Ying Li's Strategic Cooperation with State Power Investment Corporation Chongqing Electric Power Co., Ltd. and the Successful Completion of Phase I Project of Both Parties' Comprehensive Energy Transformation Project

In order to fulfill the enterprise's social responsibility, promote ESG green development, transformation and upgrading, and respond to the advocacy of carbon peak and carbon neutrality, Ying Li formulated a three-year action plan on transformation and development in 2021. With the approval and support of the Board of Directors and the parent company, it explicitly took "carbon neutrality" as one of the development directions. In December 2021, Ying Li signed the Framework Cooperation Agreement with State Power Investment Corporation Chongqing Electric Power Co., Ltd. Both parties reached a long-term and all-round partnership on cooperation in comprehensive energy service, comprehensive intelligent energy, new energy and other projects and businesses.

On December 30, 2021, both parties started Ying Li IMIX Park Daping Comprehensive Energy Transformation Project, and the Phase I Project has been successfully completed currently.

The "Central Air Conditioning Energy-saving Transformation" in Phase I Project of Ying Li IMIX Park Daping Comprehensive Energy Transformation Project was started on February 1, 2022, with a duration of 267 days, and was formally completed on October 26, 2022 after the implementation of the general contractor's bidding, pre-construction material preparation, energy-saving complete equipment procurement and installation, hardware and remote single-control commissioning and trial operation commissioning. In this phase, a set of SmartEco intelligent energy control system was constructed to realize the unattended, efficient, intelligent and green operation of the central air-conditioning system. The total investment in this phase is about RMB 900,000, which is borne by the State Power Investment Corporation. The IRR in the project is estimated to be about 7% (excluding government subsidy income). After being put into use, it is estimated that the operation and maintenance inspection workload of the mall will be reduced by 50%, the average failure rate of the equipment will be reduced by 10% - 50%, the average service life of the equipment will be increased by 20% - 40%, and the power consumption will be reduced by 222,100 kWh/year, with the comprehensive energy-saving rate of about 10.83%. The annual energy saving in power generation is equivalent to saving about 89 tons of standard coal, with about 221 tons of carbon dioxide emission reduced.

The above-mentioned Phase I Project of Ying Li IMIX Park Daping Comprehensive Energy Project was carried out in the energy contract management mode, Huizhi Energy under the State Power Investment Corporation Chongqing Electric Power Co., Ltd. provided the facilities, and the energy-saving benefits and government subsidies were shared by Ying Li and Huizhi. After the project is put into use, energy-saving rate identification and income evaluation will be followed up continuously, and the optimization of electricity sales will also be implemented simultaneously. For phase II energy storage construction of the project, including the construction of power storage and ice storage, both parties will adjust the energy storage and investment scale according to the implementation duration of time-sharing electricity price, the difference of electricity price and the space for placing energy storage equipment, and start the project in a proper time. Finally, the Ying Li IMIX Park Daping Comprehensive Energy Transformation Project will be completed through energy-saving transformation, electricity sales optimization and energy storage construction.

Ying Li IMIX Park Daping Comprehensive Energy Transformation Project is the first project jointly implemented by Ying Li and State Power Investment Corporation, and also a demonstration project for comprehensive energy transformation of large-scale commercial shopping centers in the core urban area of Chongqing. The completion of its Phase I Project will effectively help buildings and enterprises to operate efficiently in terms of energy saving and emission reduction, and promote the sustainable development of urban and social green environment, which indicates that Ying Li has taken a solid step forward in pursuing green transformation development, carbon peak and carbon neutrality initiatives, exploring the transformation and development path of environmental protection, new energy and carbon neutrality businesses, and has achieved substantial results.

The team of Ying Li will take this as a model to actively promote the energy-saving transformation project of Chongqing Guanyinqiao IMIX Park, and further expand other "carbon neutrality" projects in the region by taking advantage of the resource advantages of State Power Investment Corporation Chongqing Electric Power C., Ltd. and relevant equipment suppliers.

Besides, Ying Li will further study the industry change trend, seize the huge development potential of "carbon neutrality" business, and make efforts to realize the strategic transformation of the enterprise, respond to the requirements of SGX to strengthen ESG development, and achieve the goal of green, low-carbon, clean and beautiful national construction.