On May.9,2014, Tian Lun Gas and the original shareholders of Shantou City Chenghai Gas Construction Company Limited entered into Equity Transfer Agreement, acquired 90% equity interests of Chenghai Company ,therefby, Tian Lun Gas obtained Chenghai Diatrict and Chaoyang District of Shantou City.

As one of the first five special economic zones for implementation of the opening-up policy in the PRC, Shantou is an important transportation hub, import and export port and goods distribution centre in eastern Guangdong, southern Jiangxi and south-western Fujian, as well as an important connection link between Pearl River Delta and the Western Taiwan Straits Economic Zone.

Chenghai District and Chaoyang District in Shantou City, where the Target Group operates, are important components of Shantou’s economy. There is dense population and great room for development of civil and commercial gas markets in these areas. In addition, due to Chenghai District’s position as an important toy manufacturing base and Chaoyang District’s position as a major textile and apparel, music and video and stationery and mechanical and electronic industry cluster in the PRC, there is huge potential for the industrial gas market. Through the Acquisition, the Group will obtain a project in Chenghai District and Chaoyang District of Shantou City, which is expected to provide the Group with considerable profitability. Also, these areas are adjacent to the area of the Group’s gas project in Chaozhou City, which will create synergies. Building on its presence in eastern Guangdong, the Group will rapidly expand into the surrounding areas and further increase its market share in southern China.