Hong Kong, China, February 15th 2016 -- China Merchants New Energy Group Limited (“CMNE”) entered into a strategic cooperative framework agreement with the Commerce Department of Henan Province on February 15th at the headquarters of China Merchants Group (“CMG”). Pursuant to the agreement, CMNE will invest in solar power plants of no less than 100MW in Henan Province this year.

Before the signing ceremony commenced, Mr. Li Xiaopeng, President of CMG, and Mr. Guo Hongchang, Secretary General of the People's Government of Henan Province, presented the achievements of the development of CMG and Henan Province, respectively.

Mr. Li Xiaopeng introduced CMNE’s leading position in the industry, highlighted that CMG could carry out cooperation with the Government of Henan Province with new energy as the entry point, and will strengthen the support for local development of new energy and promote the industrial green upgrading. The cooperation between CMG and Henan Province will set out strategies based on specific projects, striving for the development in four sectors, namely photovoltaic industry, industrial park, inland port and finance. Mr. Li Xiaopeng also stated that CMG will exert synergies of all its resources by integrating industry and finance together with the cooperation with Henan Province as a role model.

Mr. Guo Hongchang expressed that CMNE is a leader in China in terms of developing advanced technology and a pioneer of the green industry in future. Both parties will give full play to each of their advantages to promote the energy transformation in Henan Province, so as to drive the upgrading of traditional industries.

  Mr. Guo Hongchang, Secretary General of the People's Government of Henan Province, and Mr. Li Xiaopeng, President of CMG had a cordial conversation

After the meeting, witnessed by Mr. Guo Hongchang and Mr. Li Xiaopeng, Mr. Li Yuan, CEO of CMNE, and Mr. Jiao Jinmiao, Director of the Commerce Department of Henan Province, signed the “Strategic Cooperative Framework Agreement between the Commerce Department of Henan Province and CMNE”.

Pursuant to the agreement, the two parties will conduct specific cooperation on solar power plant projects, striving to promote the development of PV projects including solar-agriculture and wind-solar hybrid power. In 2016, CMNE will invest in solar power plants of no less than 100MW in Henan Province, the initial investment of which will amount to RMB1 billion. Meanwhile, the Commerce Department of Henan Province will coordinate with local financial regulators and financial institutions, and provide assistance in recommendation of cooperation information, project coordination, and investment and financing negotiation, etc.

In addition, CMNE will also actively promote the investment in industrial sectors in Henan Province for its major shareholder, CMG, including integrated logistics, real estate and industrial park development and scientific technological innovation, and will assist the energy transformation and related industrial transformation in Henan province. The Commerce Department of Henan Province promised to coordinate and support in terms of project examination and approval, land use, fiscal taxation, market access, asset restructuring, etc., and create a good investment environment for the construction and development of related project.

CMNE is a platform holding company engaged in investment in new energy under CMG, a key state-owned enterprise . CMNE has two operating platforms: United Photovoltaics Group Limited (stock code: 00686.HK) and China Merchants Zhangzhou Development Zone Silk Road New Energy Company Limited, both of which focus on the rapidly developing solar power station market in China, carrying out development and utilization, investment, and operation maintenance for solar power plants and providing new energy asset transaction and all kinds of supporting services.

Officials and leaders who attended the signing ceremony also include: Mr. Jiao Jinmiao, Director of the Commerce Department of Henan Province, Mr. Zhang Leiming, Deputy Secretary General of the People's Government of Henan Province, Mr. Yang Jingwei, Vice President of Henan Overseas Friendship Association, Mr. Yang Yong, President of Bauhinia Magazine; Mr. Li Yinquan, Director of CMG and General Manager of China Merchants Capital, Mr. Xiong Xianliang, Director of the Strategic Development Department of CMG, Mr. Luo Yimin, Deputy Director of the General Office of CMG, and Mr. Li Hong, CFO of CMNE.