The board of directors (the ``Board'') of China Gas Holdings Limited announce that, on 15 July 2021, the company and the People's Government of Hongkou District of Shanghai have entered into a cooperation agreement (the ``Cooperation Agreement''). According to the Cooperation Agreement, the People's Government of Hongkou District of Shanghai will accelerate its development of key areas such as North Bund (), improve infrastructure in urban area and foster new industrial advantages while building up urban areas with high quality of development and high quality of life. Meanwhile, it will actively support the Group's investment in the development of urban heating, industrial internet business and carbon neutrality business in Hongkou District. It also provides comprehensive services such as favorable policies to create a fair, open and attractive environment for investment and establishes a transparent, convenient and standardized mechanism to solicit investment, facilitating the Group's investment business in the region to grow and prosper. The Group believes that the entering into of the Cooperation Agreement will leverage the Group's advantages in development and management in the fields of city gas, urban heating, value-added business and new energy to the fullest and accelerate the expansion of the Group's various businesses in Hongkou District with the comprehensive policy support from the Hongkou District Government of Shanghai, which will help maximize the corporate and social benefits and create greater value for its shareholders. Shareholders and potential investors are advised to exercise caution in dealing in the shares of the company.