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·Home / Investor Relations / Company Profile |
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·WHO WE ARE
Zhongyu Gas Holdings Limited (Zhongyu Gas) is an early mover
in developing a vertically integrated gas operation from
upstream resource development to downstream distribution in
the the People's Republic of China (the “PRC”). We are
principally engaged in the exploration, exploitation and
development of Coalbed methane (“CBM”) and the development,
construction of gas pipeline network and sales of piped gas
in PRC。
·Upstream Gas Business
Coalbed methane (CBM) is a sort of clean energy which could
be a substitute resource for natural gas. The central
government has approved a five-year plan and promulgated the
guideline on accelerating the exploitation of CBM.
With the aim to ensure sufficient and cost-effective gas
supply for the Group’s downstream gas projects located in
Henan province, the PRC and enhance the Group’s
profitability, the Group tapped into the upper stream CBM
supply market in the PRC in 2007.
Since the establishment of a joint venture company, Henan
Zhongyu Coalbed Methane Development and Utilization Company
Limited (“Zhongyu Coalbed Methane”), in March, 2007, the
Group’s coalbed methane (“CBM”) operation in the PRC has
been operating on schedule.
For the period between the date of establishment of Zhongyu
Coalbed Methane and 31st December, 2007, the Group
successfully completed drilling of 33 vertical wells in
Jiaozuo. Fracturing process, which is the second phase in
CBM extraction, started in September 2007.All of those wells
have entered into the de-watering and releasing process by
the end of April, 2008, which is the last phase in CBM
extraction. We believe that the upstream gas business will
have significant contribution to the Group’s turnover and
results in the near future.
·Downstream Gas Business
The Group’s downstream gas business primarily comprises
sales of piped gas, gas pipeline
construction and sales of liquefied petroleum gas (“LPG”).
As at 31 December, 2007, the Group secured nine exclusive
gas projects, two in Shandong Province (Linyi Zhongyu, Linyi
China Gas) and seven in Henan Province (Sanmenxia, Yongcheng,
Xinmi, Yanshi, Jiaozuo, Luohe and Jiyuan) in the PRC. The
cities in which the Group’s gas projects operate currently
have a total connectable urban population of approximately
3,084,000. It is estimated that there are an aggregate of
approximately 881,000 connectable residential households in
such cities.
Among the nine projects of the Group, those located in
Jiaozuo, Luohe and Jiyuan were newly acquired in August,
2007 (“Newly Acquired Projects”). The Newly Acquired
Projects contributed approximately HK$175,226,000 and
HK$42,267,000 to the Group’s overall turnover and profits
before tax respectively in 2007.
·Sales of Piped Gas
During 2007, the total unit of natural gas provided by the
Group to its customers was
approximately 75,320,000m³ (2006: 12,323,000 m³) For the
period between the date of acquisition and 31st December,
2007, the total unit of natural gas provided by the Newly
Acquired Projects to its customers was approximately
48,560,000 m³.
·Gas Pipeline Construction
During 2007, the average connection fees charged to
residential households by the Group was approximately
RMB2,450. During the Period, the Group made new gas pipeline
connection for 38,950 residential households (2006: 13,570
households) and industrial /commercial customers of 131
(2006: 43 customers). As the Group’s downstream gas business
is still at the development stage, connection revenue from
gas pipeline construction remained a significant component
of the Group’s turnover in 2007. For the Period between the
date of acquisition and 31 December 2007, the Newly Acquired
Projects made new gas pipeline connection for 14,592
residential households and 52 industrial/commercial
customers. As at 31 December 2007, the Newly Acquired
Projects have the accumulated number of residential
households of 152,431 and industrial/commercial customers of
543.
·Sales of LPG
During 2007, the Group sold approximately 4,959 tons of
bottled LPG (2006:3,608 tons). For the period between the
date of the acquisition and 31 December 2007, the Newly
Acquired Projects sold approximately 1,463 tons of bottled
LPG.
·Growth Prospects
Future prospects of the Group remain promising as the
natural gas market in China continues to flourish. In view
of the energy problem that China is now facing, along with
the rapid economic development which drives up the demand
for natural gas and the growing consciousness of
environmental protection in the country, it is anticipated
that CBM, as an alternative clean energy, will be
well-received by the market. With the satisfactory progress
in CBM extraction, the vertically integrated value chain of
the Group will be completed. It ensures sufficient and
cost-effective gas supply for the Group’s downstream
projects and will further enhance the profitability of the
Group. Going forward, the Group will continue to enhance its
upstream resources by expanding geographically to the
Group’s CBM blocks other than Jiaozuo City.
Meanwhile, the Group will also expand the downstream
business by increasing the number of gas refilling stations,
with the aim to achieve economies of scale and hence enhance
our profit margin. The favorable and growing
macro-environment in the PRC, together with the excellent
policy. execution and corporate management of the Group,
will render the investments highly rewarding. The Group will
maintain the parallel run in expanding its upstream and
downstream businesses, so as to enhance its market position
and improve its financial performance.
In order to improve the operating results, the Group will
continue to seek cooperation opportunities with promising
peers in the industry. It is believed that forming strategic
alliances will bring synergy to existing businesses and
improve the cost efficiency of the Group.
·Company Senior Management Profile |
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Senior Management
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Title |
Education & Credentials |
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Wang Wenliang |
Chairman,
Executive Director |
Postgraduate, major in Finance
Over 13 years of management experience in various
sectors including energy and aluminum
Vice President, Henan Provincial Youth Union |
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Hao Yu |
CEO,
Executive Director |
Doctor of
Managerial Science and Engineering, Tianjin
University
Master of Business Administration, Tianjin
University
Over 13 years management experience |
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Lu Zhaoheng |
Executive Director |
Graduate
of Chongqing Architecture and Engineering Institute,
major in City Natural Gas Heat Energy Engineering
Over 22 years experience in NG industry in the PRC.
Leading team member in the City Planning Design
Institute of Henan Province and of Zhengzhou City
Expert, Safety in Production Committee, Henan
Province |
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Lui Siukeung |
CFO,
Executive Director |
Over 10
years experience in corporate finance, accounting
and auditing fields
Graduate from The Hong Kong Polytechnic University
with a bachelor of arts degree in accountancy
Associate member of the Hong Kong Institute of
Certified Public Accountants |
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