China Environmental Technology Holdings Limited announced that in connection with the Suspected Misappropriation, a Board meeting was convened on 17 January 2019 (after trading hours) to discuss the follow up actions to be taken. At the meeting, the Board resolved that Mr. Xu Xiao Yang be removed from the office of chief executive officer of the Company with immediate effect. The Board would also like to announce that with immediate effect, Mr. Xu Xiao Yang was re-designated from an executive Director to a non-executive Director.

With regards to the abovementioned changes in Mr. Xu Xiao Yang's roles in the Company, the Board further resolved that Mr. Xu Xiao Yang be replaced by Ms. Hu Yueyue, an executive Director, as the Authorised Representative of the Company with immediate effect.