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FY2011 Interim Results Briefing29th November 2010
Operational Highlights 1H FY2011
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Piped GasSales Volume (as at 30th Sep 2010)
Period Sales Growth – Total
1H FY11 14.3%
1H FY10 106.0.%
1H FY09 110.9%
Period Sales Growth – Natural Gas Only
1H FY11 21.8%
1H FY10 101.8%
1H FY09 138.0%
Tota
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Natural Gas VolumeCustomer Breakdown (as at 30th Sep 2010)
SectorSales Volume Growth
in 1H FY11% of Total
Volume
CNG Stations 72.5% 10.1 %
Commercial 62.6% 12.9%
Industrial 8.3% 64.2%
Residential 42.0% 12.8%
Nat
ural
gas
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Natural GasCustomer Data (as at 30th Sep 2010)
Customer Growth Organic Acquired1H FY11
Portfolio TotalChange from
1H FY101H FY10
Portfolio Total
Residential 386,500 409,581 5,633,517 34.2% 4,197,905
Industrial 95 4 909 71.8% 529
Commercial 1,699 1,539 36,714 20.6% 30,454
CNG Stations 17 4 102 41.7% 72
Customer Tariffs (ex-tax) (RMB / m3) 1H FY11 Change from 1H FY10 1H FY10 1H FY09
Residential 2.06 12.0% 1.84 1.82
Industrial 2.16 6.4% 2.03 1.95
Commercial 2.48 7.4% 2.31 2.02
CNG Stations 2.37 10.7% 2.14 2.31
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Penetration Rate
Urb
an P
opul
ation
Cov
ered
(m)
Natural gas daily consumption Urban population covered and penetration rate
(000
m3 )
Natural GasOther Operational Data (as at 30th Sep 2010)
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1H FY11Change from
1H FY10 1H FY10 1H FY09
Residential Connection Fee (RMB per customer) 2,484 2.7% 2,418 2,228
Total Pipelines (km) 52,746 81.9% 28,990 17,073
Natural GasOther Operational Data (as at 30th Sep 2010)
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LPG Operational Data (as at 30th Sep 2010)
1H FY11 1H FY10
Sale tonnage (ton) 508,482 435,900
Gross Margin (%) -0.14% +8.40%
Operating Margin (%) -3.67% - 0.14%
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Beijing
Shanghai
Heilongjiang
Jilin
Liaoning
Inner MongoliaXinjiang
Tibet
Qinghai
Gansu
Ningxia
Shaanxi
Shanxi
Henan
ShandongHebei
Jiangsu
Anhui
Zhejiang
Fujian
JiangxiHunan
Guangdong TaiwanGuangxi
Hainan
Yunnan
Guizhou
SichuanChongqing
Tianjin
Hubei
Natural GasCurrent Project Locations
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, Tang County
Hubei Yichang, Xiaogan, Hanchuan, Yingcheng, Yunmeng, Suizhou, Tianmen, Guangshui, Dangyang, Xiaogan Pipeline, Dangyang Pipeline, Huanggang-Daye pipeline
Hunan Yiyang, Yuanjiang, Youxian
Guangdong Maoming, Conghua, Meizhou, Yunfu, Shanwei, Xinxingxian, Fengshunxian, Pingyuanxian
Guangxi Yuling, Qinzhou, Liuzhou, Fongchenggang, Laibin, Baise, Nanning City, Nanning Dongmeng Development Zone, Bobai
Chongqing Dianjiang E&P, Yubei District, Dingwang purification, Chongqing Pipeline
Inner Mongolia Hohhot, Wushenqi, Wushenqi Pipeline, Changmeng Pipeline, Baotou, 4 counties, Etoke Banner, Etuokeqi, Alashan, Zuoqi Tenggeli Industrial Zone
Ningxia Zhongwei
Fujian 29 city gas concessions
Jiangsu Pizhou, Yangzhong, Nanjing (Jiang Bei, Pukou), Xuzhou (Jiawang), Xuzhou (Xinyi), Yangzhou
Anhui Wuhu, Huainan, Shouxian, Suzhou, Wuhuxian, Nanling, Huoshan, Fengtai, Wuwei, Xiuningxian
Zhejiang Hangzhou (Xiaoshan), Taizhou, Jinhua, Hangzhou Jiangdong Industrial Zone
Liaoning Dalian, Fushun, Jinzhou, Sujiatun(Shenyang), Jinzhou D. Zone, Liaoyang, Gaizhou, Zhuanghe, Linghai, Pulandian, Liaoyang Economic Zone, Jinzhou Longxiwan New Zone
Shandong Dezhou, Qingdao, 3 cities from Zhongyu Gas
Tianjin Tianjin Pipeline
Heilongjiang Harbin, Jiamusi, Shuangcheng, Mudanjiang, Jiagedaqi
Jiangxi Nanchang (Wanliqu)
Henan 8 city gas concessions from Zhongyu Gas
Gansu Lingtai County
Financial Highlights 1H FY2011
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Financial SummaryIncome Statement
HK$ ('000) 1H FY11 % change 1H FY10
Turnover 6,537,621 66.0% 3,937,292
Gas Sales 2,404,538 52.5% 1,577,112
Connection Fees 1,005,288 79.8% 559,269
LPG Sales 2,897,589 65.8% 1,748,104
Other 230,206 340.0% 52,327
Gross Profit 1,234,712 32.2% 934,031
EBIT 770,123 37.2% 561,507
Profit after tax 123,729 -74.8% 490,778
Core Earnings 296,169 25.5% 236,054
Gross Margin – Gas Sales 20.0% - 22.9%
Gross Margin – Connection Fees 70.7% - 74.8%
Gross Margin – LPG Sales -0.1% - 8.4%
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Financial SummaryBalance Sheet & Debt Position
HK$ ('000) 1H FY11 1H FY10
Total Assets 26,380,903 19,451,891
Total Equity 6,413,152 4,477,943
Shareholder's Equity 4,948,470 3,648,305
Cash 4,258,280 2,503,123
Short-term Bank Debt 5,410,759* 3,102,667
Long-term Bank Debt 8,937,959 7,968,539
* of which HK$2,851,490,000 was Zhongyou Huadian LPG trade finance related facilities
FY2011-12 Outlook
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FY2011-2012 Guidance
FY2011 FY2012
Gas volume (m3) 4.8 bn 6.0 bn
New residential connections 700,000 850,000
CNG stations to reach 120 180
LPG sales (million ton) 1.3 2.0
Enhance organic growth of existing city gas and pipeline projects in terms of residential penetration, industrial connections and CNG station rollout
Continue upstream LPG integration with refineries Sinopec and CNPC and enhance imports through Oman Oil’s connections in the Middle East
Active rollout of LPG downstream retail distribution network through the newly established JV with Oman Oil
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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.