Business Overview
TL Natural Gas Holdings is a CNG supplier in Jingzhou City, Hubei Province. The main products supplied by the group are CNG. All natural gas is purchased from CNG. It is its exclusive natural gas supplier, and has signed a main supply agreement. According to this, CNPC has agreed to supply natural gas to the Group within 25 years from 2015. Furthermore, the group's revenue mainly comes from retail vehicle terminal users and approved customers selling natural gas in CNG form. The main retail customers are taxis and public transportation buses, etc. The driver, and The main wholesale customers are urban gas companies, gas station operators and industrial users. Currently, the group operates a total of four gas stations, all located in Jingzhou City, Hubei Province.
Competitive advantage
The group is a well-known CNG supplier with a long-term stable supply of natural gas in Jingzhou City, Hubei Province
The group is located in Jingzhou City, Hubei Province, benefiting from the preferential policies of the local government, major development opportunities in the vehicle gas station market, and a large natural gas industry and commercial user base
The Group has established stable business relationships with major customers and natural gas suppliers
Risk Factors
CNPC is currently the Group's exclusive natural gas supplier. In the future, there will be organic meetings and risks related to business transactions
The group relies on public transportation in Jingzhou. If the relationship with them deteriorates, the group's business may be significantly adversely affected
The group is affected by the risk created by the Chinese government's downstream price control mechanism for natural gas
Use of proceeds
Approximately 54.2% was used to invest in the construction of two gas stations in Jingzhou, Hubei
Approximately 35.8% was used to upgrade the infrastructure and equipment of the Jingzhou Mother Station
Approximately 10% is used for general working capital