Tianjin Jinran Public Utilities Company Limited and Jinran China Resources entered into the supplemental agreements to the 2021 gas supply contract. From 1 January 2021 to 31 December 2021, the Company has been sourcing natural gas from Jinran China Resources pursuant to the 2021 Gas Supply Contract and has been selling part of such natural gas to Xintiangang. The Company is not the only supplier of natural gas available to Xintiangang. In the mutual interest of the Company and Jinran China Resources to maintaintheir respective market shares, the Company had entered into arm's length commercial negotiation with Jinran China Resources on a potential discount on the 2021 Gas Sourcing Price (the calculation of which is governed by the 2021 Gas Supply Contract) for the natural gas sourced from Jinran China Resources and provided to Xintiangang by the Company. To encourage Xintiangang to choose the Company for natural gas over other suppliers, the Company and Jinran China Resources conclude that the discount to the 2021 Gas Sourcing Price under the Supplemental Agreement gives the Company more room to adjust the selling price of natural gas to Xintiangang, thereby can encourage Xintiangang to maintain or even increase its natural gas demand from the Company, and indirectly from Jinran China Resources as the Company sources its natural gas from Jinran China Resources. Other than the potential discount to be put on the 2021 Gas Sourcing Price pursuant to the Supplemental Agreement in relation to the natural gas purchased by the Company from Jinran China Resources and provided by the Company to Xintiangang, the Company and Jinran China Resources have already agreed on discounts on the 2021 Gas Sourcing Price in relation to (i) the natural gas supplied by Jinran China Resources to the Company as processed and measured by the pressure reducing station on Lishuang Road of Tianjin city operated by the Company, (ii) the natural gas the Company sourced from Jinran China Resources and in turn provided and to be provided to (Tianjin Taigang Tianguan Buxiugang Limited), a company established in the PRC with limited liability, ultimately controlled by the State-owned Assets Supervision and Administration Commission of the State Council, an Independent Third Party, and (iii) the natural gas the Company sourced from Jinran China Resources and in turn provided and to be provided to (Tianjin Gangguan Zhizao Limited), a company established in the PRC with limited liability, ultimately controlled by the State-owned Assets Supervision and Administration Commission Of Shanghai Municipal, an Independent Third Party. For further information on the said discounts agreed between the China and Jinran China Resources, please refer to the circulars of the Company dated 9 June 2021 and 5 July 2021.