Beijing Enterprises Environment : RESIGNATION OF A DIRECTOR, CHANGE OF CHAIRMAN OF THE BOARD, CHANGE IN COMPOSITION OF THE BOARD COMMITTEES

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(Incorporated in Hong Kong with limited liability)

(Stock Code: 154)

RESIGNATION OF A DIRECTOR

CHANGE OF CHAIRMAN OF THE BOARD

CHANGE IN COMPOSITION OF THE BOARD COMMITTEES

The board of directors (the "Board") of Beijing Enterprises Environment Group Limited (the "Company") announces that:

1. Mr. E Meng, due to retirement, has tendered his resignation as Chairman of the Board, Executive Director, Chairman of the Nomination Committee and a member of the Remuneration Committee; and
2. in order to fill the vacancies, Mr. Ke Jian, being Vice Chairman of the Board, Executive Director and Chief Executive Officer, is re-designated as Chairman of the Board, Executive Director and Chief Executive Officer, Chairman of the Nomination Committee and a member of the Remuneration Committee.

The abovementioned Board changes take effect on 3 January 2020.

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RESIGNATION OF A DIRECTOR

The Board announces that Mr. E Meng, due to retirement, has tendered his resignation as Chairman of the Board, Executive Director, Chairman of the Nomination Committee and a member of the Remuneration Committee with effect from 3 January 2020.

Mr. E Meng and the Board have confirmed that he has no disagreement with the Board, and there is no other matter needs to be brought to the attention of the shareholders of the Company in respect of his resignation.

The Board takes this opportunity to express its appreciation for Mr. E Meng's valuable contribution to the Company during his terms of office.

CHANGE OF CHAIRMAN OF THE BOARD

CHANGE IN COMPOSITION OF THE BOARD COMMITTEES

The Board further announces that in order to fill the vacancies, Mr. Ke Jian, being Vice Chairman of the Board, Executive Director, and Chief Executive Officer, is re-designated as Chairman of the Board, Executive Director and Chief Executive Officer, Chairman of the Nomination Committee and a member of the Remuneration Committee with effect from 3 January 2020.

Mr. Ke Jian, aged 50, is a PRC Chief Senior Accountant, PRC Certified Tax Agent and Senior International Finance Manager. Mr. Ke Jian received a Bachelor's Degree in Economics from Beijing College of Finance and Commerce and an MBA Degree from Murdoch University, Australia. Mr. Ke Jian employed in Beijing Enterprises Holdings Limited ("BEHL", stock code:

1. since 1997 and currently serves as a Vice President of BEHL and an Executive Director of Beijing Enterprises Water Group Limited (stock code 371). Mr. Ke Jian has extensive experience in finance and corporate administration and joined the Company since August 2013.

No service contract for the appointment of Mr. Ke Jian has been or will be entered into with the Company. Mr. Ke Jian has not been and will not be appointed with fixed terms of service, including length of services, but subject to retirement by rotation and re-election in accordance with the articles of association of the Company. Mr. Ke Jian is currently entitled to receive a director fee of HK$120,000 per annum from the Company, which is determined from time to time by the Board with reference to his duties and responsibilities.

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Save as disclosed above, Mr. Ke Jian is independent of any directors, senior management, substantial or controlling shareholders of the Company, do not have any interest in shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance, and do not hold any positions in the Company and hold or, in the last three years, held any other directorships or major appointments in listed public companies.

With effect from 3 January 2020, Mr. Ke Jian assumes the positions of Chairman of the Board and Chief Executive Officer. This arrangement deviates from code provision A.2.1 as set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") which recommends that the roles of chairman and chief executive should be separate and should not be performed by the same individual. However, the Board considers that such arrangement can bring benefits to the Company's business development and management at present, and will not impair the balance of power and authority between the Board and the management of the Company.

Save as disclosed above, there is no other matter in relation to the re-designation of Mr. Ke Jian that needs to be brought to the attention of the shareholders of the Company and there is no information to be disclosed pursuant to any of the requirements of Rule 13.51(2) of the Listing Rules.

By order of the Board

Beijing Enterprises Environment Group Limited

Ke Jian

Chairman and Chief Executive Officer

Hong Kong, 3 January 2020

As at the date of this announcement, the board of directors of the Company comprises three executive directors, namely Mr. Ke Jian, Ms. Sha Ning and Mr. Ng Kong Fat, Brian, and five independent non- executive directors, namely Dr. Jin Lizuo, Dr. Huan Guocang, Dr. Wang Jianping, Prof. Nie Yongfeng and Mr. Cheung Ming.

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