On 25 August 2013, Henan Tian Lun entered into a transfer agreement with former shareholders of Yunnan Datong Natural Gas Limited (the “Yunnan Datong”) and acquired 100% equity interest of Yunnan Datong, whereby Henan Tian Lun acquired urban gas concession rights and exclusive operation rights of vehicle-use gas in 7 cities of Yunnan province held by Yunnan Datong.
The 7 gas projects of Yunnan Datong spread over eastern Yunnan province, including Huize, Gejiu, Guangnan, Yanshan,Ludian, Honghe and Hekou. As a private gas group with a large amount of projects and large capacity of gas production,Yunnan Datong plays an important role and has great influence in the emerging gas market of Yunnan province. Theacquisition of 100% interests of Yunnan Datong enables the Group to expand its business into the majority area of Yunnan province and significantly improved the influence of the Group in the southwest area. It had a great significance in the promotion of strategic layout of the Group and created a solid foundation for later development and growth in the southeast gas market.