On 16 February, China Tian Lun Gas Holdings Limited announced that Henan Tian Lun Gas Group Limited, an indirect wholly-owned subsidiary of the Company, has entered into a promoters agreement with Bank of Zhengzhou Co., Ltd. and Zhengzhou Yutong Bus Co., Ltd. to establish a finance lease company in Zhengzhou, Henan Province, the People’s Republic of China.

Pursuant to the Promoters Agreement, Henan Tianlun shall contribute RMB200, 000,000 to the Joint Venture Company, representing 20% of the total registered capital of the Finance Lease Company. The Finance Lease Company will be principally engaged in, among others, financial leasing, transfers of subject assets of financial leases, investment businesses in securities with fixed revenues, acceptance of lease deposit from lessee, sales and disposals of leased objects and economic consulting. The China Banking Regulatory Commission had issued the approval for the establishment of the Finance Lease Company on 6 February 2016 and Henan Tianlun had received the Approval on 16 February 2016.

Zhengzhou Bank is principally engaged in corporate banking, retail banking and treasury businesses. Zhengzhou Yutong is principally engaged in production and sale of vehicles as well as provision of vehicle repair services and inter-city fixed-route passenger transport services.

Tian Lun Gas Group is principally engaged in the operation of gas pipeline connection, gas sales, gas refilling stations investment and operation, and LNG plant investment and operation in the PRC.

For the reason to enter into finance lease business, Tian Lun Gas expressed that in recent years, the asset size and business scale of finance lease business in the PRC has been expanding gradually and there have been increasing business opportunities for the finance lease business. Leveraging on the favourable policies of the PRC government on the finance lease business, the Finance Lease Company enables the Group to introduce finance lease services to its “coal-to-gas” and upgrade of gas vehicles projects. Such finance lease services help resolve the funding problems for “coal-to-gas” conversion of the potential clients of the Group and lower the funding threshold for usage of natural gas, which is beneficial to the expansion of the gas business of the Group in the future. The Directors consider that the formation of the Finance Lease Company will facilitate the growth of the sale of vehicle gas and gas for industrial and commercial use and enhance the profitability of the Group in the long run.