In 2015, the global economy was still in a period of deep adjustment after the global financial crisis while major economies and their monetary policies remained on diverging paths. Meanwhile, China’s economy also entered a period of “New Normal”, epitomized by tepid real estate market and slackening economic growth in general. To stabilize growth and prevent risks, the Chinese government actively promoted the marketization of Renminbi exchange rate regime, resulting in more fluctuating Renminbi exchange rate. At the same time, the profound changes in global energy landscape and China’s pivot towards diversified, clean and low-carbon energy posed unprecedented opportunities and challenges to its clean energy industry.
During the past year, the Group ushered in unprecedented opportunities in developing LPG business and made breakthroughs in new business such as value-added businesses by making continuous efforts in driving exploration and innovation, deepening reform of management model, constantly promoting rapid growth of piped natural gas supply business, improving operational efficiency and standard of vehicle refilling station and progressively accelerating the implementation and execution of distributed energy projects, which laid a solid foundation for the Group to realize its mid-to-long term strategic development objectives. Furthermore, the Group received high praises from the public for its safe operation, corporate cultural development and corporate social responsibility performance. A sizable and resourceful platform for sustainable development was formed with the Group’s rising industry status and social influence.
Looking forward, for city pipeline gas business, the Group will continue to optimize its management and operational level, redouble its efforts in developing terminal projects and vigorously develop customer service and value-added business so as to further consolidate its leading position in the industry. For LPG business, the Group will continue to enhance the “horizontal synergy” between the market and resources of city pipeline gas business and increase LPG’s market share in deep-processing sector, while vertically integrating its vertically integrated industrial chain. The integration of upstream resources and technology improvement of the industry will create favourable conditions for the innovation of LPG industry business model and will also drive rapid growth of the Group’s LPG business. For value-added business, the Group will make bold steps to explore and innovate by leveraging on its extensive customer resources, unique brand strength and outstanding information technology. It will enhance service awareness and standard that truly caters to the customers, thereby creating its unique core competitiveness.
After over a decade of rapid and healthy growth, the Group is now serving more than 20 million residents and 210 thousand industrial and commercial customers with clean energy, and providing “face to face” customer services to over 100 million urban population. Adhering to the principle of increasing both economic effectiveness and social effectiveness, the Group will continue to devote in social services and provide better services to its customers with the aim to become a trustworthy, well-respected and well-organized gas company group that creates higher value for its shareholders continuously. We believe that the next round of change of energy production and consumer market will focus on such issues as price reform of energy product, opening up of energy market, end market services and Internet+. To meet challenges from severe economic environment and energy market reform, the Group will further integrate its city gas business, gas refilling business for vehicles and vessels, LPG business, LNG trade business, distributed energy business and value-added business. Efforts will also be made in developing these businesses synergistically and tapping the value of the industry and market in a “cross-region”, “cross-method” and “cross-sector” approach.
In the future, the Group will move forward amidst the downturn, overcome obstacles and difficulties and extend its reform efforts. It will proactively adapt to the transformation of industry and market and perform social responsibilities. With the corporate mission of “Benefiting the Society through Establishing a Harmonious Ambience”, the Group will push forward industry and society development, supply “smart” energy to the society and general public and guide the country on a green growth pathway. Our goal is to develop into an outstanding integrated energy service provider and maximize the value for our shareholders, staff and the society. Lastly, I would like to express my thanks to the fellow board members for their contribution and support and to all our staff and management team for their endeavors and hard work.
Chairman of the Board of Directors