TL Natural Gas : ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

TL Natural Gas Holdings Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 8536)

ANNUAL RESULTS ANNOUNCEMENT

FOR THE YEAR ENDED 31 DECEMBER 2021

The board of directors (the "Board") of TL Natural Gas Holdings Limited (the "Company" and its subsidiaries, the "Group") is pleased to announce the audited consolidated results of the Group for the year ended 31 December 2021. This announcement, containing the full text of the 2021 annual report of the Company ("2021 Annual Report"), complies with the relevant requirements of The Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited ("GEM Listing Rules") in relation to information to accompany preliminary announcement of annual results. Printed version of the 2021 Annual Report will be delivered to the shareholders of the Company and available for viewing on the websites of GEM at www.hkgem.com and of the Company at www.tl-cng.com in due course.

By Order of the Board

TL Natural Gas Holdings Limited

LIU Yong Cheng

Executive Director, Chairman and Chief Executive Officer

Hong Kong, 23 March 2022

As at the date of this announcement, the Board comprises Mr. LIU Yong Cheng, Mr. LIU Yong Qiang and Mr. LIU Chunde as executive Directors; and Ms. LUO Hongru, Ms. ZENG Li and Mr. YEUNG Chun Yue David as independent non-executive Directors.

This announcement, for which the directors (the "Directors") of the Company collectively and individually accept full responsibility, includes particulars given in compliance with the GEM Listing Rules for the purpose of giving information with regard to the Group. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the GEM website at www.hkgem.com on the "Latest Company Announcements" page for at least seven days from the date of its posting. This announcement will also be published on the Company's website at www.tl-cng.com.

1

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the main board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report.

This report, for which the directors (the "Directors") of TL Natural Gas Holdings Limited (the "Company", and together with its subsidiaries, the "Group", "we" or "our") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to the Group. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief, the information contained in this report is accurate and complete in all material respects and not misleading or deceptive and there are no other matters the omission of which would make any statement herein or this report misleading.

Unless otherwise stated, all monetary figures are expressed in Renminbi ("RMB").

In the context of this report, compressed natural gas ("CNG") refers to natural gas that has been compressed to a high density through high pressure and is used as a clean alternative fuel for vehicles. Liquefied natural gas ("LNG") refers to natural gas that has been converted to liquid form.

This report will remain on the website of GEM at www.hkgem.com on the "Latest Company Announcements" page for at least 7 days from the date of publication and on the website of the Company at www.tl-cng.com.

TL NATURAL GAS HOLDINGS LIMITED

ANNUAL REPORT 2021

2

CONTENTS

Corporate Information	3
Chairman's Statement	4
Management Discussion and Analysis	5
Biographical Details of Directors and Senior Management	14
Report of the Directors	18
Corporate Governance Report	29
Environmental, Social and Governance Report	39
Independent Auditor's Report	55
Consolidated Statement of Profit or Loss	60
Consolidated Statement of Profit or Loss and	61
Other Comprehensive Income
Consolidated Statement of Financial Position	62
Consolidated Statement of Changes in Equity	63
Consolidated Statement of Cash Flows	64
Notes to Consolidated Financial Statements	65
Financial Summary	126

TL NATURAL GAS HOLDINGS LIMITED

ANNUAL REPORT 2021

EXECUTIVE DIRECTORS

Mr. Liu Yong Cheng (Chairman and Chief Executive Officer) Mr. Liu Yong Qiang

Mr. Liu Chunde

INDEPENDENT NON-EXECUTIVE DIRECTORS

Ms. Luo Hongru

Ms. Zeng Li (appointed on 30 April 2021)

Mr. Yeung Chun Yue David (appointed on 29 December 2021) Mr. Li Wai Kwan (resigned on 30 September 2021)

Ms. Li Helen Hoi Lam (resigned on 30 April 2021)

AUDIT AND RISK MANAGEMENT COMMITTEE

Mr. Yeung Chun Yue David (Chairman)

Ms. Luo Hongru

Ms. Zeng Li

REMUNERATION COMMITTEE

Ms. Luo Hongru (Chairman)

Mr. Liu Yong Cheng

Ms. Zeng Li

NOMINATION COMMITTEE

Mr. Liu Yong Cheng (Chairman)

Ms. Luo Hongru

Ms. Zeng Li

AUTHORISED REPRESENTATIVES

Mr. Liu Yong Cheng

Mr. Tam Chun Wai Edwin

JOINT COMPANY SECRETARIES

Mr. Zhao Yonghe

Mr. Tam Chun Wai Edwin

COMPLIANCE OFFICER

Mr. Liu Yong Cheng

LEGAL ADVISERS AS TO HONG KONG LAWS

Fangda Partners

AUDITOR

CL Partners CPA Limited

Certified Public Accountants

Registered Public Interest Entity Auditors

3

CORPORATE INFORMATION

COMPLIANCE ADVISER

Giraffe Capital Limited (until 31 March 2021)

PRINCIPAL BANKERS

Agricultural Bank of China

Industrial and Commercial Bank of China

Hubei Bank

Hang Seng Bank

DBS

REGISTERED OFFICE IN THE CAYMAN ISLANDS

Osiris International Cayman Limited

Suite #4-210, Governors Square

23 Lime Tree Bay Avenue, PO Box 32311

Grand Cayman KY1-1209, Cayman Islands

PRINCIPAL PLACE OF BUSINESS IN

HONG KONG

4/F, Wah Yuen Building 149 Queen's Road Central Hong Kong

HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS IN THE PEOPLE'S REPUBLIC OF CHINA

Jingzhou Primary Station

Dong Fang Road, Economic Development Zone

Jingzhou City, Hubei Province

the PRC

CAYMAN ISLANDS PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE

Osiris International Cayman Limited

Suite #4-210, Governors Square

23 Lime Tree Bay Avenue, PO Box 32311

Grand Cayman KY1-1209, Cayman Islands

HONG KONG BRANCH SHARE

REGISTRAR AND TRANSFER OFFICE

Tricor Investor Services Limited

Level 54, Hopewell Centre

183 Queen's Road East

Hong Kong

WEBSITE

www.tl-cng.com

STOCK CODE

8536

TL NATURAL GAS HOLDINGS LIMITED

ANNUAL REPORT 2021

4

CHAIRMAN'S STATEMENT

Dear Shareholders,

On behalf of the board of Directors (the "Board") of the Company, I am pleased to present the annual report of the Company and its subsidiaries (together the "Group") for the year ended 31 December 2021 (the "Year").

BUSINESS REVIEW AND FINANCIAL PERFORMANCE

During the Year, the coronavirus outbreak (the "COVID-19") continued to affect the Group's business, primarily because of the reduction in travelling and passenger journeys, resulting from the on-goinganti-pandemic measures. As a result, the financial performance of the Group for the Year has been severely affected, mainly attributable to the net effect of (i) the decrease in revenue by 8.8% from RMB50.9 million in 2020 to RMB46.4 million for the Year primarily due to the closure of main roads near one of the Group's gas refuelling substations;

1. the decrease in impairment loss of trade receivables (2021: credit of RMB0.7 million; 2020: RMB5.5 million); and (iii) the decrease in administrative expenses by approximately RMB7.7 million (2021: RMB8.5 million; 2020: RMB16.2 million) due to the absence of certain one- off professional fees incurred in relation to the acquisitions during 2020. Accordingly, the Group's net loss for the Year decreased by 62.4% from RMB22.6 million in 2020 to RMB8.5 million for the Year.

FUTURE PROSPECTS

The Group aims to deliver a safe and reliable supply of clean energy as well as the caring, competent and efficient services to customers; offer a grow and sustainable performance to shareholders; create extensive professional and personal development opportunities to employees; and contribute to the protection and improvement of the environment in the People's Republic of China (the "PRC").

Looking forward, the Group is optimistic about the growth of consumption of CNG along with China improving its energy consumption structure by shifting from coal to cleaner energy such as natural gas and other renewable energy. The Group believes that favourable government policies and industry trends in the PRC will foster the development of the natural gas sector and stimulate domestic demand for the use of natural gas.

The Group has been actively considering and exploring various business opportunities according to the market conditions with an aim to diversify the income sources and to enhance the shareholders' value.

APPRECIATION

I would like to take this opportunity to express my gratitude to my fellow directors for their guidance, to all staff for their dedication and hard work, and to all our shareholders and customers for their continued support.

LIU Yong Cheng

Chairman, Chief Executive Officer and Executive Director

Hong Kong, 23 March 2022

TL NATURAL GAS HOLDINGS LIMITED

ANNUAL REPORT 2021