Mr. Charles Wang reports

CF ENERGY ANNOUNCES FINANCIAL RESULTS FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2023

CF Energy Corp. has filed its unaudited condensed interim consolidated financial results for the three-month period ended March 31, 2023.

Revenue in Q1 2023 was 100.1 million renminbi (approximately $19.8-million), an increase of 4.7 million renminbi (approximately $800,000), or 5 per cent, from 95.4 million renminbi (approximately $19.0-million) for the three-month period ended March 31, 2022 (Q1 2022). Signs of recovery of business in Sanya City were evidenced by the breaking of the decreasing trend in sales volume and revenue from commercial customers in the gas supply segment in Q1 2023. Revenue from residential customers recorded a slight decrease in terms of volume and sales amount in Q1 2023 which was attributed to less time spent at home stay during Q1 2023 following the release of COVID restrictions and policy at the end of 2022.

Gross profit in Q1 2023 was 28.5 million renminbi (approximately $5.6-million), a decrease of 8.8 million renminbi (approximately $1.8-million), or 24 per cent, from 37.3 million renminbi (approximately $7.4-million) in Q1 2022. Gross margin in Q1 2023 was 28.5 per cent, a decrease of 10.7 percentage points as compared with 39.2 per cent in Q1 2022. Lower gross profit and margin in Q1 2023 were mainly attributable to high purchase price of LNG (liquified natural gas) in Q1 2023 which could not be fully transferred to the company's customers in Sanya CNG vehicle station and the increase in the purchase price of pipeline gas which attributed to the renewal of the two-year gas purchase contracts which became effective from April 1, 2022, alongside the negative margin for the integrated smart energy segment while continuing with the effort to procure further hotel users to achieve critical mass.

Net profit in Q1 2023 was 3.5 million renminbi (approximately $700,000), a decrease of 7.8 million renminbi (approximately $1.6-million), or 69 per cent, from 11.3 million renminbi (approximately $2.3-million) in Q1 2022. Net profit in Q1 2023 included certain adjusting items. On a comparable basis, after excluding the gain of 2.0 million renminbi (approximately $400,000) in fair value change on derivative financial instrument of loan discharge agreement in respect of the commitment by the estate of Mr. Lin to subscribe for common shares under a related party loan (please refer to the related party transaction section of the MD&A (management's discussion and analysis) for more details), recognition of share-based payment expenses of nil (Q1 2022: 200,000 renminbi) and the non-recurring government financial assistance of 800,000 renminbi (approximately $200,000) (Q1 2022: nil), the company reported an adjusted net profit of 700,000 renminbi (approximately $100,000) in Q1 2023, a decrease of 4.6 million renminbi (approximately $1.0-million), or 86 per cent from an adjusted net profit of 5.3 million renminbi (approximately $1.1-million) reported in Q1 2022.

EBITDA in Q1 2023 was 20.0 million renminbi (approximately $4.0-million), a decrease of 10.6 million renminbi (approximately $2.1-million), or 35 per cent from 30.6 million renminbi (approximately $6.1-million) in Q1 2022.

On a comparable basis, the adjusted EBITDA in Q1 2023 was 17.2 million renminbi (approximately $3.4-million), a decrease of 7.4 million renminbi (approximately $1.5-million), or 30 per cent, from 24.6 million renminbi (approximately $4.9-million) in Q1 2022.

Basic earnings per share (EPS) in Q1 2023 was nine renminbi cents (one cent) per share. Adjusted EPS in Q1 2023 was one renminbi cent (zero cents) per share (non-IFRS).

The continuing recovery of business and economic activities with the relaxation of COVID-19 restriction policy in China is very encouraging and the company sees its group returning back to business-as-usual stage and strives for gradual improvement in its financial performance going forward in the coming years. In line with the company's development plan as an integrated energy player, it will continue to focus on the integrated smart energy segment and the smart mobility segment and expand its businesses in China. This will be achieved via cooperating with the company's strategic partners and valuable resources in the related sector.

The unaudited condensed interim consolidated financial results and management's discussion and analysis (MD&A) can be downloaded from SEDAR or from the company's website.

About CF Energy Corp.

CF Energy is a Canadian public company currently traded on the TSX Venture Exchange under the stock symbol CFY. It is an integrated energy provider and natural gas distribution company (or natural gas utility) in China. CF Energy strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in China. In 2009, CF Energy was recognized as being one of China's the Top Ten Most Influential Brands in the Natural Gas Industry and in 2019, ranked amongst the 2019 TSX Venture 50 top performers on the TSX-V for the 2018 year.

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