Towngas China : member company Foshan Gas Listed on the Shenzhen Stock Exchange

Towngas China's member company Foshan Gas Listed on the Shenzhen Stock Exchange

(22 November, 2017) Towngas China Company Limited (Towngas China) is pleased to announce that Foshan Gas Group Co., Ltd (Foshan Gas), one of its associated companies, was listed and commenced trading on the Small and Medium Enterprise Board of the Shenzhen Stock Exchange at 9:30 a.m. today.

Foshan Gas (Stock Code: 002911·CS) is issuing a total of 56 million new shares at the price of RMB13.94 per share. The net proceeds are estimated to be RMB781 million and earmarked for phase 3 of natural gas high-pressure pipeline network project in Foshan City, phase 2 of natural gas utilization project in Sanshui District of Foshan City and phase 2 of piped natural gas project in Gaoyao City.

Towngas China has invested in Foshan Gas since 2004 and currently holds a 43% stake. Peter Wong Wai Yee, Executive Director of Foshan Gas as well as Executive Director and Chief Executive Officer of Towngas China said, "Foshan Gas has now entered the national capital market that marks an important milestone for Foshan Gas since its establishment over two decades ago. This will also consolidate Foshan Gas' position and bring new impetus to its business development in the long term. As the liberalization and reform of natural gas market in mainland China has been accelerated, we believe that Foshan Gas, which is principally engaged in the natural gas business, can take the advantage of the market opportunities to expand its business and excellent service to its customers."

Towngas China has inherited its parent's, The Hong Kong and China Gas Company Limited's, more than 150 years of professional experience in the gas industry and quality management culture. By successfully incorporating its own management excellence and quality control into our mainland counterparts, we are able to provide a safe and reliable supply of gas to our commercial, industrial and residential customers in mainland China. We also proactively

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respond to the State policy's promotion of clean energy "Reduce Carbon Emission and Smog". Peter Wong added, "We always believe that our member companies' operational efficiency and corporate governance can be enhanced through public listing, and the financing platform can help further their business development."

Foshan Gas was established in 1993 and is principally engaged in the city gas business. It focuses on the sales and distribution of natural gas, gas engineering design and construction etc., which complement and support the piped natural gas business. As of 30 June 2017, Foshan Gas has supplied piped natural gas to 643,300 residential customers and 3,095 industrial and commercial customers. It also extended its service to close to 5,000 natural gas vehicles, ranging from taxis, buses and trucks.

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About Towngas China Company Limited

Towngas China Company Limited is a Hong Kong-listed investment holding company (Stock Code: 1083·HK). Its controlling shareholder is The Hong Kong and China Gas Company Limited (Stock Code: 3·HK). Towngas China's business operations now span 19 provinces, autonomous regions and municipality with more than 100 projects in its business portfolio. Towngas China focuses on the sales and distribution of piped gas in mainland China including the provision of piped gas, construction of gas pipelines, the operation of city gas pipeline networks, the operation of gas vehicle refilling stations, and the sale of gas appliances.

For media enquiries, please contact: Corporate Affairs Department Towngas China Company Limited Tel: [phone]

Fax: [phone]

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Photo 1

Zhao Hai, Deputy Mayor of Foshan Municipal People's Government (first left of the bell- ringing guests); Alfred Chan Wing Kin, Managing Director of The Hong Kong and China Gas Company Limited (Towngas), Chairman and Executive Director of Towngas China (first right of the bell-ringing guests); Yin Xiang, Chairman of Foshan Gas (third left of the bell- ringing guests), and other guests hosted the Foshan Gas listing and bell-ringing ceremony.

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Towngas Managing Director Alfred Chan remarked at his speech, "Towngas has formed alliance with Foshan Gas in 2007 and it has been a pleasant cooperation over the last ten years. Foshan Gas is one of our most successful joint venture companies in mainland China and we are proud to have established a business relationship with Foshan Gas."

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Photo 3

Alfred Chan, Towngas Managing Director (ninth right); Peter Wong Wai Yee, Executive Director and Chief Operating Officer - Utilities Business of Towngas, Executive Director and Chief Executive Officer of Towngas China, as well as Executive Director of Foshan Gas (tenth left); John Ho Hon Ming, Chief Financial Officer and Company Secretary of Towngas, Executive Director and Company Secretary of Towngas China, as well as Executive Director of Foshan Gas (eighth left), witnessed the successful listing of Foshan Gas at the ceremony.

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