About CHINA HK POWER Company

China Gangneng Smart Energy Group Co., Ltd.'s main business is asset investment and trading and investment in developing new energy sources in China, including investing in, constructing and operating liquefied natural gas stations, gas terminals and related infrastructure, selling and modifying liquefied natural gas vehicles and ships, and providing financial leasing services to customers. Business review and financial review The Group recorded a turnover of approximately HK$339,000,000 during the period, compared with a loss of approximately HK$7,000,000 for the same period in 2013. The sharp increase in turnover was mainly due to realized and unrealized income from trading investments. During this period, the Group purchased 152,050,000 shares of Huiduoli and convertible bonds (“convertible bonds”) with a principal amount of HK$80,000,000 (“convertible bonds”) at a cost of HK$87,602,500. Shortly after, on June 21, 2014, the Group entered into a conditional transfer agreement relating to the sale of HK$380,000,000 in cash and the sale of 58,000,000 shares of Huiduoli shares to the market. In addition to the realized and unrealized income from trading listed securities, the realized and unrealized income from trading investments during the period was HK$338,000,000, compared to the unrealised loss of HK$13,000,000 held as trading investment during the same period last year. As far as the property investment division is concerned, the Group owns three residential properties located in Kwu Tung, Central Mid-Levels and Repulse Bay. As in the same period last year, only residential properties located in Mid-Levels in Central received monthly rent income of HK$70,000, while the other two residential properties in Kwu Tung and Repulse Bay are still vacant. The Group continues to seek tenants for vacant properties to collect rental income. In addition to its existing business, since 2013, the Company has invested significant efforts in discussions with provincial governments of the People's Republic of China (“China”) and others to develop liquefied natural gas (“LNG”) business in China. During this period, the Company concluded five strategic cooperation framework agreements/letters of intent to develop the liquefied natural gas business. On March 27, 2014, the Company signed a strategic cooperation agreement with Ping An Securities Co., Ltd. to provide comprehensive financial services relating to the development of the liquefied natural gas business in China. On March 31, 2014, the Company signed a letter of intent with CNOOC Yunnan Energy Co., Ltd. and the Yongping Commerce Bureau of the Yongping County People's Government, which states that Yongping County, Yunnan Province, China may cooperate to develop the liquefied natural gas business. On April 22, 2014, the Company signed a strategic cooperation framework agreement with the Suzhou Zhonglu International Logistics Science and Technology Park Management Committee on converting ships, heavy vehicles and public transportation vehicles from using fuel to using liquefied natural gas and building a liquefied natural gas station and terminal in Pingwang, Jiangsu Province, China. On June 25, 2014 and June 26, 2014, the Company signed a strategic cooperation framework agreement with the Jiangsu Nantong Binhai Park Management Committee and the Nantong Economic and Technological Development Zone Management Committee to invest in liquefied natural gas application projects in Jiangsu Nantong Binhai Park and the Nantong Economic and Technological Development Zone, respectively, in Nantong City, Jiangsu Province, China. vistas China is one of the world's largest energy consumers. In order to control smog pollution and improve air quality, natural gas will play an important role in China's coal-intensive industries in the near future. In addition to the existing business, since 2013, the company has invested great energy in discussions with many people (including many Chinese provincial government departments, state-owned enterprises engaged in exploration, development, production and sale of crude oil, natural gas and other petroleum products, liquefied natural gas vehicle manufacturers, logistics companies and passenger transport companies) on the development of liquefied natural gas business in China. The company plans to establish joint ventures with the above state-owned enterprises to develop the liquefied natural gas business. In addition to the framework agreement/letter of intent described in the “Business Review and Financial Review”, on July 28, 2014, the Company entered into a strategic cooperation framework agreement with Shanghai Yuanxing Supply Chain Management (Group) Co., Ltd., a subsidiary of Shaanxi Automobile Holding Group Co., Ltd., relating to the provision of liquefied natural gas heavy trucks or the replacement of liquefied natural gas heavy trucks. On July 29, 2014, the Company and Xuzhou Construction Machinery Group Co., Ltd. signed a strategic cooperation framework agreement relating to the purchase of liquefied natural gas construction machinery vehicles and cooperative investment in the capital market. On August 4, 2014, the Company signed a strategic cooperation framework agreement with the Xuzhou Municipal Transportation Bureau, which includes a project to invest in the application of liquefied natural gas in Xuzhou City, Jiangsu Province, China.