Sino Gas International Holdings Inc, a leading developer of natural gas distribution systems in small and medium-seized cities and natural gas to residential, commercial and industrial customers in China, has reported its financial results for the 2nd quarter ending 30th June 2007 and enjoyed huge revenue and profit increases.
Revenue reached $2.8m, a massive increase of 232 percent against the second quarter of 2006, and gross profit reached $0.9m, up 139 percent from the same period last year.
Operating income totalled $0.5m, a rise of 128 percent from the second quarter of 2006, and net income rose to $0.5m or $0.03 per diluted share, up 104 percent from the second quarter of 2006.
Yu-Chuan Liu, president and CEO of Sino Gas, commented, $quot;Our strong second quarter results reflect the effective penetration of our existing markets with a significant increase in connected households and double the amount of gas sales. In the second half of 2007, we remain confident in our business plan and the opportunities ahead for organic growth and external expansion.$quot;
In terms of future progression the company believes that the underdeveloped natural gas market in China has immense opportunities for rapid growth, and with natural gas contributing only 3 percent to China's total energy consumption compared to a world average of 24 percent, this would seem to be quite accurate.
Many cities, especially small and mid-sized cities, remain unconnected and under favourable Chinese government policies, Sino Gas has been aggressively planning its expansion to more provinces and regions.
$quot;We remain highly confident that we have the right strategy and management team to take our business to the next level. We plan to continue to focus on acquiring distribution systems in small and mid-sized cities through acquisitions while further penetrating our existing markets,$quot; Liu said.