China Carbon Neutral Development Group Limited — Capital/Financing Update 2021

Nov 1, 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. This announcement is for information purpose only and does not constitute an invitation or offer to acquire, purchase or subscribe for any securities in the Company.

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(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1372)

VOLUNTARY ANNOUNCEMENT - MAJOR BUSINESS PROGRESS

This announcement is made by China Carbon Neutral Development Group Limited (the “ Company ”, together with its subsidiaries, the “ Group ”) on a voluntary basis.

The board of directors of the Company is pleased to announce that the Group officially initiated the formation of a carbon asset investment fund - Global Carbon Asset Investment Management Fund, L.P. (全球碳資產投資管理基金有限合夥) on 1 November 2021. The Group will accordingly set up Global Carbon Asset Investment Management, Ltd. (全球碳資產投資管理有限公司) to act as the general partner (the “ GP ”). The fund will actively participate in the global mandatory carbon trading market and voluntary carbon trading market, and relying on the Group’s outstanding abilities in the acquisition and allocation of carbon assets, it will actively invest in high-quality carbon assets in the world, providing investors with a new type of asset allocation options and a type of innovative investment strategy.

Carbon neutrality is an inevitable choice to deal with global climate change. The value discovery process of carbon assets (i.e. the activities to reduce carbon and increase sinks) will change the development model of countries, enterprises and individuals, and it is also one of the important ways to achieve carbon neutrality. According to the judgment of authoritative institutions, carbon assets are expected to become another important capital after digital assets and become an important element of enterprise development and international competition. The global carbon market is developing rapidly. The international and regional carbon markets are becoming more and more mature and the types and methods of trading are increasing. The segmented and active carbon markets provide a lot of investment opportunities for various trading strategies and trading methods.

The investment and allocation of carbon assets (as a new type of asset) requires a deep understanding and rich experience in the intrinsic value, the development cycle, and the demand and supply of the assets. In order to achieve carbon neutrality and accelerate “net zero carbon”, Asia and China has

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created strong demand for carbon assets. Besides, the “decarbonization” process has increased the scale of carbon assets, and has gradually strengthened the financial attributes of carbon assets. It is very important to accurately grasp the regional development trend of carbon assets. As a leading regional carbon asset development and management enterprise, the Group has accumulated outstanding industry knowledge with an experienced team, and has formed advantages in cognition, execution, region and channels.

The Group believes that the establishment of the carbon asset investment fund is a natural expansion of the carbon asset development and operation business, which can: (1) significantly enhance the potential of related businesses, further strengthen the Group’s leading position in carbon asset management, and develop cross-border advantages; (2) enrich the Group’s ways and channels to participate in the global carbon market, and guide more funds to enter into the suitable carbon asset markets; (3) optimize the financial performance of the Group with incomes from asset management and performence.

By order of the Board China Carbon Neutral Development Group Limited Gao Gunter Chairman

Hong Kong, 1 November 2021

As at the date of this announcement, the executive Directors are Dr. Gao Gunter, Mr. Chen Xinwei, Dr. Cui Dingjun, Mr. Di Ling and Mr. Chen Lei; the non-executive Director is Mr. Lam Po Foon; and the independent non-executive Directors are Dr. Guo Yike, Mr. Ip Mei Shun, Mr. Leung Tsz Wing and Mr. Yu Wai Chun.

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