The Group has seven LPG terminals and 106 LPG distribution projects. With wide distribution footprints across 19 provinces, it is China’s largest vertically integrated LPG operator and service provider.
Now LPG is increasingly popular among rural and suburban residents, and LPG demand from industrial and commercial users has been growing steadily for a long time. Notably, demand for LPG as a raw material for producing petrochemical synthesis and deep processing has surged. As a result, China’s LPG demand has been growing steadily. The Group has been drawing on its LPG terminals, storage facilities and the assets and networks of vessel and vehicle fleets to extend the value chain. It has been integrating sales for industrial users, trade, retail and Smart MicroGrid to maximize the profit of the entire supply chain. In trade, the Group has boosted sales by diversifying gas sources and building trading grids. In retail, the Group has been consolidating local bottled gas markets and investing in the end-user business in core cities suitable for combining trade and end-users. In Smart MicroGrid, the Group has fully utilized ‘‘Central Document No. 1’’ and other state policies on rural-area infrastructure development and collaborated with governments on launching demonstration projects. The Group has been promoting new businesses actively and has remained strategically prudent about making additional investments. It will reduce investment in Smart MicroGrid until local government subsidies have materialized.
During the financial year, the Group’s total LPG sales volume increased by 0.5% year-on-year to 4.27 million tons.