HONG KONG, CHINA – Media OutReach – 12 April 2019 – Beijing Gas Blue Sky Holdings Limited (“the Company” or “Beijing Gas Blue Sky”,...

HONG KONG, CHINA – Media
OutReach
12 April 2019
Beijing Gas Blue Sky Holdings
Limited

(“the Company”
or “Beijing Gas Blue Sky”, together with its
subsidiaries, the “Group”, HKSE stock code: 6828)
is pleased to
announce that, Goldlink Capital Limited, a wholly owned subsidiary of the
Company, conditionally agreed to acquire the entire issued share capital of Daily
Joyous Limited (“Target Company”)
at a consideration of RMB205,000,000
(equivalent to approximately HK$239,174,000).

The Target Company indirectly
hold 100% equity interest in Zhejiang Bo Xin Energy Company Limited (“Zhejiang
Bo Xin”) and 51% equity interest in Guangdong Xin Te Energy Company Limited (“Xin
Te”).

The principal
business of Zhejiang Bo Xin included direct supply of liquefied natural gas (“LNG”)
to industrial users and trading of LNG. It receives stable gas supply from
CNOOC’s Zhejiang Ningbo LNG terminal and mainly distributes and supplies to
large scale industrial users. Zhejiang Bo Xin’s major sales network covers
Yangtze River Delta region, which is the key LNG consumption area in the PRC
with developed local economy and numerous industrial and commercial
enterprises. This area has a strong market demand and the LNG consumption is
expected to have considerable growth potential in the future. Xin Te is
principally engaged in direct supply of LNG to industrial users.

For the year ended
31 December 2018, Zhejiang Bo Xin had 68 customers with sales volume of
approximately 104,132 tons, whereas Xin Te had 23 customers with sales volume
of approximately 14,653 tons. For the year ended 31 December 2017 and 2018, Zhejiang
Bo Xin recorded net profit after taxation of approximately RMB13,325,000 and
RMB5,583,000 respectively; Xin Te recorded net profit after taxation of
approximately RMB1,294,000 and RMB823,000.

Upon completion of
the Acquisition, Zhejiang Bo Xin will be renamed as Beijing Gas Blus Sky Bo Xin
Energy Limited and will be engaged in the development of LNG trading and
distribution, direct supply and relevant businesses in eastern China.

Mr. Tommy
Cheng, Co-Chairman and Executive Director of the Group
said that “we believe that the Acquisition demonstrated the Group’s
strategic layout of full LNG industry chain and replenished the market share
and influence of the Group in the midstream and downstream market of the LNG
business in the Yangtze River Delta region, enhancing the overall LNG
distribution capacity and sales capacity of the Group. It will be easier to
achieve economies of scale through increasing the total trade volume, thereby
improving the bargaining power of the Group in the upstream market.

The Acquisition
will help the Group to achieve cooperation in the Yangtze River Delta region
with upstream gas suppliers and terminals, coupled with the Group’s established
distribution advantages in the Beijing-Tianjin-Hebei region and other markets,
the Group will achieve its strategic planning of importing gas from overseas sources
independently in the future and capture more revenue under the great
opportunity of the fast-growing market of imported LNG.”

In the past two
years, the Group was committed to develop LNG business in the PRC, and has
preliminarily
established its full LNG industrial chain advantage in terms of scale in the
country.

In order to
implement the Group’s market layout strategy of “connecting the south and the
north” along the coast, the Group also focuses on the development of the market
in the Yangtze River Delta. The Group has established good cooperative
relationship with various upstream gas suppliers with a stable gas supply, and
has a direct supply business with large scale industrial users, forming a good
LNG sales capacity.

Meanwhile, the
Group also proactively develops overseas gas source and cooperates with
strategic investors to ensure a stable supply with favourable gas sourcing
price. As of the end of 2018, the business of the Group covers 22 provinces and
cities across the country with an end distribution advantage of over 3 million
m3 per day in Beijing-Tianjin-Hebei, Pan Bohai Rim and Yangtze River Delta
regions.

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, Jilin Province, Shandong Province, Shanxi 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.

Source:: Media Outreach

admin