Zhonghua Gas Holdings Limited Proposed Issue of Convertible Bonds in the Principal Amount of HK$97,800,000

HONG KONG, Nov 3, 2020 - ( JCN Newswire ) - Zhonghua Gas Holdings Limited (the "Company"; Stock Code: 8246) together with its subsidiaries (collective namely the "Group") today announces that on 2 November 2020 (after trading hours), the Company entered into Subscription Agreement with the wholly-owned subsidiary of Kai Yuan Holdings Limited (Stock Code: 1215) ("the Subscriber"), pursuant to which the Company has conditionally agreed to issue and the Subscriber has conditionally agreed to subscribe for the three-year Convertible Bonds in the aggregate principal amount of HK$97,800,000. The initial conversion price is HK$0.27 each (subject to adjustments).

As at the date of this announcement, the Company has a total of 3,622,136,000 Shares in issue. Assuming there is no further issue or repurchase of the Shares, based on the initial Conversion Price of HK$0.27 per Conversion Share and assuming full conversion of the Convertible Bonds took place, the Convertible Bonds will be convertible into 362,222,222 Conversion Shares, representing approximately 10.00% of the existing issued share capital of the Company as at the date of this announcement and approximately 9.09% of the issued share capital of the Company as enlarged by the issue of the Conversion Shares. The net proceeds are intended to be used for the enhancement of the existing business of the Group and working capital.

The Board of Directors believes that through issuing a convertible bond, it presents an opportunity for the Group to strengthen its financial position while optimizing its investor base and capital base. It will also set a good foundation for further strategic alliance with the Subscriber. Thus, the Group is optimistic towards the prospects of the Group.

Kai Yuan Holdings Limited is principally engaged in investment holding. One of its substantial shareholders is renowned Chinese entrepreneur Mr. Du Shuang Hua, who was ranked 65th in the Hurun Rich List of 2019. He has extensive businesses covering industries in steel manufacturing, logistics, banking and properties development in the PRC. The subsidiary companies of Kai Yuan are principally engaged in hotel operation and money lending business.

Zhonghua Gas Holdings Limited
Zhonghua Gas Holdings Limited is principally engaged in provision of diverse integrated new energy services including technological development, construction and consultancy services in relation to heat supply and coal-to-natural gas conversion, supply of liquefied natural gas, coupled with trading of new energy related industrial products. The Group is also engaged in the property investment business.

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