1h fy2010 results briefing 16 december 2009. operational highlights 1h fy2010
TRANSCRIPT
1H FY2010Results Briefing
16 December 2009
Operational Highlights 1H FY2010
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0
200
400
600
800
1000
1200
1400
1600
1800
1H08 1H09 1H10
Coal Gas & Piped LPG
Natural Gas
Natural gasSales volume
Tota
l sal
es v
olum
e (m
illio
n m
3 )
Period Sales Growth – Total
1H10 106.0%
1H09 110.9%
1H08 124.6%
Period Sales Growth – Natural Gas Only
1H10 101.8%
1H09 138.0%
1H08 117.3%66.7
746.8
313.8
380.5
802.3
1,652.5
55.5
145.5
1,507.0
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Natural gasCustomer breakdown
0
200
400
600
800
1000
1200
1400
1600
1H08 1H09 1H10
CNG Stations
Commercial
Industrial
Residential
Nat
ural
gas
sal
es v
olum
e (m
illio
n m
3 )
44.7
191.135.842.2
105.7
497.1
66.577.5
Sector Sales Volume Growth in 1H10
% of Total Volume
CNG Stations
39.1% 7.2%
Commercial 118.6% 9.6%
Industrial 119.0% 72.2%
Residential 56.2% 11.0%
746.8
313.8
1,507.0
107.8
145.4
1,088.7
165.1
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Natural gasCustomer data
Customer Growth Organic Acquired1H10
Portfolio TotalChange from
1H091H09
Portfolio Total
Residential 289,262 163,273 4,197,905 23.5% 3,399,100
Industrial 105 4 529 116.8% 244
Commercial 1,752 191 30,454 24.8% 24,402
CNG Stations 7 - 67 34.0% 50
Customer Tariffs (ex-tax) (RMB / m3) 1H10 Change from 1H09 1H09 1H08
Residential 1.84 1.1% 1.82 1.74
Industrial 2.03 4.1% 1.95 1.49
Commercial 2.31 14.4% 2.02 2.05
CNG Stations 2.14 -7.4% 2.31 1.98
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LPG Operational data
1H10 FY09*
LPG Sales Volume (tons) 435,900 495,155
LPG Average Sales Income per ton (HKD) 4,010 4,589
Operational Location (Cities) 22 17
* The acquisition of the LPG business was completed in September 2008. Therefore, the FY09 figures above do not capture full year performance
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-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
1H08 1H09 1H10
CNG for AutomobilesCommercialIndustrialResidential
2,374.7
4,485.0
8,913.0
Other operational data
Natural gas daily consumption
(000
m3 )
18.40%
25.40%28.30%
20
25
30
35
40
45
50
55
1H08 1H09 1H100%
5%
10%
15%
20%
25%
30%
Penetration Rate (%
)
Urb
an P
opul
ation
Co
vere
d (m
)
Urban population covered and penetration rate
379.8
1413.7
291.5 496.5
3,075.5
437.040.7
44.0476.05,963.0
1,437.0
890.0
623.0
292.0
50.9
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Other operational data
1H10 Change from 1H09 1H09 1H08
Residential Connection Fee (RMB per customer) 2,418 8.5% 2,228 2,368
Total Pipelines (km) 28,990 69.8% 17,073 14,483
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Natural gasCurrent project locations
Beijing
Shanghai
Heilongjiang
Jilin
Liaoning
Inner Mongolia
Xinjiang
Tibet
Qinghai
Gansu
Ningxia
Shaanxi
Shanxi
Henan
ShandongHebei
Jiangsu
Anhui
Zhejiang
Fujian
JiangxiHunan
Guangdong TaiwanGuangxi
Hainan
Yunnan
Guizhou
Sichuan
Chongqing
Tianjin
Shaanxi Baoji, Qishan Xian, Yulin
Hebei Cangzhou, Cangzhou Economic Development Zone, Nanpi, Qinghe, Leting, Xinle, Gaocheng, Pingshan, Feng Nan, Neiqiu, Wangdu, Nanbao, Bohai New Area, Hebei Pipeline
Hubei Yichang, Xiaogan, Hanchuan, Yingcheng, Yunmeng, Suizhou, Tianmen, Guangshui, Dangyang, Xiaogan Pipeline, Dangyang Pipeline, Huanggang-Daye pipeline
Hunan Yiyang, Yuanjiang
Guangdong Maoming, Conghua, Meizhou, Yunfu, Shanwei
Guangxi Yuling, Qinzhou, Liuzhou, Fongchenggang, Laibin, Baise, Nanning Dongmeng Development Zone
Chongqing Dianjiang E&P, Yubei District, Dingwang purification, Chongqing Pipeline
Inner Mongolia Hohhot, Wushenqi, Wushenqi Pipeline, Changmeng Pipeline, Baotou, 4 counties, Etoke Banner
Ningxia Zhongwei
Fujian 28 city gas concessions
Jiangsu Pizhou, Yangzhong, Nanjing (Jiang Bei), Xuzhou (Jiawang), Xuzhou (Xinyi), Yangzhou
Anhui Wuhu, Huainan, Shouxian, Suzhou, Wuhuxian, Nanling, Huoshan, Fengtai , Wuwei
Zhejiang Hangzhou (Xiaoshan), Shaoxing, Taizhou, Jinhua
Liaoning Dalian, Fushun, Jinzhou, Sujiatun(Shenyang), Jinzhou D. Zone, Liaoyang, Gaizhou, Zhuanghe, Linghai, Pulandian
Shandong Dezhou, Qingdao
Tianjin Tianjin Pipeline
Heilongjiang Harbin, Jiamusi, Shuangcheng
Hubei
Financial Highlights 1H FY2010
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Financial summaryIncome Statement
HK$ ('000) 1H FY10 % change 1H FY09 (restated) 1H FY08
Turnover 3,937,292 138.7% 1,649,787 877,762
Gas Sales 1,577,112 51.7% 1,039,417 549,941
Connection Fees 559,269 35.4% 412,950 227,027
LPG Sales 1,748,104 - - -
Other 52,807 -73.3% 197,420 100,794
Gross Profit 934,031 68.9% 553,100 271,802
Profit after tax 490,778 338.2% 111,986 74,476
Profit Attributable to Shareholders 431,778 484.8% 73,836 64,711
Basic EPS (HK Cents) 12.95 483.3% 2.22 2.05
Gross Margin – Gas Sales 22.9% n/a 19.3% 13.6%
Gross Margin – Connection Fees 74.8% n/a 76.5% 80.0%
Gross Margin – LPG Sales 8.4% n/a - -
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Income statementTurnover breakdown
Connection Fees
25.9%
Others11.5%
Sales of Piped Gas
62.7%
1H FY08 1H FY09 1H FY10
Connection Fees
25.0%
Others12.0%
Sales of Piped Gas
63.0%
Others1.3%
Connection Fees
14.2%
Sales of LPG44.4%
Sales of Piped Gas
40.1%
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Financial summaryBalance sheet & debt position
HK$ ('000) 1H FY10 FY09
Total Assets 19,451,891 18,086,766
Total Equity 4,477,943 4,017,271
Shareholder's Equity 3,648,305 3,223,270
Cash 2,503,123 2,896,457
Short-term Bank Debt 3,102,667 * 3,103,855
Long-term Bank Debt 7,968,539 7,194,067
Convertible Bond 14,823 14,823
* Including HK$2,295,512,000 LPG Trading Facilities
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Balance sheetGearing and debt maturity profile
Net Gearing at 148%1
Short-term debt primarily consists of trade financing from banks for the LPG trading business of Shanghai Zhongyou
Bank borrowings consist primarily of bank loans
Management is committed to prudent capital management, and a significant portion of the Group’s debt is long term
Debt Maturity Profile
Note 1): As at 30 September 2009Net Gearing = Net Debt Excluding LC Related Trading Facilities / Total Equity
FY2010-11 Guidance
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FY2010-2011 guidance
Management will focus on organic growth of existing city gas and pipeline projectsNew investments will be on opportunistic basis
FY2010 FY2011
Gas volume (m3) 3.3 – 3.5 bn 4.5 – 5.0 bn
New residential connections 500,000 – 520,000 600,000 – 650,000
CNG stations to reach 90 – 100 120 – 130
LPG sales to reach 1.2–1.3m tons 2.0 – 2.2m tons
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Disclaimer
Statements in this presentation and handout that are not strictly historical are “forward-looking” statements. Forward-looking statements involve risks and uncertainties, including, but not limited to, continued acceptance of the Company’s product and services in the marketplace, competitive factors, new products and technology changes, the Company’s dependence upon third party suppliers and other risks detailed from time to time in the presentation, handout and other related documents. China Gas is not responsible for the accuracy and completeness of the contents of such presentations and/or other documents. The materials and information in the presentations and other documents are for informational purposes only, and are not an offer or solicitation for the purchase or sale of any securities or financial instruments or to provide any investment service or investment advice.