2020 Interim Results AAG Energy Holdings Limited August

2020 Interim Results AAG Energy Holdings Limited 亚美能源控股有限公司 August 2020 www. aagenergy. com HKEX: 02686

Agenda Business Overview Operation Performance Financial Results Prevent and Results of COVID-19 Pandemic AAG Outlook and Future Perspectives 2

Business Overview — shareholding structure of AAG Energy 亚美能源主要股东 XTRQ（603393. SH） 100% Sichuan Liming Wisdom Treasure Holdings Inc. 17. 73% 100% Liming 51. 65% Shenzhen Tong Yu Energy Co. , Ltd 5. 33% Other shareholders 25. 29% AAG Energy（2686. HK） In the first half of 2020, Liming increased its shareholding from 49. 88% to 51. 65% by purchasing 60, 000 shares of AAG Energy. 4

Business Overview – Operational and Financial Achievements of AAG Energy 1 H 2020 Performance Net Profit(Unit：million RMB) HSE 1 H 2019 1 H 2020 Five years and 299 days ZERO TRIR, LTIR, PMVA 764 630 0 500 Gas Sales PZ 97% MB 94% -12% 1 H 2019 1 H 2020 339 312 0 100 200 300 400 -18% 1000 H 2019 1 H 2020 0 200 400 600 800 Realized ASP(Unit：RMB/m³） steady +3% 453 460 585 513 0 Gross Production (Unit：MMCM） Revenue(Unit：million RMB） 1 H 2019 1 H 2020 EBITDA(Unit：million RMB） -8% MB PZ 600 1. 39 1. 47 0 0. 5 1 -18% 1. 5 Strong Balance RMB 1. 6 Bn Cash Low Leverage 14% MB entered into production phase from 1 Jan 2020 4

AAG Energy’s Two Premium Assets for Realizing Fast Growth and Good Return Working interest Chinese partner Total area developable by us under the PSC (sq. km) 2018 Net 1 P/2 P reserve (BCF) ODP approval status Panzhuang Concession 80% CUCBM Mabi Concession 70% Petro China 62. 6 829. 1 160. 3/ 196. 3 37. 4 / 458. 3 The ODP for the southern part of Mabi was approved in September 2018 Approved in November 2011 650 (the revised plan was approved in May 2018*)(23. 0 BCF) 859 (30. 3 BCF) March 2028 ODP annual production capacity (MMCM) 2019 gross production (MMCM) PSC expiration • • Highlights • First Sino-foreign CBM cooperative project entered full-scale commercial development and production； China's highest CBM project and in 1 H 2020, its gross production have reached new highs; In 1 H 2020, 44 wells were drilled, 17 PDWs were fractured and added 41 wells into production； 1, 000 (35. 3 BCF) 72 (2. 5 BCF) July 2034 • • • Southern concession of MB entered into production phase from 1 Jan 2020, and identified production-rich areas for development of MB for the next 5 years； In 1 H 2020, 20 wells were drilled, 24 were fractured ； In 2 H 2020, MB will promote the drilling work of 45 wells and the fracturing work of 63 wells in accordance with the adjusted annual work plan. Source: Company information, NSAI report as of Dec 31, 2019 * According to the CNOOC Plan [2018] No. 197 “Approval of the adjustment plan for the production period of the CBM resources development project in Panzhuang concession, Jincheng, Shanxi Province”, it has a designed annual production capacity up to 650 MMCM. 5

Business Overview-asset advantages of AAG Energy Ratio of production of two projects in the same industry in 1 H 2020 Readily available infrastructure to access the top gas consuming markets as Henan and Hebei provinces Proportion of production in China [� ] AAG Energy In 1 H 2020, major enterprises adopted the policy of rapid price reduction , seizing part of the market share, resulting in periodic production pressure, andofa slight Proportion production in decrease in the output. Shanxi Other CBM Companies [� ] Jiangsu Shanghai Source: company information; National Bureau of Statistics Source: SIA Energy 6

Operation Performance of AAG Energy 7

HSE Performance of AAG Energy The company always gives top priorities to HSE work Ø Five years and 299 days without lost time incidents by Jun, 30 2020 Ø AAG energy focuses on the construction of HSE management system, and continuously improved the HSE management level of the company through the implementation of the system in various CBM operation activities Ø With its excellent HSE management practice, AAG Energy has won honorary titles issued by the governments at all levels. Audit, review and continuous improvemen t Emergency and accident managemen t various Organization, responsibiliti es, resources and document control Risk assessment and hidden danger control HSE management system Contractors, suppliers and interested parties New extension Supervision and inspection Operation control 8

Daily Average Production of AAG Energy Daily average production reached a new high in 1 H 2020 6 Daily average production （Unit：MMCMCD） 5 reas Inc 1. 73 4 3 2 1. 4755 0. 1205 0. 1329 0. 1633 0. 6301 1. 2221 0. 9366 0. 3179 2. 5689 0. 4042 0. 3932 1. 5806 1. 7552 0. 5622 0. 4204 1. 1764 0. 6957 0. 197 0. 1679 0. 26 0. 16 0. 0955 1 0% i 4. 1 y 7 ed b ars . 5 ye n 32. 19 2. 547 1. 38 1. 57 2016 2017 1. 93 2. 35 2. 401 2019 1 H 2020 0 潘庄 2018 马必 MLD SLH PDW 9

AAG Energy（the realized ASP，Production-to-sale Ratio） The realized ASP is a significant decrease Unit：RMB/CM 1. 80 1. 67 1. 60 1. 40 1. 20 1. 00 1. 31 1. 14 1. 39 0. 80 0. 60 0. 40 0. 20 0. 00 2017 2018 Panzhuang Production to sale ratio maintains a high level 100% 90% 1. 47 80% [� ] 1. 39 In 1 H 2020, the NDRC issued a policy 70% requiring non resident gas stations to 60% implement the off-season price policy 50% in advance, and since then, major enterprises have implemented rapid 40% price reduction and promotion 30% policies, resulting in a significant drop 20% in natural gas prices. 10% 0% 2019 1 H 2020 [� ] Mabi 98% 92% 90% 2017 2018 Panzhuang 98% 97% 94% 97% 2019 1 H 2020 Mabi 10

AAG Energy – Producing Well Count Total number of producing wells at PZ The well type of PZ 400 305 350 300 50 0 SLH, supplemented by PDW and MLD 81 200 100 346 concessions mainly 92 243 250 150 Total number of producing wells at Mabi 147 97 19 150 175 205 14 34 79 49 49 49 2016 2017 2018 2019 1 H 2020 MLD SLH PDW 175 200 潘庄 67 127 250 121 107 116 12 2 10 1 2016 212 127 100 Mabi concessions gradually change 50 to a new development model with mainly 0 SLH and PDW as a supplement 183 2017 MLD 164 172 10 1 2018 SLH 2019 194 15 3 1 H 2020 PDW 11

AAG Energy continue to reduce costs and improve efficiency Pan. Zhuang: Maintain drilling cost and efficiency With the continuous development , the new drillings were mostly located in the area where geological conditions have certain risks and challenges, which brings great challenges to the drilling schedule and well construction cost. Through the integration and optimization of technology sequence, the group has effectively controlled the drilling cost while ensuring the drilling efficiency. In 1 H 2020，average drilling cost of the main type of well which is SLH controlled at RMB 2. 83 million and average drilling time of the main type of well which is SLH was 18. 95 days. Mabi: Establish key development areas and start the first stage of commercial development It has identified production-rich areas for development of MB for the next 5 years and started the first stage of commercial development form Jan 1, 2020. The average drilling cost per meter of PDW well type in Mabi is maintained at a low level, and the fracturing cost per layer is maintained at a low level 马必 and continues to decrease; In 1 H 2020, 20 wells were drilled and 24 wells were fractured in Mabi ; in 2 H 2020, 45 wells were planned to be drilled and 63 wells were fractured. 12

Outlook and Guidance for 2020 Gross production target Capex* (Unit：MMCM) Well drilling (RMB million) 714 1036 931 68 350 72 348 859 468 271 31 150 100 77 968 200 50 153 12 27 65 99 88 364 2019 2020 E Panzhuang 1 H 2020 Mabi 2 H 2020 • • 2019 2020 E Panzhuang Mabi 20 44 0 2019 437 64 2020 E Panzhuang 1 H 2020 Mabi PZ concession will promote the drilling work of 44 wells in accordance with the annual work plan. The capital expenditure budget of Mabi concession will be adjusted to RMB 350 million and will promote the drilling work of 45 wells and the fracturing work of 63 wells in accordance with the adjusted annual work plan. 13

Financial Results of AAG Energy 14

Overview of AAG Energy’s Financial Performance P&L (RMB million) Revenue, Subsidy, VAT Refund/收入, 政府补贴, 增值税退税 * — Panzhuang/潘庄 — Mabi/马必 Operating expenses/经营开支 Depr and amort/折旧与摊销 Employee benefit expenses/员 福利开支 Materials, services and logistics/材料、服务及物流* Others/其他 — Panzhuang/潘庄 Depr and amort/折旧与摊销 Employee benefit expenses/员 福利开支 Materials, services and logistics/材料、服务及物流* Others/其他 — Mabi/马必 Depr and amort/折旧与摊销 Employee benefit expenses/员 福利开支 Materials, services and logistics/材料、服务及物流* Others/其他 — Headquarters/总部 Depr and amort/折旧与摊销 Employee benefit expenses/员 福利开支 Materials, services and logistics/材料、服务及物流* Others/其他 EBITDA — Panzhuang/潘庄 — Mabi/马必 Profit from operations/经营利润 Finance costs-net/财务费用净额 Profit before income tax/税前利润 Income tax expense/所得税费用 1 H 2020 1 H 2019 Var% 630 590 40 -246 -127 -37 -76 -5 764 698 65 -318 -139 -64 -107 -7 -18% -15% -39% -23% -9% -42% -29% -26% 513 504 15 386 26 412 -100 312 585 571 22 446 16 462 -123 339 -12% -32% -14% 63% -11% -19% -8% -195 -108 -28 -55 -4 -42 -16 -7 -1 -9 -2 -2 -5 0 -245 -118 -38 -83 -6 -62 -19 -22 -19 -1 -11 -2 -4 -5 0 -20% -8% -26% -35% -29% -33% -13% -69% -11% -23% -18% 1% -55% 3% 15

Revenue and Other income of AAG Energy 1, 600 1, 508 RMB: M 1, 400 1, 200 1, 000 347 279 65 54 800 736 600 194 561 630 925 400 411 764 1, 096 149 200 1, 258 542 146 13 471 166 38 560 2016 Realized revenue * 2017 2018 Pass-through revenue* 2019 1 H 2020 Other income(VAT refund and subsidy) 1 H 2019 According to IFRS 15, we grossed up revenue for the pipeline tariff/processing fee (since it is billed to customer), and recorded an associated pipeline tariff/processing fee expense (i. e. pass-through) since 2018. 16

EBITDA, Profit of AAG Energy RMB : M Profit for the year EBITDA 707 1, 175 807 413 513 433 585 339 183 272 2016 312 107 2018 2019 1 H 20201 H 2019 2016 2017 2018 2019 1 H 2020 1 H 2019 17

Revenue, Other Income and Realized ASP** of Panzhuang Project (RMB million for Revenue, Other Income 1, 800 or RMB/cubic meter for Realized ASP) 1. 67 1. 69 1, 600 1, 400 1. 2 1, 386 1. 31 1, 200 1, 095 1, 000 242 36 693 800 600 400 200 561 411 818 513 1. 47 1 45 0. 5 698 1, 019 137 6 447 151 28 520 - 2016 Realized revenue 2 1. 5 322 590 180 149 1. 80 0 -0. 5 -1 2017 2018 2019 1 H 2020 Pass-through revenue* Other Income (VAT refund and subsidy) 1 H 2019 Realized ASP** According to IFRS 15, we grossed up revenue for the pipeline tariff/processing fee (since it is billed to customer), and recorded an associated pipeline tariff/processing fee expense (i. e. pass-through) since 2018. ** Realized ASP is net back well head gas price including VAT but not including pass-through revenue and subsidy. * 18

Panzhuang Project Unit Opex (excl. pass-through expense*) (RMB/cm) 0. 30 0. 31 0. 30 0. 29 0. 24 0. 11 0. 12 0. 31 0. 10 0. 12 0. 08 0. 15 0. 18 0. 17 0. 14 ODP approval 0. 03 Nov. 2011 * 0. 17 2016 Others /cm 0. 02 2017 2018 Materials, services and logistics /cm 0. 02 0. 01 0. 02 2019 1 H 2020 1 H 2019 Employee benefit expenses /cm Panzhuang unit Opex (excl. DD&A) /cm According to IFRS 15, we grossed up revenue for the pipeline tariff/processing fee (since it is billed to customer), and recorded an associated pipeline tariff/processing fee expense (i. e. pass-through) since 2018. The pass-through expense is excluded for this unit opex analysis. 20

Revenue, Other Income and Realized ASP** of Mabi Project (RMB million for Revenue, Other Income or RMB/cubic meter for Realized ASP) 180 160 1. 39 37 120 18 100 1. 4 1 122 0. 5 25 20 80 40 1. 39 162 140 60 1. 39 65 40 107 77 20 9 6 24 15 10 -0. 5 40 - 2018 2019 Realized revenue Pass-through revenue* 0 -1 1 H 2020 1 H 2019 Other Income (VAT refund and subsidy) Realized ASP** * According to IFRS 15, we grossed up revenue for the pipeline tariff/processing fee (since it is billed to customer), and recorded an associated pipeline tariff/processing fee expense (i. e. pass-through) since 2018. ** Realized ASP is net back well head gas price including VAT but not including pass-through revenue and subsidy. *** Mabi’s pipeline sales agreement of exploration phase signed with effect from July 2017, meanwhile revenue and other income were recorded in P&L. 21

Mabi Project Unit Opex (excl. pass-through expense*) (RMB/cm) Rapidly declining Cash unit opex 2. 24 1. 25 1. 38 ODP approval 0. 67 0. 83 0. 70 0. 32 0. 17 0. 67 0. 41 0. 12 2016 Others /cm 2017 2018 0. 51 Sep. 2018 1. 20 0. 49 0. 30 0. 05 0. 93 0. 35 0. 53 0. 05 0. 96 0. 65 0. 27 0. 04 2019 1 H 2020 1 H 2019 Materials, services and logistics /cm * According to IFRS 15, we grossed up revenue for the pipeline tariff/processing fee (since it is billed to customer), and recorded an associated pipeline tariff/processing fee expense (i. e. pass-through) since 2018. The pass-through expense is excluded for this unit opex analysis. 22

AAG Energy’s Prevent and Results of COVID-19 Pandemic 22

Measures and Results under COVID-19 Measures to COVID-19 Pandemic Ø quickly established organizational and institutional safeguards and issued various documents such as the “Prevention and Control Measures for the Novel Coronavirus Pneumonia” Ø Strengthen the awareness of prevention and control and establish the epidemic prevention and control mechanism: the whole staff should publicize and implement the knowledge of epidemic prevention, establish and improve the epidemic prevention command, material allocation and personnel prevention and control mechanism; Ø Externally, it supports and cooperates with local epidemic prevention departments; internally, it integrates epidemic prevention and control with production; Response effectiveness to COVID-19 Pandemic Ø As of the date of disclosed of the interim report , achieved “three-zero” epidemic prevention results of “zero diagnosis, zero suspected case, zero infection ”. Coping with COVID-19 Pandemic Ø The company has accumulated valuable experience in emergency management, information support, production scheduling, external liaison, support services and other aspects, which further improves the response ability and control level of major public health emergencies; Ø In view of the resurgence of COVID-19, we will stay committed to the epidemic prevention and control in 2 H 2020, carry out the epidemic prevention and control work according to the epidemic prevention and control system constructed in 1 H 2020, 23 and continue to write the "three-zero" record.

AAG Energy Outlook 23

Challenges and Opportunities - China's Natural Gas Market and Challenges • Policy: the national development and Reform Commission issued a policy on February 22, 2020, requiring non resident gas stations to implement the off-season price policy in advance; • International: due to the impact of the global epidemic, significant changes have taken place in the international energy market, and the price of imported LNG is low, which has a certain impact on China's natural gas market; • Market: the main natural gas enterprises have adopted the policy of price reduction and promotion to seize the market share; Countermeasures-three increase Sales stimulation • Implement the principle of all production and all sales ; • Implement the integrated operation strategy , strengthen the construction of strong transportation and distribution capacity of CBM and the interconnection of market channels; • adjust market structure , optimize the local users , expand market share of Henan/Hebei province; Production stimulation • Improve technologies and the integration of production and technology segments to enhance the risk control measures for strengthened investment plan in Mabi concession; • Continue to promote small and micro innovation, stabilize and slow down the decline rate of old wells; • Strengthen the balance mechanism of production and marketing and improve the market foresight; Efficiency stimulation • Optimized five-year strategic development plan and carry out systematic engineering from six main links; • Innovate the cooperation mode, promote the construction of informatization and intelligence; • Make full use of the national and local epidemic subsidies and industrial subsidies; 25

Challenges and Opportunities - China's Natural Gas Market Our Advantages • Complete technical system. AAG energy has complete technologies of geological research and evaluation, drilling design, geological orientation and guidance, fracturing design and optimization, drainage and production, etc. , as well as the core ability of optimization and adjustment based on this series of technologies. • Abundant resources reserve. Both Panzhuang and Mabi concessions operated by AAG energy are high-grade coal reservoirs with high gas content and high abundance; Panzhuang concession has obtained sustainable operation profitability; Mabi concession is large, with similar geological conditions and huge development potential, which has the potential of long-term sustainable and stable supply of higher gas production. • The advantages of the integrated operation. Upstream strong investment , increase storage on production ; In the middle reaches will strengthen the construction of strong transportation and distribution capacity of CBM and the interconnection of market channels, and continuously optimize and improve the customer structure in the downstream. • Excellent management level: the construction and operation of the company's advanced standardization system; the implementation of value added and subtraction performance appraisal system; high quality investment control and continuous reduction of capital and efficiency. 25

Challenges and Opportunities - Industry Policies Policy opportunity • On 1 July 2020, the Ministry of Finance of the People’s Republic of China promulgated the Interim Administrative Measures for Special Funds for the Development of Clean Energy , the extended one year of compensation compared with the that of 2019, such policy will bring positive impacts to the group. • The upcoming operation of the state-owned National Petroleum and Natural Gas Pipeline Network Group Co. , Ltd. , which allow the Group to expand the downstream market more broadly by getting through the direct sales channels between customers. Government subsidies Selling directly to customers Political support • The People’s Government of Shanxi Province issued the “Three-Year Action Plan for Increasing Reserves and Production of Coal-Formed Gas in Shanxi Province(2020 -2022) on 27 Feb 2020, Clearly put forward and focus on ensuring the stable increase in production of developed concessions , such as Panzhuang. Political support • The NDRC and Reform Commission issued the Special Administrative Measures(Negative list)for the Access of Foreign Investment(2020), which further limited the negative list for the access of foreign investment. 27

The strategy we have put into action Development strategy Build the whole industry chain of natural gas and realize high-tech, internationalization and financialization ØDeep ploughing of existing concessions, further exploring the value of them ØDevelop high value market and attract high value added customers ü Expand market share of Henan/Hebei province; ü Optimize local users; ü Increase the proportion of stable users; ØUnswervingly promote technological innovation and strive to expand new concessions and new business ü building up a technological advancement and innovational research and development fund; ü Deep understanding of underground coal-to-gas and complete technical demonstration and feasibility analysis; ü Speed up the research of new concession and intervene the right time Long-term core competitive ness Excellent current income Clear mediumterm strategic plan Promote AAG to become the world’s leading, most enduring clean energy company 28

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