燃气推介材料04.ppt

DeutscheBankAccessChinaConferenceFeb2004CorporatePresentation,Xinao-ALeaderintheIndustry,XinaoGasHoldingsLimitedthe“Company”or“XinaoGas”,beingoneofthefirstnon-state-ownedpipedgasdistributorsinthePRC,wasfoundedbyMr.WangYusuoandMs.ZhaoBaojuin1993,.XinaoGaswaslistedonthemainboardoftheStockExchangeofHongKongstockcode2688aftertransferringitslistingstatusfromGEMinJune2002.Attheendof2003,XinaoGassecured39citygasconcessions,coveringcitiesintheprovincesofAnhui,Guangdong,Hebei,Henan,Hunan,Jiangsu,Liaoning,ShandongandZhejiangaswellasBeijingMunicipality.XinaoGashassecuredexclusiverightstooperatepipedgasbusinessinShijiazhuang,DongguanandChangsha.Weviewthesecuringoftheseprojectsasamajormilestoneforourcitygasbusiness.Itprovesourabilitytosignupnewcontractsinlargecities.,ExclusiveRightsonPipedGasDistributionin39LocationsinAnhui,Guangdong,Hebei,Henan,Hunan,Jiangsu,Liaoning,Shandong,ZhejiangBeijingMunicipalitycovering18.5millionconnectablepopulation,,BestFinancialManagement–FinanceAsia2002BestSmallCapIPO2001-FinanceAsiaThe200BestSmallCompanies–ForbesGlobal2001,2002,2003BestSmallCompanyChina–AsiaMoney2001,2002,2003OverallBestManagedCompany–Asiamoney2001,2003Top500ChineseEnterprise–YazhouZhoukan2001,2002,2003Top20ChineseEnterprisesofRevenueGrowth–YazhouZhoukan2002,2003,AnAwardWinningCompany,BusinessReview,XinaoGasisaleadingprivately-ownedgasdistributorinthePRC4projectswhenIPOlaunchedinMay200139locationsin10provincesasattheendof2003,coveringaconnectablepopulationofapproximately18.5millionExclusiverightsofoperationfor20-50yearsgrantedbythelocalgovernments–guaranteeingsustainableandstabledevelopmentCoordinatedmanagementforprojectinvestment,construction,operationandservicesExceptfortheDongguanproject49interest,otherprojectsaremajoritycontrolled55-95Sino-foreignjointventuresandwholly-ownedsubsidiariesConstructingprocessingstations,intermediatepipelinesandmainpipelinestoprovidesufficientandstablecitygassupply,SecuredSourceofNaturalGas,NaturalgasistheprimarygassourceGassupplylongdistancepipeline,compressednaturalgasCNG,liquefiednaturalgasLNGSuppliersundertaketothelocalgovernmentstosupplygasforlongperiods1020yearsGaspurchaseagreementssignedwithannualrenewaloption,4yearsofbusinessrelationship,10yearsofbusinessrelationship,4yearsofbusinessrelationship,OperationCapacity,GasDeliveryProcess,GasPricingStructure,Customers,StateDevelopmentandPlanningCouncil,ApprovalfromLocalStatePriceBureau,CommercialNegotiation,OperatingcostsMargin,WellheadpriceRMB0.93perm3with10allowanceforadjustment,ConnectionfeeRMB2,200–3,500GasusagechargesRMB1.5–3.5perm3,ImmediateRevenueInflowUponConnection,Revenue/Cost,ConnectionfeedominatesinearlyyearswhentheprojectcompaniesaresigningupnewcustomersGasusageincreasesasprojectsmature,becomingthemajorsourceofrecurrentincomePriortothecompletionofconstruction,revenuewillbegeneratedassoonasgassupplycommencestocertaindistricts.Theconstructionnormallytakes6-12monthstocomplete.,Atypicalproject,KeyManagementStrength,Over10yearsindustryexperienceinthePRCExpertiseinpipedgasindustryFocusedonshareholdervalueCommittedtohighleveloftransparencyPriorityoncontinuousmanagementandemployeetrainingClearandeffectiveappraisalandremunerationsystemAppropriatemanagementemployee’sincentiveschemethroughshareoptionandbonus,XinaoGasInvestmentHighlight,PureplayontherapidlygrowingPRCnaturalgassectorClearstrategytomaintainleadershipinpipedgasdistributionExcellentrecordinsafetyandinsecuringnewprojectsCapableandhighlyexperiencedmanagement,Stronggrowthpotential,Marketleadership,Proventrackrecord,Strongmanagement,AttractinvestmenttodeveloplocaleconomyEnhancecityinfrastructures,improveinvestmentenvironmentandraisethepeoples’livingstandardIncreaseemploymentandfinancialrevenue,ForeigninvestmenttodeveloplocalcompanyProfessionalandexperiencedpipedgasdistributorwithgoodtrackrecordLocalizationofstaff,payingtaxinaccordancewiththelaw,,,GovernmentVsXinaoGas,30/6/200330/6/2002ChangeLengthofintermediate1,291558131mainpipelineskmCombineddesigneddaily3,926,0001,568,000150capacityofexistingprocessingstationsm3Processingstations281414Accumulatedno.ofgasconnectionsmade-Residentialhouseholds279,671130,879114-C/Icustomers60742244Designeddailycapacityfor493,332323,63852C/Icustomersm3Penetrationrate（5.76.03n/aPopulationcoverage14,644,0004,969,000195Householdcoverage4,881,0001,656,000195,2003InterimResultsKeyOperationalData,30/6/200330/6/2002ChangeEstimateddailygasusagem3*-Residential111,86852,351114-C/Icustomers246,666161,81952.4PipedGassoldto-ResidentialHouseholdsm313,564,0005,636,000141-C/Icustomersm331,695,00013,533,000134TotalPipedGassoldm345,259,00019,169,000136TotalLPGsoldton22,43016,68234.5,KeyOperationalDatacont,*Basedonaveragedailyconsumptionof0.4m3perdayforresidentialhouseholds,50ofdailydesignedcapacityofC/Icustomers,StrongMomentumofProjectDevelopment,Numberofprojects,2003InterimFinancialHighlights,,,,,,,,,,,,,,,,,,,,,,,Change,June2002RMB’000,June2003RMB’000,50.8,61.9,61.1,100,52.2,19.3,5.9Cents,40,459,86,616,167,243,69,706,1.14,8.9Cents,65,508,139,498,334,552,106,102,1.36,EPSRMB,NetProfit,GrossProfit,Turnover,EBITDA,NAVRMB,100,TurnoverDoubledtoRMB335Million,RMBmillion,,,,,,,,IncreasedRatioofSalesofPipedGas,ConnectionFees57.0,SalesofGasAppliances1.1,,ConnectionFees76.8,SalesofPipedGas13.5,SalesofGasAppliances2.2,,ConnectionFees60.8,SalesofLPG24.0,SalesofGasAppliances1.7,20031H,2001,2002,SalesofPipedGas20.6,SalesofLPG21.3,SalesofPipedGas21.0,,,,,,,20031H,ResidentialHouseholds30.0,C/ICustomers70.0,,ConnectionFees,SalesofPipedGas,ResidentialHouseholds83.9,C/ICustomers16.1,2001,2002,ResidentialHouseholds36.2,C/ICustomers63.8,,ResidentialHouseholds41.2,C/ICustomers58.8,,ResidentialHouseholds68.1,Commercial/Industrial“C/I”Customers31.9,ResidentialHouseholds83.4,C/ICustomers16.6,ABalancedPortfolioofCustomers,EBITDA,RMBmillion,52.2,,61.9,NetProfitsurgedover60,RMBmillion,,StableMargins,,,,,,,,,,,,,,,,,,,,,,June2002,June2003,n/a,51.8,52.1,41.7,*GrossProfitMarginex-LPG,GrossProfitMargin,n/a,24.2,23.9,19.6,*NetProfitMarginex-LPG,NetProfitMargin,,ThedropinourmarginsinJune2003wasmainlyduetothesalesofLPG.ExcludingthesalesofLPG,ourmarginsactuallykeptconstant.Distributionofnaturalgashasbeenourprimarybusinessfocus,andLPGbusinessisonlyatemporaryalternativeforsomeofourprojects.OurprojectsatBengbu,HuaianandXinxianghadbeensellingLPGbeforeouracquisition,andweexpectthesetobereplacedbypipednaturalgasinthenearfuture,FinancialPosition,,,,,,,,,,,,,,,,,,,,,,,Change,Dec2002,June2003,32.0,n/a,3.6,631,536,188,336,467,428,429,467,11,499,484,395,CashonHandRMB’000,NetOperatingCashInflowRMB’000,TotalDebtRMB’000,TheGroup’sshort-termloansamountedtoRMB201,510,000.TheGroup’stotaldebtwereequivalenttoRMB484,395,000,whichincludeda3-yearsyndicatedloanofUS30millionsignedinSep2002equivalenttoRMB248,040,000andamortgageloanofHK12,969,000equivalenttoRMB13,747,000withfloatinginterestrates.Theremainingborrowings,denominatedinRMB,weregrantedbylocalbanksinthePRCtotheprojectcompanieswithfixedinterestratesandwouldbeusedastheirworkingcapitalandoperatingexpenditure.TheGroupsigneda3-yearsyndicatedloanofUS45millioninAugustthisyear,sowehavesufficientsourcesoffundsandunutilisedbankingfacilitiestomeetthefuturecapitalexpenditureandworkingcapitalrequirements.,CAPEX,CAPEXfor2003isestimatedtobeRMB550million,includingtheCAPEXfornewprojectsandtheassetstobeinjectedbytheJVpartners.,RMBmillion,*,*OutoftheRMB495millioncapexwespentin2002,assetsofRMB268millionwereinjectedintotheJVcompaniesbytheJVpartners.,NetGearingRatio,,NetcashRMB59,324,000,NetcashRMB164,108,000,ClearDevelopmentStrategy,20036-8newprojectswithtotalconnectablepopulationcoverageof15millionBytheendof200550projectswithtotalconnectablepopulationcoverageof23million2005-2007Industrialacquisitionandrestructuring,improvethemanagementandcustomerservices2007-2010totakeoverbusinessinthemarketGasbusinessinU.K.expandingtootherservicesectors,existingcustomersadatabaseandnetworkfornewbusinessandservicesdevelopment,StrongMomentumofGrowth,TheGroupwillcontinuetoexpanditsbusinessbySpeedinguptheconstructionofpipedcitygasinfrastructure,increasingconnectionpenetrationandgasconsumptionatthe39existingoperationallocationsExpandingintonewlocationsTargetareasLocationsalongorneartheWest-to-EastPipelines,aswellasFujian,ZhejiangandHunanProvincesPopulationintherangeof300,000–1,500,000perprojectShortdistancefromnearbynaturalgassourcesRegionswithhighGDPandconsumerspendingpowerincomepercapitaofRMB7,000Supportfromlocalgovernmentsuchaspreferentialtreatmentoftaxandenvironmentalpolicy,NaturalGasIndustryOverview,NaturalgassectorinthePRCisunderdevelopedChinaistheworld’ssecondlargestenergyconsumerwithapopulationof1.27billionasat2000HeavilyreliedoncoalasprimaryenergysourceThePRCGovernmentsupportstheuseofnaturalgasandhasfavourablepoliciestopromoteitsuseRapideconomicgrowthwillresultinincreaseenergyconsumptionGDPrecordedaCAGRof10.1toRMB8,940billionin2000from1990ChinahassubstantialgasreservesSubstantialprovennaturalgasreservesof38trillionm3inthePRC–sufficientorethan70yearsofconsumptionTheWesttoEastPipelineswillincreasecoveragesignificantlytherebyprovidingenormousgrowthpotentialandincreasenaturalgasconsumption,StrongGrowthintheIndustry,Largeroomforfuturegrowth–asoftheendof2000,only26millionoutofapopulationof1.27billionisconnectedtonaturalgasTotalPRCenergyconsumption2.5in2000vs.worldaverageof22.713.7CAGRofnaturalgasconsumptionexpectedinnext10yearsAnnualconsumptionofnaturalgasestimatedtoreach50-100billionm3during2006and2010,Significantgrowthinnaturalgasconsumptionexpectedintheforeseeablefuture,SourcesChinaStatisticalYearbook2001andPetroleumEconomist,Forecastnaturalgasconsumptionasoftotalenergyconsumption,,,9.0,2.5,CAGR13.7,NaturalGasisHighlyCostCompetitive,Naturalgasisclean,economical,safeandconvenientNaturalgasoffersthehighestheatcontentatthelowestpriceamongallcleanfuelsourcesPriceofnaturalgasisapproximately45cheaperthanLPGand70cheaperthanelectricityLPGissubjecttooilpricefluctuation,PricerangePriceperheatcontentRMBRMBpergigajouleNaturalgas0.7-3.0perm319.3-79.5Coalgas0.5-11.3perm329.4-661.8LPG1,830-5,770pertonne40.7-128.2Electricity0.34-0.78perkilowatthour94.4-216.7,SourceChongqingPriceNetandthewebsiteofAnhuiEconomicandTradeCommittee,MajorPipelinesConstructionProvidesInfrastructureforGrowth,Only60of663citiesinPRCasof2000areconnectedtopipedgassupplyPipednaturalgasisexpectedtoreach148citiesbefore2005and270citiesbefore2010ThePRCGovernmenthasdevelopedplanstoincreasenaturalgaspenetrationMajorplansincludeWesttoEastPipelinescapacitytosupply20billionm3ofnaturalgasperannumImportationfromRussiaannualsupplytoreach20-25billionm3ConstructionofLNGterminals3milliontonnesby2010and10-15milliontonnesby2020Otherregionallongdistancepipelines,MajorlongdistancepipelinesproposedtobebuiltinthePRC,SourceChineseGasAssociation,DisclaimerTheinationprovidedtoyouinthispresentationdoesnotconstituteorpartofanyofferforsubscriptionorsaleof,orsolicitationofanyoffertosubscribefororsaleofanysecuritiesofXinaoGasHoldingsLimitedthe“Company“norshallitthebasisof,norcanitbereliedoninconnectionwith,anycontractorcommitmentwhatsoever.ConfidentialityTheinationprovidedtoyouinthispresentationisgivenonaconfidentialbasisandmustnotbepassedto,ortheircontentsdisclosedto,anyotherpersonandnocopyshallbetakenthereof.,