FY2020/21 ANNUAL RESULTS

CHINA GAS HOLDINGS LIMITED

（ 2020.04.01 –2021.03.31 ）

Stock Code:00384.HK

FY2020/21

ANNUAL RESULTS

Highlights

Secured 38 piped gas projects

Totaling 642 piped gas projects in 30

provinces/autonomous regions/municipalities

in China, including 15 provincial capital cities

or municipalities

Total natural gas sales volume increased

by 23.0% to 31.2 bn m³

City & township gas sales volume

increased by 19.6% to 18.7 bn m³

Asset-light value-added business

kept expanding rapidly for

six consecutive years

Delivering HK$2.3bn in operating profit,

representing 45.6% yoy growth

Profit attributable to owners of the company

increased by 14.0% to HK$10.5bn

Operating cash flow significantly increased by

27.6% to HK$8.28bn

2

Positive sustainable free cash flow (before

HK$814.3mn for new office building construction) amounting to

HK$768.4mn (FY2019/20 FCF: HK$-2.5bn)

ESG

3

CO2FY2020/2021

66,758(1000 tons) NOX

FY2020/2021

339(1000 tons)

COFY2020/2021

723(1000 tons)SO2

FY2020/2021

655(1000 tons)

PMFY2020/2021

11,340(1000 tons)

ESG incorporated into business

blueprint and implemented in

daily operations from top to

bottom

MSCIEGS RATINGS

HANG SENG ESG50 INDEX

HSSUSB INDEX

CCC B BB BBB A AA AAA

BBB

Annual reduction of the

discharge of CO2 is

equivalent to planting

3.6*billion trees

Reduction of pollutant emissions

from China Gas

Signed a Memorandum of Understanding (MoU) with

the United Nations Environment Programme (UNEP)

as the first Oil and Gas Methane Partnership (OGMP)

member company in China

* According to Yangzi Petrochemical standards: each tree absorbs 18.3 kg of carbon dioxide per year

Enhanced ESG Performance & Governance

Environmental

Social

Governance

Percentage of

female employees

Proportion of suppliers

certified by OHSAS18001

and ISO45001

85%

Environmental Violation

Case

Sewage Discharge

1,330,000 tons

36%

Minority Employees

4,764

Actively responded to

national policies, promoted

rural revitalization strategy,

and narrowed the economic

and environmental gap

between cities and towns

As the delegated gas supplier in Wuhan city,

during the worst period of the epidemic, the

group's affiliated companies provided sufficient

“life-saving gas" to more than 400,000 families

and tier-one medical units including Huoshen

Mountain Hospital and mobile cabin hospitals. A

total of 140,000 tons of LPG was supplied to

users.

Donated cash and supplies worth of HK$57.5mn

and delivered supplies worth of HK$30.0mn to

thousands of households, safeguarding the daily

lives of 160mn residents across the country.

Staff training coverage

100%

Established Whistleblowing Channel

Comprehensive misconduct

handling procedure

Whistle-blower

protection policy

Average hours of staff training

4

Emphasis on source control,

process monitoring, centralized

sewage treatment, improved

emergency response systems

Energy Intensity

0.002GJ/GJ energy sales volume

42.5

0

Safety Control

Safety control

related spending in

the last three years (exclusive of the joint ventures and

associates )

5

HK$3.7bn

Medium pressure PE

pipeline coverage

ratio

95.6%

1,059 1,1771,487

1,935

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

FY2018/19 FY2019/20 FY2020/21 FY2021/22F

Annual Safety Control Expenditure and Budget

(HK$ Mn）

1.8% 2.0% 2.1% >2.1%

FY2018/19 FY2019/20 FY2020/21 FY2021/22F

The Ratio of Annual Safety Control Spending andBudget to Annual Sales(HK$ Mn）

15%11.2%26.3%

30.1%

Intelligent Management Center

6

Information System

Building a Unique, Comprehensive, Integrated, Intelligent Safety Control Platform

Staff

Management

Operational Information System

Manned

Control

System

GIS

SystemSCADA

System

CRM

System

Patrol and

Inspection

System

Unmanned

Control

System

Accurate

Detection of

Pipeline

Network

Beidou

Satellite

Positioning

Equipment

Intelligent

Scheduling Simulation

Emergency

Command

Command

Assistant

Intelligent Management Center

Intelligent

Management

Adopt new-generation information

technologies such as cloud computing, big

data, IoT to create domestic-leading and

industry-innovated intelligent management

center, and actively promote the development

of “smart gas” and “smart city”

* Deducted one-off or non-operational items

Strong Execution: Maximizing Shareholder Value

2.23.92

8.48

12.06

16.15

19.46

25

35

44

50

55

0.16 0.220.39

0.50.66

0.750.91

1.28

1.631.81

1.95

0

0.5

1

1.5

2

2.5

3

3.5

4

0

10

20

30

40

50

60

FY2010/11 FY2011/12 FY2012/13 FY2013/14 FY2014/15 FY2015/16 FY2016/17 FY2017/18 FY2018/19 FY2019/20 FY2020/21

DPS Core EPS*

DPS increased by24 times

EPS increased by11 times

7

HK Dollar

HK Cent

Operat ional

PerformanceNatural Gas

Value-Added Services

LPG

Financial

Performance

Future Strategy

& Outlook

CONTENTS

01

02

03

8

Natural Gas

Operat ional

Performance

Natural Gas – Volume Growth

10

64231.2bn

m³

5,048,300users

New Residential

Connections

Operation Highlights

35,145users

New Industrial &

Commercial

Connections

15,631.3

18,699.2

9,741.1

12,511.5

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

24,000

27,000

30,000

33,000

FY2019/20 FY2020/21

City & Township Projects Direct-supply Pipelines & Trade

31,210.7+23.0%

25,372.4

Volume Growth

+28.4%

+19.6%

Customer

Breakdown

% of Total City

and Township Gas

Volume

Volume Growth

FY2020/21 FY2019/20

Residential 32.7% 24.0% 23.6%

Industrial 48.2% 21.6% 5.2%

Commercial 13.6% 11.5% -9.1%

CNG/LNG

Stations5.5% 2.4% -16.2%

Total Number of Piped

Gas Projects with

Concession Rights

Total Natural Gas

Sales Volume

LNG Trade Business

11

Surge of LNG trade sales volume

Strengthened partnerships with the three oil majors, Pipe China and LNG importers to deepen comprehensive cooperation in: i) obtaining LNG terminal and

pipeline sector download windows; ii) Gas storage and transportation; iii) interchanging of LNG and piped gas related resource

Currently, CGH is the largest LNG distributor for CNOOC, the two companies have established a joint venture in Guangdong Province with LNG distribution

as its major business (of which 70% equity is held by CGH)

Optimize and increase LNG transportation routes. CGH owns the largest dangerous goods truck fleet in China with approximately 10,000 routes in operation

Continuously expanding the end-user market by supplying LNG to nearly 1,000 external industrial and commercial users, as well as to third-party city gas

companies

Became one of the largest LNG liquid gas distribution companies in the country, and plans to distribute 4.5-5 million tons of LNG in this fiscal year

4.5-5 Million TonsFY2021/22

Target

Tons FY2020/21Change from

FY2019/20FY2019/20 FY2018/19

LNG trading sales volume 3,370,000 + 123.2% 1,510,000 1,460,000

Annual Sales

Volume

Natural Gas – Customer Statistics

12

Customer Breakdown

New Connections

/Gas StationsTotal Portfolio

FY2020/21 FY2019/20 FY2020/21 FY2019/20

Residential 5,048,300 5,427,367 40,153,824 35,105,524

City Projects 3,360,769 2,731,672 32,229,852 28,869,083

Township Projects 1,687,531 2,695,695 7,923,972 6,236,441

Industrial 2,368 2,271 17,046 14,678

Commercial 32,777 34,050 266,464 233,687

CNG/LNG Stations 1 -19 557 556

FY2020/21 FY2019/20 FY2018/19

Household

Connection Fee

(RMB Per Household)

City Projects 2,499 2,494 2,508

RCG Projects 2,910 2,952 3,010

Urban Population Covered (Million) 153.0 137.0 132.0

Household Penetration Rate (City Gas Projects) 60.8%* 64.9% 60.7%

* Derived from the Seventh National Population Census

13

City & Township Project Gas Tariffs

(RMB / m³, ex-tax)FY2020/21 FY2019/20 FY2018/19

Residential 2.54 2.53 2.60

Industrial 2.56 2.68 2.61

Commercial 2.89 2.77 2.72

CNG/LNG Stations 2.99 3.18 2.97

Average Selling Price (ASP) 2.62 2.69 2.64

Average Procurement Unit Cost (APUC) 2.01 2.09 2.02

Average Dollar Margin

– City Gas Projects0.61 0.605 0.621

Average Dollar Margin

– Rural “Replacement of Coal with Gas”

Projects

0.47 0.45 0.50

Natural Gas – Gas Tariff & Dollar Margin

On April 8th, China Gas

has started to directly

import LNG from overseas

to further optimize the gas

source structure and

reduce procurement cost.

Dollar margin is expected

to remain stable in the

future

14

Value-Added Services

Operat ional

Per formance

Value-Added Services - Asset-Light Business

16

1,421.0

1,950.4

2,915.5

FY2018/19 FY2019/20 FY2020/21

Gross Profit（HK$ Mn）

1,144.5

1,594.3

2,321.1

FY2018/19 FY2019/20 FY2020/21

Operating Profit（HK$ Mn）

3,903.1 5,025.3

7,720.1

FY2018/19 FY2019/20 FY2020/21

Sales Revenue（HK$ Mn）

Value-Added Services FY2020/21 FY2019/20 FY2018/19

Gross Profit Margin（%） 37.8% 38.8% 36.4%

Operating Profit Margin（%） 30.1% 31.7% 29.3%

53.6%

28.8%

49.5%

37.3%

45.6%

39.3%

Value-Added Services - Product and Service Planning

GASBO+

Alliance Brands

from Different Industries

GASBO Kitchen Appliances

+Air Purification Products

+High-End Home Appliances

+Other Smart Home

Appliances

+Frequently-Used Products

+Insurance/ Other Services

Manufacture and provide products and services to more than 45 million end users with a focus on domestic needs to realize our philosophy

of “Simplify life, Optimize life, Beautify life” and an aim to build a pioneering integration service platform for kitchen appliances in China.

Positioned as an Urban-Rural Integrated Service Provider

17

YIPIN SMART LIVING

(Platform Brand for Online and

Offline Business Service Centers)

Jointly establishing grid-type private domain retail with China Gas characteristics with the world’s top

consulting and technology companies

Building a GaaS (Grid as a Service) 3 X 3 X 3 omni-channel marketing model: three-tier grid X three in

one X three-wheel drive

Value-Added Services - Business Model

Foundation Grid Manager &

Customer Service

Online Service Platform

User

Conversion

Service Centers &

Toll stations

Community

（KOC）Customer Service

Center

Online Distribution Platform

Value-adding Grid

Manager/Shopping

Guide

Experimental Store

(expansion based on

service center)

Online Empowerment Platform

Foundation Grid

Manager/

Customer

Service

Online Service Platform

Service centers

/Toll Stations

Community Grid

Empowerment Grid

Foundation Grid

Intimacy

Satisfaction

Supervision

& Training

Diversion

&Data

User Expansion, Community Management

Content Marketing, Product Sales

KOC Recruitment, Role Empowerment,

Campaign Management, Public Service Undertake

18

Customer Service, Users Imported to

Public Services, Data Circulation

CommunityService

PrivateOperation

UserConversion

Vertical E-Commerce

Meet users' demand in kitchen,

such as safety check, repair and

cleaning, through delivery and

door-to-door service

Grid-Type Services

Shopping Guide

Membership Reward ProgramLeveraging China Gas’ advantages,

our reward program allows customers

to redeem accrued points in

exchange for gas volume, further

increasing customer stickiness

Social Media E-Commerce

Address users’ need for necessity, domestic and

kitchen related products, such as rice, flour, grain and

oil, small kitchen appliances, with related e-commerce

functions and marketing campaign templates provided

Provide tips associated with the

use of gas and kitchen such as

product rating, local service and

recommendations for good

products. “Buy now” function

available

Incentivize grid managers, social

media group partners, team leaders

and users to promote the services

through commissions and accrued

points rewards

Value-Added Services

Value-

Added

Services

Grid-type services, O2O integration, and grid-type private domain retail model with China

Gas Characteristics

19

Liquefied Petroleum Gas

Operat ional

Per formance

Integrates LPG resources of the asset-light model,

develops international and domestic cooperation in

resource planning and procurement

Optimized gas procurement with the mapping and

construction of 12 LPG terminals and third grade stations

Realized a burst in volume growth with a further

increase in trading and wholesale sales volume

Raised the downstream gas sales volume through the

Smart MicroGrid and cultivation of new LPG users

Increase

Market

Penetration

Realize

Economies

of Scale

Proper Risk

Management

Enhance

Overall

Profitability 21

Resources

Trading

DownstreamIncreased market shares of bottled gas through the

utilization of "uniform distribution company" model

and facilitation of downstream industry consolidation

Resource + Distribution

Network

Strengthen consolidation to further increase future LPG sales volume and turn a new page of LPG business

The Only LPG Operator in China that Owns a Resource and Distribution Network

The Only LPG Operator in China that Owns a Resource and Distribution Network

22

FY2020/21Compared to

FY2019/20FY2019/20 FY2018/19

Sales Volume (Tons) 4,248,000 11.0% 3,826,764 3,993,377

Wholesale (Reclassified) 3,525,700 29.2% 2,728,739 2,785,350

Retail (Reclassified) 722,300 -34.2% 1,098,025 1,208,027

Sales Revenue (HK$’000) 13,163,822 -4.4% 13,774,300 15,917,100

Core Net Profit Attributable to Owners of the

Company (HK$’000)417,801 133.0% 179,323 101,766

Core Net Profit Margin (%) 3.2% 1.9 pts 1.3% 0.6%

Financial

Performance

02

* One-off or non-operational items including other gain or loss, FX gain/loss from share of results of associate Zhongyu Gas, etc.

Consolidated Income Statement

24

HK$ Million FY2020/21 Compared to FY2019/20 FY2019/20

Revenue 69,975.4 17.5% 59,539.7

Piped Gas Sales 35,935.7 32.8% 27,053.1

Connection Fees 12,477.4 1.3% 12,319.6

LPG Sales 13,163.8 -4.4% 13,774.3

Value-Added Services 7,720.1 53.6% 5,025.3

Construction, Design & Services 678.3 -50.4% 1,367.4

Gross Profit 18,102.2 5.9% 17,097.0

Profit Attributable to Owners of the Company 10,478.7 14.0% 9,188.5

EPS-Basic (HK Cents) 201 14.2% 176

One-Off or Non-Operational Items (Profit「+」or Loss「-」) 161.0 * -279.3

Core Profit Attributable to Owners of the Company 10,317.7 9.0% 9,467.8

EPS-Core (HK Cents) 197.8 9.1% 181.4

Dividend Per Share (HK Cents, Full Year) 55 10% 50

Operating Profit Margins

25

FY2020/21 FY2019/20 FY2018/19

Operating Profit Margins 18.8% 21.1% 16.9%

Gas Sales 11.0% 12.5% 11.0%

Connection Fees 22.6% 22.5% 30.8%

LPG Sales 2.0% 1.5% 0.8%

Value-Added Services 30.1% 31.7% 29.3%

Construction, Design & Services 29.3% 35.8% 16.5%

Consolidated Balance Sheet

26

HK$ Million FY2020/21 FY2019/20 FY2018/19

Total Assets 140,720.6 112,099.5 109,899.3

Total Equity 59,864.1 45,800.0 40,792.6

Shareholders’ Equity 51,936.9 39,605.0 35,321.1

Cash 8,571.6 7,655.8 13,482.3

Short-term Bank and Other Borrowings 17,271.9 24,120.7 16,407.5

Among which: LPG trade facility 1,521.9 2,577.4 2,240.6

Long-term Bank and Other Borrowings 31,717.5 15,568.4 21,491.4

Net Debt-to-Asset Ratio * 65% 64% 54%

• Deducted the trade facility relating to short-term import letters of credit of the LPG business.

• As of May 2021, net gearing ratio further reduced to 38%.

Consolidated Balance Sheet

27

14%

86%

Stable and Robust Foreign Debt Management

Foreign Currency

RMB

844

369

Abundant Financial Resources: Standby Credit of HK$121.3 Billion

(HK$ Million)

Bank Credit

Approved RMB Bonds

64% 65%

38%

0%

10%

20%

30%

40%

50%

60%

70%

FY2019/20 FY2020/21 May 2021

Net Gearing Ratio

Cash Flow

Notable Growth in Core

Business Profits

Accelerating Gas Supply

for Residential Users of

Township Gas Project

and AR Recovery

Township Gas Project

Investment and New User

Connections Remain

Prudent

28

Net Cash

Flow From

Operating

Activities

8,278.6

Net Cash

Flow From

Investing

Activities

-8,956.2

Net Cash

Flow From

Operating

Activities

6,485.7

Net Cash

Flow From

Investing

Activities*

-7,510.2

Free Cash

Flow*

-2,470.5

Free Cash

Flow*

768.4

FY2019/20 FY2020/21HK$ Million

* Exclusive of the payments made for the office buildings of the Group（FY2020/21：814,285,000，FY2019/20：498,360,000）

Robust Cash Flow

Generated from a Short

AR Recovery Cycle of the

Asset-Light Value-Added

Business

Future Strategy &

Outlook

03

Smart

Heat-Supply

Cloud System

Multifunctioning

Heat-Supply

System

Indoor Smart

Temperature

Control System

Smart CRM

Customer

Service System

Smart Heat-Supply

Distribution System

30

Urban Heating Business Flow

Digitalized Operation

and Management Center

Heat Transfer

EquipmentHeat

Generator

Commercial

Residential

Industrial

55℃ 45℃

35℃

55℃

45℃

45℃

35℃

Natural Gas

Heat SystemElectricity Heat

System

Urban Heating Business Coverage Map

Regions Covered by China

Gas’ Urban Heating

Construction Business

31

China Gas entered into strategic cooperation

agreements regarding the Urban Heating

business with approximately 40 cities in 9

provinces, namely Shanghai, Jiangsu, Zhejiang,

Anhui, Hubei, Hunan, Jiangxi, Sichuan and

Chongqing, with coverage area reaching over

350 million m2. Currently, the Group has

commenced 88 urban heating projects in 31

cities.

Strong demand from

residential users

4 billion m2

Contracted area

covered

16 million m2

10-Year Goal

300-400 million m2

Smart MicroGrid Business Flow

32

Intrinsically

Safe System

Automatic

Operation

Overpressure

Protection

Gas

transportation

Storage and

distribution facilitiesPropane delivery (small tank truck)

Residential

communities

and clusters

Industrial and commercial

sectors and modernized

agriculture

Operation Status

Small Gas Tank Inventory Volume

Users Overview

Small Propane Storage Tanks Gas Supply

Monitor and Dispatch Operation Platform

Total number of

vehicles

Total number of

storage tanks

tons

units

Industrial and

commercial

users

Natural

villages

Servicing

population

households

units

Vehicle

Storage

tank

Total Gas Consumption

Economic Efficiency (amount saved

comparing to electricity consumption)

Accumulated Social Benefits

RMB ‘0000

y m d

Saved

standard

coal

tons tons

thousands of trees

Reduced

carbon dioxide

emissions

Equivalent

number of

trees planted

All

Through China Gas’ uniquely founded Smart MicroGrid system, centralized piped gas can be provided to small

communities and townships nationwide with a goal to construct beautiful and livable villages, reduce pollution and

emissions and enhance the quality of life.

Smart MicroGrid: Asset-Light Gas Project

Construction of small scale

LPG gas supply equipment

on users’ end without the

need to construct high and

medium pressure pipelines,

limiting capital expenditure

By different ways of

delivery, including tank

truck refueling, smart

operation and management

is achieved through smart

monitoring, filling and

management of gas supply

and the use of Internet of

Things (IoT) technology

Gas sources are sufficiently

guaranteed with China Gas’

vertical integration of

upstream, midstream and

downstream LPG supply

network, ensuring an

adequate energy supply

Owned 15 national policy-

related technology patents

and a self-designed and

self-constructed smart gas

supply system

National policy: Central

No. 1 Document

Short construction cycle (1

to 3 months) with fast

investment capital recovery

(recovery rate similar to that

of city gas projects)

Asset-Light

Investment01Fast

Investment

Recovery02 03 04 05

33

06 Economical

Adopt the “centralized gas

supply through delivery of

specialized tank trucks,

achieving direct delivery to

homes by Smart MicroGrid

networks and smart remote

control” model, building the

small scale propane storage

tank gas supply operation

and monitor platform

07To nationwide rural

users, Smart MicroGrid

is 30% cheaper than

the normal bottled gas

and thus is more

economical

With LPG as

source of gas,

small scale and

individual gas-

supply network can

supply piped gas to

small communities

and nationwide

villages with higher

flexibility

08

National

Policy-backed

Technology

Patents

Smart

Operation &

Management

Adequate

Energy

Supply

Safety Convenience

Smart MicroGrid: Asset-Light Gas Project

34

签订省战略协议

26entered into prefecture-level

and county-level strategic

cooperation agreement

Households in the contracted

areas that met the

investment criteria

2 Mn+

Accumulative contracted

resident users

Qinghai Province, Hainan

Province, Yunan Province,

Guangdong Province

4 provinces

On 23 September 2020, the State Council published “Opinions

Regarding the Adjustment and Optimization of Revenues Derived from

Transfer of Right to Use State-Owned Land in Prioritizing andSupporting Rural Revitalization” (《关于调整完善土地出让收入使用范围优先支持乡村振兴的意见》), in which at least 50% of revenues derived from

transfer of right to use state-owned land shall be allocated to rural

development by the end of the “14th Five-Year” period.

On 21 February 2021, “The Communist of China and The State Council

of the People's Republic of China on Opinions Regarding the

Comprehensive Advancement of Rural Revitalization and theAcceleration of Agriculture and Rural Modernization” (《中共中央国务院关于全面推进乡村振兴/加快农业农村现代化/的意见》) (the Central No.1

Document) specifically put forward “to facilitate the use of gas in rural

areas, and support the construction of safe and sound rural gas tank

stations and MicroGrid gas supply systems”.

On 1 June 2020, the official implementation of Village Revitalization Law(乡村振兴法）will accelerate rural construction and support industrial

development in the villages and public infrastructure construction

On 22 June 2021, the four state ministries jointly published the "Guiding

Opinions on Accelerating the Modernation of Rural-Housing and VillageConstruction" (《关于加快农房和村庄建设现代化的指导意见》) on

facilitating rural infrastructure

appx.25Mn

Qinghai

Sichuan

Yunnan

Guangdong

Hainan

Chongqing

Jiangsu

HubeiAnhui

Fujian

JiangxiHunanGuizhou

Guangxi

Zhejiang

prefecture-level cities

and counties

Strategic Blueprint, Strengthened Cooperation, Synergetic Development

Through entering into a strategic cooperation

agreement with LONGi, China Gas and

LONGi will strengethen comprehensive

cooperation to promote clean energy

application including distributed photovoltaic,

BIPV, power storage and electric vehicle

charging, and green hydrogen; new energy

R&D and utilization; as well as building

corporate culture.

The Group entered into strategic cooperation

agreements on 5G telecommunications

industry empowerment with China Mobile

and China Unicom to jointly develop ‘‘smart

kitchen’’ and carry out digital economic

cooperation on the basis of opening both

parties’ business channels.

Strategic Blueprint

The Group has commenced environmental

governance cooperation and established

strategic partnerships with provincial and

municipal governments, committed to promoting

nationwide utilization of natural gas and LPG.

Currently, the Group has entered into strategic

cooperation agreements with 16 provinces and

municipalities respectively.

Cooperating with provinces and municipalities,

the Group will fully facilitate the investment,

construction and operation of projects including

city and township gasification, smart city type

management, coal-fired boiler transformation,

gas for vehicles and ships, distributed energy,

charging piles, new energy, photovoltaic, gas

storage facilities, “beautiful village”,

thermoelectric and Smart MicroGrid.

Strengthened

CooperationThe Group is the only downstream

corporation that has entered into strategic

cooperation agreements with China’s three

oil majors (PetroChina, Sinopec and

CNOOC), realizing in-depth cooperation and

synergetic development with the gas and

new energy (hydrogen) industry chain.

The Group entered into strategic cooperation

agreement with CNOOC Gas and Power

Group to commence cooperation in areas

including skid-mounted natural gas to

hydrogen production, hydrogen refueling

stations, high-pressure hydrogen storage

and refueling equipment and integrated

energy supply.

Synergetic Development

35

Future Strategy

36

Environmental policies are

continuously promoting the

“replacement of coal with gas” in

industrial and commercial sectors and

clean winter heating in Northern China

Strong Driving Force

Focus on the huge market in South

and Central China by developing the

winter Urban Heating business

High Quality New Business:

Urban Heating

An increase of a minimum of 20 new

city gas projects every year

Gas Projects

Obtain LNG terminal download

windows with an expected import of

LNG reaching 0.7 to 1 million tons in

2021

Cooperation with PipeChina

and upstream companies

Build a first-class smart sales and data

management platform through

cooperation with world-class consulting

and technology companies

Tapping the Huge Value-Added

Service MarketProvide convenient, safe and

economical gas supply to 90

million households in southern

and coastal rural areas

Tapping the Huge Smart

MicroGrid Market

01 02

03

05

04

06

Outlook

37

Business Segments FY2021/22

Growth of Core Net Profit Attributable to Owners of the Company 15%

Free Cash Flow Remains positive

Gas Sales Volume Growth in City & Township Projects 15 - 20%

New Residential Connections (City, Township and Micro Pipeline

Networks) (Households)5,000,000

LPG Sales Volume (Tons) (% Growth) 5,200,000 (20%+)

Installation Area of the Urban Heating Business (m2) 16,000,000

Gross Profit or Operating Profit Growth of Value-Added Services 30%+

References

38

13 39 76 176 4311,130

2,3253,592

4,6145,769

7,0138,168

9,11410,023

12,406

18,868

24,65625,372

31,211

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

Gas sales volume and number of projects keep growing fast

Annual Gas Sales Volume, FY2002/03 - FY2020/21

(Million m³)

Strong Execution: Maximizing Shareholder Value

39

Number of Piped Gas Projects with Concession Right

34 40 43 50 57 68 110 123 148 160 179 237 273 305 330 495 542 604 642

Pioneered converting coal-fired boilers

with natural gas-fired boilers in

industrial and commercial sectors as a

response to the national environmental

protection policies, increasing gas

sales volume and improving

environment

Pioneered in promoting key

township development

strategy to increase

investment in gas pipelines in

townships

Established Zhongran

Smart Living E-

Commerce Company

Limited to engage in

value-added service

business

Pioneered in launching

the business model of

supplying city gas

projects with CNG as a

gas source

Pioneered in fostering

development synergy

between natural gas long-

distance pipeline projects

and surrounding city gas

projects

Pioneered in launching “hub city

-satellite city” investment

strategy, seeking to invest in

high quality city gas projects

quickly in surrounding satellite

cities

Pioneered in connecting existing

residential households nationwide in

a large scale while connecting new

households, in such a way as to

reduce reliance on the real estate

market

Started investing in Smart

MicroGrid nationwide, initiated

urban heating investment

nationwide and accelerated the

expansion into urban heating

business

Started to promote the

distribution and sales of

electricity, charging

stations for vehicles

Strong Execution & Innovation: Maximizing Shareholder Value

Strong Innovations in Business Model, Development Roadmap and Management Mode

Pioneered the Way for Sustainable Development of the City Gas Industry in China

2013Pushed for the implementation of the

“replacement of coal with gas” policies in

townships in North China issued by ministries

and commissions of the State Council and

piloted projects in Hebei province

20202018-1920182017Made significant investments in

township “replacement of coal

with gas” in North China, with a

focus on the Beijing-Tianjin-

Hebei region

2016 2015 2014

20092004 20072002

40

Undertook the construction of four Smart

MicroGrid model projects in Qinghai and

Hubei with great support from the Ministry of

Housing and Urban-Rural Development of

China while optimizing business model in a

continuously manner

Pursuant to the share option scheme, the Group has granted share options to certain

employees and other eligible persons to provide more rewards and motivation for their

contribution and continuing efforts to promote the interest of the Group and enhance the

value of the Group’s share value.

Conditions attached to the new options granted under the scheme mandate limit:

The Group’s audited net profit after tax

(before share-based payment expenses)

and deduction of net profit after tax

attributable to non-controlling interests for

any of the financial years ending on or

before 31 March 2022 based on the audited

consolidated financial statements of the

Company amounts to HK$ 14 billion or

above

In the case that the above condition is not

fulfilled, the new options can still be exercised

if the Group’s audited profit after tax (before

share-based payment expenses) and

deduction of net profit after tax attributable to

non-controlling interests for the financial year

ending 31 March 2023 based on the audited

consolidated financial statements of the

Company amounts to HK$15 billion or above

The New Options will lapse if none of the above conditions is satisfied.

Exercise Conditions of the Share Option Scheme

159,720,400

Share

Options

Condition 1 Condition 2

OR

41

Disclaimer

Statements in this presentation and handout that are not strictly historical are “forward-looking” statements. Forward-looking

statements involve risks and uncertainties, including, but not limited to, continued acceptance of the Company’s product and

services in the marketplace, competitive factors, new products and technology changes, the Company’s dependence upon third

party suppliers and other risks detailed from time to time in the presentation, handout and other related documents. All the directors

of China Gas jointly and severally accept full responsibility for the accuracy of the information contained in these materials and

confirm, having made all reasonable inquiries, that to the best of their knowledge, opinions expressed in these materials have been

arrived at after due and careful consideration and there are no other facts not contained in these materials, the omission of which

would make any statement in these materials misleading. The materials and information in the presentations and other documents

are for informational purposes only, and are not an offer or solicitation for the purchase or sale of any securities or financial

instruments or to provide any investment service or investment advice.

For investor enquires:

Mr. Frank Li

Tel: +852 2238 0315 l Fax: +852 2287 0633

Email: [email protected]

Website: www.chinagasholdings.com.hk

Disclaimer & Contact

42