Datang Environment Industry : PROPOSED APPOINTMENT OF DIRECTORS AND NOTICE OF THE EGM

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult your stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other professional advisers.

If you have sold or transferred all your shares in Datang Environment Industry Group Co., Ltd., you should at once hand this circular together with the accompanying proxy form and reply slip to the purchaser(s) or the transferee(s) or to the bank, stockbroker or other agent through whom the sale or transfer was effected for transmission to the purchaser(s) or the transferee(s).

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular.

Datang Environment Industry Group Co., Ltd.*

大 唐 環 境 產 業 集 團 股 份 有 限 公 司

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1272)

PROPOSED APPOINTMENT OF DIRECTORS

AND

NOTICE OF THE EGM

A letter from the Board is set out on pages 1 to 5 of this circular.

A notice convening the EGM of the Company to be held at 4:00 p.m. on Tuesday, 13 October 2020 at No. 120 Zizhuyuan Road, Haidian District, Beijing, the PRC, is set out on pages 6 to 8 of this circular.

The proxy form for use at the EGM is enclosed with this circular and such proxy form is also published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.dteg.com.cn).

If you intend to appoint a proxy to attend the EGM, you are required to complete and return the accompanying form of proxy in accordance with the instructions printed thereon. For holders of H Shares, the form of proxy should be returned to the H Share Registrar and for holders of Domestic Shares, the form of proxy should be returned to the Company's board office in the PRC in person or by post not less than 24 hours before the time fixed for holding the EGM or any adjourned meeting thereof. Completion and return of the form of proxy will not preclude you from attending and voting in person at the EGM or at any other adjourned meeting should you so wish.

If you intend to attend the EGM in person or by proxy, you are required to complete and return the reply slip (for holders of H Shares) to the H Share Registrar or (for holders of Domestic Shares) to the Company's board office in the PRC on or before Wednesday, 23 September 2020.

28 August 2020

• For identification purpose only

	CONTENTS
	Page
DEFINITIONS . . . . . . . . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
LETTER FROM THE BOARD . . . . . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
NOTICE OF THE EGM . . . . . . . . . . . . . .	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

- i -

DEFINITIONS

Unless the context otherwise requires, the following expressions shall have the following meanings in this circular:

"Articles of Association"	the articles of association of the Company (as amended, altered or
	otherwise supplemented from time to time)
"Board"	the board of Directors of the Company
"China" or "PRC"	the People's Republic of China excluding, for the purpose of this
	circular, Hong Kong, Macau Special Administrative Region and
	Taiwan
"Company"	Datang Environment Industry Group Co., Ltd.* (大唐環境產業集
	團股份有限公司), a joint stock company incorporated in the PRC
	with limited liability, the H Shares of which are listed on the Main
	Board of the Stock Exchange (stock code: 1272)
"Director(s)"	director(s) of the Company
"Domestic Shares"	the original shares in share capital of the Company with a nominal
	value of RMB1.00 each, which are subscribed for and paid up in
	RMB and have not been listed on any stock exchanges
"EGM"	the extraordinary general meeting of the Company to be held at
	4:00 p.m. on Tuesday, 13 October 2020 at No. 120 Zizhuyuan
	Road, Haidian District, Beijing, the PRC
"H Share(s)"	the overseas listed foreign shares of the Company with a nominal
	value of RMB1.00 each, which are listed on the Main Board of the
	Stock Exchange
"H Share Registrar"	Computershare Hong Kong Investor Services Limited, the H Share
	registrar of the Company
"Hong Kong" or "HK"	Hong Kong Special Administrative Region of the PRC
"Listing Rules"	the Rules Governing the Listing of Securities on the Stock
	Exchange

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DEFINITIONS

"RMB"	Renminbi, the lawful currency of the PRC
"Share(s)"	Domestic Share(s) and/or H Share(s)
"Shareholder(s)"	holder(s) of Share(s) of the Company
"Stock Exchange"	The Stock Exchange of Hong Kong Limited

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LETTER FROM THE BOARD

Datang Environment Industry Group Co., Ltd.*

大 唐 環 境 產 業 集 團 股 份 有 限 公 司

(A joint stock company incorporated in the People's Republic of China with limited liability)

	(Stock Code: 1272)
Non-executive Directors:	Registered Office and Head Office in the PRC:
Mr. Jin Yaohua	No.120 Zizhuyuan Road,
Mr. Hou Guoli	Haidian District,
Mr. Liu Quancheng	Beijing,
Mr. Liu Ruixiang	the PRC
Mr. Li Zhenyu
	Principal Place of Business in Hong Kong:
Executive Director:	31/F, Tower Two, Times Square,
Mr. Wang Yanwen	1 Matheson Street, Causeway Bay,
	Hong Kong
Independent Non-executive Directors:
Mr. Ye Xiang
Mr. Mao Zhuanjian
Mr. Gao Jiaxiang
	28 August 2020
To the Shareholders
Dear Sir or Madam

PROPOSED APPOINTMENTS OF DIRECTORS

AND

NOTICE OF THE EGM

INTRODUCTION

Reference is made to the announcement of the Company dated 28 August 2020 in relation to the proposed appointments of Directors.

The purposes of this circular are to provide you with, among other things: (i) further details of the proposed appointments of Directors; and (ii) a notice of the EGM.

• For identification purpose only

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LETTER FROM THE BOARD

PROPOSED APPOINTMENTS OF DIRECTORS

Mr. Qu Bo has been nominated as candidates for non-executive Director, and Mr. Tian Dan has been nominated as candidates for executive Director. Their appointments are subject to the approval by Shareholders at the general meeting of the Company, and their term of office will commence on the date when the approval of the Shareholders at the EGM is obtained and will end on the expiration of the term of the current session of the Board.

Biographical details of the candidates for Director are set out as follows:

Mr. Qu Bo

aged 55, a member of the Communist Party of China and a principal senior engineer with a doctoral degree. He participated in work since October 1987. He served as a deputy manager, and chief engineer of Tianjin Electric Power Construction Company First Engineering Company; deputy manager of the Power Station Construction Department of North China Power Group Company; deputy manager and manager of Beijing Electric Power Construction Company; Deputy Director (person-in-charge) and Director of Engineering Management Department of China Datang Corporation; Deputy Chief Engineer and Director of Engineering Management Department; Chief Engineer; Chief Engineer and General Manager, Party Secretary of China Datang Corporation Ltd. Shanghai Branch, and leader of the preparatory group of China Datang Group Engineering Construction Co., Ltd; Chief Engineer, Party Secretary, Chief Engineer, Head of Party Office and Office of China Datang Corporation and Party Secretary and director of Datang International Power Generation Co., Ltd. (a company listed on the main board of the Stock Exchange, (stock code: 991) and Shanghai Stock Exchange, stock code: (601991)) He is currently the vice general manager and member of Party Leadership Group of China Datang Corporation Ltd..

Mr. Tian Dan

aged 55, with qualification of a Master's degree, a member of the Communist Party of China and a senior engineer. Mr. Tian has served as the secretary of the Party committee and the deputy general manager of the Company since July 2020. Mr. Tian has over 30 years of extensive experience in the power generation industry. Prior to joining the Company, Mr. Tian respectively served as a shift supervisor and technician of the Shanxi Shentou No. 2 Power Plant (山西神頭第二發電廠 ); an engineer at the Thermal Power Simulation Training Center of Shanxi Electric Power Company (山西省電力公司); an engineer of the Engineering and Technology Department, manager of the Production Preparation Department, manager of the Power Generation Department and deputy chief engineer and deputy general manager of Yangcheng International Power Generation Co., Ltd. (陽城國際發電有限責任公司); the deputy general manager of Yangcheng International Power Generation Co. Ltd. and also the deputy general manager of Datang Yangcheng Power Generation Co., Ltd. (大唐陽城發電有限責任公司); the secretary of the Party committee and the deputy general manager of Yangcheng International Power Generation Co., Ltd. and also the deputy general manager of Datang Yangcheng Power Generation Co., Ltd.; the general manager

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LETTER FROM THE BOARD

and the secretary of the Party committee of Yangcheng International Power Generation Co., Ltd. and also the general manager of the Datang Yangcheng Power Generation Co. Ltd.; the secretary of the Communist Party Committee and the deputy general manager of the Chongqing Branch of Datang International Power Generation Co., Ltd. (大唐國際發電股份有限公司重慶分公司) and also the secretary of the Party committee and deputy general manager of Chongqing Yuneng (Group) Co., Ltd. (重慶渝能（集團）有限 責任公司); the secretary of the Communist Party Committee and the general manager of the Chongqing Branch of Datang International Power Generation Co., Ltd. and also the general manager and the deputy secretary of the Party committee of Chongqing Yuneng Industry (Group) Co., Ltd. (重慶渝能產業（集團） 有限責任公司); the general manager, the deputy secretary of the Party committee, the chairman and the secretary of the Party committee of the Ningxia branch of China Datang Corporation Ltd. (中國大唐集團 有限公司寧夏分公司); the chairman and the secretary of the Party committee of the Ningxia branch of China Datang Corporation Ltd., as well as the director of the Ningxia Planning and Development Center (寧夏規劃發展中心) of China Datang Corporation; the chairman and secretary of the Party committee of Xiongan Energy Co., Ltd. of China Datang Corporation (中國大唐集團雄安能源有限公司).

Save as disclosed above, as at the date of this circular, Mr. Qu Bo and Mr. Tian Dan have confirmed that they (i) have no relationship with any directors, senior management, substantial or controlling Shareholders of the Company; (ii) do not hold any other directorships of any listed companies in the last three years; (iii) do not hold any other position with the Company or any of its subsidiaries; and (iv) have no interest in any shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

According to the Articles of Association, Mr. Qu Bo and Mr. Tian Dan are eligible for re-election and reappointment upon expiry of their term.

Mr. Qu Bo, as non-executive director of the Company, will not receive any emolument from the Company. Mr. Tian Dan will receive emolument from the Company, including salary, bonus, social security plan, housing provident fund plan and other benefits. Mr. Qu Bo and Mr. Tian Dan will enter into a service contract with the Company after their appointments become effective.

Save as disclosed above, there are no other matters relating to the above appointment that need to be disclosed pursuant to Rule 13.51(2)(h) to (v) of the Listing Rules or brought to the attention of the Shareholders.

THE EGM

The EGM is proposed to be held at 4:00 p.m. on Tuesday, 13 October 2020 at No. 120 Zizhuyuan Road, Haidian District, Beijing, the PRC by the Company to consider and, if thought fit, to pass the matters set out in the notice of the EGM. A proxy form and a reply slip have been dispatched to the Shareholders in accordance with the Listing Rules on 28 August 2020. The notice of the EGM is set out on pages 6 to 8 of this circular.

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LETTER FROM THE BOARD

A form of proxy for use at the EGM is also enclosed herewith. Whether or not you intend to attend the EGM, you are advised to read the notice and complete the enclosed form of proxy in accordance with the instructions printed thereon as soon as possible and return the form of proxy to the H Share Registrar (for the holders of H Shares) or the Company's board office in the PRC (for the holders of Domestic Shares) as soon as possible and in any event not less than 24 hours before the time appointed for the EGM (i.e. no later than Monday, 12 October 2020 (Hong Kong time)) or any adjournment thereof. Completion and return of the form of proxy will not preclude you from attending and voting in person at the EGM if you so wish.

Pursuant to Rule 13.39(4) of the Listing Rules, all votes of the Shareholders at the general meetings must be taken by poll. The chairman of the meeting will therefore demand a poll for every resolution put to the vote of EGM pursuant to Article 81 of the Articles of Association. On a poll, every Shareholder present in person or by proxy (or being a corporation by its duly authorised representative) shall have one vote for each Share registered in his/her name in the register of members of the Company. A Shareholder entitled to more than one vote needs not use all his/her votes or cast all the votes he/she has in the same manner.

CLOSURE OF REGISTER OF MEMBERS

In order to ascertain the entitlements of the Shareholders to attend the EGM, the register of members of the Company will be closed from Sunday, 13 September 2020 to Tuesday, 13 October 2020 (both days inclusive), during which period no transfer of Shares will be effected. To be eligible to attend and vote at the EGM, all transfer documents must be lodged with the H Share Registrar, Computershare Hong Kong Investor Services Limited at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong (for the holders of H Shares), or the Company's board office in the PRC at No. 120 Zizhuyuan Road, Haidian District, Beijing, the PRC, 100097 (for the holders of Domestic Shares) no later than 4:30 p.m. on Friday, 11 September 2020.

RECOMMENDATION

The Board recommends the Shareholders to vote in favour of the relevant resolutions set out in the notice of the EGM as it is in the interests of the Company and the Shareholders as a whole.

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LETTER FROM THE BOARD

RESPONSIBILITY STATEMENT

This circular, for which the Directors collectively and individually accept full responsibility, includes particulars given in compliance with the Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this circular is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this circular misleading.

Yours faithfully,

By order of the Board

Datang Environment Industry Group Co., Ltd.*

Jin Yaohua

Chairman

• For identification purpose only

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NOTICE OF THE EGM

Datang Environment Industry Group Co., Ltd.*

大 唐 環 境 產 業 集 團 股 份 有 限 公 司

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1272)

NOTICE OF EXTRAORDINARY GENERAL MEETING

NOTICE IS HEREBY GIVEN that the extraordinary general meeting of Datang Environment Industry Group Co., Ltd. (the "Company") will be convened at 4:00 p.m. on Tuesday, 13 October 2020 at No. 120 Zizhuyuan Road, Haidian District, Beijing, the PRC, for the purpose of considering and, if thought fit, passing the following matter (whether amended or not). Terms used in this notice shall have the same meanings as those defined in the circular of the Company dated 28 August 2020 (the "Circular") unless otherwise specified.

Ordinary Resolutions

1. To consider and approve the proposed appointment of Mr. Qu Bo as non-executive Director; and
2. To consider and approve the proposed appointment of Mr. Tian Dan as executive Director.

The main texts and relevant details of resolutions at the EGM are set forth in the Circular thereof, which are available on the website of the Stock Exchange (www.hkex.com.hk) and on the website of the Company (www.dteg.com.cn).

Yours faithfully,

By order of the Board

Datang Environment Industry Group Co., Ltd.*

Jin Yaohua

Chairman

Beijing, the PRC, 28 August 2020

As of the date of this notice, the non-executive Directors are Mr. Jin Yaohua, Mr. Hou Guoli, Mr. Liu Quancheng, Mr. Liu Ruixiang and Mr. Li Zhenyu; and the independent non-executive Directors are Mr. Ye Xiang, Mr. Mao Zhuanjian and Mr. Gao Jiaxiang.

• For identification purpose only

- 6 -

NOTICE OF THE EGM

Notes:

1. In order to ascertain the entitlements of the Shareholders to attend the EGM, the register of members of the Company will be closed from Sunday, 13 September 2020 to Tuesday, 13 October 2020 (both days inclusive), during which period no transfer of Shares will be effected. Shareholders whose names appear on the register of members of the Company on Tuesday, 13 October 2020 are entitled to attend and vote at the EGM.
   To be eligible to attend and vote at the EGM, all transfer documents must be lodged with the H Share Registrar, Computershare Hong Kong Investor Services Limited at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong (for holders of H Shares), or the Company's board office in the PRC at No. 120 Zizhuyuan Road, Haidian District, Beijing, the PRC, 100097 (for holders of Domestic Shares), no later than 4:30 p.m. on Friday, 11 September 2020.
2. Each Shareholder entitled to attend and vote at the EGM may, by completing the form of proxy of the Company, appoint one or more proxies to attend and vote at the EGM on its behalf. A proxy need not be a Shareholder. With respect to any Shareholder who has appointed more than one proxy, the proxy holders may only vote on a poll.
3. The instrument to appoint a proxy shall be signed by the appointer or his attorney duly authorised in writing or, in the case of a legal person, must be either executed under its common seal or under the hand of its directors or attorney duly authorised.
4. To be valid, the form of proxy must be lodged with the H Share Registrar, Computershare Hong Kong Investor Services Limited, at 17M Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong (for holders of H Shares) or the Company's board office in the PRC (for holders of Domestic Shares) within 24 hours prior to the holding of the EGM. If such instrument is signed by another person under a power of attorney or other authorisation documents given by the appointer, such power of attorney or other authorisation documents shall be notarised. The notarised power of attorney or other authorisation documents shall, together with the instrument appointing the proxy, be deposited at the specified place at the time set out in such instrument. Completion and return of the proxy form will not preclude Shareholders from attending and voting in person at the EGM or any adjourned meetings should you so wish.
5. Shareholders shall produce their identity documents and supporting documents in respect of Shares held when attending the EGM. If corporate Shareholders appoint authorised representative to attend the EGM, the authorised representative shall produce his/her identity documents and a notarised certified copy of the relevant authorised documents signed by the Board or other authorised parties of the Shareholders or other notarised certified documents allowed by the Company. Proxies shall produce their identity documents and the proxy forms signed by the Shareholders or their attorney when attending the EGM.
6. The Company has the rights to request a proxy who attends the EGM on behalf of a Shareholder to provide proof of identity.
7. H Shareholders (in person or by proxy) who intend to attend the EGM shall complete and deliver the reply slips to H Share Registrar, Computershare Hong Kong Investor Services Limited on or before Wednesday, 23 September 2020 in person, by mail or by fax. Domestic Shareholders (in person or by proxy) who intend to attend the EGM shall deliver the said document to the Company's board office in the PRC subject to the same time limit.
8. The EGM is expected to be held for less than half a day. Shareholders who intend to attend the EGM shall bear their own transportation and accommodation expenses

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NOTICE OF THE EGM

1. In case of joint Shareholders, the vote of the most senior one (in person or by proxy) will be accepted to the exclusion of the votes of other joint Shareholders, and for this purpose, the seniority shall be determined by the order in which the names of such joint Shareholders stand in the register of members of the Company.
2. H Share Registrar, Computershare Hong Kong Investor Services Limited, is situated at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong, and with the fax number: [phone].
3. The contact details of the Company's board office in the PRC are as follows: Address: No. 120 Zizhuyuan Road, Haidian District, Beijing, the PRC, 100097

Fax number: [phone]

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