Item 1.01 Entry into a Material Definitive Agreement.

On July 24, 2012, China Recycling Energy Corporation (the "Company"), Great Essential Investment, Ltd., Carlyle Asia Growth Partners III, L.P., and CAGP III Co-Investment, L.P. entered into an amendment (the "Amendment"), effective as of June 28, 2012, to the Convertible Promissory Note Transfer Agreement, dated April 28, 2012 (the "Agreement"), the terms of which are described in, and a copy of which is attached as an exhibit to, the Company's Quarterly Report on Form 10-Q for the quarter-ended March 31, 2012. The Amendment, amongst other things, extended the termination date of the Agreement from June 30, 2012 to August 30, 2012, and extended the maturity date of the 8% Secured Promissory Note, in the principal amount of $3,000,000, from July 28, 2012 to September 26, 2012.

The foregoing is only a brief description of the material terms of the Amendment and does not purport to be complete. The Amendment will be filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter-ended June 30, 2012.