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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 2011-06-30.

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 $27,313,169 and $21,135,599 for the three months ended June 30, 2011 and 2010, respectively, and revenues of $51,421,277 and $40,502,422 for the six months ended June 30, 2011 and 2010, respectively. We had net income of $4,393,685 and $4,560,503 for the three months ended June 30, 2011 and 2010, respectively, and net income of $6,879,517 and $8,555,773 for the six months ended June 30, 2011 and 2010, respectively.

Natural Gas from Fueling Stations. Natural gas revenue from our fueling stations increased by 30.9% or $4,782,683, to $20,272,983 for the three months ended June 30, 2011, from $15,490,300 for the three months ended June 30, 2010. Natural gas revenue from our fueling stations accounted for 74.2% of our total revenues for the three months ended June 30, 2011, which was the largest contributor among our major business lines. During the three months ended June 30, 2011, we sold 42,551,941 cubic meters of CNG, compared to 42,955,867 cubic meters during the three months ended June 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 $0.37 (RMB 2.49), 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 June 30, 2011, we sold approximately $533,500 and 1,119,788 cubic meters of CNG per station, respectively, compared to approximately $387,257 and 1,073,897 cubic meters, respectively, in the three months ended June 30, 2010.

Installation Services. Revenue from installation services increased by 10.2%, or $238,742 to $2,580,295 for the three months ended June 30, 2011, from $2,341,553 for the three months ended June 30, 2010, and contributed 9.4% of our total revenues for the three months ended June 30, 2011. Revenue from our four largest customers accounted for 20.1%, 13.9%, 12.4% and 10.8%, respectively, of our installation revenue for the three months ended June 30, 2011.

Natural Gas from Fueling Stations. Natural gas revenue from our fueling stations increased by 27.9% or $8,409,494, to $38,529,404 for the six months ended June 30, 2011, from $30,119,910 for the six months ended June 30, 2010. Natural gas revenue from our fueling stations accounted for 74.9% of our total revenues for the six months ended June 30, 2011, which was the largest contributor among our major business lines. During the six months ended June 30, 2011, we sold 81,337,088 cubic meters of CNG, compared to 83,548,324 cubic meters during the six months ended June 30, 2010, through our fueling stations. Although sales volume decreased during the six months ended June 30, 2011, sales revenue actually increased, because the average unit selling price per cubic meter increased to $0.47 (RMB 3.07) from $0.37 (RMB 2.49), 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 six months ended June 30, 2011, we sold approximately $1,013,932 and 2,140,450 cubic meters of CNG per station, respectively, compared to approximately $792,629 and 2,198,640 cubic meters, respectively, in the six months ended June 30, 2010.

Installation Services. Revenue from installation services increased by 5.6%, or $242,662, to $4,591,989 for the six months ended June 30, 2011, from $4,349,327 for the six months ended June 30, 2010, and contributed 8.9% of our total revenues for the six months ended June 30, 2011. Revenue from our four largest customers accounted for 12.7%, 11.2%, 10.9% and 7.8%, respectively, of our installation revenue for the six months ended June 30, 2011.

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