Net profit and revenue increased by 193.0%and 23.6% respectively year-on-year

Highlights

•          Revenue increased by 23.6% to HK$842.6million
•          EBITDA of the Company increased by 122.9% to HK$270.6million
•          Profit for the period attributable to owners of theCompany increased by 193.0%to HK$78.7 Million
•          TheGroup has introduced international energy companies like SK E&S in South Korea and GPS in Thailand as our strategic investors, and will cooperatewith them in the future. It helps the Group to establish an international and diversified shareholding structure and make itselfa listed company with mixed ownership
•          The Group completed the acquisition of 29%equity interests in PetroChina Jingtang. During the period, the LNG gasification of the LNG receiving station of PetroChinaJingtang was 3.2 billion cubic meters and the entrucking was 256,000 tons
•          The Group's natural gas projects coveredBeijing, Ningxia Self Administrative Region and 11 Provinces in the PRC, namelyJilin, Liaoning, Hebei, Shandong, Shanxi, Shaanxi, Hubei, Anhui, Zhejiang,Guizhou, and Hainan Provinces
•          The Group owns a total of 34 gas refuelingstations for vehicles and 5 city gas projects

FinancialHighlights

HONG KONG, CHINA - Media OutReach - 29 August 2018 - Beijing Gas Blue Sky Holdings Limited("the Company" or "Beijing Gas Blue Sky", together with its subsidiaries, the"Group", HKSE stock code: 6828) announced its interim results for the six monthended 30 June 2018 ("HY2018"). In HY2018, Beijing Gas Blue Sky recorded totalrevenue of HK$842.6 million (HY2017: 681.8 million), representing a growth of 23.6%year-on-year, and recorded a profit attributable to owners of the Companyamounted to HK$78.7 million (HY2017: 26.9million), representing an increase of 193.0%.

During the Reporting Period, earnings pershare were HK0.77 cents (HY2017: HK0.27 cents).

BUSINESS REVIEW

During HY2018, total gas sales volume reached247.9 million cubic meters, and LNG throughput volume for June was 411.2million cubic meters.

For the six month ended 30 June 2018, thetotal gas sales volume from subsidiaries amounted to 196.0 million cubicmeters. In addition, the total gas sales volume from the associates of theGroup amounted to 49.2 million cubic meters.

In June 2018, The Group completed theacquisition of 29% equity interests in PetroChina Jingtang LNG Co., Ltd.("PetroChina Jingtang"). As at 30 June 2018, the LNG gasification volume amountedto 3.2 billion cubic meters and LNG unloading volume was 256,000 tons. Gasificationand unloading volume for June reached around 374 million cubic meters and27,000 tons respectively.

As at 30 June 2018, the Group's naturalgas projects covered Beijing, Ningxia Self Administrative Region and 11Provinces in the PRC, namely Jilin, Liaoning, Hebei, Shandong, Shanxi, Shaanxi,Hubei, Anhui, Zhejiang, Guizhou, and Hainan Provinces. The Group owns a totalof 34 gas refueling stations for vehicles and 5 city gas projects.

RESIDENTIAL USERS

During HY2018, the Group's city gasprojects are households located in Liaoning Province, Jilin Province, ShanxiProvince and Hubei Province. During the period, the Group completed connection ofpiped gas for 17,047 new residential households, and the accumulated connecteddomestic households reached 387,640 households (accumulated 83,764 householdsafter acquisition), the volume of natural gas sold by the Group together with itsassociates and joint ventures to residential users amounted to 28.2 millioncubic meters, with connection fee income of HK$59.5 million (HY2017: HK$15.5million). During the period, the Group's residential household gas penetrationrates in Songyuan City, Yuncheng City and Yongji City reached approximately 43.8%,69.9% and 32.8%, respectively. As there is still room for growth in the numberof residential households connected, the Group will continue to promote the growthof new connected residential households for the whole year by organic growthand acquisition of new projects.

Recently, the State Council issued the"Three-Year Action Plan for Winning the Blue Sky Defense Battle" (hereinafterreferred to as the "Three-Year Action Plan") aiming at the prevention andcontrol of air pollution in the next three years. The scheme set out airquality targets requiring that the ratio of days with good air quality atprefecture level and above should reach 80%, and the percentage of heavilypolluted days decrease by more than 25% from 2015. The Group will remain itsfocus on expanding its city gas market in key areas with relatively low gaspenetration rate, such as Northern, Central and Eastern China, which willcontribute significantly to gas sales volume of the Group. At the same time,the Group will also focus on the city gas projects in areas with higher dollar marginthrough cooperation with upstream operator Kunlun Energy and Beijing Gas Group,major shareholder of the Company, to enhance the overall profit of the segment.The Group has entered into a strategic cooperation agreement with GuizhouBranch of PetroChina KunLun Gas Co., Ltd.（中石油昆侖燃氣有限公司貴州分公司）("KunLun Guizhou") to explore and develop the natural gas market inGuizhou Province and expand its market share.

INDUSTRIAL ANDCOMMERCIAL USERS

The "Three-Year Action Plan" has madeimportant strategic deployments for clean winter heating in the northernregion, requiring to focus on promoting the treatment of scattered coal inBeijing-Tianjin-Hebei and surrounding areas and the Fenhe and Weihe Plain, andproposing that the scattered coal will be basically replaced for winter heatingin plain areas before the heating season of 2020. Looking back to 2016 to 2017,the "2+26" cities completed "coal-to-gas" and "coal-to-electricity" for morethan 4.7 million users. Relying on the growing logistics fleet and access to richimported gas sources from coastal LNG receiving terminal, the Group's directsupply business has covered Beijing-Tianjin-Hebei, Bohai Rim and Pearl RiverDelta regions. During the reporting period, the Group sold 78.7 million cubicmeters of gas, covering Jilin Province, Liaoning Province, Shanxi Province,Shaanxi Province, Hubei Province, Shandong Province, Anhui Province andZhejiang Province. The sales income amounted to HK$438.5million, and the number of users accumulated 2,137 including 220 newly addedusers, of which 30 were "coal-to-gas" users.

CNG AND LNG REFUELING STATIONS

The Group together with its associates andjoint ventures sold natural gas to LNG vehicles (trucks and buses) and CNGvehicles (taxis, buses and private cars). During HY2018, the Group owned 34refueling stations including 20 CNG refueling stations and 14 LNG refuelingstations for vehicles (HY2017, 16 CNG refueling stations and 16 LNG refuelingstation, 32 stations in total), with total gas sales volume of 40.7 millioncubic meters and sales income of HK$64.9 million, mainly covering HainanProvince, Anhui Province, Shandong Province, Guizhou Province, Jinlin Provinceand Shanxi Province. Due to the pressure on the gross profit of the industry'srefueling gas stations, the Group sold the refueling gas stations in Chiping,Shandong at the end of June in order to maintain and enhance the overall profitlevel of the business segment.

TRADING ANDDISTRIBUTION OF CNG AND LNG

During HY2018, the Group owned 67 naturalgas transportation vehicles (HY2017: 52 natural gas transportation vehicles).Total trading volume amounted to approximately 97.9 million cubic meters. Thetrading and distribution business recorded a segment profit of HK$7.7 million. Duringthe period, the Group's volume of this segment has declined. In the second halfof the year, the Group will focus on increase the scale effect and make fulluse of primary gas sources to improve the gross profit level. The Group owns10% equity interests in CNPC's Haikou LNG receiving terminal, and distributesLNG with gas source from CNOOC's Ningbo receiving terminal and Sinopec'sDongjiakou receiving terminal.

In June 2018, the Group completed theacquisition of 29% equity interests in PetroChina Jingtang LNG Co., Ltd. TheLNG receiving station of PetroChina Jingtang is located in CaofeidianIndustrial Zone, Tangshan City, Hebei Province, and is an important natural gassupply facility in Northern China. The receiving station is not onlyresponsible for the supply of natural gas to Beijing, but also supplies LNGthrough distributors to surrounding areas, such as Tangshan, Chengde, Tianjin andQinhuangdao to secure stable supply of natural gas backing the Country'spromotion of "coal-to-gas" and optimization of integrated use of natural gas.The Group is committed to the layout and development of the full LNG industrychain of LNG, and by acquiring equity interests in the upstream receivingstations, it will effectively promote the synergy between the upstream importedLNG gas source, the midstream trading and distribution and the downstreamend-markets.

EXPANSIONINITIATIVES

The Group has adopted its own "One Belt,One Road" Expansion Strategy to actively expand the full industry chainbusiness of natural gas, with city gas as an important support and focusing on thedevelopment of the full industry chain of LNG. Up to now, the Group's businesshas covered Beijing, Ningxia Self Administrative Region and 11 Provinces in thePRC. During HY2018, the Group completed the PetroChina Jingtang project and isin the process of acquiring the project of Teng County, Guangxi, all of whichare funded by Beijing Gas Group, a major shareholder of the Company.

FUTURE PROSPECTS

Looking forward, by taking advantage ofthe development of the natural gas industry, the Group will invest and developthe natural gas business proactively and expand business layout by taking the "developclean energy, improve customer value, and create a better Blue Sky" as themission. The "Three-Year Action Plan" issued by the State Council defined theoverall thinking, basic objectives, main tasks and supporting measures for thetreatment of air pollution in the middle and later stages of the "13thFive-Year Plan", and proposed a timetable and a route map for winning the bluesky defense battle in the next three years. Clean heating and "coal-to-gas" areimportant parts through the whole process. The Group will closely follow thepolicy guidance, actively explore industry and market opportunities, andleverage its own advantages to seize market opportunities arising from "coal-to-gas"and "industrial transformation".

On the basis of the original "One Belt,One Road" strategic layout, the Group dynamically adjusted the focus anddirection of the Group's strategic development, refined the "One Belt, OneRoad" promotion strategy for the city gas business segment and the LNG businesssegment and further clarified the strategic positioning of "focus on city gasand LNG simultaneously": on the one hand, the Group will continue to generatestable revenue from city gas business segment, and on the other hand, it willseize the opportunity and actively explore a way to achieve more profitsthrough the industry chain extension and supply chain finance of LNG segment,adapting itself to the current changing market and policy environmenteffectively.

The Group completed the acquisition of 29%equity interests in PetroChina Jingtang from Beijing Gas Group. The acquisitionis of great significance to the Group, not only supplementing and strengtheningthe advantages of the Group's LNG industry chain, but significantly improvingthe profit attributable to the shareholders of the Company. In the future,Beijing Gas Group, as the largest shareholder, will continue to bring rich industryand financial resources to the Group, which will help generate great advantage.In the meantime, the Group has cooperated with international energy companiessuch as SK E&S in South Korea and GPS in Thailand, establishing aninternational shareholder structure and making itself a listed company withmixed ownership. In the future, capitalizing on the advantages of all parties,the Group will adhere to the pragmatic approach for changes and the principleof working in solidarity, and continuously strengthen the management includingsafety, manpower, performance, budget, matrix and service, continuously improveand enhance the Group's operational and financial efficiency to secure businessgrowth with sustainability and quality, thereby creating greater investmentvalue for investors and shareholders.

About Beijing Gas Blue Sky Holdings Limited

Beijing Gas Blue Sky Holdings Limited ("Beijing Gas Blue Sky", HKSEstock code: 6828) is an integrated natural gas provider, distributor andoperator, with an emphasis on the midstream and downstream natural gasdevelopment. Our natural gas business includes: (i) construction and operationof compressed natural gas ("CNG") and liquefied natural gas ("LNG") refuelingstations for vehicles; (ii) construction of natural gas pipelines and operationof city gas projects by providing piped gas; (iii) direct supply of LNG toend-users; and (iv) trading and distribution of CNG and LNG.

The Group has adapted to the "One Belt One Road" policy, and focus onoperating and investing natural gas business. The Group is actively expandingits business development and distribution, as well as continues to graduallyexpanding the scale of operations. Currently, theGroup's natural gas projects covered 10 provinces in the PRC, namely Hainan,Anhui, Shandong, Liaoning, Guizhou, Sichuan, Hubei, Zhejiang, Jilin and JiangsuProvinces. The Group is committed to its vision: "develop clean energy,enhance customer value, create a beautiful blue sky". In the future, itwill continue to actively investing and developing natural gas business, aswell as participating in the development of natural gas industry value chain.