Future Plans and [Redacted]

THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. FUTURE PLANS AND [REDACTED]

FUTURE PLANS

Our Directors believe that the [REDACTED] will facilitate the implementation of our business strategies for continuous growth and further business expansion. As an established non-state-owned PNG operator in the PRC, we operate our business in the Operating Areas covering various cities or districts, including Rugao city (如皋市) in Jiangsu province, Wuyi county (武邑縣), Fucheng county (阜城縣) and Shenzhou city (深州市) in Hebei province, Changde city (常德市) in Hunan province and Wan’an county (萬安縣) in Jiangxi province. We plan to expand our business primarily through (i) the extension of our natural gas pipeline networks and construction of new facilities in (a) our Operating Areas and (b) Weixian county (威縣縣); and (ii) acquisition of controlling interests in companies which had already been granted concessions. Please see “Business – Our strategies” in this document for details. To realise our business strategies and implement our plans, our Directors consider that additional funding from [REDACTED] will be beneficial to our Group taking into account the following:

Planned construction of natural gas pipeline networks and facilities

The following table sets out our plan for expected capital expenditure:

Expected amount to be financed by our internal resources Expenditure Expected and/or paid or Expected amount borrowings payable storage Expected expenditure to be funded from as at capacity/ Estimated for the year ending Expected by [REDACTED] authorised the Latest Facilities/ pipeline construction 31 December 31 December total capital from the financial Practicable Region pipeline length period(1) 2021 2022 expenditure(2) [REDACTED] institutions Date months RMB’ million RMB’ million RMB’ million RMB’ million RMB’ million RMB’ million

Rugao Area • Mid-pressure 22.3 km 10(4) [7.0] [–] [7.0] [REDACTED][REDACTED] 1.1 pipeline

Wuyi Area • LNG storage 2,000 m3 6(4) [18.9] [3.4] [33.7] [REDACTED][REDACTED] 11.4 station • Mid-pressure 14.1 km 8(4) [4.1] [–] [4.1] [REDACTED][REDACTED] 0.2 pipeline

Shenzhou Area • Office N/A 10 [0.6] [5.4] [6.0] [REDACTED][REDACTED]– building • Mid-pressure 7.9 km 7 [1.6] [0.6] [2.2] [REDACTED][REDACTED]– pipeline

Taohuayuan • Mid-pressure 13.1 km 8(4) [2.3] [0.2] [2.5] [REDACTED][REDACTED] 0.2 Area pipeline

Wan’an Area • LNG storage 100 m3 5 [0.6] [5.4] [6.0] [REDACTED][REDACTED]– station

• Mid-pressure 9.1 km 8(4) [4.3] [0.5] [4.8] [REDACTED][REDACTED] 0.0 pipeline

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Weixian county • PNG City N/A(5) 8(3) [0.7] [6.3] [7.0] [REDACTED][REDACTED]– gateway station • Ultra-high- 11.6 km 8(3) [1.0] [9.0] [10.0] [REDACTED][REDACTED]– pressure pipeline • Mid-pressure 44 km 10(3) [–] [18.0] [18.0] [REDACTED][REDACTED]– pipeline

Total: [41.1] [48.8] [101.3] [REDACTED][REDACTED] [12.9]

Total amount of [REDACTED] from the [REDACTED][REDACTED] [REDACTED] to be applied: Total amount to be funded through our internal resources and/or borrowings: [REDACTED][REDACTED] Notes:

(1) The above plan and construction period may vary depending on various factors, including the timing of obtaining the necessary approvals from the local governmental authorities, the launch or implementation of new governmental policies affecting our business, unexpected change of economic conditions and weather conditions etc. In particular, it will be difficult to carry out construction work during rainy seasons for areas in the southern China and snow seasons for areas in the northern China.

(2) (a) The construction cost of the LNG storage stations is estimated based on preliminary quotations available which have taken into account the factors such as the construction materials, the land to be occupied, the storage capacity, the capacity of converting LNG into PNG, the location and environment of the construction areas and the complexity in carrying out the construction work.

(b) The construction cost of the pipelines is estimated based on preliminary quotations available which have taken into account factors such as their construction materials, length, design and structure, the location and environment of the construction areas and the complexity in carrying out the construction work.

(c) The construction cost of the PNG city gateway station is estimated based on preliminary quotations available which have taken into account factors such as the construction materials, the land to be occupied, the supply capacity, the location and environment of the construction areas and the complexity in carrying out the construction work.

(3) The commencement of the construction work is expected to take place after the [REDACTED].

(4) As at the Latest Practicable Date, our Group had incurred expenditures in relation to the purchase of raw materials and equipment as well as design fees.

(5) The Weixian PNG city gateway station is expected to have a designed annual gas supply capacity of approximately 3.0 million m3.

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Our Operating Areas

We target to build new pipeline networks and facilities in our Operating Areas with an aim to provide natural gas for more potential customers, in particular industrial and commercial customers, in 2021 and 2022. Although construction of natural gas pipeline networks and facilities is capital intensive, we expect to generate recurring and stable income from our sales of natural gas to end users during the term of our Concessions.

Construction of new urban pipeline networks

We plan to further expand the coverage of our urban pipeline networks and enhance our network facilities by constructing more mid-pressure pipelines for connecting our natural gas stations to customers’ end-user pipeline networks in our Operating Areas from 2021 to 2022, with priority given to areas which are expected to be developed by local governments pursuant to their urban planning, subject to the relevant market conditions. As at 31 December 2020, our urban pipelines (including both high- and mid-pressure pipelines) covered a length of approximately 407.9 km, 882.7 km, 123.5 km, 475.9 km, 42.8 km and 19.9 km in Rugao Area, Wuyi Area, Fucheng Area, Shenzhou Area, Taohuayuan Area and Wan’an Area, respectively, which, following our expansion, would increase by 22.3 km, 14.1 km, nil km, 7.9 km, 13.1 km and 9.1 km, respectively, by the end of 2022.

We believe we could capture the new business opportunities through construction of new pipeline network arising from the following factors: (i) according to the CIC Report, the favourable coal-to-gas policies issued by the PRC government is expected to encourage the use of gas in substitution of coal, continue to promote natural gas consumption volume and propel the sustainable development of city natural gas supply market in the PRC; (ii) the penetration rates of natural gas in the industrial, commercial and residential sectors in the provinces where our Operating Areas are located are expected to have a high growth potential in the future; and (iii) the consumption volume of natural gas in Jiangsu province and Hebei province, where the majority of our Operating Areas are located, is expected to grow with a CAGR of 9.6% and 9.9%, respectively, from 2020 to 2025.

To capture the new business opportunities deriving from the increase in demand for natural gas from residential, industrial and commercial customers corresponding with the growth of the newly developed districts in our Operating Areas, we plan to extend our urban pipeline networks for connecting our natural gas stations to customers’ end-user pipeline networks. For example, in Rugao Area, we intend to expand our pipeline networks in Dongchen town* (東陳鎮) located at the east of the Rugao urban district. In 2019, the development plan of city-east industrial zone* (城東工業區) was launched with the support of the Rugao Government, which would cover a site area of approximately 3 million sq.m. at Dongchen town. As of 2020, the city-east industrial zone has attracted certain projects with investment amount over RMB1 billion each, including projects relating to the 5G network industry. It is expected that after the completion of the construction of the city-east industrial zone, people would be attracted to settle in Dongchen town, and Dongchen town would revolve around the

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In Wuyi Area, Wuyi Government attracted certain projects relating to the production of furniture and novel construction materials with a total investment amount of approximately RMB900 million, which commenced construction in early 2020. As confirmed by our Directors, these projects will be located in the areas covered by our planned pipelines, and therefore it is expected that the completion of such projects will increase demand for PNG from industrial customers. We also intend to construct pipelines for connecting our new LNG storage station in Wuyi Area (details of which are disclosed below) to our existing pipeline networks for the supply of gas to end users.

In Shenzhou Area, the development plan of Shenzhou High Speed Railway New Town* (深州高鐵新城) was launched in 2019 with the support of the Shenzhou Government, which would cover a site area of approximately 2.5 million sq.m. As of 2020, the Shenzhou High Speed Railway New Town has attracted certain projects with total investment amount over RMB800 million. It is expected that Shenzhou High Speed Railway New Town will attract more projects in relation to the production of furniture and high-end equipment, and thus there will be more potential customers for natural gas.

In Taohuayuan Area, the investment promotion project for the development of the Modern Agricultural Industrial Park* (現代農業產業園）was launched in May 2020 by Taohuayuan Tourist Management District Investment Promotion Centre* (桃花源旅遊管理區招商中心), which would cover a site area of approximately 0.5 million sq.m. It is expected that approximately RMB300 million would be invested in the development of the Modern Agricultural Industrial Park and our Directors expect that the demand for natural gas would increase following its development.

For Wan’an Area, to the best knowledge of our Directors, the construction of certain new development projects is expected to commence in the area covered by our planned pipeline network, where the consumption of natural gas is expected to increase.

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The following maps illustrate the gas facilities and mid-pressure pipelines intended to be constructed pursuant to our strategies in each of our Operating Areas(Note):

Rugao Area Wuyi Area FuchengWeixian CountyArea

Rugao LNG storage station

Wuyi LNG storage station

Length: Length: Length: Planned pipelines 22.3 km Planned pipelines 14.1 km Planned pipelines 12.0 km

Shenzhou Area Taohuayuan Area Wan’an Area

Length: Length: Length: Planned pipelines 7.9 km Planned pipelines 13.1 km Planned pipelines 9.1 km

Note: The maps are provided to the best of our Directors’ knowledge and for the purpose of illustrating the approximate locations and lengths of our gas facilities and pipelines only.

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Building a new LNG storage station

We constructed an additional LNG storage station in Rugao Area which commenced operation in May 2021, and we intend to construct another two LNG storage stations in Wuyi Area and Wan’an Area by the end of 2021 and the end of April 2022, respectively. The new LNG storage station at Wuyi Area will act as a gas reserve facility for Wuyi Area, Fucheng Area and Shenzhou Area, for storing LNG transported by the suppliers’ tankers and converting such LNG into PNG for sale to customers. As at the Latest Practicable Date, we had already started the preparatory work for the construction of new LNG storage station at Wuyi Area with an expenditure of RMB11.4 million. While PNG was the major form of natural gas we purchased from our suppliers during the Track Record Period, we also procured different forms of natural gas as an additional source of supply. In Wuyi Area, our existing gas storage station receives LNG transported through tankers from our suppliers, which is then converted into PNG before being transmitted to our customers. Although our Group was occasionally unable to meet the minimum purchase requirement of our PNG suppliers during the Track Record Period, such shortfall generally happened during slack seasons. To ensure we could maintain a stable supply of natural gas to our customers and avoid any potential gas suspension, an additional source of supply of LNG, which is converted to PNG for sale, is particularly important during peak seasons when the supply of PNG from our suppliers is insufficient to satisfy the demand from our customers. Since the new LNG storage station of Wuyi Area would be used as a gas reserve facility for the Wuyi Area, Fucheng Area and Shenzhou Area, in which the revenue generated from the sales of natural gas in these areas amount to approximately 44.3%, 37.3% and 33.2% of our total revenue for the three years ended 31 December 2020, our Directors believe that, the new LNG storage station would allow us to prevent gas suspension during the peak season in these areas, and further increase the revenue earned from the customer located in these areas.

Furthermore, the LNG storage stations will also help us control and stabilise our purchase costs of LNG, as we may procure more LNG when we consider the price is relatively low on average and store it in our LNG storage stations. Upon the commencement of operation of the new Rugao LNG storage station and Wuyi LNG storage station in May 2021 and the end of 2021, respectively, our LNG storage capacity would be increased from nil to 2,000 m3 (convertible to approximately 1,200,000 m3 of PNG) in Wuyi Area.

In connection to this, the NDRC, the Ministry of Finance (財政部), the Natural Resources Department (自然資源部), the Housing and Urban-rural Development Bureau (住房城鄉建設部) and the National Energy Administration (國家能源局) jointly issued the Implementation Opinions on Accelerating the Construction of Natural Gas Reserve Capacity* (關於加快推進天然氣儲備能力建設的實施意見) in April 2020, which, in view of the rapid growth of the natural gas industry and problems such as the lack of gas storage capacity in the PRC, set down certain directions with the aim of accelerating the construction of gas storage facilities and improving storage capacity. City gas operators are required to observe their peak adjustment obligations and shall be punished if there is suspension of gas supply to residential users in large scale. The relevant government authorities shall evaluate city gas operators’ gas storage capacity to ensure they have established sufficient gas reserve.

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According to the relevant advices and implementation opinions, city gas operators shall establish gas reserve which offers gas storage capacity of no less than 5% of their annual gas consumption by the end of 2020. In relation to this, pursuant to the Regulations on Gas Administration of Hebei Province* (《河北省燃氣管理條例》) effective from 1 April 2020, gas operators shall fulfil their gas storage responsibilities through different means such as self-constructing, joint-constructing, leasing or purchasing gas storage facilities or engaging gas storage services to ensure that they have a gas reserve volume not less than the national storage requirement. Similarly, the Regulations on Gas Administration of Jiangsu Province* (《江蘇省燃氣管理條例》) effective from 1 May 2020 also states that gas operators shall improve their storage capacity to ensure a normal supply of gas.

As for Wan’an Area, since we only maintain a CNG storage station at this area which allows us to store CNG instead of LNG, we intend to build a gas storage station for the storage of LNG and supply to the area. In particular, the average cost for purchasing LNG is lower than the cost of purchasing CNG for the Wan’an Area. Therefore, if we are able to store more LNG, which can be converted into PNG and sold to the customers at a lower price, we believe that our profit margin for the revenue earned from selling of natural gas in Wan’an Area will increase. Furthermore, our competitiveness in Wan’an Area will also increase as we can sell the PNG to our customers at a lower price.

As at the Latest Practicable Date, the construction of the new LNG storage station in Wuyi Area is expected to be completed by the end of 2021. The LNG storage station in Wuyi Area, which would be used as a gas reserve facility for Wuyi Area, Fucheng Area and Shenzhou Area, is expected to provide a gas storage capacity of approximately 2.3% of the annual consumption of these areas. We also intend to enter into leasing agreement in respect of leasing gas storage facilities, including but not limited to those constructed under the overall governmental planning of Jiangsu and Hebei provinces and those provided by other suppliers in the market. Our Directors consider that there would be no impediment for our Group to fulfill such storage capacity requirement without incurring a substantial cost and will take actions to construct, acquire and/or lease storage facilities as and when appropriate. Therefore, our Directors are of the view that our Group would be able to maintain a gas storage capacity of no less than 5% of annual gas consumption by the end of 2021. As such, our Group is expected to comply with the relevant regulations in relation to storage capacity, and our Directors believe that the relevant regulations will not affect the operation of our business in any material respects.

Our proposed investment plan in relation to the wholesale PNG business in Weixian county

In or around 2017, an acquaintance of Mr. Tang informed him that Weixian county (a county beyond our Operating Areas) was lack of natural gas resources and we may grasp the opportunity to expand our wholesale PNG business there and referred us to the Weixian Government. Our management hence looked into this potential business opportunity further.

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Weixian county is located in Xingtai city, Hebei province, the PRC. According to the CIC Report, it covered an area of approximately 1,012 km2, with a total population of approximately 600,000 in 2020; in 2019, it had a GDP of approximately RMB10,600.0 million, increasing by a CAGR of 5.7% since 2016. To the best information and knowledge of our Directors, (i) there were four city gas suppliers in Weixian supplying natural gas to the local residential users, commercial users and industrial users as at the Latest Practicable Date; and (ii) the existing natural gas facilities however only covered certain sections of the urban areas in Weixian county, and there were not sufficient pipelines connecting to a long term and stable source of natural gas to support the local needs.

At the material time, given that the Puyang branch (濮陽支線) of the E’ancang pipeline (鄂安滄輸氣管) of Sinopec had been planned to be constructed to pass through the Weixian county, and in order to enhance the supply of natural gas in Weixian county, the Weixian Government considered to invite investors to construct a city gateway station and pipelines to connect the Puyang branch of the E’ancang pipeline to the pipeline networks in Weixian county for the supply of natural gas to the local city gas suppliers.

The commercial rationale to expand our PNG wholesale business in Weixian county

We conducted a feasibility study on the wholesale supply of natural gas to city gas suppliers in Weixian county. After taking into consideration a variety of factors, including but not limited to, Weixian county’s geographic location, its socio-economic and demographic condition, the local regulatory environment and policies implemented, the natural gas facilities and development plan of the upstream suppliers, existing and future source of natural gas supply, capability and demand from existing city gas suppliers and the potential growth of natural gas consumption in Weixian county, and the financial resources available to our Group, our Directors are of the view that it would be a good business opportunity coherent with our development strategy.

By implementing our investment plan in Weixian county which includes constructing a city gateway station and the relevant pipelines, we could receive PNG supply from the Puyang branch, and further deliver the PNG to the local city gas suppliers through our pipeline networks across the Weixian county, with an aim to providing a stable and sufficient source of natural gas supply in this county. Further, in order to secure the natural gas source, we have been able to engage in discussions with Sinopec through our existing business network and signed a letter of intent with the Sinopec in 2018, which indicates that Sinopec has intention to supply 200 million m3 of natural gas annually to Weixian Huiming for 20 years from the date to be agreed by the parties after commencement of the operation of their main pipeline.

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The Weixian Government, having considered our experience in PNG industry and our ability to enter into discussions with Sinopec regarding gas supply, decided to enter into the Weixian Investment Agreement with us mentioned below.

The Weixian Investment Agreement

On 15 May 2018, the Weixian Government entered into the Weixian Investment Agreement with Weixian Huiming, the salient terms of which are set out below:

(i) Weixian Huiming is allowed to construct a city gateway station and pipelines connecting Sinopec’s main pipeline to the branch pipelines of the local city gas suppliers in Weixian county, which, to the best of our Directors’ knowledge, are Independent Third Parties;

(ii) Weixian Huiming shall only supply natural gas to the local city gas suppliers (which are not PNG end users) approved by the Weixian Government, but not directly to the end users in Weixian county;

(iii) after entering into the Weixian Investment Agreement, the Weixian Government shall not grant the approval for the construction of other similar natural gas pipeline projects;

(iv) the fee that Weixian Huiming receives for the supply of natural gas shall be determined with reference to the natural gas pricing standard of Hebei province and shall be submitted to the relevant pricing bureaux for approval;

(v) it was intended that Weixian Huiming shall invest RMB80.0 million mainly for the construction of city gateway station and pipeline networks, the general operation of Weixian Huiming and other relevant purposes. It had been expected that [REDACTED] million financed by part of the [REDACTED] obtained from the [REDACTED] would be invested in the construction of a city gateway station and pipelines before the end of 2022 according to the application report of the project submitted by us to the Weixian Government in May 2020. There is no specific timeframe for the remaining capital commitment of RMB[REDACTED], which is expected to be financed by our internal resources and/or borrowings from authorised financial institutions; and

(vi) if Weixian Huiming’s commitment under the Weixian Investment Agreement is not fulfilled (including supplying natural gas to PNG end users in Weixian county in breach of the Weixian Investment Agreement and failing to maintain safety during construction and operation), the Weixian Government shall have the right to introduce other enterprises for similar construction projects and to revoke any favourable policy.

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Our experience and expertise in executing the expansion plan

We believe we have the experience and expertise to execute our expansion plan under the Weixian Investment Agreement because:

(i) we have over eight years’ experience of sourcing PNG from the national suppliers such as PetroChina and Sinopec; we also understand the operation of natural gas distributors such as Hengshui Shihua, given that we source PNG from Hengshui Shihua and at the same time being its substantial shareholder, which enables us to know the profitability of its business and estimate our expected return more accurately since the pricing structure in Weixian county and Hengshui city are relatively similar as both of them are located in Hebei province; and

(ii) we have experience obtained from our existing PNG operations, including the construction of pipelines and city gateway stations, which are required under the Weixian Investment Agreement, and we have a comprehensive understanding of the entire value chain of the sales of PNG and its pricing mechanism, as we have been operating our business in the natural gas industry since 2006.

As mentioned above, Weixian Huiming signed a letter of intent with the Sinopec, which indicates that Sinopec has the intention to supply 200 million m3 of natural gas annually to Weixian Huiming for 20 years from the date to be agreed by the parties after commencement of the operation of their main pipeline.

According to the application report of the project submitted by us to the Weixian Government in May 2020, it had been expected RMB35.0 million will be invested in the construction of (i) a PNG city gateway station located in the Weixian Economic Development Zone* (威縣經濟開發區); (ii) ultra-high-pressure pipeline of approximately 11.6 km connecting the Puyang branch of the E’ancang pipeline to the PNG city gateway station; and (iii) mid-pressure pipelines connecting the PNG city gateway station to the pipelines of the natural gas companies in Weixian county. According to the current schedule, it is expected that the construction of the mid-pressure pipelines will be completed by the end of 2022. In September 2020, the Hebei Development and Reform Commission* (河北省發展和改革委員會) issued a letter stating that the above project of constructing PNG city gateway station and ultra-high-pressure pipeline was principally approved. As confirmed by our Directors, we were in the process of obtaining the relevant land use rights for the land in Weixian county where we plan to construct our PNG city gateway station as at the Latest Practicable Date.

As we will supply natural gas to the local city gas suppliers which are not PNG end users in Weixian county, based on the confirmation of the Weixian Government and as advised by our PRC Legal Advisers, we do not require a concession right for such business operation.

We will not generate revenue from the construction of the PNG city gateway station and pipeline networks and such facility and pipelines will be recognised as our property, plant and equipment. It is expected that revenue will be generated from the supply of natural gas to the

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Potential acquisition of, or investments in, other PNG concession grantees

Leveraging our substantial experience in PNG operation and investment in PNG operators, we believe that the acquisition of or investment in PNG concession grantees would be an effective way to expand our business. In line with the industry norm according to the CIC Report and our business expansion strategy, we obtained three of our six Concessions, namely Rugao Concession, Taohuayuan Concession and Wan’an Concession, through our acquisition of 100% interest in Rugao Yiyou in October 2006, 70% interest in Changde Taohua in October 2017 and 100% interest in Ji’an Xinchao in November 2018, respectively. We seek to expand our natural gas business to cities or regions outside our existing Operating Areas. We believe there are significant acquisition and investment opportunities in the growing city natural gas supply market in the PRC. We intend to focus our acquisition and investment strategy generally on PNG concession grantees which have obtained PNG concessions in county-level cities where there is potential demand for natural gas such as having industrial zones or urban population of around 100,000 to 500,000. While we intend to focus on acquisition of controlling interests in such operators, we will also consider making investment in non-controlling interests if we consider that such investments are beneficial to our Group as a whole. For details, please see “Business – Our strategies – Expand our business through acquisitions of, or investments in, PNG concession grantees with growth potential” in this document.

[REDACTED]

The aggregate [REDACTED] from the [REDACTED] (after deducting [REDACTED] and estimated expenses in connection with the [REDACTED] and assuming an [REDACTED] of HK$[REDACTED] per Share, being the mid-point of the indicative range of the [REDACTED] of HK$[REDACTED] to HK$[REDACTED] per [REDACTED], and assuming the [REDACTED] is not exercised) will be approximately HK$[REDACTED] million. Our Directors intend to apply the [REDACTED] from the [REDACTED] as follows:

(1) approximately HK$[REDACTED] million (equivalent to approximately RMB[REDACTED] million, representing approximately [REDACTED]ofthe [REDACTED]) will be used to expand our natural gas operation in our existing Operating Areas and increase our industrial and commercial customer base through the extension of our pipeline networks to newly developed or urbanised districts and building other new facilities;

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(2) approximately HK$[REDACTED] million (equivalent to approximately RMB[REDACTED] million, representing approximately [REDACTED]ofthe [REDACTED]) will be used to expand our business through acquisitions of, or investments in, PNG concession grantees with growth potentials. As at the Latest Practicable Date, we had not identified any specific acquisition or joint venture target, and had not entered into any definitive agreement or engaged in any active discussion with any potential target;

(3) approximately HK$[REDACTED] million (equivalent to approximately RMB[REDACTED] million, representing approximately [REDACTED]ofthe [REDACTED]) will be used for partial repayment of bank borrowings of [REDACTED] million with an interest rate of 6.4% per annum, obtained for the purpose of purchasing raw materials for pipelines, accessories and natural gas, which will mature in or around January 2022; and

(4) approximately HK$[REDACTED] million (equivalent to approximately RMB[REDACTED] million, representing approximately [REDACTED]ofthe [REDACTED]) will be used as additional working capital and for other general corporate purposes.

The above allocation of the [REDACTED] (except for part of the [REDACTED]tobe used for repayment of bank borrowing) will be adjusted on a pro rata basis in the event that the [REDACTED] is fixed at a higher or lower level compared to the mid-point of the indicative range of the [REDACTED].

If the [REDACTED] is fixed HK$[REDACTED] per [REDACTED] (being the high-end of the indicative range of the [REDACTED]), we will receive additional [REDACTED] of HK$[REDACTED] million, assuming the [REDACTED] is not exercised. If the [REDACTED] is fixed HK$[REDACTED] per [REDACTED] (being the low-end of the indicative range of the [REDACTED]), the [REDACTED] we receive will be reduced by HK$[REDACTED] million, assuming the [REDACTED] is not exercised.

If the [REDACTED] is exercised in full, we estimate that the additional [REDACTED] from the [REDACTED] of these additional Shares to be received by us, after deducting [REDACTED] and estimated expenses payable by it, will be approximately (i) HK$[REDACTED] million, assuming the [REDACTED] is fixed at the high-end of the indicative range of the [REDACTED], being HK$[REDACTED] per [REDACTED]; (ii) HK$[REDACTED] million, assuming the [REDACTED] is fixed at the mid-point of the indicative range of the [REDACTED], being HK$[REDACTED] per Share; and (iii) HK$[REDACTED] million, assuming the [REDACTED] is fixed at the low-end of the indicative range of the [REDACTED], being HK$[REDACTED] per [REDACTED]. Any additional [REDACTED] received by us from the exercise of the [REDACTED] will also be allocated to the above purposes on a pro-rata basis (except for the [REDACTED] used for repayment of bank borrowing).

– 424 – THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. FUTURE PLANS AND [REDACTED]

To the extent that the [REDACTED] are not immediately applied to the above purposes and to the extent permitted by applicable laws and regulations, we intend to deposit the [REDACTED] into short-term demand deposits with authorised financial institutions and/or licensed banks in Hong Kong.

IMPLEMENTATION PLANS

The following table sets forth our implementation plans for our business strategies to utilise our [REDACTED] from the [REDACTED] from the [REDACTED]upto31 December 2022:

For the year ending Percentage of 31 December [REDACTED] 2022 to be applied: HK$ million (%)

Expansion of natural gas pipeline networks and facilities [REDACTED][REDACTED] Potential acquisitions of PNG operators [REDACTED][REDACTED] Repayment of bank borrowings [REDACTED][REDACTED] General working capital [REDACTED][REDACTED]

Total: [REDACTED][REDACTED]

– 425 –