Auhua awarded for energy saving technology

AUHUA CLEAN ENERGY PLC

("Auhua" or "the Company")

Shandong Province award Auhua for energy saving technology

Auhua Clean Energy plc, the AIM quoted (AIM: ACE) environmental technology group based in the Shandong Province of China, is pleased to announce that one of its wholly owned subsidiaries, Weihai Auhua New Energy Co. Ltd ("Weihai Auhua") has received important recognition for its technology. Weihai Auhua has been presented the "Industrialization of Significant Energy Saving Technology" award by the Shandong Province for its highly efficient spectral selective absorbing coating which forms part of its flat panel split-unit solar water heaters. In addition, Weihai Auhua will be receiving a one-off incentive grant of RMB 500,000 from the provincial Shandong government for this technology innovation.

The Shandong government awards c. 80 companies per year in the Shandong province across a number of sectors. Companies have to meet strict criteria to qualify for this award which include demonstrating through either independent research and development or the integration of technologies that can be developed into energy saving equipment for mass production in their respective markets.

Raphael Tham, Chairman of Auhua said:

"Our strategy to focus on research and development and innovation is key to ensuring we remain technological leaders in energy saving split-unit solar water heaters and the first choice for our customers. We are very pleased that our technology continues to be acknowledged and are delighted to also receive an incentive grant which demonstrates the endorsement by the Chinese authorities for our products and their ongoing support towards renewable energy."

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About Auhua Clean Energy

Auhua Clean Energy is an environmental technology group based in the Shandong Province of Eastern China specialising in the development and application of green energy and energy efficient solar water heating solutions. In particular, the Group is focused on the manufacture and sale of split-unit solar water heating systems.

 Auhua Clean Energy operates through its wholly owned subsidiaries Shandong Auhua New Energy Co., Ltd and Weihua Auhua New Energy Co., Ltd., of which Auhua Holdings Pte Ltd is the intermediate holding company.

Information about the solar industry in China

The Shandong province is the leader in China's solar thermal initiatives. It manufactures one third of China's solar water heaters and China uses 64.8% of the world's total capacity for solar heating

In 2012, China solar water heater production has risen to 63.9 million square meters at a growth rate of 10.7% or so, with total inventory of roughly 258 million square meters.

(source: Global Status Report)

Currently dominated by unibody systems purchased by end consumers, the Shandong government is shifting its focus to promote split-unit water heater systems to property developers. Consequently they have introduced regulations to increase demand by requiring all buildings with more than 12 floors (which traditional unibody systems cannot support) to utilise solar water heater systems. Government subsidies are also available to property developers when they incorporate solar water heater systems into their building plans.