Localization of the world's leading type IV vehicle-mounted hydrogen storage cylinder

(March 3, 2021, Hong Kong News) – CIMC ENRIC Holdings Co., Ltd. (together with its subsidiaries, "CIMC ENRIC" or "Company", Hong Kong Stock Code: 3899.HK) is pleased to announce CIMC Hydrogen Energy and Hexagon Purus HK signed a joint venture agreement to establish a joint venture company (the "Joint Venture Company") to provide safe, economical and efficient storage and transportation solutions for the fast-growing high-pressure hydrogen storage and transportation market in China and Southeast Asia.

Hexagon Purus HK is a wholly-owned subsidiary of Hexagon Purus AS ("Hexagon Purus", stock code: HPUR). Hexagon Purus is the world's leading provider of technology and design for Type IV hydrogen storage cylinders and hydrogen supply systems.

Joint Venture Company on line Signing Site

Joint venture structure

This cooperation will establish a specialized business entity based on a peer-to-peer structure:

● Including a high-pressure hydrogen storage tank joint venture company with a majority stake in Hexagon Purus HK (Hexagon Purus HK holds 51% and CIMC Hydrogen Energy holds 49%); and

● A hydrogen supply system joint venture company in which CIMC ENRIC has a majority stake (CIMC Hydrogen Energy holds 51% of the shares and Hexagon Purus HK holds 49%).

● The joint venture company will establish a dedicated joint sales and marketing team.

Production Line

The joint venture plans to set up a production line with an annual production capacity of approximately 100,000 units of hydrogen storage cylinders, and the actual output will be gradually increased to achieve the highest production capacity.

The joint venture company will upgrade the existing production facilities to build the production capacity of Type III hydrogen storage cylinders, and the Type III cylinder products are expected to generate revenue contribution in 2021. The construction of production facilities for Type IV hydrogen storage cylinders is expected to begin as early as the second quarter of 2021.

Market outlook

CIMC ENRIC and Hexagon Purus have joined forces in the field of hydrogen energy. The goal is to become a leading supplier of comprehensive solutions for hydrogen energy storage and transportation in China and even Southeast Asia.

According to the estimates of Trend Bank Consulting, China's hydrogen storage cylinder market will grow at a compound annual growth rate of 47.7% in the next 10 years. By 2025, the number of fuel cell vehicles will reach 100,000, and the hydrogen storage cylinder market will reach RMB 3.92 billion. ; In 2030, the number of fuel cell vehicles will reach 1 million, and the hydrogen storage cylinder market will reach RMB 20 billion.

Mr. Yang Xiaohu, Executive Director and General Manager of CIMC ENRIC, said: "The hydrogen energy industry has received unprecedented attention in China in recent years. At present, China has issued more than 37 national, provincial and municipal hydrogen energy policies. With the support of the global fuel cell vehicle market, China is expected to become the world's largest fuel cell vehicle market in the future. The development trend of vehicle hydrogen storage systems is lightweight, low cost, and low weight-to-volume ratio. Therefore, the transition from type III cylinder to type IV cylinder is in line with future development. The establishment of the joint venture company combines the geographical advantages and rich market experience of CIMC ENRIC with the strong technical strength of Hexagon Purus, forming a good synergy effect and laying a foundation for the joint venture company to seize the vast hydrogen energy market in China.

Mr. Morten Holum, CEO of Hexagon Purus, said: "China is gradually growing into the world's most important hydrogen fuel cell vehicle market. The globally-recognized high-pressure type IV cylinder hydrogen fuel storage solution is more in line with China's requirements for safety, Advanced and cost-effective hydrogen energy transformation trend. Both CIMC ENRIC and Hexagon Purus have an excellent track record of providing customers with international products and solutions. Through the strong alliance in China, the two parties will develop advanced types IV cylinder technology is introduced to China, and we will work together to build an excellent and trustworthy Chinese brand to gain a higher market share."

This part of the content is based on the exchange announcement of the establishment of a joint venture company with CIMC ENRIC announced by HEXAGON PUPUS on March 2, 2021*

About CIMC ENRIC Holdings Limited (stock code: 3899.HK)

Founded in 2004, CIMC ENRIC Holdings Limited has been listed on the Stock Exchange of Hong Kong since 2005. The Company is affiliate to China International Marine Container (Group) ltd. ("CIMC") and is principally engaged in transportation, storage and processing equipment that is widely used for the clean energy, chemical and environmental and liquid food industries. CIMC ENRIC has been a leading integrated service provider and key equipment manufacturer in the industry. The Company is among the world's top players in both production and sales of ISO liquid tanks as well as high-pressure gas storage and transport vehicles. It is among China's top players in the market of cryogenic transport vehicles and cryogenic storage tanks and among top three in terms of domestic market shares for large storage tanks for LNG receiving stations, modular products for LNG refueling stations. CIMC ENRIC has built a global marketing network and have over 20 subsidiaries located in China, the Netherlands, Germany, Belgium, United Kingdom and Canada that operate production bases and internationally advanced R&D centers. For more information, please visit http://www.enricgroup.com

About Hexagon Purus (stock ticker: HPUR)

Hexagon Purus, a Hexagon Composites company, is a world leading provider of hydrogen type 4 high-pressure cylinders, battery packs and vehicle systems integration for fuel cell electric and battery electric vehicles. Hexagon Purus enables zero emission solutions for light, medium and heavy-duty vehicles, buses, ground storage, distribution, maritime, rail and aerospace. Learn more at www.hexagonpurus.com.