Tian Lun Gas Holdings Limited · HKEX:1600
Tian Lun Gas — China Tian Lun Gas Holdings — H1 2018 Earnings Presentation
27 slides from Tian Lun Gas's earnings presentation, August 2018
Slide 1: 2018 Interim Results Company Presentation
(HKEx Stock Code:1600) 2018 Interim Results Company Presentation August 2018 1
Slide 2: Disclaimer
Disclaimer ◆ The information and opinions carried by this document is not for the purpose of comprehensive research, financial services or legal opinion. China Tian Lun Gas Holdings Limited does not guarantee its accuracy and integrity. This document contains the information that is only to provide
Slide 3: Agenda
I. Results Highlights II. Business Review Agenda III. Financial Performance IV. Strategies & Outlook 3
Slide 4: I. Results Highlights
I. Results Highlights 4
Slide 5: Rapid Growth in All Segments in 2018H1
Rapid Growth in All Segments in 2018H1 Results Highlights 2017H1 2018H1 YOY Gas Sales Volume (mn m³) 501 605 20.7% • C&I Gas 271 348 27.4% • Residential Gas 83 123 48.2% Number of newly connected users 96,530 135,138 40.0% Operation Highlights • Newly Connected Residential Users 95,691 134,077 40.1%
Slide 6: II. Business Review
II. Business Review 6
Slide 7: 58 Projects in 16 Provinces Across the Country
58 Projects in 16 Provinces Across the Country Obtained new concession rights in Wugang City in 2018H1. Tian Lun Gas has 58 city gas projects in 6 major regions; 51 gas stations in operation; 2 LNG plant projects; and 6 long-haul pipelines. Northwest Region Northeast Region ◆ city gas projects: 7 ◆
Slide 8: Focusing on Regions with Fast Growth in Gas Consumption, including 18 Projects in "2+38" Cities
Focusing on Regions with Fast Growth in Gas Consumption, including 18 Projects in “2+38” Cities Gansu Shandong Henan Jiangsu ◆ Baiyin ◆ Heze* Hebi* ◆ ◆ Suzhou ◆ Gulang ◆ Caoxian* ◆ Shilin, Hebi* ◆ Shanxian* ◆ Heqi, Hebi* ◆ Dongming* Jilin Shaanxi Xuchang ◆黑龙江 ◆ Xuchang New District ◆ Dunhua ◆ Qianxi
Slide 9: Strong Growth in Gas Sales with Improving Mix
Strong Growth in Gas Sales with Improving Mix (‘000 m³) 2017H1 2018H1 YoY 1. C&I 263,015 336,211 27.8% 2. Residential 82,683 122,534 48.2% 3. Other Users 155,515 146,241 -6.0% Total Gas Sales Volume 501,213 604,986 20.7% 5. Long-haul Pipline Gas 394,496 419,911 6.4% Transmission Volume Total 895,709
Slide 10: Fast Growth in Both C&I and Residential Sales Volume
Fast Growth in Both C&I and Residential Sales Volume Gas Sales Volume to C&I Users ‘000 m³ 400,000 350,000 336,211 ◼ Benefiting from C&I coal-to-gas 300,000 263,015 conversion, strong 3rd/4th-tier cities 250,000 presence, as well as the Company’s 200,000 efforts to quickly develop C&I users, 150,000
Slide 11: Newly Connected Users Increased Rapidly
Newly Connected Users Increased Rapidly (households) 2017H1 2018H1 YoY Number of newly connected 96,530 135,138 40.0% users Residential households 95,691 134,077 40.1% C&I users 839 1,061 26.5% Number of accumulated 1,430,829 1,796,858 25.6% users Residential households 1,421,073 1,780,362 25.3% C&I
Slide 12: Strong Momentum of Value-Added Services
Strong Momentum of Value-Added Services ✓ Promote bellows, alarms ✓ Cooperate with China and other equipment to Insurance and Ping An new and existing users, Gas Insurance to sell civil and Modification and improve gas safety commercial insurance and related products awareness maintenance insurance
Slide 13: III. Financial Performance
III. Financial Performance 13
Slide 14: Rapid Growth in Revenue and Earnings
Rapid Growth in Revenue and Earnings 2017H1 2018H1 YoY ‘000 RMB ‘000 RMB Revenue 1,490,353 1,899,344 27.4% • Gas Sales 1,162,742 1,452,854 25.0% • Connection 298,197 398,471 33.6% • Others 29,415 48,018 63.2% Sales Proceeds 1,683,497 1,991,171 18.3% Gross Profit 379,064 497,844 31.3% • Gas Sales 162
Slide 15: Strong Growth in Gas Sales and Connection Revenue, Value-add Services Become a New Growth Driver
Strong Growth in Gas Sales and Connection Revenue, Value-add Services Become a New Growth Driver Revenue Breakdown in 2017H1 Revenue Breakdown in 2018H1 Others, Others 2.0% , 2.5% Connection, Connection 20.0% , 21.0% Gas Sales, Gas Sales, 78.0% 76.5% Gas Sale Revenue Connection Revenue Other Revenue
Slide 16: C&I & Residential Gas Sales Revenue Ramped Up Rapidly
C&I & Residential Gas Sales Revenue Ramped Up Rapidly Gas Sales Revenue Breakdown in 2017H1 Gas Sales Revenue Breakdown in 2018H1 Residential, Residential Other Users, 16.0% Other Users, , 18.3% 28.2% 24.4% C&I, 52.8% C&I, 56.1% C&I Gas Sales Revenue Residential Gas Sales Revenue ‘000 RMB ‘000 RMB 9
Slide 17: Profit Margin Rises Steadily
Profit Margin Rises Steadily Gross Margin Gross Margin of Gas Sales 30.0% 26.2% 18.0% 25.4% 25.0% 14.0% 14.2% 15.0% 20.0% 12.0% 15.0% 9.0% 10.0% 6.0% 5.0% 3.0% 0.0% 0.0% 2017H1 2018H1 2017H1 2018H1 Gross Margin of Connection Adjusted Net Margin 75.0% 67.0% 65.4% 16.0% 14.0% 13.1% 60.0% 12.0% 45.0% 8
Slide 18: Solid Balance Sheet
Solid Balance Sheet 30 Jun 2017 30 Jun 2018 ‘000 RMB ‘000 RMB Total Assets 8,107,171 10,068,115 Total Equity 2,949,812 3,329,948 Total Liabilities 5,157,359 6,738,167 Total Liabilities 63.6% 66.9% /Total Assets Cash Balance 700,976 1,820,537 Total Borrowings 3,834,418 5,222,166 Domestic Borrowings 1
Slide 19: IV. Strategies & Outlook
IV. Strategies & Outlook 19
Slide 20: Implement Coal-to-Gas Conversion Strategy
Implement Coal-to-Gas Conversion Strategy 2018-2020 5-Year Strategy ◼ Focus on the short-term and medium-term strategy of coal-to-gas conversion in Henan province. ◼ Realize the business collaboration in Henan province and promote the ◼ Integrate High-Quality integration of large Henan module. Talen
Slide 21: Business Model: Integration of Upstream and Downstream of Gas Enterprises
Business Model: Integration of Upstream and Downstream of Gas Enterprises With the gradual opening of the country’s policy on upstream gas, more downstream gas enterprises will enter into the upstream gas development, realise the combination of commodity and market optimization, and optimise allocat
Slide 22: Talent Model: Cooperate and Develop Together
Talent Model: Cooperate and Develop Together Promote the partnership mechanism to stimulate the creativity of management and employees Develop the mechanism for dividend sharing Build Introduce Platform Talents Promote the development of platform to realize complementary advantages Listed company us
Slide 23: Introducing Government Subsidies and Policy-based Loans through Governmental Financing Platform
Introducing Government Subsidies and Policy-based Loans to the Market through Collaboration with Governmental Financing Platform Yuzi Holding ◼ Government support and resources synergy are essential in order to speed up township coal- to-gas conversion projects in Henan. ◼ Tian Lun Gas was founded i
Slide 24: Specialized Fund Supported by Long-term Loan from Policy Banks
Specialized Fund Supported by Long-term Loan from Policy Banks to Invest in Coal-to-Gas Conversion ◼ Yuzi Holding and Tian Lun Gas Yuzi Holding Tian Lun Gas jointly established a township coal- to-gas conversion investment fund 60% 40% of RMB 10 billion, with the first phase of RMB 1 billion has bee
Slide 25: 10 Million Township Households to Convert in 5 Years
10 Million Township Households to Convert in 5 Years Number of Construction Increase the Support of Gas Supply (10,000 households） 400 350 350 300 270 Strengthen gas Open LNG 250 exploration at terminals and 200 the national introduce more 200 policy level gas enterprises 150 120 Gas Supply 100 60 5
Slide 26: 2020 Vision Strategic Planning (Brief Analysis)
2020 Vision Strategic Planning (Brief Analysis) Cooperate and Develop Together Share and Win Together Employees earn Through this platform, considerable income management can fully through piece work, more exploit customer’s pay for more work. Ensure large number of potential and earn suppliers to e
Slide 27: Focusing on Gas Utilization, Entering Rapid Growth Phase
(HKEx Stock Code:1600) Focusing on Gas Utilization Entering Rapid Growth Phase Investor Relations Contact: hk@tianlungas.com Hong Kong: (852) 3470 9069 Mainland: (86) 371-6370 7151 27
China Tian Lun Gas Holdings — H1 2018 Earnings Presentation on 6ix