China Recycling Energy Corp Signs Letter of Intent to Acquire Xi’an YinengZhihui Technology Co., LtdXian, China, Sept. 10, 2019(GLOBE NEWSWIRE) -- China Recycling Energy Corp. (NASDAQ: CREG;"CREG" or "the Company"), a leading industrialwaste-to-energy solution provider in China, today announced that Shanghai TCHEnergy Technology Co., Ltd. (“Shanghai TCH”), the Company’s wholly ownedsubsidiary, has recently entered into a non-binding Letter of Intent (the“LOI”) to acquire controlling ownership of Xi’an YinengZhihui Technology Co.,Ltd. ("YNZH"), a firm based in Xi’an, Shaanxi Province, specializingin smart energy management platform. YNZH is a leading operator andservice provider of energy storage solution on consumer side with the biggestelectricity power storage station on a standalone basis and in terms of totalcapacity and number of customers being served. With the integration of powergeneration, distribution, transmission, storage and consumption in alternativeenergy and smart grid, YNZH utilizes big data, intelligence control, cloudcomputing and AI etc. in its power storage stations to achieve transformationto smart energy solution from conventional system and to pursue energytechnology intelligence, power lifecycle digitalization, and smart poweroperating platform. Its dedication in developing an international leadingholistic solution in smart energy operating system is expected to place YNZHthe forefront of smart energy management industry. Highlights of itsachievements span from its proprietary “Cloud-based Smart Power ManagementPlatform”, the application of big data in power storage, and unmanned powerstations. Alongside its accumulation of increasing amount of data, YNZH hasalso become a proven operator in safety and efficiency, letting itself tointegrate deeply as energy administrator with its clients and to rapidly penetrateinto power storage market. Mr. Ku, Chairman of the Board ofDirectors of China Recycling Energy commented: “We are excited about theopportunity to acquire controlling ownership of YNZH. YNZH is a vanguard indeveloping and operating smart energy management platform in China withbusiness model similar to Tesla’s Powerwall business, essentially storingexcess energy during non-peak times to support the grid's peak loads withsaving in energy cost and attractive return to investment to consumers. They tookthe lead in investing, constructing and managing a number of electric energystorage projects. The tri-level alarm mechanism on itscloud platform can accurately monitor the working conditions of each battery.Its highly reliable security measures and precise remote control system allowhigh-efficiency operation and maintenance of 24-hour unattended stations andmultiple stations managed by single person, resulting in saving in humanresources, reduction of the marginal cost and enhancement of industry competitiveness.Its standardized, fast, low cost, high safety and flexible energy storagesolutions are expected to attract more and more business and investmentopportunities. We can rely on not only the their cutting edge energy storagetechnology, but also expect explorational growth from this new vertical to reapbenefits in energy solution, economy and environment. "We are very pleased toenter an in-depth cooperation in strategy and capital with CREG, a US listedcompany," commented by Ms. Xuehong Wang, Chairman and CEO of YNZH, “CREGhas a wealth of experience in the traditional recycling energy industryinvestment and operation. Based on our mutual belief and vision of energystorage industry, we will cooperate and supplement each other in investment,construction, operation and technology research and development of power plantsto collaborate and promote the development of energy storage industryprogress." In July 2019, the four ministriesof China, including the National Development and Reform Commission, theNational Energy Administration, Ministry of Industry and Information andMinistry of Science and Technology, jointly issued "the Implementation of2019-2020 Action Plan of the ‘Promotion of Development of Energy StorageTechnology and Industry Guidance’” to promote the development of the energystorage industry from the technical research and development, intelligentmanufacture, demonstration of application, and power battery energy storageapplications and made clear assignment of responsibilities for implementationby local governments. Local governments and power grid companies have issuedrelevant policies and implementation rules. Driven by national policies andlocal measures, the market space of energy storage are expanding. The applicationtechnology of energy storage is a key industry supported by Chinese government About Xi’an YinengZhihuiTechnology Co., Ltd. Xi’an YinengZhihui TechnologyCo., Ltd. is a leading comprehensive high-tech intelligent energy servicecompany integrated with energy efficiency improvement and storage management inChina. The energy efficiency management is to fully use internet and big datacloud computing technology, effectively adopt the combination of the matureinternational and domestic clean energy technologies to make the customers’energy management more efficient, more economical, more secure and morescientific. Xi’an YinengZhihui TechnologyCo., Ltd. has a research and development team consisting the domesticfirst-class intelligent energy experts and experienced technical engineers whohave many year experience in energy efficiency reform and improvement and havestrong strengths in project implementation, research and development, andinnovation of technology. It has established long-term cooperative relationswith BTR (a largest supplier of anode and cathode materials in the worldcontrolled by China Bao’an Group), the National Electric Power InvestmentGroup, TGOOD (China's largest operator of charging station) and otherwell-known universities and national level research institutes in China. It isan intelligent energy service provider with comprehensive project executionability Application scenarios of YNZHproducts and services: (1) In the industrial areas, it has signed orders forenergy storage projects for nearly RMB 2 billion (approximately $285 million),accounting for about 1% of the total energy storage technology applications inthe industrial areas in China. After these projects are completed, they couldgenerate RMB 300 million (approximately $42 million) of cash flow for YNZHevery year; (2) In the area of new energy vehicle charging - storage technologyapplication, YNZH has developed business with its strategic partner TGOOD toinstall energy storage module unit for nearly 110,000 charging stationsinvested and built by TGOOD as well as its platform management service, whichaccounts for 41% of the total charging stations built in China with an annualelectricity charging for nearly 1.5 billion kilowatt-hour;(3) Reduce the problems of "solar and wind power generation systems"for new energy power generation enterprises in northwest and north China byreducing the impact of sudden changes of electricity generated by photovoltaicand wind power generation systems to the power grid through energy storagetechnology. About China Recycling EnergyCorp. China Recycling Energy Corp.(NASDAQ: CREG or "the Company") is based in Xi'an, China and providesenvironmentally friendly waste-to-energy technologies to recycle industrialbyproducts for steel mills, cement factories and coke plants in China.Byproducts include heat, steam, pressure, and exhaust to generate large amountsof lower-cost electricity and reduce the need for outside electrical sources.The Chinese government has adopted policies to encourage the use of recyclingtechnologies to optimize resource allocation and reduce pollution. Currently,recycled energy represents only an estimated 1 percent of total energyconsumption and this renewable energy resource is viewed as a growth market dueto intensified environmental concerns and rising energy costs as the Chineseeconomy continues to expand. The management and engineering teams have over 20years of experience in industrial energy recovery in China. For moreinformation about CREG, please visit http://www.creg-cn.com. Safe Harbor Statement This press release may containcertain "forward-looking statements" relating to the business ofChina Recycling Energy Corp. and its subsidiary companies. All statements,other than statements of historical fact included herein are"forward-looking statements." These forward-looking statements areoften identified by the use of forward-looking terminology such as"believes," "expects" or similar expressions, involve knownand unknown risks and uncertainties. Although the Company believes that theexpectations reflected in these forward-looking statements are reasonable, theydo involve assumptions, risks and uncertainties, and these expectations mayprove to be incorrect. Investors should not place undue reliance on theseforward-looking statements, which speak only as of the date of this pressrelease. The Company's actual results could differ materially from thoseanticipated in these forward-looking statements as a result of a variety offactors, including those discussed in the Company's periodic reports that arefiled with the Securities and Exchange Commission and available on its websiteat http://www.sec.gov.All forward-looking statements attributable to the Company or persons acting onits behalf are expressly qualified in their entirety by these factors. Otherthan as required under the securities laws, the Company does not assume a dutyto update these forward-looking statements. For more information, pleasecontact: Ms. Adeline Gu, Secretary
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