China Print Power Group Limited Acquires Natural Gas Provision Project in Liaoning Province, China

Become an innovative downstream natural gas player

HONG KONG, May 7, 2014 /PRNewswire/ -- China Print Power Group Limited (or "the Company", together with its subsidiaries, the "Group", HKSE stock code: 6828) is pleased to announce that it has entered into a Sales and Purchase Agreement on 5 May 2014 to acquire approximately 90% interest in a natural gas provision project in Liaoning province, at a total consideration of approximately HK$515 million.

The total consideration will be settled by cash and the issuance of convertible note. Among which, HK$17 million will be paid in cash and the remaining HK$498 million will be settled by the issuance of convertible note.

According to the agreement, the Company will acquire exclusive franchise to supply natural gas, including liquefied natural gas (LNG) and compressed natural gas (CNG), to the Xihu District of Benxi City in Liaoning province for a term of 30 years, commencing on 30 March 2012.

In addition, to further expand and strengthen its natural gas operations, the Company has continued developing the construction projects in Benxi city of the following:

• Natural gas pipelines within the commercial and industrial area of DFH Industrial Park, including a natural gas station and relevant facilities with an annual capacity of 150 million cubic meters
• 1 LNG/CNG main station and 5 LNG/CNG satellite stations
• 1 LNG/CNG station for trucks and buses in Huolianzhai
• Natural gas supply facilities provision to 52,500 households

Mr. Sze Chun Lee, Chief Executive Officer and Executive Director of China Print Power Group Limited, said, "this acquisition marks a significant development as the Company becomes an innovative natural gas provider and distributor in China. Our group will continue to seek for potential opportunities to play a greater role in China’s growing natural gas sector as well as to expand our project portfolio while optimizing value creation."

Mr. Hung Tao, Executive Director of China Print Power Group Limited said, "We are pleased to have reached the acquisition of natural gas business milestone and look forward to deliver long term growth from natural gas business. China Print Power Group Limited will continue to focus on areas with the support of favorable government policies and tap into geographic regions with low natural gas penetration to build upon its asset base in order to further promote clean energy application. The Group strives to enhance business and operational performance and expects to see positive updates in the near future."