Sunpower secures M&S contract worth over RMB60 million with repeat customer China Huanqiu Contracting & Engineering

Highlights

Sunpower to provide core equipment and services for a complete demountable flare system that will be part of the world's largest coal-to-glycol project under construction

Reaffirms Sunpower's long-standing partnership with HQC,as well as technological expertise and market leadership in the field of flare systems and flare gas recovery

Expected to have a positive impact on the Group's FY2020 and FY2021 financial performance

SINGAPORE,Aug. 31,2020 -- Mainboard-listed Sunpower Group Ltd. ("Sunpower" or the "Group") (SGX: 5GD.SI),an environmental protection solutions specialist with a strong focus on expanding into anti-pollution investment projects ("Green Investments" or "GI"),which generate long-term intrinsic value in the form of recurring income and cash flows,today announced it has secured a Manufacturing & Services ("M&S") contract worth more than RMB60 million with China Huanqiu Contracting & Engineering Corporation ("HQC"),a subsidiary of China National Petroleum Corporation ("CNPC"). Both companies are repeat customers of the Group.

Under the contract,Sunpower will supply design,procurement and engineering services for a complete demountable flare system,with core components such as the flare tip and integrated pilot light manufactured by Sunpower. The flare system,which involves a 150-metre high demountable elevated flare[1],is part of a 1.8 million tons/year ethylene glycol project belonging to SHCCIG Yulin Chemical Co.,Ltd. The project is the largest coal-to-glycol[2] project under construction in the world. Delivery is expected to be completed in 2020 and will have a positive impact on the Group's financial performance in FY2020 and FY2021.

[1]Flares are safety devices used in chemical complexes to burn excess hydrocarbon gases,which cannot be recovered or recycled,in an environmentally-sound manner,as an alternative to releasing them directly into the air.

[2]Coal-to-glycol refers to usingcoal as a feedstock to produce ethyleneglycol,a raw material used to make polyester fibersandpackaging resins such as polyethylene terephthalate (PET). Source: https://www.researchgate.net/publication/336669733_Production_of_Ethylene_Glycol_from_Coal#:~:text=%EF%81%B6Ethylene%20glycol%20is%20produced,il%2Dbased%20feedstocks%20to%20coal.

Mr. Guo Hongxin,Executive Chairman of Sunpower,commented: "Our partnership with HQC dates back to 2012 and we are pleased to cooperate with them again. Securing this contract is a testament to our strong and long-standing partnership,and signals HQC's strong confidence in Sunpower's ability to supply core equipment and comprehensive services for flare systems. This contract also reaffirms Sunpower's technological expertise and market leadership in the field of flare systems and flare gas recovery.

"In addition to flare systems,we have also cooperated with HQC in other areas,including the provision of heat exchangers and pipeline energy-saving products to HQC in several large-scale coal chemical and petrochemical projects. Moving forward,we expect to further deepen our partnership with HQC and expand the scope of cooperation even further," Mr Guo added.

He continued,"The GI business has bounced back from the temporary winds of the pandemic in 1H2020,and saw improved profitability due to our continued improvement in operational efficiency and further cost control. GI remains our primary value creator and growth driver that generates long-term,high-quality recurring income and cash flows. The Group now has a portfolio of 8 GI projects in operation,1 in trial production,3 under construction and a robust pipeline of projects under evaluation for investment. To date,the Group has invested and committed approximately RMB1.7 billion in project equity and is on track to invest RMB2.5 billion in project equity by 2021 to build a sizeable and valuable GI asset portfolio."

About China Huanqiu Contracting & Engineering Corporation

China Huanqiu Contracting & Engineering Corporation (HQC),affiliated with China National Petroleum Corporation (CNPC),is an intelligence-intensive,technology-intensive and technology-oriented state-owned backbone enterprise. It takes technology as the guide,design as the lead,engages in such diversified business as consultation,R&D,engineering,procurement,construction management,equipment manufacture and commissioning guidance. HQC is capable of working both as a project management contractor and a general project contractor.

HQC has fulfilled the tasks of consultation,construction and EPC contracting for over 2,000 cross-industry large- and medium-scale domestic and overseas projects in more than 50 years. HQC has including abundant experience in contracting on an EPC basis including 14 categories of plants. Such plants include ethylene,polypropylene,LNG and chemical fertilizer plants,all of international scale. HQC's business covers 30 provinces,cities and autonomous regions across the country and nearly 20 countries and regions in Southeast Asia,West Europe,America and the Middle East. Compared with domestic counterparts,HQC is a company that is more internationalized,operating in more countries and the first to enter independently such high-end refinery markets such as Audi Arabia,Singapore,Canada and Italy.

Headquartered in Beijing,HQC has 10 domestic subsidiaries/branches located in the Bohai Bay,the Yangtze River Delta,the Zhujiang River Delta,Northeast,Northwest and Southwest of Mainland China,9 overseas branches in Southeast Asia,Middle East,Central Asia,Europe and America,and 7 research and secondary institutions such as the Post-doctorate Programme and the North Chemical Research Institute.

For more information,please refer to http://hqcec.cnpc.com.cn/hqcecen/index.shtml

About Sunpower Group Ltd.

Founded in 1997,Sunpower Group Ltd. (SGX: 5GD.SI) is an environmental protection solutions specialist in proprietary energy saving and clean power technologies,with a strong focus on expanding into anti-pollution investment projects ("Green Investments") which generate intrinsic value in the form of long-term,recurring and high-quality cash flows.

With proven capabilities in technology innovation and proprietary clean energy solutions,Sunpower is shaping a green future for itself by continuously developing its business segments of Green Investments (GI) and Manufacturing & Services (M&S). Sunpower has rapidly expanded its GI business in recent years by leveraging on its existing core technologies of high-efficiency heat transfer,long distance heat insulated steam distribution,energy saving and ultra-low emission clean power generation. The GI segment is mainly focused on the investment and operation of centralised steam and electricity supply business,which is expected to bring in additional stream of recurring income to the Company.

In the M&S segment,Sunpower has delivered superior quality products and services to approximately 1,500 customers in over 30 countries across the globe to-date. Its reputable customer base includes Wanhua Chemical,Hengli Petrochemical,China National Offshore Oil Corporation (CNOOC),China National Petroleum Corporation (CNPC),China Petrochemical Corporation (SINOPEC),ExxonMobil,BASF,BP,Shell,etc.

For more information,please refer to: http://en.sunpower.com.cn

Winnie Lyu

Gregory Yap

Email: ir@sunpower.com.cn

Email: ir@sunpower.com.cn

Phone: +86 25 5216 9718

Phone: +65 9889 5054

August Consulting (Singapore)

Silvia Heng

Jeremy Sing

Email: silviaheng@august.com.sg

Email: jeremysing@august.com.sg

Phone: +65 6733 8873

Phone: +65 6733 8873