The Board of Chiho Environmental Group Limited announced that it has considered and approved the proposal regarding the establishment of an indirectly wholly owned subsidiary of the Company in Taizhou, the People's Republic of China ("China"), which will be specialised in the recycling of end-of-life vehicle ("ELV") and electric vehicle ("EV") batteries (the "Project"). The new subsidiary will be jointly formed by Taizhou Chiho-Tiande Metals Company Limited and Scholz China GmbH, both being indirectly wholly owned subsidiaries of the Company. The total expected investment capital for the project will be RMB 243 million, mainly financed through internal resources. The projected 100 acres big recycling facility is designed to process up to 50,000 ELVs and 10,000 tonnes of EV batteries per year.