. The Company took the opportunity at RE+ to unveil CLOU Energy Storage Systems' (CLOU ESS) US company, a subsidiary of Midea Group and one of the strongest players in the global power industry with the twin aims of strengthening its business in the North American market and further consolidating its industry position globally. This also marks an important milestone in the global structure of Midea Group's energy storage business.

CLOU Electronics, a subsidiary of Midea Industrial Tech, stunned crowds at RE+ 2023 trade show (formerly Solar Power International, Energy Storage International, and Smart Energy Week) on September 12-14, organized by Smart Electric Power Alliance (SEPA) and Solar Energy Industries Association (SEIA) in Las Vegas. The Company took the opportunity at RE+ to unveil CLOU Energy Storage Systems' (CLOU ESS) US company, a subsidiary of Midea Group and one of the strongest players in the global power industry with the twin aims of strengthening its business in the North American market and further consolidating its industry position globally. This also marks an important milestone in the global structure of Midea Group's energy storage business.

Fu Yongjun, Vice President of Midea Group, President of Midea Industrial Tech, and Chairman of CLOU, along with Zhou Han, President of CLOU, together unveiled CLOU ESS's US company, commenting, "Midea Group has strong confidence in the green energy sector, and we plan to leverage our expertise in energy storage to really focus on the green energy market. The founding of CLOU ESS's US company will empower CLOU to further penetrate the global market, including North America. Furthermore, with leading energy storage products and solutions, the company aims to bring customers greater value, and enhanced safety, reliability, stability, and energy and cost efficiency in the energy storage industry."

The new energy market has experienced a burst of growth and the implementation of the US Inflation Reduction Act's ITC New Deal in August 2022 has resulted in the abolishing of previous mandatory allocations of photovoltaics and energy storage. This had led to the 10-year extension of tax credits and a rise in its proportion ranging between 30% and 70%. The resulting policy-driven economic leap in energy storage has brought a dramatic surge in the number of filings for electrochemical energy storage in the United States. According to Soochow Securities, as of April 2023, the registered capacity of electrochemical energy storage in the United States reached 30.2GW, an increase of 89% year-on-year. The United States is also the largest market with the second highest growth rate.

CLOU has pivoted to specialize in energy storage system integration since 2009 and offers a comprehensive portfolio, ranging from PCS, DC/DC, BMS, EMS, to O&MS, along with system integration capabilities that cover all energy storage application scenarios. CLOU has successfully established presences in the US market with significant projects, including Indiana's first large-scale lithium-ion energy storage project with a size of 24MW/63MWh, and Texas' largest energy storage power station project in the North American market with a size of 99MWh. In addition to the largest grid-side energy storage project in South America with a size of 485MWh.

According to statistics provided by international consulting organization, Orennia, all the top six projects in the United States with the highest independent energy storage operating profit in 2021 originated from CLOU. Mao Xiaojun, President of the US company of CLOU ESS, said, "The purpose of the establishment of a US company is to enhance our local R&D capabilities and to establish a local service with a localized team and channels, enabling a zero-distance service for our customers."

In 2023, Midea Group officially assumed control of CLOU and by joining Midea Industrial Tech, CLOU gained knowledge of Midea's cutting-edge technology, shared customer base, as well as global channels and R&D resources. As a "Leading Solution Provider of Energy Storage Systems (ESS) with a Better Understanding of Grid", CLOU's energy storage business has covered major application scenarios and markets, achieving a rapid response rate for customers from early project investigation, on-site delivery, and post-sales service, and creating a value of 1 + 1 + 1 > 3. With strong technological capabilities in power systems and extensive on-site experience in energy storage projects, CLOU aims to maximize operation profit and become an important force to promote green energy.

About CLOU Electronics

Shenzhen CLOU Electronics Co.Ltd., founded in 1996 and listed on Shenzhen Stock Exchange in 2007 (Stock code: 002121), is a national high-tech enterprise engaged in providing core technology and system solutions for smart energy and energy internet. As a pioneering technology innovator in renewable energy and smart grids, CLOU has been focusing on the layout of cutting-edge technologies. With its core technologies, CLOU intends to build the most advanced energy storage system and energy internet to provide solutions to intelligent power generation, smart grid, intelligent energy storage, intelligent power consumption, energy trading, energy management services, among others. As one of the first enterprises in China to focus on utility-scale energy storage, is devoted to independent R&D and manufacturing of energy storage products as well as providing complete solutions for on-grid/off-grid public utilities, thermal power plants, solar and wind power plant operators, as well as residential users. In the future, CLOU will strive to continue to shape its international marketing sectors in order to become an even greater world-class energy services provider.