TL Natural Gas : INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 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)

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2021

The board (the "Board") of directors (the "Directors") of TL Natural Gas Holdings Limited (the "Company" and its subsidiaries, the "Group") is pleased to announce the interim unaudited consolidated results of the Group for the six months ended 30 June 2021. This announcement, containing the full text of the 2021 interim report of the Company ("2021 Interim 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 interim results. Printed version of the 2021 Interim 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, 13 August 2021

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 Mr. LI Wai Kwan, Ms. LUO Hongru and Ms. ZENG Li as independent non-executive Directors.

This announcement, for which the Directors 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 Company. 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.

01

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.

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

INTERIM REPORT 2021

02

UNAUDITED INTERIM RESULTS

The board of Directors (the "Board") is pleased to report the unaudited condensed consolidated financial results of the Group for the three months and the six months ended 30 June 2021 (the "Period"), together with the unaudited comparative figures for the corresponding period in 2020, are as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the three months and the six months ended 30 June 2021

		Three months ended	Six months ended
		30 June		30 June
		2021		2020	2021		2020
	Notes	RMB'000	RMB'000	RMB'000	RMB'000
REVENUE	4	9,700		12,976	23,820		19,618
Cost of sales		(11,429)		(12,247)	(26,572)		(19,965)
Gross (loss)/profit		(1,729)		729	(2,752)		(347)
Other income and gains	4	37		3,252	59		3,650
Selling and distribution expenses		(113)		(318)	(296)		(404)
Administrative expenses		(1,201)		(4,488)	(3,083)		(7,433)
Reversal of impairment losses
on financial assets		1,700		-	2,114		-
Share of profits and losses of
an associate		-		(24)	(20)		(51)
Finance costs	6	(285)		(336)	(583)		(573)
Other expenses		-		-	-		(172)
LOSS BEFORE TAX	5	(1,591)		(1,185)	(4,561)		(5,330)
Income tax (expense)/credit	7	(686)		40	(790)		52
LOSS FOR THE PERIOD		(2,277)		(1,145)	(5,351)		(5,278)
Loss attributable to:
Owners of the parent		(2,277)		(1,145)	(5,351)		(5,278)
Non-controlling interests		-		-	-		-
		(2,277)		(1,145)	(5,351)		(5,278)
LOSS PER SHARE ATTRIBUTABLE
TO ORDINARY EQUITY
HOLDERS OF THE PARENT
Basic and diluted (cents)	8	(0.33)		(0.18)	(0.80)		(0.89)

TL NATURAL GAS HOLDINGS LIMITED

INTERIM REPORT 2021

03

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the three months and the six months ended 30 June 2021

	Three months ended	Six months ended
	30 June		30 June
	2021		2020	2021		2020
Notes	RMB'000	RMB'000	RMB'000	RMB'000
LOSS FOR THE PERIOD	(2,277)		(1,145)	(5,351)		(5,278)
OTHER COMPREHENSIVE INCOME
Other comprehensive income to be
reclassified to profit or loss
in subsequent periods:
Exchange differences on translation
of foreign operations	(417)		305	(198)		765
Net other comprehensive income
that may be reclassified to profit
or loss in subsequent periods:	(417)		305	(198)		765
Other comprehensive income that
will not be reclassified to profit or
loss in subsequent periods:
Exchange differences on translation
of the Company's financial
statements	544		-	228		-
Net other comprehensive income
that will not be reclassified
to profit or loss in
subsequent periods	544		-	228		-
OTHER COMPREHENSIVE
INCOME FOR THE PERIOD,
NET OF TAX	127		305	30		765
TOTAL COMPREHENSIVE
LOSS FOR THE PERIOD	(2,150)		(840)	(5,321)		(4,513)
Total comprehensive loss attributable to:
Owners of the parent	(2,150)		(840)	(5,321)		(4,513)
Non-controlling interests	-		-	-		-
	(2,150)		(840)	(5,321)		(4,513)

TL NATURAL GAS HOLDINGS LIMITED

INTERIM REPORT 2021

04

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2021

		As at	As at
		30 June	31 December
		2021	2020
	Notes	RMB'000	RMB'000
NON-CURRENT ASSETS		27,343
Property, plant and equipment	10	25,255
Right-of-use assets		9,729	11,061
Other intangible assets		1,695	1,958
Investment in an associate		99	118
Deferred tax assets		1,227	2,017
Advance payments for property,		27,996
plant and equipment		27,501
Total non-current assets		68,089	67,910
CURRENT ASSETS		41
Inventories		51
Trade receivables	11	6,272	12,627
Prepayments, other receivables		18,204
and other assets		31,399
Cash and cash equivalents		15,469	6,226
Total current assets		39,986	50,303
CURRENT LIABILITIES
Interest-bearing bank loans	12	4,000	4,000
Other payables and accruals		4,336	6,649
Lease liabilities		2,683	4,451
Tax payable		2,647	2,726
Total current liabilities		13,666	17,826
NET CURRENT ASSETS		26,320	32,477
TOTAL ASSETS LESS CURRENT		94,409
LIABILITIES		100,387
NON-CURRENT LIABILITIES		6,872
Lease liabilities		7,894
Convertible bonds		-	5,192
Total non-current liabilities		6,872	13,086
NET ASSETS		87,537	87,301

TL NATURAL GAS HOLDINGS LIMITED

INTERIM REPORT 2021