Beijing Enterprises Water : SUPPLEMENTAL ANNOUNCEMENT - CONNECTED TRANSACTION IN RELATION TO THE FORMATION OF JOINT VENTURE AND FINANCIAL ASSISTANCE

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SUPPLEMENTAL ANNOUNCEMENT

CONNECTED TRANSACTION

IN RELATION TO THE FORMATION OF JOINT VENTURE

AND

FINANCIAL ASSISTANCE

Reference is made to the announcement of Beijing Enterprises Water Group Limited (the "Company") dated 18 August 2020 (the "Announcement") in relation to the formation of Joint Venture and Financial Assistance. Unless otherwise stated, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

To the best knowledge of the Directors, and having made all reasonable enquiries, the Board would like to provide further supplemental information on the identity of each of the ultimate beneficial owner of CTG, CNCE 14, Sinohydro Bureau 8 and the identity of minority interest shareholder and its ultimate beneficial owner of Nanjing Municipal.

CTG beneficially owns not less than 30% equity interest in YEE, therefore, YEE is an associate of CTG. The ultimate beneficial owner of CTG is the State-ownedAssets Supervision and Administration Commission of the State Council of the PRC* (中國國務院 國有資產監督管理委員會).

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CNCE 14 is a subsidiary under China National Chemical Engineering Co., Ltd.* (中國化學 工程股份有限公司) of which its ultimate beneficial owner is the State-ownedAssets Supervision and Administration Commission of the State Council of the PRC* (中國國務院 國有資產監督管理委員會).

Sinohydro Bureau 8 is a subsidiary of China Power Construction Corporation* (中國電力建 設 集 團 有 限 公 司 ) of which its ultimate beneficial owner is the State-ownedAssets Supervision and Administration Commission of the State Council of the PRC* (中國國務院 國有資產監督管理委員會).

Nanjing Municipal is a company incorporated in the PRC with limited liability and is indirectly held as to 99.17% by the Company and directly held as to 0.83% by Mr. Xu Kai (徐愷) respectively. To the best knowledge of the Director, and having made all reasonable enquiries, Mr. Xu Kai is a third party independent of the Company and its connected persons (as defined under the Listing Rules) and does not have any business relationship or arrangement with the Company and its connected persons other than those by virtue of his interest in Nanjing Municipal.

By order of the Board

Beijing Enterprises Water Group Limited

Li Yongcheng

Chairman

Hong Kong, 21 August 2020

As at the date of this announcement, the Board comprises nine executive directors, namely Mr. Li Yongcheng (Chairman), Mr. Jiang Xinhao, Mr. Zhou Min (Chief Executive Officer), Mr. Li Haifeng, Mr. Zhang Tiefu, Mr. Ke Jian, Ms. Sha Ning, 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.

* For identification purpose only

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