SWS Research issued a research report on Beijing Gas Blue Sky

HONG KONG, CHINA -�Media OutReach - 28 September 2018 - SWS Research issued a research report on Beijing Gas Blue Sky Holdings Limited (“the Company”
or “Beijing Gas Blue Sky”,
together with its subsidiaries, the “Group”, HKSE stock code: 6828)
today.

 

The
report states that the Group is a nationwide integrated natural gas provider
and operator. The Group’s operations cover a large portion of the natural gas
industry value chain, from upstream LNG imports, receiving terminals to trading
and distribution to downstream fueling stations, as well as city gas and direct
supply, etc. In 2017, the Group achieved natural gas sales volume of 513
million cubic meters and revenue of HK$1.45 billion, increased by 128.97% YoY,
with trading and distribution and city gas business contributed HK$877 million
and HK$500 million, accounting for 60.4% and 34.42% of total revenue
respectively.

 

The
newly-acquired projects of the Group brought stable performance. The Group acquired three city gas projects in Songyuan (Jilin
Province), Yuncheng, and Yongji (both in Shanxi Province) in 2017. The three
projects jointly contributed gas sales volume of 42.7 million m³ and profit of
HK$47.1 million in 2017. As the Group’s the largest shareholder, Beijing Gas
Group planned to construct an emergency storage project in Tianjin South Port’s
LNG receiving terminal and purchased a 20% stake in Rosneft Oil’s VCNG project,
fully organized upstream natural gas resources. The Group is positioned as the
Beijing Gas Group’s overseas investment and financing platform. As the
Caofeidian LNG receiving terminal has been completed and the city gas project
in Teng County has been progressed gradually with the flourishing ceramics and
titanium industries, the surge in gas consumption for industrial use is
anticipated. The Group is expected to accelerate the expansion of the gas
business segment based on the parent support.

 

Also, the Group acquired 29% stake in Caofeidian’s LNG receiving
terminal with currently an annual capacity of 6.5 million tons/year in 2018.
Caofeidian’s LNG receiving terminal recorded net profit of RMB825 million in
2017, increased by approximately 400% YoY. Due to favorable policies and the
expansion of the tank, the turnover rate and scale of the Caofeidian LNG
receiving terminal are expected to increase, which is expected to increase the
group’s profit. In addition, the Group actively implemented the “One Belt, One
Road” strategy, actively participating in the receiving terminal resources in
the “One Belt” along the eastern coast and expanding the downstream terminal
market in the western inland and launching upstream gas source cooperation to
improve the LNG industrial chain layout.

 

About Beijing Gas Blue
Sky Holdings Limited

Beijing Gas Blue Sky
Holdings Limited (“Beijing Gas Blue Sky”, HKSE
stock code: 6828) is an integrated natural gas provider, distributor and
operator, with an emphasis on the midstream and downstream natural gas
development. Our natural gas business includes: (i) construction and operation
of compressed natural gas (“CNG”) and liquefied natural gas (“LNG”) refueling
stations for vehicles; (ii) construction of natural gas pipelines and operation
of city gas projects by providing piped gas; (iii) direct supply of LNG to
end-users; and (iv) trading and distribution of CNG and LNG.

 

The Group has adapted
to the “One Belt One Road” policy, and focus on operating and investing natural
gas business. The Group is actively expanding its business development and
distribution, as well as continues to gradually expanding the scale of
operations. Currently, the Group has business presence in several provinces in
Northeast China, East China, Central South China and Southwest China, including
Liaoning Province, Shandong Province, Anhui Province, Zhejiang Province, Hubei
Province, Guizhou Province, Sichuan Province and Hainan Province, etc. The
Group is committed to its vision: “develop clean energy, enhance customer
value, create a beautiful blue sky”. In the future, it will continue to
actively investing and developing natural gas business, as well as
participating in the development of natural gas industry value chain.