China Resources Gas Co., Ltd. made an offer to acquire a 74.75% stake in Suchuang Gas Corporation Limited (SEHK:1430) from Shanghai Dazhong Public Utilities(Group) Co.,Ltd. (SHSE:600635), Dazhong (Hongkong) International Corporation Limited and Action East International Limited for HKD 1.5 billion on August 16, 2021. Under the term, China Resources Gas will acquire 675.068 million shares of Suchuang Gas and gave the shareholder of Suchuang Gas an option to elect a cash consideration of HKD 2.50 per share or 1 new share in HoldCo for every scheme share. China Resources Gas will also acquire 37.9 million option of Suchuang Gas. Post completion, the listing of the Shares of Suchuang Gas will be withdrawn from the Stock Exchange. The transaction will be financed from its controlling shareholder, China Resources (Holdings) Company Limited. The transaction is subject to approval of State-owned Assets Supervision and Administration Commission of the State Council, antitrust approval from the State Administration for Market Regulation, the approval of the Scheme (by way of a poll) by a majority in number of the Scheme Shareholders representing not less than 75% in value of the Scheme Shares held by the Scheme Shareholders present and voting either in person or by proxy at the Court Meeting. On August 25, 2021, the transaction was approved by the board of Suchuang Gas. On August 25, 2021, China Resources Gas received an Irrevocable Undertaking. As of May 4, 2022, the court meeting and the general meeting are scheduled to be held on June 10, 2022. The transaction is expected to close on March 15, 2022. As (i) additional time is required to prepare and finalize the information contained in the Scheme Document (including the letter of advice from the Independent Financial Adviser), (ii) certain key dates of the Proposal are subject to, among other things, the hearing by the Grand Court of the Cayman Islands for the application to convene the Court Meeting and the directions given thereat, and (iii) additional time is required to ascertain the financial position of the Group, the Company has applied to the Executive, and the Executive had indicated that it is minded to grant, consent to extend the date of dispatch of the Scheme Document to a date no later than December 29, 2021. As on January 28, 2022, dispatch of the Scheme Document is extended to March 29, 2022. As on February 22, 2022, the Offeror entered into the irrevocable undertakings with certain shareholders of the Company, Jade Deluxe HoldingsLimited, Fairy Wealth Investments Limited, Kiska International Inc., Xiang Liwen Zhou Jinming, Gao Beifei, Gu Chongquan, Gao Siyuan, Gong Yuju, Huang Jianfen, Hu Yong, Zhao Yibi, Zhang Hong, Jia Meifeng , Ding Bingyuan, Wang Juan, He Xueping and Zhao Weiliang and the irrevocable undertakings with Shanghai Honglida Industrial Co., Ltd and Ji Xian. Controlling Shareholders and the Offeror agree that the long stop date for the Scheme becoming effective under the Controlling Shareholders Irrevocable Undertaking being March 15, 2022 shall be extended to August 31, 2022. As of May 4, 2022, the scheme is expected to be effective on July 12, 2022. As of July 11, 2022, the Scheme was sanctioned without modification by the Grand Court. Subject to the Scheme becoming effective, the listing of the Shares on the Stock Exchange is expected to be withdrawn on July 14, 2022.

China International Capital Corporation Hong Kong Securities Limited acted as a financial advisor and fairness opinion provider to China Resources Gas. Claudia Yiu and Christopher Ma of Simmons & Simmons acted as legal advisor for Suchuang.