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China Natural Gas Inc. Reports Operating Results (10-Q/A)

February 29, 2012 | About:
10qk

10qk

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China Natural Gas Inc. (CHNG) filed Amended Quarterly Report for the period ended 2011-09-30.

China Natrl Gas has a market cap of $41.4 million; its shares were traded at around $1.93 with a P/E ratio of 2.6 and P/S ratio of 0.5. China Natrl Gas had an annual average earning growth of 15.5% over the past 5 years.

Highlight of Business Operations:

We had total revenues of $36,897,375 and $22,326,474 for the three months ended September 30, 2011 and 2010, respectively, and revenues of $88,318,652 and $62,828,896 for the nine months ended September 30, 2011 and 2010, respectively. We had net income of $4,545,093 and $3,584,842 for the three months ended September 30, 2011 and 2010, respectively, and net income of $11,424,610 and $12,140,615 for the nine months ended September 30, 2011 and 2010, respectively.

Natural Gas from Fueling Stations. Natural gas revenue from our fueling stations increased by 25.7% or $4,028,234, to $19,726,152 for the three months ended September 30, 2011, from $15,697,918 for the three months ended September 30, 2010. Natural gas revenue from our fueling stations accounted for 53.5% of our total revenues for the three months ended September 30, 2011, which was the largest contributor among our major business lines. During the three months ended September 30, 2011, we sold 40,796,977 cubic meters of CNG, compared to 42,291,708 cubic meters during the three months ended September 30, 2010, through our fueling stations. Though sales volume decreased over the period, sales revenue actually increased, because the average unit selling price per cubic meter increased to $0.48 (RMB 3.13) from $0.38 (RMB 2.54), net of VAT, due to the increase in the sales prices of our natural gas in Shaanxi and Henan Provinces based on regulatory changes implemented by the PRC government during the fourth quarter of 2010. With respect to average sales revenue and volume per station, in the three months ended September 30, 2011, we sold approximately $519,109 and 1,073,605 cubic meters of CNG per station, respectively, compared to approximately $402,511 and 1,084,403 cubic meters, respectively, in the three months ended September 30, 2010.

Installation Services. Revenue from installation services increased by 20.3%, or $447,169 to $2,646,749 for the three months ended September 30, 2011, from $2,199,580 for the three months ended September 30, 2010, and contributed 7.2% of our total revenues for the three months ended September 30, 2011. Revenue from our four largest customers accounted for 19.5%, 14.2%, 11.3% and 10.8%, respectively, of our installation revenue for the three months ended September 30, 2011.

Natural Gas from Fueling Stations. Natural gas revenue from our fueling stations increased by 27.1% or $12,437,728, to $58,255,556 for the nine months ended September 30, 2011, from $45,817,828 for the nine months ended September 30, 2010. Natural gas revenue from our fueling stations accounted for 66.0% of our total revenues for the nine months ended September 30, 2011, which was the largest contributor among our major business lines. During the nine months ended September 30, 2011, we sold 122,134,065 cubic meters of CNG, compared to 125,840,032 cubic meters during the nine months ended September 30, 2010, through our fueling stations. Although sales volume decreased during the nine months ended September 30, 2011, sales revenue actually increased, because the average unit selling price per cubic meter increased to $0.48 (RMB 3.13) from $0.37 (RMB 2.51), net of VAT, due to the increase in the sales prices of our natural gas in Shaanxi and Henan Provinces based on regulatory changes implemented by the PRC government during the fourth quarter of 2010. With respect to average sales revenue and volume per station, in the nine months ended September 30, 2011, we sold approximately $1,533,041 and 3,214,054 cubic meters of CNG per station, respectively, compared to approximately $1,195,352 and 3,283,069 cubic meters, respectively, in the nine months ended September 30, 2010.

Installation Services. Revenue from installation services increased by 10.5%, or $689,831, to $7,238,738 for the nine months ended September 30, 2011, from $6,548,907 for the nine months ended September 30, 2010, and contributed 8.2% of our total revenues for the nine months ended September 30, 2011. Revenue from our four largest customers accounted for 8.1%, 7.2%, 7.1% and 7.0%, respectively, of our installation revenue for the nine months ended September 30, 2011.

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