the successful auction of land use right of the Land by the JV Company on 25 December 2019 with total consideration of RMB267.10 million and the JV Company will carry out the Property Development Project on the Land. For details of the Property Development Project please refer to the Announcement. The consideration for the acquisition of the Land will be satisfied by the internal resources of the JV Company.

By Order of the Board

China Water Industry Group Limited

Mr. Lin Yue Hui

Chairman and CEO

Hong Kong, 25 December 2019

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