Beijing Enterprises Water : GRANT OF AWARDED SHARES PURSUANT TO SHARE AWARD SCHEME

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(Incorporated in Bermuda with limited liability)

(Stock Code: 371)

GRANT OF AWARDED SHARES PURSUANT TO

SHARE AWARD SCHEME

Reference is made to the announcement of the Company dated 17 December 2018 (the "Announcement") relating to the adoption of the share award scheme (the "Scheme") by the Company. Unless otherwise defined, capitalized terms used in this announcement shall have the same meanings ascribed to them in the Announcement.

On 26 September 2019, the Board resolved to grant a total of 15,374,599 awarded Shares on the same date to 181 Eligible Persons, comprising (i) 5 directors of the Company ("Director(s)"); and (ii) 176 Eligible Persons pursuant to the Scheme.

Further details of the grant are as follows:

	Number of
	awarded	Percentage of
Selected Participants	Shares	awarded Shares
granted	to be vested	Vesting Period
Mr. Zhou Min	3,114,768	100%	12-month	period	from
Mr. Li Haifeng	270,544		the	first	anniversary
	date	of the Reference
Mr. Zhang Tiefu	270,544		Date	(or	such	other
	periods as	determined
Mr. Tung Woon Cheung Eric	144,290		by the Board)
Mr. Li Li	1,241,088
Sub-total:	5,041,234

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	Number of	Percentage of
	awarded
	Shares	awarded Shares
Selected Participants	granted	to be vested	Vesting Period
Eligible Persons	10,333,365	100%	12-month period from
			the first anniversary of
			the Reference Date (or
			such other	periods	as
			determined	by	the
			Board)
Total:	15,374,599

The grant of the awarded Shares to the above Directors has been approved by the Board (including the independent non-executive Directors).

The grant of the awarded Shares to the above Directors, who has met the requirements of performance conditions, forms part of their respective remuneration packages and is therefore exempt from the reporting, announcement and independent shareholders' approval requirements under Rule 14A.73(6) and Rule 14A.95 of the Listing Rules.

Each of the above Directors has abstained from voting so far as the resolution for the approval of the grant of the awarded Shares to that Director was concerned.

In consideration of enabling the Group to maintain stability of personnel, provide leadership for its continued development and enhance its reputation as an employer-of-choice in the industry, the Board has resolved to optimize the features of the Scheme by having 100% of the awarded Shares to become vested during the vesting period, instead of having the awarded Shares to be subject to a vesting scale in tranches of 80% on the first and the remaining 20% on the second anniversary date of the Reference Date.

In the case when a Selected Participant retires, suffers a permanent disability or dies at any time prior to vesting of the awarded Shares, the Board will need to consider all the circumstances and shall determine whether to vest the awarded Shares to such Selected Participant instead of automatically being vested.

The grant of any award to any director of the Company and his/her associate, instead of any director or connected person of the Company, subject to the prior approval of and has been obtained from the independent non-executive Directors of the Company.

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The 15,374,599 awarded Shares granted represent approximately 0.15% of the issued share capital of the Company as at the date of this announcement. Based on the closing price of HK$4.06 per Share on the date of the grant of the awarded Shares, the market value of the 15,374,599 awarded Shares in aggregate is HK$62,420,871.94.

All of the 15,374,599 awarded Shares shall be granted by way of acquisition of existing Shares through on-market transactions by the Trustee. The Board shall cause to pay the Trustee the purchase price and the related expenses from the Company's cash resources. The Trustee shall purchase from the market the relevant number of awarded Shares and shall hold the awarded Shares on trust for the relevant Selected Participants until they are vested in such Selected Participants and delivered in accordance with the terms of the Scheme.

By Order of the Board

Beijing Enterprises Water Group Limited

Li Yongcheng

Chairman

Hong Kong, 26 September 2019

As at the date of this announcement, the Board of Directors of the Company comprises nine executive directors, namely Mr. Li Yongcheng (Chairman), Mr. E Meng (Vice Chairman), Mr. Jiang Xinhao, Mr. Zhou Min (Chief Executive Officer), Mr. Li Haifeng, Mr. Zhang Tiefu, Mr. Ke Jian, Mr. Tung Woon Cheung Eric and Mr. Li Li and five independent non-executive directors, namely Mr. Shea Chun Lok Quadrant, Mr. Zhang Gaobo, Mr. Guo Rui, Mr. Wang Kaijun and Dr. Lee Man Chun Raymond.

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