According to the announcement of the Hong Kong Stock Exchange on June 27th, Wuzhou Energy Holdings Co., Ltd. (Wuzhou Energy) submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, and Guotai Junan International is its exclusive sponsor.

The prospectus shows that according to Frost Sullivan's data, in 2023, based on the sales volume of pipeline natural gas to end users with exclusive franchise rights, Wuzhou Energy is the largest natural gas distributor in Xuchang, a major prefecture-level city in Henan Province. As of December 31, 2023, the company owns the second longest natural gas trunk pipeline in Henan Province. Since its establishment in 2001, it has been operating in the natural gas industry in Henan Province for more than 20 years.

According to Frost Sullivan's data, in 2023, based on the sales volume of pipeline natural gas to end users with exclusive franchise rights, Wuzhou Energy is the largest natural gas distributor in Xuchang, with a market share of 42.0%; in 2023, based on the sales volume of pipeline natural gas to end users, the company is the sixth largest natural gas distributor in Henan Province, with a market share of 2.6%; and as of December 31, 2023, based on the total length of three trunk pipelines, the company owns the second longest natural gas trunk pipeline in Henan Province. According to Frost Sullivan's data, in 2023, Xuchang's natural gas consumption accounts for about 5.0% of Henan Province's natural gas consumption, and Henan Province's natural gas consumption accounts for about 3.4% of the national natural gas consumption.

As of December 31, 2023, most of Wuzhou Energy's revenue comes from the sale of pipeline natural gas to end users through urban pipeline networks in the franchise area. According to franchise rights (respectively in Changge, Xuchang and Yanling), the company has the exclusive right to sell and distribute pipeline natural gas and build urban pipeline networks in the franchise area for a period of 30 years, with expiration dates of May 2036, September 2041 and March 2042, respectively.

According to Frost Sullivan and Chinese legal advisers, under the same conditions, the company is expected to have a priority to renew the franchise rights after the franchise rights expire. The franchise areas are all located in major prefecture-level cities in Henan Province. As of December 31, 2023, the company's three franchise areas together cover an area of ​​approximately 1,514 square kilometers, accounting for approximately 30.4% of Xuchang's total area. According to Frost Sullivan's data, in 2023, Wuzhou Energy supplies approximately 42.0% of pipeline natural gas consumption in Xuchang based on the sales volume of pipeline natural gas to end users.

As of December 31, 2023, Wuzhou Energy owns and operates several pipeline natural gas supply facilities, including operational urban pipeline networks in the three franchise areas, including no less than 1,500 kilometers of sub-high pressure, medium pressure and low pressure pipelines; three natural gas trunk pipelines, namely, Yudong Line, Zhongkai Line and Kaixu Line located in Henan Province, with a total length of approximately 287.7 kilometers and a total annual gas transmission capacity of no less than 260 million cubic meters of pipeline natural gas; a provincial gate station in Kaifeng City; 12 transmission stations (including provincial gate stations); 3 urban gate stations, 3 pressure regulating stations, and 10 valve rooms; gas meters, pressure regulators; and 3 pipeline natural gas customer centers.

According to Frost Sullivan's data, the natural gas market and urban natural gas market in Xuchang and Henan Province are relatively concentrated. In 2023, based on the sales volume of pipeline natural gas to end users in Xuchang, Wuzhou Energy is the largest natural gas distributor with a market share of 42.0%, and in 2023, based on the sales volume of pipeline natural gas to end users in Henan Province, the company ranks sixth among all natural gas distributors with a market share of 2.6%. As of December 31, 2023, it also owns the second longest natural gas trunk pipeline in Henan Province according to Frost Sullivan's data.

In terms of finances, Wuzhou Energy realized revenue of approximately RMB 948 million, RMB 1.266 billion, and RMB 1.217 billion in 2021, 2022, and 2023, respectively; and the corresponding net profits were approximately RMB 59.484 million, RMB 111 million, and RMB 110 million, respectively during the same period.