Chiho Environmental : and EcoSmart Spark Energy Group jointly built the single largest solar power system in Hong Kong

June 28, 2021

(Incorporated in the Cayman Islands with limited liability)

CHIHO ENVIRONMENTAL GROUP LIMITED

(Stock Code: 976.HK)

Chiho Environmental Group and EcoSmart Spark Energy Group jointly built the single largest solar power system in Hong Kong

A week ago, Chiho Environmental Group ("Chiho") and EcoSmart Spark Energy Group ("EcoSmart") had formed a partnership and jointly completed the design and construction of a solar power generation system in Chiho's Hong Kong factory. The system was approved by the Hong Kong CLP, officially launched in February 2021, and successfully completed in May 2021. It is currently the single largest solar power system in Hong Kong. Through this system, Chiho's Hong Kong factory will be able to generate 1,013,375 kilowatt-hours of electricity per year (approximately equivalent to the total electricity consumption of 241 Hong Kong households), which is estimated to reduce carbon emissions by approximately 572,000 kilograms per year. The solar power generation system, which is fully financed by EcoSmart and installed on the rooftop of the Chiho's Hong Kong factory, not only will contribute to sustainable development, but also general income from power generation for Chiho. It is believed that this will act as a model to allow other Hong Kong companies and organisations to understand the benefits of utilising the roof space for solar power systems and encourage them to work together to tackle global climate change!

Mr. Huang Ting, the Managing Director and Chief Operating Officer of Chiho Greater China region, mentioned that: Chiho has always been a practitioner of green development and is ware of the benefits of photovoltaic power generation on green development. The Group's factory in Taizhou, China has built photovoltaic power generation facilities of approximately 126,700 square meters with a capacity of 10.56MW, which not only plays a vital role in energy saving and emission reduction, but also brings economic and environmental benefits. The installation and construction of the solar power generation system in the Group's Hong Kong factory further embodies the corporate mission of Chiho to promote energy conservation, environmental protection, and low-carbon development.

Mr. Samson Lui, the General Manager of Chiho Eco Protection Limited, a wholly owned subsidiary of Chiho, said: Chiho's vision is to actively promote sustainable development, build an environmentally friendly world, and is committed to becoming a global circular economy solution partner.

At the same time, Mr. Samson Lui expressed his sincere gratitude to all units and individuals who participated in this project. The solar power generation system designed by EcoSmart for Chiho's Hong Kong factory uses the South Korean LG solar panels which is regarded as the highest-energy solar panel on the market. It is highly resistant to strong winds, reducing performance degradation, and its optical coating also helps reduce energy loss at high temperatures. In addition, it is incorporated with the most advanced Internet of Things ("IoT") technology Enerwise real-time detection system,

connected to the first Spark Solar Real-time Detection Center in Hong Kong, which can continuously measure the solar irradiance to estimate the photovoltaic performance, generate big data for analysis purposes, and to monitor the power generation efficiency and systems operation. Chiho's solar power generation system comprise 2,437 pieces of solar panels, with a power rating of 1 megawatt (MW), and an annual output of 1,013,375 kWh (approximately equivalent to the total electricity consumption of 241 Hong Kong households). It is estimated to reduce carbon emissions by approximately 572,000 kilograms per year (approximately equivalent to planting 26,217 trees), contributing to Hong Kong's carbon emission reduction.

Stephen Ma, Chief Executive Officer of EcoSmart, said: Being the most committed contractor to promote green energy in Hong Kong, our team strives to shoulder social responsibility and actively encourage cooperation between the business community and environmental protection companies. Portion of the power generation income from the EcoSmart investment project will be donated to the World Wide Fund for Nature Hong Kong ("WWF") to promote the development of renewable energy in Hong Kong. Our cooperation with Chiho not only will make positive contributions to sustainable development, but also can demonstrate the benefits of utilising the roof space for solar power systems to other companies and organisations in Hong Kong to encourage them to work together to tackle global climate change!

Karen Ho, Director of Corporate Sustainability of WWF Hong Kong Branch, said: First of all, I would like to thank EcoSmart and Chiho for choosing us as a partner to provide practical solutions to the climate crisis and work together to control global warming within 1.5 degrees Celsius. In fact, less than 1% of Hong Kong's electricity generation is currently generated by renewable energy, which is far from the goal of carbon neutrality. We look forward to the support and participation of the public, government, and business community to increase the proportion of renewable energy power generation to 10% by 2030. We also hope that more large-scale solar power projects will be completed in Hong Kong in the future, so as to promote Hong Kong to become the most important sustainable city in Asia.

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