Trading Update

AUHUA CLEAN ENERGY PLC

("Auhua" or the "Company")

Trading Update

7 February 2014: Auhua Clean Energy Company Plc (AIM: ACE), the environmental technology group, is pleased provide a trading update for shareholders. The directors of Auhua (the "Directors") confirm that the Company expects to report an annual revenue increase of 16.4 per cent for the twelve months ended 31 December 2013, compared with the same fiscal period in the previous year. Both profit before tax and cash balances are expected to exceed the performance that was recorded for 2012 and to be in line with management expectations.

While the first six months of 2013 was relatively slow due, amongst other things, to the change in leadership in China's ruling political party and government, the second six months of 2013 performed better and stronger. As a whole, the Directors consider 2013 to have been a year of strong growth, driven by strengthened sales and a supportive market environment. The Chinese government remains committed to policies supportive of both urban expansion and renewable energy, which are key drivers for the Company's continuing growth:

· In September 2013, Premier Li announced his target to boost urban population in China by 400 million over the next 10 years.

· China's 12th Five-Year Plan for Renewable Energy set 2015 targets for 9.5 per cent. of primary energy consumption to come from renewables and for a total of 280 GW (400 million m2) of solar heating capacity (2011:151 GW).

In recognition of Auhua's strong performance, the Directors will consider recommending the payment of a maiden dividend for the year ending 31 December 2013, having regard to the Company's cash reserves and working capital needs at such time.

The Company intends to announce its full year results by the end of April 2014.

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About Auhua:

Auhua Clean Energy (www.auhuacleanenergy.com) is an environmental technology group based in the Shandong Province of Eastern China specialising in the development and application of green energy and energy efficient solar water heating solutions. In particular, the Group is focused on the manufacture and sale of split-unit solar water heating systems. 

Auhua Clean Energy operates through its wholly owned subsidiaries Shandong Auhua New Energy Co., Ltd and Weihua Auhua New Energy Co., Ltd., of which Auhua Holdings Pte Ltd is the intermediate holding company.