Chairman's Statement


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The world economy is gradually recovering against the backdrop of low oil prices and the effects of Brexit, recovery of the US dollar and international geopolitical impacts remain uncertain, coupled with the on-going potential risks brought about by global financial turmoil. The China’s economy in 2016 maintained its long-term favorable fundamentals and the upgrade of the industrial structure and adjustment to the energy structure as driven by the government through the “supply side reform” remained in the critical period. In addition, as the energy demand growth slowed down and eco-environmental constraints were continuously strengthened, the government has introduced a series of measures to proactively support the development of new energy and clean energy, coupled with the intensive launch of reform policies to vigorously promote the natural gas market reform, the opening of oil and gas pipeline network facilities, and regulation and supervision of the pipeline transmission tariff. All of these will have a positive impact on boosting the natural gas consumption and create favorable policies and market environment for the sustainable development of natural gas industry in China.

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During the financial year, the Group constantly blazed new trails and proactively kept forging ahead to match with the national energy reform. It vertically pushed forward with its management model reform following the development ideas of innovation, coordination, green and win-win. In respect of business development, it comprehensively promoted the “3211 strategy” i.e. implementing the rapid development of old state-owned enterprises through reform, helping small and medium-sized enterprises to cope with their difficulties and quickly improve the performance, and enhancing the gas sale volume of individual gas refilling stations. The Group continued to vigorously promote the natural gas market development, achieved the rapid development of the LPG segment, and proactively developed the value-added businesses and accelerated the development of new clean energy solutions. At the same time, the Group responded to the national call of active air pollution control, and vigorously promoted the “replacement of coal with gas” for industrial and commercial industries, and launched the project of “replacement of coal with gas” in respect of winter heating for township households. These progress and achievements have laid a solid foundation for the Group to achieve its medium and long-term strategic goal.

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Looking forward, in terms of strategy development, the Group will continue to focus on promoting the in-depth implementation of “3211 strategy” and build a new pattern of strategic development with “one main and one new business line plus all other related business types”. It will realize the steady growth of natural gas and LPG business and vigorously build up the powerful growth engine of “replacement of coal with gas” to promote the rapid development of value-added businesses, with the strategic layout for new businesses such as the distributed energy, heating, electricity distribution and sales business, photovoltaic and charging pile. The Group will enhance its operation and management efficiency and further strengthen its core competitiveness through technological innovation, management innovation, service innovation, business model innovation and capital operation innovation to promote the healthy, persistent and rapid business development and achieve the strategic transformation from an city gas operator to an city clean energy operator, thereby striving to become China’s most professional city clean energy solution provider.

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The Group will continue to take advantage of national preferential policies for speeding up the reform and development of clean energy industry, and proactively practice the concept of green development, advocate the green, low-carbon, recycling and sustainable approaches of production and life style. It will strengthen the cooperation for ecological and environmental protection, and build up the ecological civilization, with in-depth promotion for the fulfillment of corporate social responsibility. Moreover, it will create the maximum value for shareholders, customers, employees, cooperation partners and social stakeholders through a variety of approaches, and provide core competitiveness and sustainable development capacity for the enterprise, thereby striving to make the Company the world’s leading integrated city clean energy service provider having green and sustainable business development.

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Chairman of the Board of Directors???
June 2017


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