GRANT OF SHARE OPTIONS UNDER SHARE OPTION SCHEME

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement 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 announcement.KANGDA INTERNATIONAL ENVIRONMENTAL COMPANY LIMITED康达国际环保有限公司 (incorporated in the Cayman Islands with limited liability) (Stock Code: 6136) GRANT OF SHARE OPTIONS UNDER SHARE OPTION SCHEME This announcement is made by Kangda International Environmental Company Limited (the ‘‘Company’’ together with its subsidiaries the ‘‘Group’’) pursuant to Rule 17.06A of the Rules Governing the Listing of Securities (the ‘‘Listing Rules’’) on The Stock Exchange of Hong Kong Limited (the ‘‘Stock Exchange’’).The board (the ‘‘Board’’) of directors (the ‘‘Directors’’) of the Company hereby announces that on 31 May 2024 (the ‘‘Date of Grant’’) the Company granted a total of 213973500 share options (the ‘‘Share Options’’) to subscribe for a total of 213973500 ordinary shares in the share capital of the Company (the ‘‘Shares’’ and each a ‘‘Share’’) subject to acceptance of the grantees (the ‘‘Grantees’’) under the share option scheme adopted by the Company on 14 June 2014 (the ‘‘Share Option Scheme’’). Such Shares represent approximately 9.1% of the total issued enlarged share capital of the Company assuming that all Share Options are fully exercised.Details of the Share Options are set out as follows: Date of Grant: 31 May 2024 Exercise price of the Share HK$0.3 per Share which is no less than the highest of: Options granted: (1) the nominal value of the Share; (2) the closing price of HK$0.227 per Share as stated in the daily quotation sheets issued by the Stock Exchange on the Date of Grant; and (3) the average closing price of HK$0.229 per Share as stated in the daily quotation sheets issued by the Stock Exchange for the five business days immediately preceding the Date of Grant.– 1 –Number of the Share 213973500 (each Share Option shall entitle the holder Options granted: thereof to subscribe for one Share at the above exercise price) Consideration payable for HK$1.00 to be paid by each Grantee upon acceptance of the the grant: Share Options Vesting period of Share All Share Options will be vested and can be exercised upon Options: expiration of 12 months from the Date of Grant Exercise period of the Share 31 May 2025 to 15 September 2025 (both days inclusive) Options: (or such longer period as may be extended by the Board in its absolute discretion provided that the end date shall not be later than 10 years from the Date of Grant) Performance target: The Share Options shall not be subject to any performance target.In relation to the grant of Share Options to Directors of the Company and employees of the Group the purpose of the Share Option Scheme is to reward the Grantees for their past contributions and to motivate and retain the Grantees by allowing them to share the results achieved by the Group as a result of their efforts and contributions. Having considered that: (a) each Grantee’s experiences in the Group’s business length of service to the Group and contribution and dedication to the promotion of the Group’s business; (b) the Grantees are Directors or employees of the Group who will directly contribute to the overall business performance and sustainable development of the Group; and (c) the value of the Share Options are subject to the market performance of the Shares which in turn depends on the Group’s performance the Remuneration Committee of the Board is of the view that the grant of Share Options without performance targets is market competitive and will align the interests of the Grantees with those of the Company and aligns with the purpose of the Share Option Scheme.Clawback mechanism: The Grant of Share Options was subject to the clawback mechanism as set out in the terms of the Share Option Scheme in particular the lapse of the Options upon cessation to be an employee or executive under the Share Option Scheme and the cancellation of Options at the discretion of the Board.Financial assistance: The Group has not provided any financial assistance to the Grantees to facilitate the purchase of Shares under the Share Option Scheme.– 2 –The 213973500 Share Options were granted to the Directors and employees of the Group as details as follows: Number of the Name/class Share Options of the Grantees Capacity granted Li Zhong Executive Director and Co-Chairman 16000000 Liu Yujie Executive Director 16000000 Duan Jerry Linnan Executive Director and Chief Executive Officer 16000000 Zhou Wei Executive Director and Chief Financial Officer 16000000 Chau Kam Wing Independent Non-Executive Director 2000000 Chang Qing Independent Non-Executive Director 2000000 Peng Yongzhen Independent Non-Executive Director 2000000 Other employees — 143973500 The grant of the Share Options to the above Grantees has been approved by the Board (including the independent non-executive Directors) except that the relevant Directors have abstained from voting in respect of the grant of Share Options to him/her and his/her associates (as defined in the Listing Rules).Save as disclosed above none of the Grantees is (i) a Director chief executive or substantial shareholder of the Company or an associate (as defined in the Listing Rules) of any of them; (ii) a participant with options and awards granted and to be granted exceeding the 1% individual limit under Rule 17.03D of the Listing Rules; or (iii) a related entity participant or a service provider (as defined in the Listing Rules) and with options and awards granted or to be granted to him/her within any 12-month period exceeding 0.1% of the total number of issued Shares.Subsequent to the grant of 213973500 Share Options above there are no further Shares available for future grant pursuant to the Share Option Scheme.By Order of the Board Kangda International Environmental Company Limited LI Zhong Co-Chairman Hong Kong 31 May 2024 As at the date of this announcement the Board comprises eight Directors namely Mr. ZHAO Juanxian (alias ZHAO Junxian) Mr. LI Zhong Ms. LIU Yujie Mr. DUAN Jerry Linnan and Mr. ZHOU Wei as executive Directors; and Mr. CHAU Kam Wing Mr. CHANG Qing and Mr. PENG Yongzhen as independent non-executive Directors.–3–