CREG Intends to Acquire20% Ownership of Xi’an Xinhuan to Develop Storage Energy BusinessXian, China, Sept. 04, 2018 (GLOBE NEWSWIRE) --China Recycling Energy Corp. (NASDAQ: CREG; "CREG" or "theCompany"), a leading industrial waste-to-energy solution provider inChina, today announce that Shanghai TCH Energy Technology Co., Ltd. (“ShanghaiTCH”), its wholly owned subsidiary, recently entered into a Letter of Intention(“LOI”) with a shareholder of Xi’an Xinhuan Energy Co., Ltd. (“Xinhuan”) toacquire 20% ownership of Xinhuan by issuing new shares of CREG. The Company andXinhuan will make joint efforts to develop energy storage business in China. In the context of the national efforts topromote the development of energy storage industry, the energy storage industryhas ushered in a golden decade of development. The Chinese governmentencourages energy storage enterprises to become larger and stronger in order tocompete internationally, and promotes the large-scale development of energystorage industry. The energy storage industry, firstly as the “first aid” tothe grid at the critical moment to provide backup power supply and reduce therisk of power outage; secondly as an “energy sponge” to store power duringelectricity peak-off hours and release during peak hours to fill the gap;thirdly as the 'flexible energy resource' of the power system to guarantee thestable operation of the power grid and provide a new green means to alleviate theproblems between power supply and demand. Xinhuan provides the standard module energystorage system of MW-level "reserving - storing - supplying". Thesystem includes power station management system (BMS), energy management system(EMS), GW core PACK integration system, intelligent "cloud" operationmanagement system and other core energy storage technologies. Meanwhile, aseries of advanced system solutions, such as power generation side concentratedenergy storage power supply solutions, smart micro grid and industrial andcommercial power supply, are introduced and used in this system. Thestandardized energy storage system module designed by Xinhuan can respond touser demand easily and quickly. It can also be assembled into energy supplysystem of various power and capacity according to the different requirements to meetvarious market demands and applicable to various application fields. The systemmodule can be used independently or combined into large megawatt energy storagesystems. The energy storage module adopts the international standard container,which is convenient for transportation, site installation and quick use. Mr. Ku, Chairman of the Board of Directors ofChina Recycling Energy commented: “We are excited about the opportunity to acquireownership of Xinhuan, which is an important step for our energy storagebusiness. With the driving force of market demand and policy support in China,the energy storage industry will have a large probability of explosive growthand provide exciting development of this business. For the energy storagebusiness in China, Xinhuan has taken the lead by investing and constructingseveral power storage projects. Its standardized, fast, low cost, high safetyand flexible energy storage solutions are bound to attract more and morebusiness and investment opportunities. With this acquisition of minorityposition of and cooperation with Xinhuan, we plan to quickly grow our energystorage business and take the market shares in the energy storage industry,which will bring new sources of revenues to the Company and benefit theenvironment." About Xi’an Xinhuan Energy Co., Ltd. Adhering to the mission of clean andefficient energy, Xinhuan actively participates in the construction of"energy + internet" and "smart energy town", and iscommitted to become a first-class supplier of integrated solutions of MW-levelenergy storage system in China. At the same time, Xinhuan combines industrialenergy saving "cloud platform" and energy storage "smartcloud" to develop global network cloud platform, enabling households toachieve healthy development of "minimum manpower, minimum energyconsumption and green energy efficiency" from the aspects of energy mediasuch as gas, electricity, water and steam. About China Recycling Energy Corp. Safe Harbor Statement This press release may contain certain"forward-looking statements" relating to the business of ChinaRecycling Energy Corp. and its subsidiary companies. All statements, other thanstatements of historical fact included herein are "forward-lookingstatements." These forward-looking statements are often identified by theuse of forward-looking terminology such as "believes,""expects" or similar expressions, involve known and unknown risks anduncertainties. Although the Company believes that the expectations reflected inthese forward-looking statements are reasonable, they do involve assumptions,risks and uncertainties, and these expectations may prove to be incorrect.Investors should not place undue reliance on these forward-looking statements,which speak only as of the date of this press release. The Company's actualresults could differ materially from those anticipated in these forward-lookingstatements as a result of a variety of factors, including those discussed inthe Company's periodic reports that are filed with the Securities and ExchangeCommission and available on its website at http://www.sec.gov. All forward-looking statements attributable tothe Company or persons acting on its behalf are expressly qualified in theirentirety by these factors. Other than as required under the securities laws,the Company does not assume a duty to update these forward-looking statements. Formore information, please contact:
Ms.Adeline Gu, CFO & Secretary ChinaRecycling Energy Corp. Tel:+86 29 8765 1098 Email:sunny@creg-cn.com
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