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

August 14, 2012 | About:
10qk

10qk

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China Natural Gas Inc. (CHNG) filed Quarterly Report for the period ended 2012-06-30.

China Natural Gas, Inc. has a market cap of $21.7 million; its shares were traded at around $1.01 with a P/E ratio of 1.5 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:

We had total revenues of $37,901,695 and $27,313,169 for the three months ended June 30, 2012 and 2011, respectively, and revenues of $70,179,013 and $51,421,277 for the six months ended June 30, 2012 and 2011, respectively. We had net income of $5,074,582 and $4,393,685 for the three months ended June 30, 2012 and 2011, respectively, and net income of $7,022,328 and $6,879,517 for the six months ended June 30, 2012 and 2011, respectively.

Gasoline. Revenue from gasoline sales decreased by 64.5%, or $1,273,209, to $701,168 for the three months ended June 30, 2012, from $1,974,377 for the three months ended June 30, 2011, and contributed 1.8% of our total revenue for the three months ended June 30, 2012. The decrease was primarily attributable to the sales volume decrease of 69.1% from 2,045,432 liters to 632,842 liters, because of the closure of three gasoline fueling stations during the first and fourth quarter of 2011. The average unit sales price of gasoline increased by 10.5%, from $0.96 (RMB 6.27) per liter, net of VAT, in the three months ended June 30, 2011 to $1.11 (RMB 6.99) per liter in the three months ended June 31, 2012, compensating for the significant decrease in sales volume to a certain degree.

Installation Services. Revenue from installation services decreased by 29.6%, or $765,025, to $1,815,270, for the three months ended June 30, 2012 from $2,580,295 for the three months ended June 30, 2011, and contributed 4.8% of our total revenue for the three months ended June 30, 2012. We believe the decrease was primarily due to a slowdown in the property market, which led to a decrease in demand for installation services. Revenue from our five largest customers accounted for 16.3%, 15.8%, 12.2%, 11.3% and 9.7%, respectively, of our total installation revenue for the three months ended June 30, 2012.

Gasoline. Revenue from gasoline sales decreased by 53.5%, or $1,754,487, to $1,527,063 for the six months ended June 30, 2012, from $3,281,550 for the six months ended June 30, 2011, and contributed 2.2% of our total revenue for the six months ended June 30, 2012. The decrease was primarily attributable to the sales volume decrease of 59.0% from 3,540,447 liters to 1,452,493 liters, because of the closure of three gasoline fueling stations during the the first and fourth quarter of 2011. The average unit sales price of gasoline increased by 13.4%, from $0.93 (RMB 6.05) per liter, net of VAT, in the six months ended June 30, 2011 to $1.05 (RMB 6.62) per liter in the six months ended June 30, 2012, compensating for the significant decrease in sales volume to a certain degree.

Installation Services. Revenue from installation services decreased by 25.3%, or $1,160,911, to $3,431,078, for the six months ended June 30, 2012 from $4,591,989 for the six months ended June 30, 2011, and contributed 4.9% of our total revenue for the six months ended June 30, 2012. We believe the decrease was primarily due to a slowdown in the property market, which led to a decrease in demand for installation services. Revenue from our five largest customers accounted for 25.9%, 11.7%, 8.6%, 8.4% and 6.5%, respectively, of our total installation revenue for the six months ended June 30, 2012.

Read the The complete Report

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