Common use of Capital Reduction Clause in Contracts

Capital Reduction. The Parties agreed to the exit of TSEL from its entire investment of 25% equity interest in Shanghai Gas through a reduction of the registered capital of Shanghai Gas from RMB1,333,333,333 to RMB1,000,000,000 by the amount contributed by TSEL of RMB333,333,333 and the reduction of capital reserves of Shanghai Gas by the amount of RMB4,329,244,369.32. The Consideration payable by Shanghai Gas to TSEL is RMB4,662,577,702.32, which was determined after arm’s length negotiations between the Parties and with reference to the valuation by a PRC-based valuer of the net asset value of Shanghai Gas as at 28 February 2023 of RMB18,650,310,809.26.

Capital Reduction. The Parties agreed to the exit of TSEL from its entire investment of 25% equity interest in Shanghai Gas through a reduction of the registered capital of Shanghai Gas from RMB1,333,333,333 to RMB1,000,000,000 by the amount contributed by TSEL of RMB333,333,333 and the reduction of capital reserves of Shanghai Gas by the amount of RMB4,329,244,369.32. The Consideration payable by Shanghai Gas to TSEL is RMB4,662,577,702.32, which was determined after arm’s length negotiations between nelgoetiantiognstbehtween the Parties and with reference to the valuation by a PRC-based valuer of the net asset value of Shanghai Gas as at 28 February 2023 of RMB18,650,310,809.26.