[March 10, 2023, Hong Kong] Realord Group Holdings Limited is pleased to announce that the Group is being in discussions with an independent third party for a potential cooperation with a Chinese state-owned power generation company for the construction of an offshore wind power plant and energy storage equipment in Zhejiang Province of China. The cooperation is expected to involve engineering design, procurement of materials and equipment, and construction of energy storage equipment (the "EPC Project"). The initial design capacity of the energy storage equipment is expected to be 1 gigawatt-hour per year, which will thereafter be increased to no less than 2 gigawatt-hours per year.

China is accelerating the transformation of energy utilization methods, vigorously improving energy utilization efficiency, and renewable energy development continues to grow. However, some renewable energy power generation, such as wind and solar power, depend on the natural conditions, therefore those energies are recommended to store, thereby increasing the flexibility of the grid to ensure providing uninterrupted power supply for the customers when demand increases.

According to the "Guiding Opinions on Accelerating the Development of New Energy Storage" jointly issued by the National Development and Reform Commission and the National Energy Administration, by 2025, the installed capacity of new energy storage will reach the goal of more than 30 million kilowatts. The total installed capacity in the next 3-4 years will exceed the total growth in the recent previous decade. According to the national 14th Five-Year Plan, the future development trend of energy storage will develop in the direction of commercialization and scale, and energy storage facilities will usher in a 10-year golden period.

Realord Group believes that in the context of government support for renewable power generation and grid connection, the demand for new energy and related energy storage equipment will continue to increase. Therefore, the potential investment in the EPC project provides an attractive opportunity for the company to enter the Chinese new energy and energy storage marke