Chief Trading Officer of Chiho Group, Tom Bird, was interviewed by the International Finance News

November 1, 2021

(Incorporated in the Cayman Islands with limited liability)

CHIHO ENVIRONMENTAL GROUP LIMITED

(Stock Code: 976.HK)

Chief Trading Officer of Chiho Group, Tom Bird,

was interviewed by the International Finance News

From October 31 to November 12, 2021, the 26th Conference of the Parties (COP26) of the United Nations Framework Convention on Climate Change (UNFCCC) was officially held in Glasgow, Scotland. Net-zero emissions and the action targets of the contracting parties to address climate change are the focus of the negotiations at the COP meeting.

On the backdrop of the COP26 meeting, Tom Bird, the Chief Trading Officer of Chiho Group and the President of the International Recycling Industry Bureau, together with other experts and corporate executives from Invesco Investment, Robaco Investment and other enterprises, was interviewed by the International Finance News. Tom Bird expressed his views on the urgency of climate goals and the importance of recycling on alleviating climate change.

Tom Bird: Various extreme weather and climate phenomena have shown that economies and politicians urgently need to take more immediate actions on the issue of climate change, especially carbon emissions. One of the first actions is to put more emphasis on recycling industry and create more opportunities to fully tap the huge potential of this industry. Countries should try their best to use recycled materials as a replacement of primary raw materials, which will definitely help alleviate the problem of climate change.

Tom Bird further mentioned: China has become the world's second largest economy and will become one of the world's leading countries in the field of carbon neutrality. As far as the recycling industry is concerned, we believe that the Chinese market has the greatest potential in the future. China, through promotion of recycling, has made outstanding achievements in environmental protection. China's policy of allowing the import of high-quality waste materials has encouraged foreign enterprises to process more scrap materials, and also promoted international sales and export of recycled scraps.

According to the International Recycling Industry Bureau, in the first half of 2021, China's scrap steel consumption increased by 47.1% to 137.95 million tons, compared with 93.75 million tons in the same period in 2020. Driven by the carbon neutrality goal, the demand for recycled metal materials in the Chinese market is huge. At the same time, the promulgation of China's high-quality waste materials import policy will help alleviate the demand and promote the development of a circular economy.

Chiho Group has more than 240 processing plants and yards across 15 countries in the world, with an aggregated processing capacity of 4.5 to 5 million tons of scrap metal per year, saving around 7.8 million tons of carbon emission equivalents per year.

Chiho Group, together with is major subsidiary group Scholz, is highly recognised by customers with its extensive global trading network, reliable customs clearance ability and excellent logistics capabilities. We commit to provide high-quality recycled materials for steel mills, foundries and smelters. Chiho Group will make use of its leading recycling technology and flexible sales and trade channels to enhance circular economy models in the fast-growing Chinese metal recycling market.

Since 2020, Chiho Group has been proactively expanding its presence in the Asian market, particularly to capture the great opportunities in the Chinese market. We partnered with Shandong Weiqiao Venture Group to develop a metal recycling industrial park with the highest internal standard. At the same time, Chiho Group, together with its subsidiary group Scholz, is enhancing its investment in Taizhou, China, to develop a new facility for recycling of end-of-life vehicle and electric vehicle battery.

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