Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

On December 10, 2008, China Recycling Energy Corporation (the "Company") received the resignation of Guangyu Wu, Chief Executive Officer, effective immediately. Mr. Wu also resigned as a member of the Company's Board of Directors and as Secretary. Mr. Wu's resignation was not precipitated by a disagreement over any matter relating to the Company's operations, policies or practices.

On December 10, 2008, the Board of Directors approved the appointment of Xinyu Peng, the Company's Chief Financial Officer, as Secretary and Guohua Ku, age 47, as Chief Executive Officer and as a member of the Board of Directors of the Company to replace Mr. Wu, effective December 10, 2008. Prior to joining the Company, Mr. Ku served as a Senior Engineer for Yingfeng Technology from 2003 to 2007. From 1979 to 2003, Mr. Ku served in multiple capacities for Shan Xi Blast Air Blower (Group) Co., Ltd., with his last position serving as a Senior Engineer.

In connection with his appointment as Chief Executive Officer, the Company entered into an employment agreement with Mr. Ku. The employment agreement provides that Mr. Ku will receive compensation in the amount of $1,850 per month during a one month probationary period and $2,650 per month thereafter. The term of the employment agreement is for two years.

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