On 30 December 2013, Henan Tian Lun Gas Group Limited and Luoyang Rongtuo Coking Company Limited entered into a co-operation agreement, pursuant to which both parties will form a joint venture company for investing and operating a coke oven gas-produced liquefied natural gas project in Luoyang city. The registered capital of the JV Company will be RMB50, 000,000, of which RMB40, 000,000 will be contributed by Henan Tian Lun in cash, representing 80% of the shareholding interest of the JV Company, and RMB10,000,000 will be contributed by Luoyang Rongtuo in cash, representing 20% of the shareholding interest of the JV Company. The JV Company will develop a coke oven gas-produced LNG project with daily production capacity of LNG of approximately 200,000 cubic meters. It is intended that Henan Tian Lun will underwrite the sale of the LNG produced by the JV Company.

The Project is the first coke oven gas-produced LNG project of the Group, signifying the entry of the Group into a new gas source arena and its strategic significance to the Group. Upon the commencement of the project, the natural gas channels of the Group would be expanded, the Group’s gas supply of the gas stations in Henan would be effectively secured and the gas procuring cost of the Group would be lowered to a certain extent. Further, the remaining portion of the LNG to be distributed by the Group other than those to be used by the Group can be used for sale, which can increase the revenue of the Group’s sales of gas.