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| To Develop Higher Margin Industrial and Transport Gas Businesses to Maintain Long-term Growth |
HONG KONG, May 29, 2014 - (ACN Newswire) - China Tian Lun Gas Holdings Limited ("China Tian Lun Gas" or the "Group"; stock code: 1600.HK), a gas operator and distributor with nationwide coverage in China, has enjoyed rapid business growth since listing on the Main Board of Hong Kong Stock Exchange in 2010. The Group has extended its reach from its initial foothold in Henan to nationwide coverage across China.
The Group's success has been led by its investment in gas-related businesses closely connected to the daily lives of people in China. Key focal points of its businesses are gas pipeline connections, the transportation, distribution and sale of gas, construction and operation of gas filling stations and production and sale of LNG. As of April 2014, the Group has extended its reach from Henan to 10 other provinces and autonomous regions, including Jilin, Hebei, Shandong, Henan, Hunan, Chongqing, Guangdong, Guangxi, Yunnan and Gansu. Its city gas projects and gas filling stations in operation have rapidly expanded in parallel from 3 to 43 and from 2 to 27 respectively. To establish a business model spanning the industry chain and to provide a stable gas source to downstream end-users, the Group has extended its scope of business to upstream gas source bases. It presently operates seven CNG primary gas filling stations, with three LNG processing plants under construction. Moreover, recently the Group was again the only listed natural gas industry player selected among the top 100 "Listed Companies with the Greatest Potential in the PRC in 2014" by Forbes, ranking 26th, indicating a widespread recognition of the Group's growth potential.
The Group's growth strategy aims at rapid development of the scale and scope of its business. The Group views urban gas projects as its core business supported by its gas source bases. It focuses on the development of transport gas projects with higher gross margin and targets industrial users with larger gas consumption. It also has maintained its ability to effectively control costs in an effort to bolster business performance and reward the Group's shareholders for their support.
As for the expansion of the urban gas field, the Group has ridden on its existing urban gas project to extend its coverage to surrounding provinces and regions. It has also actively sought opportunities to acquire urban gas projects with large gas volume in order to quickly achieve significant regional development and increase market share.
The transport gas with a higher gross margin has become the focus of the Group's development. Through the expansion model of "starting from different business focal points and expanding into huge business areas", the Group has expedited the spread of a filling station network in the regions where it operates, achieved extensive geographic coverage and targeted to cooperate with quality customers such as public transport companies, public transportation groups and logistics companies to jointly set up filling stations. The gas sales volume to transport gas users as a percentage of the total gas sales volume of the Group rose from approximately 14% in 2010 to 41% in 2013. With the operation of new gas filling stations, transport gas will further boost the gross profit margin of the Group's overall gas sales operations.
As the government implements increasingly stringent measures on energy saving and emissions reduction, there is huge scope for growth in industrial gas applications. Many large industrial users that have signed cooperative agreements with the Group have started construction works and equipment upgrades which are proceeding smoothly. The commencement of gas supply to these users should boost the Group's sales of industrial gas.
As for the expansion of gas source bases, the Group has chosen regions with a greater scale of gas sources and market demand as the key development locations. It has also expanded the coke oven gas-produced methanation LNG project and set up gas storage facilities in regions where it conducts business to increase the temporary replenishment and supply from gas sources. This can ensure a stable supply of gas to major downstream customers and enhance service quality.
Mr Zhang Yingcen, Chairman of China Tian Lun Gas, said, "Natural gas has huge market potential in China, while the favourable government policies have created greater development prospects for the Group. We will fully leverage our unique position and competitive edge, including strong financing capabilities, outstanding operational model, excellent management team and sufficient gas source supplies to attract the attention and recognition from more quality investors. Looking ahead, we will actively capture the opportunities in this fast-growing industry with the aim to make China Tian Lun Gas a long-lasting quality brand."
Contact:
Strategic Financial Relations Limited
Brenda Chan, +852 2864 4833, brenda.chan@sprg.com.hk
Cornia Chui, +852 2864 4853, cornia.chui@sprg.com.hk
Gigi Wong, +852 2114 4981, gigi.wong@sprg.com.hk
Topic: Business Plan
Source: Tian Lun Gas Holdings Limited
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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