28 November 2014

FORTUNE OIL PLC

(“Fortune Oil”, “the Company” or together with its subsidiaries “the Group”)

Interim Report Announcement for the six months ended 30 September 2014 (“H1 FY2015”)
(The six months ended 30 September 2013 is referred to as “H1 FY2014”)

Fortune Oil’s investments supply crude oil, transportation fuels and natural gas in the People’s Republic
of China. Fortune Oil is quoted on the Main Market of the London Stock Exchange and has its
headquarters in Hong Kong.

FINANCIAL HIGHLIGHTS

 Revenues including share of jointly controlled entities and associates increased by 28.7 per cent to £582.5
million (H1 FY2014: £452.7 million).

 Group revenues from all operations excluding jointly controlled entities and associates increased to £162.6
million (H1 FY2014: £149.3 million).

 Profit after tax attributable to Fortune Oil’s shareholders decreased 96.0 per cent to £8.9 million (H1 FY2014:
£223.2 million). The decrease is due to the inclusion of other gains and losses of £214.9 million in H1
FY2014 in respect of gain on disposal of subsidiaries and the gain on revaluation of China Gas Holdings
Limited (“CGH”) shares on the date of treating CGH as an associate.

 Share in Bluesky Aviation Refuelling (“Bluesky”); net profit increased 12.5 per cent to £6.3 million (H1
FY2014: £5.6 million).

 Net profit contribution from the investment in CGH was £6.7 million (H1 FY2014: £1.0 million after
excluding the other gain of £95.3 million).

 Basic earnings per share was 0.36p (H1 FY2014: 11.73p). Basic earnings per share, excluding other gains
and losses of the Group and including share of jointly controlled entities, was 0.36p (H1 FY2014: 0.44p).

 Net assets further increased to £360.2 million as at 30 September 2014 (31 March 2014: £343.2 million).

OPERATIONAL HIGHLIGHTS

 Bluesky aviation fuel sales increased 11.9 per cent to 1.9 million tonnes (H1 FY2014: 1.7 million tonnes).

 Maoming Single Point Mooring (“SPM”) sales volumes in H1 FY2015 were 5.2 million tonnes. Sales
volumes are unavailable for the comparable period in 2014 as a result of the expiry of the previous joint
venture agreement which meant that after February 2013 the Company had no effective financial interest in
the operations of the SPM until the new joint venture became effective from 1 January 2014.

 CGH increased sales by 49 per cent to £1.2 billion and natural gas volumes by 16.8 per cent to 4.1 billion
cubic metres. The CGH network increased to 243 city concessions. CGH profits for the period were £150.8
million an increase of 31.8 per cent.

 Trading sales volumes increased 89.7 per cent to 261,800 tonnes (H1 FY2014: 138,000 tonnes).

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OUTLOOK

 The slow down in China’s economic growth is impacting on China’s blended energy consumption in Q3
2014 which increased by only 3.4 per cent year on year and was 2.8 per cent lower than Q2 2014 indicating
a slow down in crude oil demand and associated refined products including petrol and diesel.

 Bluesky is required to keep sufficient storage to supply jet fuel at each of its airports for approximately two
weeks to ensure that operations remain uninterrupted. Recent significant changes in the crude oil prices may
have a negative impact on the value of the jet fuel storage and Bluesky continues to take steps to mitigate
against any potential stock related risk but not all risk can be hedged against.

 China’s government raised natural gas prices around 20 per cent on 1 September 2014 in line with the policy
to bring China’s natural gas price in line with international market prices. This on-going policy has the
potential to adversely impact on the demand for natural gas.

Mr Qian Benyuan, Chairman of Fortune Oil, commented:

“2014 and 2015 see China moving towards becoming a developed economy, with greater stress on value for
money investing, environmental and health protection and lower overall growth rates. We see this in the
relationships we have with both state owned and private corporations and in the opportunities our investee
companies are seeing. The infrastructure and services we provide will continue to be in demand and the
opportunities for further investment, both follow on and into new projects, will continue but we will be
adapting to this new environment. We continue to monitor the impact of the slow down in China’s GDP
growth and the recent dramatic decrease in the oil price has increased our inventory risk. At the same time
the slowdown in the growth of China’s property market will reduce the rate of gas connections and associated
fees in city gas concessions. We will therefore be working differently to deliver continued growth within these
new constraints.”

ENQUIRIES:

Fortune Oil PLC

Tian Jun – Acting Chief Executive Tel: 00 852 2583 3125
Bill Mok – Chief Financial Officer Tel: 00 852 2583 3120

VSA
Andrew Raca – Head of Corporate Finance Tel: 020 3005 5004

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 FORTUNE OIL PLC

(“Fortune Oil”, “the Company” or together with its subsidiaries “the Group”)

Interim Report Announcement for the six months ended 30 September 2014 (“H1 FY2015”)
(The six months ended 30 September 2013 is referred to as “H1 FY2014”)

SUMMARY OF UNAUDITED RESULTS

Financial £ million H1 FY2015 H1 FY2014 Change %

Revenue including share of jointly controlled entities and associates 582.5 452.7 28.7
Profit after tax 8.9 225.2 (96.0)
Profit attributable to owners of the parent 8.9 223.2 (96.0)
Profit attributable to owners of the parent excluding other gain 8.9 8.3 7.7
Net Assets 360.2* 343.2** 5.0
Net Assets attributable to the owners of the parent 357.8* 340.8** 5.0

Shareholders
Issued Shares, millions of shares 2,587* 2,587** –
Earnings per Share (pence) 0.36p 11.73p (96.9)

* 30 September 2014.
** 31 March 2014.

Group Performance

Our goal is to find attractive value enhancing investment opportunities and to manage the investments made to
extract value for our shareholders. We work with our investee companies’ management to improve their
competitive financial performance and increase the value for our shareholders.

 Group revenues including share of jointly controlled entities and associates increased by 28.7 per cent to
£582.5 million (H1 FY2014: £452.7 million). This was largely driven by the inclusion of the share in CGH’s
revenue post the completion of the Fortune Gas Investment Holdings Limited (“FGIH”) transaction, growth
in the trading businesses and the establishment of the new Maoming SPM joint venture, offsetting the
decrease due to exclusion of Fortune Oil’s natural gas business after completion of the FGIH transaction.

 Group revenues from all operations excluding jointly controlled entities and associates increased to £162.6
million (H1 FY2014: £149.3 million).

 Net profit attributable to owners of the parent decreased 96.0 per cent to £8.9 million (H1 FY2014: £223.2
million). The decrease is due to the inclusion of other gains and losses of £214.9 million in H1 FY2014 in
respect of gain on disposal of subsidiaries and the gain on revaluation of CGH shares on the date of treating
CGH as an associate.

 Basic earnings per share was 0.36p (H1 FY2014: 11.73p) and basic earnings per share, excluding other gains
and losses (including share of other gains in jointly controlled entities) was 0.36p (H1 FY2014: 0.44p). Basic
earnings per share from continuing operations decreased to 0.36p (H1 FY2014: 5.17p).

 Net assets further increased to £360.2 million as at 30 September 2014 (31 March 2014: £343.2 million).
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 The Company increased its interest in CGH through the acquisition of 13,252,000 shares from China
Petroleum & Chemicals Corporation (“Sinopec Corp.”) as part of a share placement. The shares were
initially allotted to First Level Holdings Limited (“FLH”), a substantial shareholder of the Company and
have been subsequently been transferred to the Company at cost (i.e. no profit or loss). The acquisition
represented 0.26 per cent of the issued capital of CGH.

 The Company is principally an investment holding company with dividend income from each of its business
units as the core cash inflow to the Company. The actual dividend income received is expected to be
substantially lower than the “Profit for the year/period”. Furthermore, our future dividend payments will be
dependent on dividend income from each business unit. Their dividend policy and the amount of dividends
to be paid are subject to the decision made by the board of each of these business units.

Aviation Refuelling – Bluesky

Our performance

 The Group’s share of joint venture revenues increased to £283.3 million (H1 FY2014: £277.9 million).

 The Group’s share of net profit increased 12.5 per cent to £6.3 million (H1 FY2014: £5.6 million).

 Sales volumes increased 11.9 per cent to 1.9 million tonnes (H1 FY2014: 1.7 million tonnes), driven by the
continued increase in domestic and international air travel demand.

Outlook

 The China aviation market is expected to continue to grow driven both by increased business travel but also
by increased leisure travel by an increasingly wealthy and mobile population.

 Bluesky is required to keep sufficient storage to supply jet fuel at each of its airports for approximately two
weeks to ensure that operations remain uninterrupted. Recent significant changes in the crude oil prices can
have a negative impact on the value of the jet fuel storage and Bluesky continues to take steps to mitigate
against any potential stock related risk but not all stock risk can be hedged against.

Maoming Single Point Mooring (“SPM”)

Our performance

 Fortune Oil’s share of net profit was £0.5 million. For the comparable period in 2014 there were no profits
attributable to the Maoming SPM due to the expiry of the previous joint venture agreement which meant that
after February 2013 the Company had no effective financial interest in the operations of the SPM until the
new joint venture became effective from 1 January 2014.

 Sales volumes were 5.2 million tonnes. Sales volumes are unavailable for the comparable period in 2014 as a
result of the expiry of the previous joint venture agreement which meant that after February 2013 the
Company had no effective financial interest in the operations of the SPM until the new joint venture became
effective from 1 January 2014.

 The Maoming SPM facility continues to operate efficiently and with an accident-free and spill-free record.

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Outlook

 The slow down in China’s economic growth is impacting on China’s blended energy consumption in Q3
2014 which increased by only 3.4 per cent year on year was 2.8 per cent lower than Q2 2014 indicating a
slow down in crude oil demand and associated refined products.

West Zhuhai Jetty and Storage Terminal

Our performance

 The Group’s share of revenues remained at £1.3 million (H1 FY2014: £1.3 million).

 Fortune Oil’s share of net profit decreased 4.9 per cent to £0.38 million (H1 FY2014: £0.40 million).

 Throughput and storage volumes decreased 6.6 per cent to 1.1 million tonnes (H1 FY2014: 1.2 million
tonnes).

Outlook

 Growth in autosales has slowed significantly and only rose by 1.7 per cent in September 2014 compared to
the same month a year earlier as Chinese consumers purchased only 1.7 million cars in the month. Autosales
are still expected to reach 23 million units in 2014, an increase of 4.6 per cent year on year, although lower
than the previous forecast of 8.3 per cent by the China Association of Automobile Manufacturers. The
slowdown in autosales will impact on future demand growth for petrol and diesel.

Trading Business

Our performance

 Revenues increased 36.5 per cent to £162.6 million (H1 FY2014: £119.1 million).

 Profit from operations increased 16.1 per cent to £1.0 million (H1 FY2014: £0.8 million).

 Sales volumes increased 89.7 per cent to 261,800 tonnes (H1 FY2014: 138,000 tonnes) principally 63,800
tonnes of mixed aromatics and other petrochemical products, 36,000 tonnes of base oil and 129,200 tonnes
of fuel oil.

Outlook

 Established a new company in Shenzhen to expand the Company’s domestic trading operations through the
Shenzhen Qianhai Economic Zone.

China Gas Holdings Limited (“CGH”)

Fortune Oil and CGH

Fortune Oil’s investment in CGH is managed and reported as a separate segment under IFRS. CGH became an
associate in August 2013, and since then, equity accounting has been adopted.

 CGH contributed £6.7 million to the Group’s operating profit through its share of profit from jointly
controlled entities and associates (H1 FY2014: £1.0 million).

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 China Gas Group Limited (“CGG”), the joint venture company in which the Group has a 50 per cent interest,
owns 744,602,000 CGH shares, representing 14.69 per cent of CGH total issued shares as at 27 November
2014. As at 27 November 2014 the Group and CGG together held 941,973,463 shares in CGH representing
18.8 per cent of CGH total issued shares of 5,021,048,561, as per CGH’s latest public information.

CGH Performance – summary for the six month period ended 30 September 2014*

 CGH revenues for the period including share of jointly controlled entities and associates increased by 49 per
cent to HK$15.6 billion (£1.2 billion) (H1 FY2014: HK$10.5 billion (£0.9 billion)).

 Net profit from all operations attributable to owners of the parent increased 31 per cent to HK$1.9 billion
(£150.8 million) (H1 FY2014: HK$1.5 billion (£123.7 million)).

 During H1 FY2015 CGH sold a total of 4.1 billion cubic metres of natural gas, an increase of 16.8 per cent
over the same period of the previous year (H1 FY2014: 3.5 billion cubic metres).

* The operational and financial information of CGH for the H1 FY2015 is based on operational and financial results published by
CGH.

Outlook

 China’s government raised natural gas prices around 20 per cent on 1 September 2014 in line with the policy
to bring China’s natural gas price in line with international market prices. This on-going policy has the
potential to adversely impact on demand for natural gas.

 The continued slowdown in China’s property market is expected to lead to a reduction in the connection rate
and associated connection fees in the city gas concessions.

 The Chinese government is proactively implementing new policies to promote the use of natural gas to
improve air quality. China’s General Office of the State Council has announced that natural gas supply is
expected to reach over 400 billion cubic metres by 2020 which will increase the availability of natural gas to
CGH city gas concessions.

Resources

 Iron ore prices have decreased by around 40 per cent in 2014 as a flood of new supply from the world’s
biggest and lowest-cost producers has hit the market at the same time as fears about slowing demand in
China, the world’s biggest consumer of seaborne iron ore, have intensified.

 The Group continues to assess whether there is an economically viable investment case to develop the
Armenian iron ore deposits. The Group has continued to evaluate options to improve the economic viability
of these assets and is in discussions with customers in the neighbouring countries and with potential
investment partners interested in developing the assets. The Group will not make any material investment in
the development of this project unless there is a long term economically viable investment case.

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 FINANCIAL REVIEW

Disposal Group Held for Sale and Discontinued Operations

The comparative figures of H1 FY2014, reflect the decision to dispose of the Group’s natural gas business FGIH
to CGH (the “FGIH Transaction”) and the old Maoming SPM joint venture being in dissolution procedure
following the expiration of the joint venture contract in February 2013. Hence, the results of the Group’s natural
gas business in respect of the period before its disposal to CGH and the old Maoming SPM business are
presented as discontinued operations in the income statement and cash flow statement for the six months ended
30 September 2013.

In order to provide a more comprehensive review of all of the Group’s operations, on a basis comparable with
that provided to shareholders in previous period, the discussion of financial results below relates to continuing
operations and discontinued operations combined. The income statement distinguishes the results of
discontinued operations from those of continuing operations.

Accounting Treatments

Investment in CGH
As a result of having significant influence through holding and exercising the nomination rights of managing
director and an additional executive director in CGH granted at the FGIH Transaction together with the CGH
shares hold directly or indirectly by Fortune Oil, CGH has been treated as an associate of the Group and equity
accounting has been adopted since Completion.

The investment in CGH is divided into two layers: (i) direct holding by wholly owned subsidiaries; and (ii)
indirect holding by CGG, a jointly controlled entity between the Company and Mr Liu Minghui. The accounting
treatments in these layers are discussed as follows:

Treatments from the Group’s wholly owned subsidiaries

Following Completion, the Group has applied equity accounting by recognising CGH’s net profit according to
the Group’s shareholding percentage into the income statement (See the summary in “Profit contribution from
investment in CGH” under “Revenue and Expenditure” below for details).

As at 30 September 2014, Fortune Oil directly held 197,371,463 CGH shares via Fortune Oil PRC Holdings
Limited, Fortune Oil Holdings Limited and First Marvel Limited, all of which are wholly owned subsidiaries of
the Company. Since CGH is an associate of the Group, and thus accounted for under the equity method, the
market value of the investment in CGH is no longer directly reflected in the Group’s balance sheet, however, any
future decrease in CGH’s share price, which is significant and prolonged, is objective evidence of impairment,
which would be charged to the income statement directly in the relevant future period.

Treatments in CGG
Following Completion, CGG has applied equity accounting by recognising CGH’s net profit according to
CGG’s shareholding percentage in the income statement. During H1 FY2014, CGG’s income statement also
recognised a gain in fair value of CGG’s investment in CGH, previously recognised in equity up to the date
when CGH became an associate, which is disclosed separately as “Other Gains” under the “Share of results of
Jointly Controlled Entities”, and accrued administrative expenses and finance costs to compute its net profit.
Since Fortune Oil has a 50 per cent shareholding in CGG, the Group treats CGG as its jointly controlled entity
and recognises 50 per cent of CGG’s net profit by adopting equity accounting for the Group. In terms of cash
flow, cash received from dividends declared by CGH has covered the finance costs and other administrative
expenses incurred by CGG (See the summary in “Profit contribution from investment in CGH” for details).

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As at 30 September 2014, CGG holds 737,374,000 CGH shares, representing 14.7 per cent of CGH’s total issued
share capital. As discussed above, since CGH is an associate to CGG and CGG is a jointly controlled entity of
the Group, and thus accounted for under the equity method, the market value of the investment in CGH is no
longer directly reflected in the Group’s balance sheet, however, any future decrease in CGH’s share price, which
is significant and prolonged, is objective evidence of impairment which would be charged to the income
statement of CGG directly in the relevant future period.

Treatment of Maoming SPM

Due to the expiry of the previous joint venture agreement, the Company had no effective financial interest in the
operations of the SPM until the new joint venture became effective from 1 January 2014.

The new joint venture is an associate of the Group, and equity accounting has been adopted from when the joint
venture became effective. It has been reclassified to “Others” of Segmental Reporting (note 3 to the accounts as
page 21 for detail).

Revenue and Expenditure

Revenue from all operations including the Group’s share of jointly controlled entities and associates increased
by 28.7 per cent to £582.5 million for the six months ended 30 September 2014 from £452.7 million for the H1
FY2014. This was largely driven by the inclusion of the share in CGH’s revenue since Completion and the
growth in the Group’s trading business, netted off by the exclusion of revenue from the natural gas business after
the Completion. Group revenue from all operations excluding jointly controlled entities and associates has also
increased slightly to £162.6 million for the six months ended 30 September 2014 from £149.3 million for the H1
FY2014.

Profit from operations before Other Gains (see below for discussion), decreased 11.2 per cent to £13.1 million
for the six months ended 30 September 2014, compared with £14.8 million for the H1 FY2014. Following
Completion, most of the consolidated earnings are generated by the Group’s jointly controlled entities and
associates.

The net profit attributable to owners of the parent was £8.9 million for the six months ended 30 September 2014,
a decrease of 96.0 per cent compared with £223.2 million for the H1 FY2014. Earnings per share from all
operations decreased to 0.36 pence for the six months ended 30 September 2014, compared with 11.73 pence for
the H1 FY2014. The sharp decrease is mainly due to the combined effect of the exclusion of “Other Gains” to be
further discussed below (totalling of £214.9 million for the H1 FY2014), netted off against the inclusion of the
share of results of CGH.

Profits contribution from investment in CGH

CGH became an associate in August 2013, and since then, equity accounting has been adopted. Based on the
accounting treatments discussed above, the profit contribution from the investments in CGH for the H1 FY2015
can be summarised in the following table:

Group’s wholly
owned subsidiaries 100% of CGG
Number of CGH shares held* 197,371,463 737,374,000
At single companies’ level
Percentage held in CGH* % 3.9% 14.7%
Dividend received in cash from CGH £’000 1,501 5,604
Share of results
Share of results of CGH as an associate** £’000 3,307 12,822
Other income, net in CGG £’000 Unallocated 85
Finance costs in CGG £’000 Unallocated (2,920)

Page 8 of 30
 Loss on dilution of associate, included the share of results of
jointly controlled entity and associates**** £’000 (522) (2,076)
Total £’000 2,785 7,911
At consolidated level
Effective percentage held in CGH* % 3.9% 7.3%
Profit from operations £’000 2,785 3,956
Total (see note 3 to accounts) £’000 – 6,741
Valuation of CGH shares for the Group*
Book value £’000 – 402,704
Market value*** £’000 – 598,281

* based on the CGH shares held as at 30 September 2014.

** share of results of CGH as an associate were based on different shareholding percentages in CGH during the 6 months ended 30
September 2014.
*** based on closing price of CGH as at 30 September 2014.
**** represents the loss incurred on dilution of the Group’s effective interest at the time of issue of new shares in CGH. This resulted in
a reduction in the Group’s share of the net assets of CGH and recognition of an associated loss.

Disposal of natural gas business

For the comparative figures of H1 FY2014, the results of natural gas business have been consolidated and
classified as discontinuing operation until the completion of the FGIH Transaction in August 2013 (the
“Completion”), which was also the date that FGIH and its sub-group ceased to be subsidiaries of the Group.
Please refer to “Natural Gas” of Segmental Reporting (note 3 to the accounts at page 21) for detail.

Other Gains (including share of other gains in jointly controlled entities)

There were no other gains (including share of other gains in jointly controlled entities) in H1 FY2015. The
£214.9 million of other gains recognised in H1 FY2014 consisted of: (i) the gain on disposal of the Group’s
natural gas business of £119.7 million; and (ii) the gain on revaluation of CGH shares on the date of treating
CGH as an associate of £95.3 million).

Other Comprehensive Income/Loss

Other comprehensive income was £7.9 million for H1 FY2015 which was due to exchange differences arising on
translation of foreign operations of the Group.

The other comprehensive loss of £83.1 million for H1 FY2014 was mainly due to the exchange losses arising on
translation of foreign operations of the Group of £13.2 million; the share of net gain in fair value of available-
for-sale investments in jointly controlled entity of £25.4 million; and the cumulative gains in fair value of CGG’s
investment in CGH being reclassified from equity to the income statement on the date when CGH became an
associate of £95.3 million.

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Cash Position

Notwithstanding the steady historical dividend pay-out ratio of its jointly controlled entities and associates, the
Group’s cash inflow from operating activities heavily relies on the future dividends received from these entities,
which will be affected by their own profitability.

As a result of the possible uneven timing of distribution of dividends received, Fortune Oil will require careful
treasury management in order to avoid future cash shortfalls.

Financial Position

The net assets of the Group as at 30 September 2014 were £360.2 million, compared with £343.2 million as at 31
March 2014. The increase was mainly due to the total comprehensive income of £16.8 million generated in the
H1 FY2015. The net borrowing position as at 30 September 2014 was £36.8 million compared with £50.6
million as at 31 March 2014. With a cash balance of £152.1 million as at 30 September 2014, and the expected
positive cash flow generated from operations, the Group envisages no difficulties in meeting both current loan
repayment obligations and investment commitments. The net gearing ratio (after deduction of cash) for the
Group further decreased to 10.2 per cent as at 30 September 2014 against 14.8 per cent as of 31 March 2014.

Finance Costs and Tax

Finance costs for the Group from all operations were £4.3 million in the reporting period, compared with £2.2
million for the last reporting period. It was mainly due to the increase of the Group borrowing from the full draw
down of the syndicated loan by US$180 million (£113 million) in April 2014.

The Group’s total tax charge in the Reporting Period from all operations was £0.8 million (for six months ended
30 September 2013: £3.2 million) representing an effective tax rate of 8.7 per cent, compared with 23.7 per cent
(after excluding non-taxable capital gains and losses of £214.9 million) for the six months ended 30 September
2013. The decrease in the effective tax rate was mainly the result of the exclusion of the income tax charge of the
Group’s natural gas business after the completion of the FGIH Transaction and because profits of jointly
controlled entities and associates are included in the income statement net of tax.

Foreign Exchange

The revenues and expenses of the Group are mainly denominated in China’s renminbi (RMB). The remaining
expenses are denominated either in pounds sterling (£), Hong Kong dollars (HK$), which is pegged to the US
dollar, or in US dollars (US$). On average for H1 FY2015, the RMB depreciated against the US$ by 1.1 per cent
and the pounds sterling appreciated by 8.1 per cent against the US$, hence there was an overall 9.3 per cent
appreciation of the pounds sterling against the RMB. This currency movement has had the effect of decreasing
our profits as measured in pounds sterling.

The assets and liabilities of the Group are also primarily denominated in RMB. The remaining balance, which
represents a small proportion of the assets and liabilities, is denominated in US$, pounds sterling and HK$. As at
30 September 2014, the closing pounds sterling rate depreciated against the RMB and US$ by 2.9 per cent and
2.5 per cent, respectively.

The Group does not have a policy to hedge currency risk and therefore any changes in the RMB/£ exchange rate
are likely to affect the Groups’ results which are presented in pounds sterling.

Page 10 of 30
Capital Structure

Most of the Group’s investments and expenses take place in the PRC and are held through Fortune Oil PRC
Holdings Limited, a wholly owned subsidiary of the Company incorporated in Hong Kong. To facilitate inter-
company restructuring, most of the investments in China are held through subsidiary Hong Kong registered
companies. The Group’s UK operations consist only of local representation as a direct expense to the Company.

Refinancing

In October 2013, Fortune Oil PRC Holdings Limited, a wholly-owned subsidiary of Fortune Oil, signed a
US$300 million (£184 million) loan agreement. The facility is denominated in US$ with a term of three years
and an interest rate payable at a margin of 2.75 per cent over LIBOR was fully drawn in April 2014. The facility
is guaranteed by Fortune Oil PLC and secured by share charges over its various Hong Kong subsidiaries.

The purpose of this refinancing was to maximise the borrowing capacity and to lock-in low-cost financing at
then prevailing levels. This new facility, which has been partly used to repay the previous syndicated loan of
US$180 million (£113 million) signed in April 2011, will provide the Company with working capital, and
finance new investment.

Dividend

It is not the Company’s policy to pay interim dividends. A special dividend of 2.36 pence per ordinary share was
paid to shareholders on 25 October 2013, in respect of the FY2014.

PRINCIPAL RISK AND UNCERTAINTIES

Our business is supplying China with energy and resources, principally oil and natural gas. We face many risks
and whilst we can manage some, we have to accept others as part of doing business. There are a number of
potential risks and uncertainties which could have a material impact of the Group’s performance over the
remaining six months of the financial year and could cause actual result to different materially from expected
and historical results. These risks have not changed since the date of Annual Report 2014, where the principal
risks and uncertainties, their effects and our management strategy are detailed on pages 23 and 24 of that report.

The principal risks and uncertainties facing Fortune Oil’s operations include: the group does not have control of
all of its investments, concentration risks, exposure to underlying result of CGH, profit guarantee risk, pricing
risks, regulatory and relationships risks, health, safety and the environment, attraction and retention of key
employees, development risks and uninsured risks.

GOING CONCERN STATEMENT

The Group’s business activities and associated opportunities and risks are set out above in the “Business
Review” and “Principal Risks and Uncertainties”. The financial position of the Group, its cash flows and
liquidity position is described in the Financial Review. In the management of liquidity risk, the Group monitors
and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Group’s
operation and mitigate the effects of fluctuations in cash flows. The Group expects to meet its capital
expenditure requirements from medium term loan facilities and the cash dividend received from its jointly
controlled entities and associates.

The current economic conditions may create uncertainty over:

 The level of demand for the Group’s products and services

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 International exchange rates that affect commodity prices and hence the Group’s revenues in China as
denominated in US dollars or pound sterling

 The availability of bank or equity finance in the foreseeable future

 Counterparty credit risk

As at 30 September 2014, the Group had a cash balance of £152.1 million and a net borrowing position of £36.8
million. With the expected positive cash flow generated from operations, the Group’s current forecasts and
projections and adjusting for possible changes in trading conditions, show that the Group will be able to repay
the interest and principal payments in a timely manner in accordance with loan agreements and to operate within
the required covenants.

As part of the FGIH Transaction, the Group will compensate CGH on a dollar for dollar basis where the net
profits for the natural gas business for the twelve months ended 31 December 2014 are less than HK$400 million
(approximately £32 million). As Management believe the FGIH business within CGH should be on target to
meet the profit guarantee and the possibility of the compensation is unlikely, no liability for compensation has
been recognised when considering this going concern exercise.

The Directors believe that the Group has adequate resources to continue in operational existence for the
foreseeable future. Accordingly, Fortune Oil continues to adopt the going concern basis in preparing the half
year report and accounts.

RESPONSIBILITY STATEMENT PURSUANT TO DTR 4.2

The names and functions of the Directors of Fortune Oil are listed in the Company’s Annual Report for 2014.
We confirm that, to the best of each person’s knowledge:

1. The condensed set of financial statements, which have been prepared in accordance with the applicable set
of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit of the
Group, or the undertakings included in the consolidation as a whole as required by DTR 4.2.4R;

2. The interim management report includes a fair review of important events that have occurred during the first
six months of the financial year, and their impact on these six months financial report and a description of
the principal risks and uncertainties for the remaining six months of the financial year in accordance with
DTR 4.2.7R; and

3. The interim management report includes a fair review of disclosures of related party transactions that have
taken place in the first six months of the financial year and that have materially affected the financial
position or the performance of the Group during that period and any changes in the related party transactions
described in the last annual report that could have a material effect on the financial position or performance
of the Group in the first six months of the current financial year in accordance with DTR 4.2.8 R.

These interim results have not been audited nor reviewed.

By order of the Board

TIAN Jun
Acting Chief Executive

Page 12 of 30
 FORTUNE OIL PLC

Interim Report Announcement for the six months ended 30 September 2014 (“H1 FY2015”)

Consolidated Income Statement for the period ended 30 September 2014

6 months ended
6 months Continuing Discontinued
ended operations operations Total
30.09.14 30.09.13 30.09.13 30.09.13
Amount in £’000 Notes (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenue including share of jointly controlled
entities and associates 3 582,518 417,956 34,770 452,726
Share of revenue of jointly controlled entities and
associates 3 (419,904) (298,825) (4,634) (303,459)
Group revenue 3 162,614 119,131 30,136 149,267
Cost of sales (160,989) (117,507) (18,158) (135,665)
Gross profit 1,625 1,624 11,978 13,602
Distribution expenses – – (2,011) (2,011)
Administrative expenses (2,484) (5,103) (1,382) (6,485)
Share of results of jointly controlled entities
excluding other gain 10 10,685 8,986 716 9,702
Share of other gain in jointly controlled entities – 95,251 – 95,251
Share of results of associates 11 3,294 – (39) (39)
Profit from operations 13,120 100,758 9,262 110,020
Other gains 4 – – 119,655 119,655
Finance costs (4,257) (1,919) (286) (2,205)
Investment revenue 867 772 136 908
Profit before tax 9,730 99,611 128,767 228,378
Income tax charge 5 (845) (1,301) (1,895) (3,196)
Profit for the period 8,885 98,310 126,872 225,182
Attributable to
Owners of the parent 8,918 98,350 124,833 223,183
Non-controlling interests (33) (40) 2,039 1,999
8,885 98,310 126,872 225,182
Earnings per share
Basic 7 0.36p 5.17p 6.56p 11.73p
Diluted 7 0.35p 5.12p 6.50p 11.62p

Page 13 of 30
 FORTUNE OIL PLC

Interim Report Announcement for the six months ended 30 September 2014 (“H1 FY2015”)

Consolidated Statement of Comprehensive Income for the period ended 30 September 2014

6 months 6 months
ended ended
30.09.14 30.09.13
Amount in £’000 (Unaudited) (Unaudited)
Profit for the period 8,885 225,182
Exchange differences arising on translation of foreign operations 7,893 (13,211)
Share of net gain in fair value of available for sale financial assets in jointly controlled entities – 25,376
Reclassification of available for sale financial assets in jointly controlled entities to interest in
associates – (95,251)
Other comprehensive income/(loss) for the period 7,893 (83,086)
Total comprehensive income for the period 16,778 142,096
Attributable to
Owners of the parent 16,796 144,662
Non-controlling interests (18) (2,566)
16,778 142,096

Page 14 of 30
 FORTUNE OIL PLC

Interim Report Announcement for the six months ended 30 September 2014 (“H1 FY2015”)

Consolidated Statement of Financial Position at 30 September 2014

30.09.14 31.03.14
Amount in £’000 Notes (Unaudited) (Audited)
Assets
Non-current assets
Property, plant and equipment 8 1,855 1,861
Intangible assets 9 370 360
Investments in jointly controlled entities 10 226,443 240,704
Investments in associates 11 152,384 131,576
Available for sale investments 1,986 1,937
383,038 376,438
Current assets
Trade and other receivables 12 51,759 79,624
Cash and cash equivalents 152,057 58,338
203,816 137,962
Total Assets 586,854 514,400
Liabilities
Current liabilities
Borrowings 13 16,227 40,819
Trade and other payables 14 27,668 52,048
Current tax liabilities 285 278
44,180 93,145
Non-current liabilities
Borrowings 13 172,673 68,156
Deferred tax liabilities 1,462 1,791
Other non-current liabilities 8,334 8,062
182,469 78,009
Total Liabilities 226,649 171,154
Net Assets 360,205 343,246
Equity
Capital and reserves
Ordinary shares 15 25,871 25,871
Treasury shares (781) (578)
Share premium 50,969 50,969
Other reserves 33,488 33,488
Foreign currency translation reserve 957 (6,921)
Retained earnings 247,249 237,947
Equity attributable to owners of the parent 357,753 340,776
Non-controlling interests 2,452 2,470
Total Equity 360,205 343,246

Page 15 of 30
 FORTUNE OIL PLC

Interim Report Announcement for the six months ended 30 September 2014 (“H1 FY2015”)

Consolidated Cash Flow Statement for the period ended 30 September 2014

6 months 6 months
ended ended
30.09.14 30.09.13
Amount in £’000 Notes (Unaudited) (Unaudited)
Net cash from operating activities 17 1,659 2,841
Interest received 867 136
Dividend received from jointly controlled entities 10 12,141 13,484
Dividend received from associates 11 1,501 –
Payment for property, plant and equipment (172) (3,519)
Payment for exploration and evaluation assets – (205)
Receipt from disposal of subsidiary undertakings – 82,642
Consideration paid on acquisition of additional interests in a subsidiary – (1,390)
Receipt from disposal of property, plant and equipment – 68
Acquisition of investments in associates 11 (15,181) –
Loan to jointly controlled entities – (3,232)
Repayment from jointly controlled entities 10 17,952 –
Net cash from investing activities 17,108 87,984
Interest paid (3,577) (1,885)
Dividend payment to owners of the parent – 485
Repayment of loans to non-controlling shareholders – (1,254)
Net proceeds from issue of new borrowings 116,323 7,417
Repayment of borrowings (38,385) (52,095)
Net cash from/(used in) financing activities 74,361 (47,332)
Increase in cash and cash equivalents 93,128 43,493
Cash and cash equivalents at beginning of the period 58,338 61,019
Cash flow effect of foreign exchange rate changes 591 3,820
Net cash and cash equivalents at end of the period 152,057 108,332

Page 16 of 30
 FORTUNE OIL PLC

Interim Report Announcement for the six months ended 30 September 2014 (“H1 FY2015”)

Consolidated Statement of Changes in Equity for the period ended 30 September 2014

Issued capital Foreign

currency Attributable Non-
Ordinary Treasury Share Other translation Retained to owners of controlling
Amount in £’000 shares shares premium reserve reserve earnings the parent interests Total
Balance at 1 April 2013 19,875 (678) 10,129 69,889 31,893 95,607 226,715 56,452 283,167
Profit for the period – – – – – 223,183 223,183 1,999 225,182
Exchange differences arising on translation of
foreign operations – – – – (8,646) – (8,646) (4,565) (13,211)
Share of net gain in fair value of available for sale
financial assets in jointly controlled entities – – – 25,376 – – 25,376 – 25,376
Reclassification of available for sale financial
assets in jointly controlled entities to interest in
associates – – – (95,251) – – (95,251) – (95,251)
Total comprehensive income for the period – – – (69,875) (8,646) 223,183 144,662 (2,566) 142,096
Payment of dividends to non-controlling interests – – – – – – – (1,815) (1,815)
Dividend paid to owners of the parent – – – – – (3,056) (3,056) – (3,056)
Transfer – – – 2,166 – (2,166) – – –
Share of capital contribution on acquisition of
available for sale financial assets – – – 33,610 – – 33,610 – 33,610
Adjustment arising from changes in non-controlling
interest – – – (292) – – (292) (1,102) (1,394)
Net capital contribution from non-controlling
interest – – – – – – – 2,685 2,685
Dissolution of a subsidiary – – – – (2,268) – (2,268) (10,773) (13,041)
Disposal of subsidiaries – – – (1,874) (10,347) – (12,221) (43,429) (55,650)
Balance at 30 September 2013 (Unaudited) 19,875 (678) 10,129 33,624 10,632 313,568 387,150 (548) 386,602
Balance at 1 April 2014 25,871 (578) 50,969 33,488 (6,921) 237,947 340,776 2,470 343,246
Profit for the period – – – – – 8,918 8,918 (33) 8,885
Exchange differences arising on translation of
foreign operations – – – – 7,878 – 7,878 15 7,893

Page 17 of 30
Total comprehensive income for the period – – – – 7,878 8,918 16,796 (18) 16,778
Movement in treasury shares – (203) – – – 184 (19) – (19)
Share-based payments – – – – – 200 200 – 200
Balance at 30 September 2014 (Unaudited) 25,871 (781) 50,969 33,488 957 247,249 357,753 2,452 360,205

Page 18 of 30
 FORTUNE OIL PLC

Notes to the Condensed Set of Financial Statements

Six months ended 30 September 2014

1. Basis of preparation

The condensed financial statements have been prepared in accordance with International Accounting
Standard 34 Interim Financial Reporting, as adopted by the European Union.

The comparative figures included in financial statements and the notes to the accounts for the six months
ended 30 September 2013 (H1 FY2014) has not previously been published, however it has been
prepared on the same basis described in this note and under the same accounting policies outlined in note
2.

The financial information for the six months ended 30 September 2014 was neither audited nor reviewed
by the auditors. The information for the year ended 31 March 2014 does not constitute statutory accounts
as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has
been delivered to the Registrar of Companies. The auditor’s report on these accounts was not qualified,
did not include a reference to any matters to which the auditor drew attention by way of emphasis
without qualifying the report and did not contain statements under section 498(2) or (3) of the
Companies Act 2006.

The Directors are satisfied that the Group has sufficient resources to continue in operation for the
foreseeable future, a period of no less than twelve months from the date of this report. Accordingly, they
continue to adopt the going concern basis in preparing the condensed financial statements. Detail of the
factors that which have been taken into account in assessing the Group’s going concern status are set out
on pages 11 and 12.

2. Significant accounting policies

The condensed financial statements have been prepared under the historical cost convention, except for
the revaluation of certain properties and financial instruments.

The same accounting policies, presentation and methods of computation have been followed in these
condensed financial statements as were applied in the preparation of the Group’s financial statements for
the year ended 31 March 2014, with the following exceptions. In the current year, the Group has applied,
for the first time, the following new and revised Standards and Interpretations, which are effective for
the Group’s financial year beginning 1 April 2014, but have not had any significant impact on the
financial statements for the six months to 30 September 2014.

IFRS 10 Consolidation financial statements

IFRS 11 Joint arrangements
IFRS 12 Disclosure of interests in other entities
IAS 27 (revised) Separate financial statements
IAS 28 (revised) Investments in associates and joint ventures

Page 19 of 30
 3. Segmental Reporting

The Group has adopted IFRS 8 Operating Segments to identify eight operating segments on the basis of
internal reports about components of the Group which are reviewed regularly by the chief operating
decision maker in order to allocate resources to the segment and to assess its performance.

The Group has classified the operating divisions and the reportable segments under IFRS 8 as
“Investment in China Gas Holdings Ltd”, “Natural Gas”, “Single point mooring facility”, “Aviation
Refuelling”, “Trading”, “Products Terminal”, "Resources" and “Others”.

Information regarding these segments is presented below.

(a) Operating segments

Oil
Investment in
Resources
CGH**** Aviation Refuelling Trading Products Terminal
Amount in £’000 Sep 14 Sep13 Sep 14 Sep 13 Sep 14 Sep 13 Sep 14 Sep 13 Sep 14 Sep 13
Revenue including share of
jointly controlled entities
and associates 133,671 17,442 283,276 277,921 162,614 119,131 1,262 1,339 – –
Share of revenue of jointly
controlled entities and
associates (133,671) (17,442) (283,276) (277,921) – – (1,262) (1,339) – –
Group revenue – – – – 162,614 119,131 – – – –
Profit from operations
before office overheads 6,741 96,201 6,331 5,630 953 821 386 406 (184) (70)
Office overheads*
Profit from operations
Other gains – – – – – – – – – –
Finance costs
Investment revenue
Profit before taxation
Taxation
Profit for the period
Attributable to
Owners of the parent
Non-controlling interests

Amount in £’000 30.09.14 31.03.14 30.09.14 31.03.14 30.09.14 31.03.14 30.09.14 31.03.14 30.09.14 31.03.14

Net assets: by class of

business
Assets
Segment assets 330,454 320,016 36,309 35,228 129,923 131,876 7,017 6,456 6,655 6,621
Unallocated assets
Consolidated total assets
Liabilities
Segment liabilities – – (8) (8) (24,590) (48,916) – – (8,429) (8,231)
Unallocated liabilities***
Consolidated total liabilities

Page 20 of 30
 (a) Operating segments (cont.)

Single point mooring Discontinuing

Others** Continuing operations facility Natural Gas operations Group
Amount in £’000 Sep 14 Sep 13 Sep 14 Sep 13 Sep 14 Sep 13 Sep 14 Sep 13 Sep 14 Sep 13 Sep 14 Sep 13

Revenue including
share of jointly
controlled entities and
associates 1,695 2,123 582,518 417,956 – – – 34,770 – 34,770 582,518 452,726
Share of revenue of
jointly controlled
entities and associates (1,695) (2,123) (419,904) (298,825) – – – (4,634) – (4,634) (419,904) (303,459)

Group revenue – – 162,614 119,131 – – – 30,136 – 30,136 162,614 149,267

Profit from operations

before office
overheads 505 80 14,732 103,068 – – – 9,262 – 9,262 14,732 112,330
Office overheads* (1,612) (2,310) – – – – – – (1,612) (2,310)

Profit from operations 13,120 100,758 – – – 9,262 – 9,262 13,120 110,020

Other gains – – – – – – – 119,655 – 119,655 – 119,655
Finance costs (4,257) (1,919) – (286) (4,257) (2,205)
Investment revenue 867 772 – 136 867 908

Profit before taxation 9,730 99,611 – 128,767 9,730 228,378

Taxation (845) (1,301) – (1,895) (845) (3,196)

Profit for the period 8,885 98,310 – 126,872 8,885 225,182

Attributable to
Owners of the parent 8,918 98,350 – 124,833 8,918 223,183
Non-controlling
interests (33) (40) – 2,039 (33) 1,999

Amount in £’000 30.09.14 31.03.14 30.09.14 31.03.14 30.09.14 31.03.14 30.09.14 31.03.14 30.09.14 31.03.14 30.09.14 31.03.14

Net assets: by class of

business
Assets
Segment assets 13,666 12,845 524,024 513,042 802 782 – – 802 782 524,826 513,824
Unallocated assets 62,028 576 – – – – – – 62,028 576

Consolidated total
assets 586,052 513,618 802 782 – – 802 782 586,854 514,400

Liabilities
Segment liabilities (2,353) (2,287) (35,380) (59,442) – – – – – – (35,380) (59,442)
Unallocated
liabilities *** (191,269) (111,712) – – – – – – (191,269) (111,712)

Consolidated total
liabilities (226,649) (171,154) – – – – – – (226,649) (171,154)

359,403 342,464 802 782 – – 802 782 360,205 343,246

* Includes overheads in UK/HK/PRC offices.

** Others include retail and distribution in 2014. In 2015, SPM has been reclassified to “Others”.
*** Includes bank loan, deferred tax and dividend withholding tax.
**** Investment in CGH includes the Group’s directly held associate interest together with that held through CGG. It also
includes the Group’s 50% share of other gains and losses of CGG, including CGG’s finance cost.

Page 21 of 30
 (b) Analysis of group revenue

6 months 6 months
ended ended
Amount in £’000 30.09.14 30.09.13
Sales of goods 162,409 141,830
Income from gas connection contracts – 6,702
Rental income – 5
Others 205 730
162,614 149,267
Investment revenue 867 908
163,481 150,175

4. Other gains

30.09.14 30.09.13
Amount in £’000 (Unaudited) (Unaudited)
Gain on disposal of subsidiaries – 119,655
– 119,655

5. Income tax charge

Interim period income tax is accrued based on the average effective income tax rate of 8.7 per cent (six
months ended 30 September 2013: 23.7 per cent after excluding non-taxable capital gains and losses of
£214.9 million).

The Group tax charge does not include corporate income tax for jointly controlled entities and associates,
whose results are disclosed in the statement of comprehensive income net of tax.

Please refer to the financial review for discussion on the tax charges during the period.

Page 22 of 30
6. Dividends

Year
6 months ended ended
Amount in £’000 30.09.14 30.09.13 31.03.14
Amounts recognised as distributions to equity holders in the period:
Final dividend for the year ended 31 December 2012 of 0.16p per
share – 3,056 3,056
Special dividend of 2.36p (2012: nil) per share – – 45,101
– 3,056 48,157
Proposed final dividend for the year ended 31 March 2014 –

The Directors do not recommend the payment of an interim dividend in respect of the six months ended
30 September 2014.

7. Earnings per share

Earnings per share has been calculated by dividing earnings attributable to the shareholders by the
weighted average number of shares in issue during the respective periods, as indicated below:

30.09.14
No.
’000 pence
Total
(Unaudited) (Unaudited)
Basic 2,509,044 0.36
Share option adjustment 16,472 –
Diluted 2,525,516 0.35

30.09.13
No. No. No.
’000 pence ’000 pence ’000 pence
Continuing operations Discontinued operations Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Basic 1,906,476 5.17 1,906,476 6.56 1,906,476 11.73
Share option adjustment 13,380 – 13,380 – 13,380 –
Diluted 1,919,856 5.12 1,919,856 6.50 1,919,856 11.62

31.03.14
No. No. No.
’000 pence ’000 pence ’000 pence
Continuing operations Discontinued Total
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Basic 2,141,508 3.11 2,141,508 5.97 2,141,508 9.08
Share option adjustment 15,937 – 15,937 – 15,937 –
Diluted 2,157,445 3.08 2,157,445 5.93 2,157,445 9.01

Page 23 of 30
8. Property, plant and equipment

During the period, the Group spent approximately £0.2 million on assets consisting of motor vehicles
and fixture and fittings.

The depreciation charge for the period was £0.2 million (six months ended 30 September 2013: £0.3
million).

9. Intangible assets

During the period, the Group spent nil (September 2013: £1 million) on exploration and evaluation
assets in Armenia.

10. Investments in jointly controlled entities

There were no acquisition during the period and the movement is mainly due to share of the profit,
dividend received, repayment of loan to the jointly controlled entities and exchange gains. Details are as
follows:

Jointly controlled entities Interest in Net loans Total

jointly to jointly jointly
controlled controlled controlled
Amount in £’000 entities entities entities
Share of net assets/cost
At 1 April 2014 165,870 74,834 240,704
Exchange rate difference 3,854 1,293 5,147
Repayment of loans – (17,952) (17,952)
Dividend (12,141) – (12,141)
Share of profit 10,685 – 10,685
At 30 September 2014 168,268 58,175 226,443

Page 24 of 30
11. Investments in associates

Associates
Interest in
Amount in £’000 associates
Share of net assets/cost
At 1 April 2014 131,576
Exchange rate difference 3,834
Acquisition 15,181
Dividend (1,501)
Share of profit 3,294
152,384

In August 2014, the Group acquired a further 13.3 million shares in CGH. The acquisition represented
0.26 per cent of the issued capital of CGH. The fair value of the investment in CGH at 30 September
2014 is £201.7 million, based on the market share price at that date of £1.02 (HK$12.88).

12. Trade and other receivables

The significant decrease in trade and other receivables was mainly due to reduction in deposits made in
respect to trading transactions amounting to £6.0 million at 30 September 2014 (31 March 2014: £30.2
million).

Included in trade and other receivables is an amount of £0.8 million that represents the net amount
expected to be recovered on dissolution of the joint venture in Maoming King Ming Petroleum Company
Limited that was dissolved on 5 February 2013. From this date control has been lost and therefore
consolidation is no longer appropriate.

13. Borrowings

On 7 August 2013, the Company issued the Loan notes of £7.5 million (US$12 million) to Fortune
Dynasty Holdings Limited in order to fund the Group’s near-term capital expenditure, particularly the
capital expenditure relating to FGIH, and to provide additional general working capital. The Loan Notes
were settled by way of the issue of the 99,373,000 ordinary shares of the Company, with the balance of
approximately US$80,000 of principal and all accrued interest paid in cash in October 2013.

During April 2014, a further £110 million (US$180 million) which was the remaining balance of the
existing loan facility of £184 million (US$300 million) entered in October 2013, was drawn down by the
Group. The loan is with a term of three years and a margin of 2.75 per cent above LIBOR. The loan has
been used to repay the existing syndicated loan, provide the Group with working capital, and finance
new investment. The facility is guaranteed by the Company and secured by share charges over its
various Hong Kong subsidiaries.

In addition, trading loans of £6 million and £38 million had been drawn and repaid respectively during
the period.

Page 25 of 30
14. Trade and other payables

The significant decrease in trade and other payables was mainly due to reduction in deposits made in
respect to trading transactions amounting to £2.4 million received from trading customers at 30
September 2014 (31 March 2014: £37.6 million).

15. Issued capital

Issued capital as at 30 September 2014 amounted to £25.9 million. There were no movements in the
issued capital of the Company during the period.

16. Financial Instruments’ fair value disclosures

Financial instruments that are measured subsequent to initial recognition at fair value are grouped into
levels 1 to 3 based on the degree to which the fair value is observable:

– Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets
for identical assets or liabilities;

– Level 2 fair value measurements are those derived from inputs other than quoted prices included
within level 1 that are observable for the asset or liabilities, either directly (i.e. as prices) or
indirectly (i.e. derived from prices); and

– Level 3 fair value measurements are those derived from valuation techniques that included inputs for
the asset or liabilities that are not based on observable market date (unobservable inputs).

During the period ended 30 September 2014, there were no transfers between levels (31 March 2014:
nil).

30.09.14 31.03.14
(Unaudited) (Audited)
Amount in £’000 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets
Available for sale
investments – quoted – – – – – – – –
Available for sale
investments – unquoted – – 1,986 1,986 – – 1,937 1,937
– – 1,986 1,986 – – 1,937 1,937

Available for sale investments

Amount in £’000
Balance at 1 April 2014 1,937
Exchange difference 49
Balance at 30 September 2014 1,986

Page 26 of 30
 Profit guarantee

As part of the FGIH Transaction, the Group will compensate CGH on a dollar for dollar basis where the
net profits for the natural gas business for FY2013 are less than HK$200 million (approximately £16
million) or are less than HK$400 million (approximately £32 million) in 2014. This compensation
agreement is not subject to any cap.

As Management believe the FGIH business within CGH is on target to meet the profit guarantee and the
possibility of the compensation is unlikely, and the fair value of the obligation has been estimated on the
basis of the weighted average of the possible outcomes to be immaterial, no liability has been recognised
as at 30 September 2014.

17. Note to cashflow statement

6 months 6 months
ended ended
30.09.14 30.09.13
Amount in £’000 Notes (Unaudited) (Unaudited)
Net cash from operating activities
Profit for the period 8,885 225,182
Adjustments for:
Share of post-tax results of jointly controlled entities 10 (10,685) (104,953)
Share of post-tax results of associates 11 (3,294) 39
Taxation 845 3,196
Amortisation – 29
Depreciation 219 313
Loss on disposal of property, plant and equipment – (19)
Gain on disposal of subsidiary undertakings – (119,655)
Share-based payments 200 –
Investment revenue (867) (908)
Finance costs 4,257 2,205
Decrease in inventories – 328
Decrease/(increase) in trade and other receivables 29,964 (61,557)
(Decrease)/increase in trade and other payables (27,036) 61,170
Net cash from operations 2,488 5,370
Taxation paid (829) (2,529)
Net cash from operating activities 1,659 2,841
Cash and cash equivalents
Cash and bank balances 152,057 108,332

Page 27 of 30
18. Related party transactions and significant contracts

The Group’s related parties, the nature of the relationship and the extent of transactions with them are
summarised below:

Sub 30.09.14 30.09.13 31.03.14

Amount in £’000 notes (Unaudited) (Unaudited) (Audited)
Loans to equity non-controlling interests in a
subsidiary 1 – 3,708 3,606
Shareholder loans to jointly controlled entities 2 58,175 55,729 74,834
Sales of goods to jointly controlled entities 3 – 1,601 2,845
Purchase of goods from jointly controlled entities 3 – 905 1,650
Current account with Vitol Energy (Bermuda) 3 – (483) –

Sub notes
1. Loans of £3,606,000 comprised mainly loans to the non-controlling shareholders in March 2014 (September
2014: £nil). A £3,606,000 loan balance at March 2014 (September 2014: £nil) to the non-controlling
shareholders of Bounty Resources Armenia Limited was guaranteed, interest bearing at a margin of 4% over
LIBOR p.a. and was repaid in June 2014.

2. The shareholder loans are part of shareholders’ investment in the jointly controlled entities. These are
common methods of making an investment in jointly controlled entities in the PRC.

£58,030,000 (March 2014: £74,692,000), of which £2.5 million are unsecured, interest bearing of HIBOR
plus 4.72% p.a. and repayable on October 2015, was loaned to CGG which is established in Hong Kong and
£145,000 (March 2014: £148,000) was due from Zhuhai Special Economic Zone South China Petroleum
Company Limited.

3. Purchase from jointly controlled entity – Jining Qufu New Fu Hong Gas Limited amounted to £nil
(September 2013: £905,000). Sales from Group’s subsidiary, Xinyang Fortune Gas Company Limited and
Beijing Fuhua Natural Gas Limited to Group’s jointly controlled entity, Xinyang Fortune Vehicle Gas
Company Limited and Beijing Fuhua Natural Gas Logistics Limited, amounted to £nil (September 2013:
£1,524,000 and £77,000) respectively.

4. Fortune Max Holdings Limited (“FMH”) is a private company controlled and beneficially owned by Mr
Daniel Chiu. During 2012, FMH has entered into arrangements with lenders to finance the purchase of CGH
shares, and then entered into a verbal understanding to sell any such CGH shares to CGG, at all cost
associated with the purchase and financing of any CGH shares acquired as and when these are transferred
to CGG, and any losses arising on the CGH shares acquired by FMH. In April 2013, CGG has acquired all
the 207,968,000 CGH shares previously purchased by FMH by its own financing capacity. Under the terms
of the agreement with CGG, FMH generated neither profit nor incurred any loss from its transaction in CGH
shares, however, CGG recognised a gain in equity of over £67 million based on the market value at the date
of transfer, with the Group's share being £33.5 million.

5. On 7 August 2013, the Group entered into a conditional sale and purchase agreement to purchase the entire
issued share capital of First Marvel Investment Limited (“First Marvel”) which had been incorporated for
the purpose of acquiring Wilmar International Limited’s US$60 million interest in the total US$400 million
consideration receivable as a result of the FGIH Transaction (the “Wilmer consideration”). First Marvel
was wholly-owned subsidiary of Fortune Dynasty Holdings Limited (“FDH”), a joint venture company then
owned 55 per cent by First Level Holdings Limited (“FLH”), which is in turn controlled by Mr Daniel Chiu,
an executive director of the Company.

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 The conditional sale and purchase agreement included consideration of £39.1 million (US$60 million), and
an unsecured fixed rate loan note instrument with FDH. Under the Loan Instrument, FDH was agreed to
subscribe in cash at par for £7.9 million (US$12 million) nominal amount of fixed rate unsecured loan notes
issued by the Group (the “Loan Notes”). Interest was payable on the Loan Notes at a rate of 7% per annum
until they were settled through the subscription for shares.

On 25 September 2013, the Company announced that the acquisition of First Marvel and the amendment of
the loan received from FDH amounting to US$12 million were approved by shareholders in the General
Meeting, such that it would be repayable in shares in Fortune Oil (the “Loan Settlement”) with the balance
of approximately US$80,000 of principal and all accrued interest paid in cash. On 3 October 2013, Fortune
Oil issued 599,639,580 new ordinary shares of the Company for the acquisition of First Marvel and the Loan
Settlement.

6. Certain assets included in property, plant and equipment of £1.6 million were transferred at cost by way of
trust & deed from two companies controlled and beneficially owned by Mr Daniel Chiu on January 2014.

7. Included in trade and other receivables is an amount of £0.8 million that represents the net amount expected
to be recovered on dissolution of the joint venture in Maoming King Ming Petroleum Company Limited that
was dissolved on 5 February 2013. From this date control has been lost and therefore consolidation is no
longer appropriate.

8. The investment in CGH is divided into two layers: (i) direct holdings by wholly owned subsidiaries of the
Company; and (ii) indirect holding by CGG, a jointly controlled entity between the Group and Mr Liu Ming
Hui. In October 2013, the Group loaned £21.5 million to CGG to further purchase 30,000,000 ordinary
shares of CGH from Mr Liu Ming Hui. The loan balance as 30 September 2014 was £2.5 million.

9. By virtue of their directly and indirectly held shareholding of 51.2%, FLH is considered to be the ultimate
controlling party of the Group.

10. In August 2014, the Group has increased its interest in CGH through an acquisition of 13,252,000 shares
(the “Acquired Shares”). The shares were acquired from the China Petroleum & Chemical Corporation
(Sinopec Corp.) as part of a share placement. The shares were acquired at a price of HK$14.80, a 5.1%
discount to the closing price on the date the acquisition was made on 13 August 2014.

Due to logistical constraints on the date the acquisition was made, the Acquired Shares were allotted to FLH,
a substantial shareholder of the Company and private company controlled and beneficially owned by Mr
Daniel Chiu, an executive director of the Company.

During August 2014, FLH transferred all the allotted shares at cost (i.e. no profit or loss) to the Company.
The Company has indemnified FLH against all costs associated with the acquisition, financing and transfer
of any Acquired Shares.

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19. Litigation

In April 2012, an action was commenced in the High Court of Hong Kong by Caspian Resources
Development Pte Limited (“CRDPL”) against Fortune Oil, Giant Global Development Limited
(“GGDL”), a wholly owned subsidiary of Fortune Oil, and George Howard Richmond (“Mr Richmond”)
in relation to the validity of the sale and purchase of a 16.7 per cent shareholding in Caspian Bounty
Steel Limited (“CBSL”) by Mr Richmond to GGDL in January 2011. CBSL is the company through
which Fortune Oil holds part of its interests in an iron ore mining project located in Armenia. A writ of
summons was served on GGDL in April 2012 and on Fortune Oil in March 2013. GGDL and Fortune
Oil will strenuously defend the action. GGDL successfully applied in September 2012 to the High Court
of Hong Kong for security for costs to be given by CRDPL. Fortune Oil will similarly seek security for
costs.

Fortune is currently unable to quantify the potential damages that could arise from this claim. However,
the Directors believe that the Group and GGDL have reasonable prospects in successfully defending the
action and that therefore no provision has been made in the financial statements as this claim is not
expected to result in any material loss to the Group. At 31 March 2014, the carrying value of the assets
in the Armenia iron ore project has been fully impaired.

20. Approval of the interim financial statements

The interim of financial statements for six months ended 30 September 2014 were approved by the board
of directors on 28 November 2014.

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