The Board of Directors (the "Board") of the Company announced that the Huoqiu Animal Manure Management GHG Mitigation Project (the "Project"), which was jointly developed by the Group and Sinochem Environment Holdings Co. Ltd., was successfully registered on the Verified Carbon Standard (VCS) platform on 7 September 2023 under the Project ID 3378. The Project is located in Shidian Town, Huoqiu County, Lu'an City, Anhui Province, China.

It has a daily processing capacity of animal manure of 800 tons. It will also produce 20,000 cubic meters biogas per day and 40,000 tons of organic fertilizer annually. The generated biogas will be captured and partly used for heat generation for users nearby, and the rest will be used for electricity generation with an annual transmission capacity of 8 million kWh to East China Power Grid ("ECPG").

The Project is the first animal manure intensive treatment project in China to be successfully registered on the VCS platform. By avoiding methane emissions and displacing an equivalent electricity from ECPG dominated by fossil fuel-fired plants, it is estimated that the Project will reduce greenhouse gas emissions by 76,000 tCO2e annually. The project has a crediting period of 10 years, with a total emission reduction of 760,000 tCO2e over the period.

It effectively reduces greenhouse gas emissions while achieving proper treatment of animal manure and comprehensive utilization of energy. The Board believes that the successful registration of the Project on the VCS platform demonstrates the Group's competitiveness and expertise in the field of carbon neutrality. As part of the Group's implementation of carbon asset development, consulting, trading, and investment businesses, this progress will bring stable and favourable financial returns, aligning with the overall interests of the Group and the Company's shareholders.