Energy Conversion and Financial Overview

Immediate Revenue Inflow upon Connection Revenue / Cost Simplified model for a typical matured project · Year 1 Year 3 Year 5 Year 7 Year 9 Year 11 Total Revenue Gas usage fee Capex Free cash flow Connection fee ENN 新奥 Connection fee dominates in early years when the project companies are signing up new customers Gas usage increases as projects mature, becoming the major source of recurrent income Prior to the completion of the whole pipeline network in cities, revenue will be generated as soon as gas supply becomes available in certain districts. Each connection contract normally takes 6-12 months to complete In general, gas projects would generate positive free cash flow after 5 years operation 28

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