September 10, 2019 - 9:31 AM EDT
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China Recycling Energy Corp Signs Letter of Intent to Acquire Xi’an Yineng Zhihui Technology Co., Ltd.

Xian, China, Sept. 10, 2019 (GLOBE NEWSWIRE) -- China Recycling Energy Corp. (NASDAQ: CREG; "CREG" or "the Company"), a leading industrial waste-to-energy solution provider in China, today announced that Shanghai TCH Energy Technology Co., Ltd. (“Shanghai TCH”), the Company’s wholly owned subsidiary, has recently entered into a non-binding Letter of Intent (the “LOI”) to acquire controlling ownership of Xi’an Yineng Zhihui Technology Co., Ltd. ("YNZH"), a firm based in Xi’an, Shaanxi Province, specializing in smart energy management platform.  

YNZH is a leading operator and service provider of energy storage solution on consumer side with the biggest electricity power storage station on a standalone basis and in terms of total capacity and number of customers being served. With the integration of power generation, distribution, transmission, storage and consumption in alternative energy and smart grid, YNZH utilizes big data, intelligence control, cloud computing and AI etc. in its power storage stations to achieve transformation to smart energy solution from conventional system and to pursue energy technology intelligence, power lifecycle digitalization, and smart power operating platform. Its dedication in developing an international leading holistic solution in smart energy operating system is expected to place YNZH the forefront of smart energy management industry. Highlights of its achievements span from its proprietary “Cloud-based Smart Power Management Platform”, the application of big data in power storage, and unmanned power stations. Alongside its accumulation of increasing amount of data, YNZH has also become a proven operator in safety and efficiency, letting itself to integrate deeply as energy administrator with its clients and to rapidly penetrate into power storage market.

Mr. Ku, Chairman of the Board of Directors of China Recycling Energy commented: “We are excited about the opportunity to acquire controlling ownership of YNZH. YNZH is a vanguard in developing and operating smart energy management platform in China with business model similar to Tesla’s Powerwall business, essentially storing excess energy during non-peak times to support the grid's peak loads with saving in energy cost and attractive return to investment to consumers. They took the lead in investing, constructing and managing a number of electric energy storage projects. The tri-level alarm mechanism on its cloud platform can accurately monitor the working conditions of each battery. Its highly reliable security measures and precise remote control system allow high-efficiency operation and maintenance of 24-hour unattended stations and multiple stations managed by single person, resulting in saving in human resources, reduction of the marginal cost and enhancement of industry competitiveness. Its standardized, fast, low cost, high safety and flexible energy storage solutions are expected to attract more and more business and investment opportunities. We can rely on not only the their cutting edge energy storage technology, but also expect explorational growth from this new vertical to reap benefits in  energy solution, economy and environment.

"We are very pleased to enter an in-depth cooperation in strategy and capital with CREG, a US listed company," commented by Ms. Xuehong Wang, Chairman and CEO of YNZH, “CREG has a wealth of experience in the traditional recycling energy industry investment and operation. Based on our mutual belief and vision of energy storage industry, we will cooperate and supplement each other in investment, construction, operation and technology research and development of power plants to collaborate and promote the development of energy storage industry progress."

In July 2019, the four ministries of China, including the National Development and Reform Commission, the National Energy Administration, Ministry of Industry and Information and Ministry of Science and Technology, jointly issued "the Implementation of 2019-2020 Action Plan of the ‘Promotion of Development of Energy Storage Technology and Industry Guidance’” to promote the development of the energy storage industry from the technical research and development, intelligent manufacture, demonstration of application, and power battery energy storage applications and made clear assignment of responsibilities for implementation by local governments. Local governments and power grid companies have issued relevant policies and implementation rules. Driven by national policies and local measures, the market space of energy storage are expanding. The application technology of energy storage is a key industry supported by Chinese government

About Xi’an Yineng Zhihui Technology Co., Ltd.

Xi’an Yineng Zhihui Technology Co., Ltd. is a leading comprehensive high-tech intelligent energy service company integrated with energy efficiency improvement and storage management in China. The energy efficiency management is to fully use internet and big data cloud computing technology, effectively adopt the combination of the mature international and domestic clean energy technologies to make the customers’ energy management more efficient, more economical, more secure and more scientific.

Xi’an Yineng Zhihui Technology Co., Ltd. has a research and development team consisting the domestic first-class intelligent energy experts and experienced technical engineers who have many year experience in energy efficiency reform and improvement and have strong strengths in project implementation, research and development, and innovation of technology. It has established long-term cooperative relations with BTR (a largest supplier of anode and cathode materials in the world controlled by China Bao’an Group), the National Electric Power Investment Group, TGOOD (China's largest operator of charging station) and other well-known universities and national level research institutes in China. It is an intelligent energy service provider with comprehensive project execution ability

Application scenarios of YNZH products and services: (1) In the industrial areas, it has signed orders for energy storage projects for nearly RMB 2 billion (approximately $285 million), accounting for about 1% of the total energy storage technology applications in the industrial areas in China. After these projects are completed, they could generate RMB 300 million (approximately $42 million) of cash flow for YNZH every year; (2) In the area of new energy vehicle charging - storage technology application, YNZH has developed business with its strategic partner TGOOD to install energy storage module unit for nearly 110,000 charging stations invested and built by TGOOD as well as its platform management service, which accounts for 41% of the total charging stations built in China with an annual electricity 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 by reducing the impact of sudden changes of electricity generated by photovoltaic and wind power generation systems to the power grid through energy storage technology.

About China Recycling Energy Corp.

China Recycling Energy Corp. (NASDAQ: CREG or "the Company") is based in Xi'an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1 percent of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China. For more information about CREG, please visit http://www.creg-cn.com.

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China 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 are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these 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 actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

For more information, please contact:

Ms. Adeline Gu, Secretary
China Recycling Energy Corp.
Tel: +86 29 8765 1098
Email: [email protected]


Source: GlobeNewswire (September 10, 2019 - 9:31 AM EDT)

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