*ST Environmental Protection 2004 Semi-Annual Report

1. Important Notice
   The company's board of directors and all directors still cannot fully grasp the financial data information of the Shenyang Southern Lingkong Wastewater Treatment Project (now renamed Shenshui Bay Wastewater Treatment Plant) (see major issues in this report), and cannot guarantee the completeness of financial information related to this project. In addition, the board guarantees the authenticity, accuracy, and completeness of other contents of the company's 2004 semi-annual report. Directors Gu Qinhua, Liao Shubin, and Cui Weiwu did not attend the board meeting and did not express any opinions. The company's acting chairman and general manager, Mr. Tong Meng, and financial officer, Mr. Han Bing, declare that, except for certain contents mentioned in this report (see major issues in this report), all other relevant financial data in the company's 2004 semi-annual report can guarantee its authenticity, accuracy, and completeness. The financial report in the company's 2004 semi-annual report is unaudited.
   Shenyang Special Environmental Protection Equipment Manufacturing Co., Ltd. Board of Directors
   August 21, 2004

2. Basic Information of the Company

3. Company Profile
   (1) Legal Name in Chinese and English
   Chinese Name: 沈阳特种环保设备制造股份有限公司
   Chinese Abbreviation: 环保股份
   English Name: Shenyang Special Environmental Protection Equipment Manufacturing CO.LTD
   English Abbreviation: SSEPEC
   (2) Stock Exchange: Shenzhen Stock Exchange
   Stock Abbreviation: *ST Environmental Protection
   Stock Code: 000730
   (3) Company Registered Address and Office Address: No. 134, Renao Road, Shenhe District, Shenyang City, Postal Code: 110011
   Company Email: centralland@sohu.com
   Company Website: www.hbgf.com
   (4) Legal Representative: Tong Meng
   (5) Company Secretary: Hui Dai
   Contact Address: No. 134, Renao Road, Shenhe District, Shenyang City, Postal Code: 110011
   Contact Phone and Fax: 024-24866901
   Email: centralland@sohu.com
   (6) Selected Newspapers for Information Disclosure: China Securities Journal and Securities Times
   Information Disclosure Website: http://www.cninfo.com.cn
   Company Semi-Annual Report Storage Location: No. 134, Renao Road, Shenhe District, Shenyang City
   (7) Other Relevant Information
   Company Initial Registration Date: May 18, 1993
   Company Initial Registration Location: Shenyang Administration for Industry and Commerce
   Enterprise Legal Person Business License Registration Number: 2101001101014
   Tax Registration Number: 210103243490315
   Company's Accounting Firm Name: Shenzhen Pengcheng Accounting Firm
   Accounting Firm Office Address: 5th Floor, Baofeng Building, No. 2006, Dongmen South Road, Shenzhen

4. Key Accounting Data and Financial Indicators
   (1) Key Financial Data and Indicators
   Unit: RMB
   | Item | End of Reporting Period | End of Previous Year | Change Compared to Beginning of Year (%) |
   |------|------------------------|---------------------|------------------------------------------|
   | Current Assets | 701,235,496.33 | 701,418,259.97 | -0.0261 |
   | Current Liabilities | 643,417,892.13 | 633,840,519.32 | 1.5111 |
   | Total Assets | 913,302,553.49 | 917,541,020.07 | -0.4619 |
   | Shareholder Equity (Excluding Minority Interests) | 59,150,209.85 | 72,200,367.31 | -18.0749 |
   | Net Asset per Share | 0.1045 | 0.1276 | -18.1034 |
   | Adjusted Net Asset per Share | 0.1045 | 0.1276 | -18.1034 |
   | Reporting Period (Jan-Jun) | Same Period Last Year | Change Compared to Same Period Last Year (%) |
   | Net Profit | -13,050,157.46 | -18,068,880.65 | -27.7755 |
   | Net Profit Excluding Non-Recurring Gains and Losses | -13,151,648.80 | -17,652,316.71 | -25.4962 |
   | Earnings per Share | -0.02306 | -0.0319 | -27.7116 |
   | Return on Equity | -22.06% | -3.66% | -18.40 |
   | Net Cash Flow from Operating Activities | 140,102.90 | -7,621,024.70 | -101.8383 |

(2) Profit Statement Appendix