Xinjiang Torch Gas Co., Ltd. (SHSE:603080) signed framework agreement to acquire remaining 51% stake in Guangzheng Gas Co., Ltd. from Guangzheng Group Co.,Ltd (SZSE:002524) for approximately CNY 270 million on February 19, 2019. On June 26, 2019, Xinjiang Torch Gas Co., Ltd. signed share transfer agreement to acquire remaining 51% stake in Guangzheng Gas Co., Ltd. from Guangzheng Group Co.,Ltd. Post completion, Xinjiang Torch Gas Co., Ltd. will hold 100% stake in Guangzheng Gas Co., Ltd and will become wholly subsidiary of Xinjiang Torch Gas Co., Ltd. while Guangzheng Group Co.,Ltd will hold no stake.

For the period ended December 31, 2018, Guangzheng Gas Co., Ltd. has reported total assets of CNY 483.52 million, total liabilities of CNY 153.73 million, shareholder's equity of CNY 329.79 million, revenue of CNY 266.17 million, operating profit of CNY 36 million and net profit of CNY 30.32 million. The Board of Directors of Xinjiang Torch Gas Co., Ltd. and Guangzheng Group Co.,Ltd has approved the transaction. The transaction is subject to approval from the shareholders of Xinjiang Torch Gas Co., Ltd. and Guangzheng Energy Co., Ltd. On July 29, 2019, Guangzheng Group Co.,Ltd's shareholders held its 2nd extraordinary general meeting of 2019 and approved the transaction. On July 29, 2019, Xinjiang Torch Gas Co., Ltd.'s shareholders approved the transaction. He Yong, Su Huafeng and Chen Qi of Western Securities Co.,Ltd. (SZSE:002673) acted as financial advisors to Xinjiang Torch Gas Co., Ltd. Li Gang, He Zhengjun of Gu Ran of Hylands Law Firm as legal advisors and Zhu Ying and Xu Zhen of BDO China SHU LUN PAN Certified Public Accountants LLP acted as accountant to Xinjiang Torch Gas Co., Ltd.