King Stone Energy Group Limited (SEHK:663) entered into a memorandum of understanding to acquire 21% stake in South Bay Investment Limited for CNY 70 million from Li Sheng on December 4, 2017. As per terms, after execution of the share charges, King Stone Energy Group Limited shall pay the earnest money of HKD 81.9 million and up to HKD 35.1 million for meeting the operating expenses and/or capital expenditure of South Bay Investment, which shall both be fully refundable together with interest. Parties intend to apply the earnest money towards part payment of the consideration of the acquisition upon the entering into of the formal agreement, which is to be entered into on or before March 31, 2018. The formal agreement will be conditional upon, among others, the obtaining of a legal opinion from a PRC legal adviser designated by King Stone Energy Group. On June 29, 2018, the parties entered into a supplemental memorandum of understanding to extend the exclusivity period for the transaction to December 31, 2018. On December 27, 2018, the parties entered into a supplemental memorandum of understanding to extend the exclusivity period for the transaction to June 30, 2019. On June 28, 2019, the parties entered into a supplemental memorandum of understanding to extend the exclusivity period for the transaction to December 31, 2019. On December 27, 2019, the parties entered into a supplemental memorandum of understanding to extend the exclusivity period for the transaction to June 30, 2020. On June 26, 2020, the parties entered into a supplemental memorandum of understanding to extend the exclusivity period for the transaction to December 31, 2020. On December 22, 2020, the parties entered into a supplemental memorandum of understanding to extend the exclusivity period for the transaction to June 30, 2021. On June 25, 2021, the parties entered into a supplemental memorandum of understanding to extend the exclusivity period for the transaction to December 31, 2021. On December 30, 2021, the parties entered into a supplemental memorandum of understanding to extend the exclusivity period for the transaction to June 30, 2022. On June 30, 2022, the parties entered into a supplemental memorandum of understanding to extend the exclusivity period for the transaction to December 31, 2022. As of December 21, 2022, King Stone Energy Group Limited and Li Sheng entered into the Share Purchase Agreement on December 21, 2022. As per the terms of agreement, All parties have obtained all necessary permits, approvals and consents for the Acquisition, including but not limited to, the board of directors of each party, the Stock Exchange, relevant government departments and/or regulatory agencies. INCU Corporate Finance Limited acted as financial advisor to King Stone Energy Group.

King Stone Energy Group Limited (SEHK:663) completed the acquisition of 21% stake in South Bay Investment Limited on January 9, 2023.