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

Sep 17, 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.

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(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1372)

VOLUNTARY ANNOUNCEMENT – ESTABLISHMENT OF A JOINT VENTURE

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 (the “ Board ”) of directors (the “ Directors ”) of the Company is pleased to announce that on 17 September 2021, the Company has entered into an investment agreement with Shenzhen Infogem Technologies Co., Ltd. (深圳市銀之傑科技股份有限公司) (“ Infogem ”), a company listed on the ChiNext Market of the Shenzhen Stock Exchange (stock code: 300085), pursuant to which, both parties agreed to establish a joint venture company in the PRC, the name of which is proposed to be 中碳銀之傑科技發展（深圳）有限公司 (China Carbon Infogem Technologies Development (Shenzhen) Co., Ltd., in English for identification only) (the “ Joint Venture ”).

The principle business of the Joint Venture: under the background of the national “double carbon” strategies, using the professional capabilities of Infogem and the Group in their respective industries, to engage in scientific and technological innovation and technical services in the field of carbon management and carbon finance under the general trend of carbon neutralization. Specifically, it includes: providing solutions and digital system support for financial institutions to achieve carbon neutrality in their own operations; providing digital system support for green financial products and services of financial institutions; developing digital tool systems such as carbon asset management, carbon accounting and carbon audit, which are generally applicable to enterprises, and providing technical support and services for the carbon management operation system built by enterprises, financial institutions and government.

BENEFITS OF THE INVESTMENT AGREEMENT

China’s economic structure and industrial structure have broaden rooms and opportunities of transformation and development under the background of the national “double carbon” strategies. Financial institutions will also play an important part during the course of achieving the objective of

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“double carbon”, and advance the deployment of financial resources under the standards of carbon neutralization on basis of achieving their own carbon neutralization. Digitalization and informatization are the core basis of achieving carbon neutralization and advance the deployment resources, and the carbon consulting business of the Group will combine the leading advantages of Infogem in digital field, provide comprehensive digital carbon neutralization solutions and set up informatization infrastructures for financial institutions and relevant enterprises and organizations.

Infogem was established in October 1998 and listed on the ChiNext Market of the Shenzhen Stock Exchange in May 2010 (stock code: 300085). Infogem provides customers with software products, software development, financial special equipment and technology services related to payment and settlement, risk prevention and control, business procedures restructuring and self-service, etc.. It also provides digital financial solutions for the financial industry, including internet finance related software development, business consulting and business operation, cloud platform construction and application development, big data platform construction and intelligent risk control, research and application of blockchain technology, development of human outsourcing, etc. Products and services are widely used in the domestic banking industry, with customers from more than 300 banks in 31 provinces, municipalities and autonomous regions, covering more than 100,000 outlets.

Focusing on the field of carbon neutrality business, the Group, on the one hand, centers on basic industry field with negative carbon emission as the core, and develops negative carbon emissions businesses such as carbon capture, utilization and storage (CCUS) and forest carbon sink; on the other hand, expands the carbon asset and credit development, operation management and investment, as well as carbon consulting and carbon neutral planning related businesses.

The Joint Venture established by both parties will primarily engage in scientific and technological innovation and technical service businesses in the field of carbon management and carbon finance, which can make full use of the advantages of technology, customer resources, industry experience and talent of both parties, and ultimately achieve win-win cooperation via business synergy.

The Board considers that the establishment of the Joint Venture may actively develop a win-win business cooperation model, grasp new business oppurtunities during the course of the realization of goals of carbon peak and carbon neutralization. The investment agreement constitutes a part of the Group’s implementation of global carbon neutralization business development. Therefore, entering into of the investment agreement is in the interests of the Group and the shareholders of the Company as a whole.

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

Hong Kong, 17 September 2021

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As at the date of this announcement, the executive Directors are Dr. Gao Gunter, Mr. Chen Xinwei, Dr. Cui Dingjun, Mr. Di Ling, Mr. Chen Lei and Mr. Artem Matyushok; 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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