China Natural Gas Inc. (CHNG, Financial) filed Amended Quarterly Report for the period ended 2012-03-31.
China Natural Gas, Inc. has a market cap of $27.5 million; its shares were traded at around $1.05 with a P/E ratio of 1.9 and P/S ratio of 0.2. China Natural Gas, Inc. had an annual average earning growth of 15.6% over the past 5 years.
Natural Gas from Fueling Stations. Natural gas revenue from our fueling stations decreased by 2.0%, or $368,570, to $17,887,852 for the three months ended March 31, 2012, from $18,256,422 for the three months ended March 31, 2011, and contributed 55.4% of our total revenue for the three months ended March 31, 2012, which was the largest contributor to revenue among our major business lines. During the three months ended March 31, 2012, we sold 36,385,620 cubic meters of CNG, compared to 38,785,147 cubic meters during the three months ended March 31, 2011, through our fueling stations, due to the closure of two fueling stations in 2011. The average unit selling price per cubic meter of CNG remained stable at $0.50 (RMB 3.13) during the three months ended March 31, 2012 and 2011, net of VAT. With respect to average sales revenue and volume per station, in the three months ended March 31, 2012, we sold approximately $470,733 and 957,516 cubic meters of CNG per station, respectively, compared to approximately $480,432 and 1,020,662 cubic meters, respectively, in the three months ended March 31, 2011. The reason for the decline in per station sales was primarily due to the construction of main subway lines in Xi’an, which caused certain bus routes to deviate from our stations and resulted in decreased sales.
Gasoline. Revenue from gasoline sales decreased by 36.8%, or $481,279, to $825,895 for the three months ended March 31, 2012, from $1,307,174 for the three months ended March 31, 2011, and contributed 2.6% of our total revenue for the three months ended March 31, 2012. The decrease was primarily attributable to the sales volume decrease of 45.2% from 1,495,015 liters to 819,652 liters, because of the closure of six gasoline fueling stations during the fourth quarter of 2010 and the fourth quarter of 2011. The average unit sales price of gasoline increased by 10.5%, from $0.87 (RMB 5.74) per liter, net of VAT, in the three months ended March 31, 2011 to $1.01 (RMB 6.35) per liter in the three months ended March 31, 2012, compensating for the significant decrease in sales volume to a certain degree.
Installation Services. Revenue from installation services decreased by 19.7%, or $395,886, to $1,615,808, for the three months ended March 31, 2012 from $2,011,694 for the three months ended March 31, 2011, mainly due to the decrease of customers, and contributed 5.0% of our total revenue for the three months ended March 31, 2012. Revenue from our four largest customers accounted for 55.1%, 24.9%, 9.9% and 8.6%, respectively, of our total installation revenue for the three months ended March 31, 2012.
Natural Gas from Fueling Stations. Cost of revenue of our natural gas sold through our fueling stations decreased by 5.3%, or $557,929, to $9,925,025 for the three months ended March 31, 2012, from $10,482,954 for the three months ended March 31, 2011. The average procurement costs per cubic meter of our natural gas for our fueling stations decreased from $0.27 (RMB 1.78), net of VAT, for the three months ended March 31, 2011, to $0.27 (RMB 1.71), net of VAT, for the three months ended March 31, 2012. The average procurement cost remained materially below the natural gas retail price of $0.50 (RMB 3.13) per cubic meter, net of VAT, for the three months ended March 31, 2012.
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China Natural Gas, Inc. has a market cap of $27.5 million; its shares were traded at around $1.05 with a P/E ratio of 1.9 and P/S ratio of 0.2. China Natural Gas, Inc. had an annual average earning growth of 15.6% over the past 5 years.
Highlight of Business Operations:
Overall. Total revenue for the three months ended March 31, 2012 increased to $32,277,318 from $24,108,108 for the three months ended March 31, 2011, an increase of $8,169,210 or 33.9%, due to the reasons discussed below. We sold 70,224,293 cubic meters of natural gas, including 44,179,296 cubic meters of CNG and 26,044,997 cubic meters (15,832.8 tons) of LNG, during the three months ended March 31, 2012, compared to 45,906,401 cubic meters during the three months ended March 31, 2011. For the three months ended March 31, 2012, 93.6% of our revenues was generated from the sale of natural gas and gasoline, and the remaining 6.4% was generated from our installation and auto conversion services.Natural Gas from Fueling Stations. Natural gas revenue from our fueling stations decreased by 2.0%, or $368,570, to $17,887,852 for the three months ended March 31, 2012, from $18,256,422 for the three months ended March 31, 2011, and contributed 55.4% of our total revenue for the three months ended March 31, 2012, which was the largest contributor to revenue among our major business lines. During the three months ended March 31, 2012, we sold 36,385,620 cubic meters of CNG, compared to 38,785,147 cubic meters during the three months ended March 31, 2011, through our fueling stations, due to the closure of two fueling stations in 2011. The average unit selling price per cubic meter of CNG remained stable at $0.50 (RMB 3.13) during the three months ended March 31, 2012 and 2011, net of VAT. With respect to average sales revenue and volume per station, in the three months ended March 31, 2012, we sold approximately $470,733 and 957,516 cubic meters of CNG per station, respectively, compared to approximately $480,432 and 1,020,662 cubic meters, respectively, in the three months ended March 31, 2011. The reason for the decline in per station sales was primarily due to the construction of main subway lines in Xi’an, which caused certain bus routes to deviate from our stations and resulted in decreased sales.
Gasoline. Revenue from gasoline sales decreased by 36.8%, or $481,279, to $825,895 for the three months ended March 31, 2012, from $1,307,174 for the three months ended March 31, 2011, and contributed 2.6% of our total revenue for the three months ended March 31, 2012. The decrease was primarily attributable to the sales volume decrease of 45.2% from 1,495,015 liters to 819,652 liters, because of the closure of six gasoline fueling stations during the fourth quarter of 2010 and the fourth quarter of 2011. The average unit sales price of gasoline increased by 10.5%, from $0.87 (RMB 5.74) per liter, net of VAT, in the three months ended March 31, 2011 to $1.01 (RMB 6.35) per liter in the three months ended March 31, 2012, compensating for the significant decrease in sales volume to a certain degree.
Installation Services. Revenue from installation services decreased by 19.7%, or $395,886, to $1,615,808, for the three months ended March 31, 2012 from $2,011,694 for the three months ended March 31, 2011, mainly due to the decrease of customers, and contributed 5.0% of our total revenue for the three months ended March 31, 2012. Revenue from our four largest customers accounted for 55.1%, 24.9%, 9.9% and 8.6%, respectively, of our total installation revenue for the three months ended March 31, 2012.
Natural Gas from Fueling Stations. Cost of revenue of our natural gas sold through our fueling stations decreased by 5.3%, or $557,929, to $9,925,025 for the three months ended March 31, 2012, from $10,482,954 for the three months ended March 31, 2011. The average procurement costs per cubic meter of our natural gas for our fueling stations decreased from $0.27 (RMB 1.78), net of VAT, for the three months ended March 31, 2011, to $0.27 (RMB 1.71), net of VAT, for the three months ended March 31, 2012. The average procurement cost remained materially below the natural gas retail price of $0.50 (RMB 3.13) per cubic meter, net of VAT, for the three months ended March 31, 2012.
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