Transcript 投影片 1
Corporate
Presentation
December 2013
China Gas Overview
Natural Gas Services Operator
Operates in 208 city concessions (including 11 city concessions owned by Fortune Gas, the acquisition of which was
completed in Aug 2013) with 30-year monopolistic operating right each
Possesses intermediate and arterial gas pipeline networks of 44,400 km, serving more than 9.5 million household
users and 56,900 industrial and commercial users
LPG
The largest LPG retailer in PRC
Owns 8 LPG receiving terminals and 285,000 m3 of LPG storage capacity in PRC
Distributes LPG in 10 provinces such as Guangdong, Guangxi, Fujian, Zhejiang and Jiangsu
Owns 100% stake in Panva Gas which controls 450 self-owned retail stores and 120 franchised outlets located in
provinces such as Jiangsu, Hubei, and Zhejiang.
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Natural Gas
- Business Model
Natural gas fields
City gate
Storage tanks
(spherical or cylinder)
Assets owned by the Group:
Main pipelines
Branch pipelines
Pressure regulating boxes
Switches
Residential
households*
Processing stations
* Customers’ pipelines which are not owned by the Group are
within the customers’ premises and are not highlighted in this
diagram
Car refueling station Commercial users*
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Natural Gas Pricing System
Natural gas business operates on a cost-plus pricing model
END-USER TARIFF COMPONENTS
Exploration
Wellhead price
Transportation
Transmission tariffs
NDRC Approval
Distribution
Distribution cost + Return
Local Price Bureau Approval
2 main sources of revenue
Gas connection: one-off payment mainly from residential users, less so from industrial and commercial users
Sale of piped gas: recurring income at tariffs approved by the local governments
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CNG/LNG Refueling Stations
Strongest growth
Most profitable
Currently owns:
208 CNG stations in 50 cities &
16 LNG stations in 4 provinces
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OPERATIONAL
PERFORMANCE
New City Concessions Won
More concessions, largest portfolio in China
29 new concessions since 1st April 2013 bringing the total to 208 city gas concessions as at 18 November 2013
New concessions won in Liaoning, Heilongjiang, Hubei, Inner Mongolia, etc.
Focus on industrial cities and customers, high volume users
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Total sales volume (million m3)
Natural Gas
- Volume Growth
Period
Volume Growth: City Projects
1HFY14
25.5%
1HFY13
21.6%
Period
Volume Growth: Long-distance Pipelines
1HFY14
1.0%
1HFY13
35.9%
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Natural gas sales volume (million m3)
Natural Gas Volume
- Customer Breakdown
% of Total Volume
Customer
Volume Growth
in 1HFY14
1HFY14
1HFY13
Residential
37.8%
12.6%
10.5%
Industrial
10.7%
69.4%
71.8%
Commercial
16.5%
9.3%
9.1%
CNG Stations
16.1%
8.7%
8.6%
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Natural Gas
- Customer & Tariff
Growth
Customer
Organic
Acquired
1HFY14
Portfolio Total
Residential
850,438
308,101
9,597,530
7,805,544
23.0%
226
26
2,407
1,895
27.0%
Commercial
3,485
1,117
54,497
46,735
16.6%
CNG Stations
44
10
224
153
46.4%
Industrial
Customer Tariffs (ex-tax) (RMB / m3)
1HFY13
Portfolio Total
Change from
1HFY13
1HFY14
FY13
Change from FY13
Residential
2.30
2.18
5.50%
Industrial
2.57
2.45
4.90%
Commercial
2.66
2.48
7.34%
CNG Stations
2.88
2.73
5.52%
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Natural Gas
- Other Operational Data
1H FY14
1H FY13
1H FY12
Residential Connection Fee
(RMB per customer)
2,548
2,459
2,437
Urban Population Covered (million)
70.0
65.0
62.5
44.5%
39.0%
34.8%
Household Penetration Rate
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Policy Environment
Strong government support
In Oct. 2012, NDRC issued the natural gas application policy, promoting the use of natural gas (CNG/LNG) for
vehicles and vessels
The PRC’s “12th Five-Year Plan” for energy development published in Jan. 2013 indicates natural gas supply
in China will surpass 260 billion m3 by 2015, increasing by 20% per year.
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NATURAL GAS PROJECT LOCATIONS
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LPG
1H FY14
1H FY13
1H FY12
Sale tonnage (ton)
769,611**
411,011*
417,287
Gross Margin (%)
+5.58%
+5.50%
+4.51%
Operating Margin (%)
+0.32%
-0.46%
+1.56%
Shifting the LPG focus from wholesale to downstream business to improve overall profitability and cost efficiency
Largest downstream retailer of LPG in China
* Not inclusive of the operation of Panva Gas, in which China Gas owned 49% interest
** Inclusive of the operation of Panva Gas, in which China Gas owns 100% interest
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FINANCIAL
PERFORMANCE
Financial Summary
- Income Statement
HK$ ('000)
1H FY14
% change
1H FY13
10,461,324
46.4%
7,147,127
Gas Sales
4,295,503
41.3%
3,040,000
Connection Fees
2,012,163
63.6%
1,229,596
LPG Sales
4,150,525
44.5%
2,871,861
3,133
-44.7%
5,670
Gross Profit
2,477,033
55.0%
1,598,546
EBITDA
2,469,391
46.6%
1,685,049
EBIT
2,145,517
50.4%
1,426,779
Profit after tax
1,484,676
59.1%
933,118
Profit attributable to owners of the Company
1,282,895
58.7%
808,200
27.41
49.7%
18.31
2.2
-
2.2
Turnover
Other
Basic EPS (HK cents)
Interim dividend per share (HK cents)
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Financial Summary
- Balance Sheet
HK$ ('000)
1HFY14
FY13
Total Assets
42,528,644
32,495,039
Total Equity
15,199,426
12,742,785
Shareholder's Equity
13,033,564
11,484,640
Cash
6,896,837
4,499,308
Short-term Bank Debt
8,308,312
8,445,193
3,205,091
4,805,303
10,509,062
6,355,830
57%*
43%*
Of which LPG trade finance related facilities
Long-term Bank Debt
Net Gearing Ratio*
*
Net gearing ratio is computed based on total net borrowings (total borrowings less cash and trade finances in relation to LPG business) as a percentage of net
assets
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Financial Summary
- Margins
1HFY14
1HFY13
Gross Margin – Gas Sales
20.3%
20.3%
Gross Margin – Connection Fees
68.2%
66.2%
Gross Margin – LPG Sales
5.6%
5.5%
EBITDA Margin
23.6%
23.6%
EBIT Margin
20.5%
20.0%
Net Profit Margin
14.2%
13.1%
Average ROE
20.9%
15.9%
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Guidance
FY2014 - 2015
FY2014 - 2015 Guidance
Enhance organic growth in existing city gas projects
Increase industrial and commercial customer connections as upstream supplies increase
Expand “Hub-Satellite City” investment program to add more concessions to our portfolio
Expedite the rollout of CNG and LNG stations for vehicles and vessels
Focus on higher margin retail LPG distribution
For the year ended March 31
FY2014
FY2015
Total piped gas volume (m3)
8.5 bn
10 bn
New residential connections
1.3 m
1.3 m
370
600
900,000 tons
1.1m tons
CNG stations
Downstream LPG sales (including Panva Gas)
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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. All the directors of China Gas jointly and severally accept full
responsibility for the accuracy of the information contained in these materials and confirm, having made all
reasonable inquiries, that to the best of their knowledge, opinions expressed in these materials have been arrived
at after due and careful consideration and there are no other facts not contained in these materials, the omission
of which would make any statement in these materials misleading. 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.
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