Puxing Clean Energy Acquires 100% of the Equity Interests of Quzhou Puxing at a Consideration of RMB333,398,965.29

Further Expand Installed Capacity and Heating Capacity to Boost the Group’s Business Performance

HONG KONG, CHINA - Media OutReach - 6 May 2020 - Puxing Clean Energy Limited ("Puxing Clean Energy" or the "Company", together with its subsidiaries, the "Group"; stock code: 00090), the leading clean energy provider in Zhejiang Province, is pleased to announce today that Zhejiang Puxing Deneng Natural Gas Power Co., Ltd. ("Deneng Power Plant"), an indirect wholly-owned subsidiary of the Company, and Shanghai Pu-Xing Energy Limited ("Pu-Xing Energy") have entered into a share purchase agreement. Deneng Power Plant agrees to acquire 100% of the equity interests of Quzhou Puxing Gas Turbine Thermal Power Co., Ltd. ("Quzhou Puxing"), a wholly owned subsidiary of Pu-Xing Energy at a consideration of RMB333,398,965.29 (subject to adjustment).

The consideration of the acquisition will be financed by (i) the internal resources of the Group, including the cash flows generating from operating activities of the Group from time to time; and (ii) other debt financing to be determined by the Company from time to time when necessary.

Quzhou Puxing is a company established under the laws of China with limited liability on 30 November 2011 and a wholly owned subsidiary of Pu-Xing Energy. Quzhou Puxing is principally engaged in thermal power technology research and development; gas turbine thermal power project investment, operation maintenance and technical services; heating services; power generation business and photovoltaic power generation project investment and development. Quzhou Puxing has an installed capacity of approximately 230MW (including approximately 153kW photovoltaic power generating units) and a maximum heating capacity of approximately 200 tons/hour. The advanced power generating units and equipment owned by the Quzhou Puxing enable it to generate power and heat more efficiently and effectively, and result in a better financial performance. For the three years ended 31 December 2019, profit after taxation of Quzhou Puxing represented approximately 106%, 89% and 93% of the profit attributable to the equity shareholders of the Company.

With regards to the share purchase agreement and the transaction contemplated thereunder, the Independent Board Committee has been formed and the Independent Financial Adviser has been appointed by the Company to advise the Independent Board Committee and the independent shareholders. As the acquisition is subject to independent shareholders' approval, the Company will convene and hold an Extraordinary General Meeting (EGM) for the independent shareholders to consider and, if thought fit, approve the share purchase agreement and the transaction contemplated thereunder.

Mr. Wei Junyong, Chairman of Puxing Clean Energy, concluded, "As an enterprise mainly engaging in development, operation and management of natural gas-fired power plants in China, the Group has seized this golden opportunity to introduce new business drives through the acquisition of Quzhou Puxing. The acquisition will not only further strengthen Puxing Clean Energy's presence and business operation in Zhejiang Province, China, but also greatly enhance the Group's installed and heating capacities to boost its business performance. In the future, with the core philosophy of 'Energy + Technology', the Group will continue to proactively pursue new business development such as auxiliary power service, energy contracts management and energy storage as its future development goals. The Group is dedicated to transforming into an integrated energy supplier, enhancing growth potential in the long run and maximizing benefits and returns to shareholders."

About Puxing Clean Energy

Puxing Clean Energy is a leading clean energy provider in Zhejiang Province. It is mainly engaged in development, operation and management of natural gas-fired power plants. Presently, the Group owns four natural gas-fired power plants with a total installed capacity of approximately 458MW (including 578kW rooftop photovoltaic power generation facilities installed in 2018) and a maximum heating capacity of approximately 160 tons per hour.