Business summary

CNPC Clean Energy Holdings is a comprehensive supplier of liquefied petroleum gas and natural gas in China. It has a complete industrial chain and has accumulated an impressive track record of over 13 years in the industry. The Group mainly uses its liquefied petroleum gas, compressed natural gas and liquefied natural gas vehicle filling stations, liquefied petroleum gas civil stations and compressed natural gas master stations to provide liquefied petroleum gas products in Guangdong Province and Jiangxi Province under the “CNPC Clean Energy” trade name and group logo, compressed natural gas products in Henan Province, and liquefied natural gas products in Guangdong Province. The Group's customers are divided into retail customers and wholesale customers. Furthermore, in order to ensure a stable supply of high-quality gas, the Group has established long-term stable business relationships with major suppliers. These suppliers refer to large national petrochemical companies with terminal stations and gas storage facilities, as well as large domestic LPG suppliers.

Competitive advantage

The Group benefits from the opportunities brought about by the sustainable development of China's LPG and natural gas industry and preferential policy support from the government

The Group is a comprehensive supplier of liquefied petroleum gas and natural gas in China, with a complete industrial chain

Due to the Group's long-term business relationships with major suppliers, the Group's economies of scale and LPG storage capacity, the Group enjoys a competitive advantage in terms of LPG procurement costs

Risk Factors

The work of the group must be limited by the development of Chinese government policies

The Group's business is largely determined by the Group's logo and the market acceptance of the trade name “CNPC Clean Energy”

The Group relies on the unstable or insufficient supply of liquefied petroleum gas and liquefied natural gas from major suppliers and the Group's main suppliers, which may have a significant adverse impact on the Group's operations

Use of proceeds

Approximately 17.0% was used to purchase the operating license for a liquefied petroleum gas civil station

Approximately 18.0% will be used to enhance the group's LPG logistics and storage capacity through construction storage facilities

Approximately 23.0% will be used to complete the construction of new compressed natural gas stations and purchase land, equipment and equipment for them

Approximately 20.0% is used for existing gas stations to complete the construction of new gas stations, purchase and assembly of the equipment and equipment required for them, and maintenance groups

Approximately 12.0% were used to purchase additional vehicle fleet to increase the group's logistics capacity

Approximately 10.0% is used as general working capital