09:54     XINAO GAS<02688> - Announcement (8)                                 

    (New Transaction 1)     1,299,037               1,380,000                 
            690,001         2,500,000               2,500,000                 
            2,500,000                                                         
                                                                              
    (New Transaction 2)     1,303,105               1,303,105                 
            651,553         3,500,000               3,500,000                 
            3,500,000                                                         
                                                                              
    (New Transaction 3)     25,980,000              10,701,942                
            27,261,552              160,000,000             250,000,000       
            360,000,000                                                       
                                                                              
    (New Transaction 4)     Nil             Nil             Nil               
            22,000,000              37,000,000              55,000,000        
                                                                              
    The basis of determination of the respective Annual                       
    Caps for the New Continuing Connected Transactions                        
    are explained in the following:-                                          
                                                                              
    1.      For New Transaction 1: by reference to the                        
    historical figures, the existing operation and the                        
    anticipated development and growth of such business,                      
    the Board expects that the total floor area which                         
    requires the engagement of the property management                        
    services from the Wang Family Companies will increase                     
    by around 26% for the years 2005 to 2007 compared to                      
    the figure in 2004. Accordingly, the Annual Caps are                      
    determined based on the projected total floor area                        
    to be covered by the property management service                          
    multiplied by the forecasted market rate.                                 
                                                                              
    2.      For New Transaction 2: as the Group commences                     
    leasing factory premises and residential premises                         
    from the Wang Family Companies from 2005, the Board                       
    expects that the total floor area to be leased between                    
    the relevant parties will increase by more than 5.9                       
    times for the years 2005 to 2007 compared to the figure                   
    in 2004. Accordingly, the Annual Caps are determined                      
    based on the projected total floor area multiplied                        
    by the forecasted market rent.                                            
                                                                              
    3.      For New Transaction 3: the Board expects that the                 
    quantity of machinery and equipment to be purchased                       
    from the Wang Family Companies will increase                              
    year-on-year by approximately 83%, 31% and 26% in 2005,                   
    2006 and 2007 respectively, mainly attributable to                        
    the introduction of a new line of business for                            
    building CNG vehicle refuelling stations in phases                        
    in various cities in the PRC. By reference to the                         
    existing operation and the anticipated development                        
    and growth of such business, the Board derives the                        
    projected number of CNG vehicle refuelling stations                       
    to be built and the number of CNG or LNG trucks to                        
    be purchased for transporting natural gas to the                          
    project locations where gas pipelines are                                 
    inaccessible. Based on the above, the Annual Caps are                     
    determined based on the projected number of sets of                       
    equipment needed multiplied by the market price of                        
    such equipment.                                                           
                                                                              
    4.      For New Transaction 4: in view of the introduction                
    of the new line of business of building CNG vehicle                       
    refueling stations which requires capital to purchase                     
    necessary equipment, the Group needs to employ the                        
    financial leasing services provided by the Wang                           
    Family Companies as some of the project companies                         
    controlled by the Group are relatively small in size                      
    and do not have sufficient funding to support the                         
    development. By reference to the projected increase                       
    of 100%, 67% and 50% in the quantity of machinery and                     
    equipment to be purchased from the Wang Family                            
    Companies for building CNG vehicle refueling stations                     
    in 2005, 2006 and 2007 respectively, the Board                            
    estimates the