Net profit and revenue increased by 70.8% and 123.4% respectively year-on-year

Highlights

• Total gas sales volume increased significantly by 121.3% to 548.5million cubic meters as compared with the same period of the previous year.
• Revenue increased significantly by 123.4% to HK$1,882.6 million ascompared with the same period of the previous year.
• Gross profit increased significantly by 156.8% to HK$207.9 million ascompared with the same period of the previous year. Gross profit marginincreased to 11.0%.
• Profit for the period attributable to owners of the Companysignificantly by 70.8% to HK$134.3 million as compared with the same period ofthe previous year.
• Closing cash balances increased significantly by 74.1% to HK$490.3million as compared with the same period of the previous year.
• Operational cash flow turned to positive, net operational cash flowincreased by HK$355.5 million to HK$99.2 million.
• Earnings per share increased by 33.8% toHK1.03 cents.

FinancialHighlights

HONG KONG, CHINA - Media OutReach - 29 August 2019 - Beijing Gas Blue Sky Holdings Limited ("the Company" or "Beijing Gas Blue Sky",together with its subsidiaries, the "Group", HKSE stock code: 6828) announcedits interim results for the six month ended 30 June 2019 ("HY2019"). In HY2019,the Group recorded total revenue of HK$1,882.6 million (HY2018: HK$842.6million), representing a growth of 123.4% year-on-year, and recorded a profitattributable to owners of the Company amounted to HK$134.3 million (HY2018: HK$78.7million), representing an increase of 70.8%.

During the Reporting Period, earnings pershare were HK1.03 cents (HY2018: HK0.77 cents).

BUSINESS REVIEW

For the six months ended 30 June 2019("HY2019"), the Group's total gas sales volume increased by 121.3% as comparedto the corresponding period of last year to 548.5 million cubic meters (HY2018:247.9 million cubic meters) on the back of the gradual betterment of theGroup's whole LNG value chain. In HY2019, the gas sales volume from thesubsidiaries amounted to 521.5 million cubic meters, representing a significantincrease of 166.1% as compared to the corresponding period of last year (HY2018:196.0 million cubic meters). In addition, the gas sales and throughput volumefrom the associates of the Group amounted to 3,267.3 million cubic meters. Itwas mainly attributable to natural gas throughput volume from Jingtang Liquefiednatural gas (LNG) receiving terminal.

As at 30 June 2019, the Group's naturalgas projects covered a total of 16 provinces, city and autonomous region in thePRC, namely Liaoning, Jilin, Hubei, Hebei, Shandong, Anhui, Zhejiang, Shaanxi,Guizhou, Hainan, Guangxi, Guangdong, Ningxia Autonomous Region, Shanxi, BeijingCity and Shanghai City.

CITY GAS BUSINESS

As at 30 June 2019, the Group connectedgas pipelines for 33,113 new users of 5 city gas projects during the period andthe cumulative number of users reached 465,514, of which 32,987 were new residentialusers and the cumulative number of residential users reached 463,152. The Groupsecured 126 new industrial and commercial users and the cumulative number ofindustrial and commercial users reached 2,362. The gas sales volume of city gasprojects of the Group was 91.1 million cubic meters, representing an increaseof 28.3% as compared to the corresponding period of last year. The Grouprecorded a revenue of HK$465.4 million, representing an increase of 43.7% ascompared to the corresponding period of last year, primarily due to theincrease in gas consumption of newlydeveloped industrial and commercial usersof Shanxi and Liaoning projects and the increase in value-added service income.

DIRECT LNG SUPPLYBUSINESS

During HY2019, the Group providedindustrial and commercial users with direct supply service covering GuangdongProvince, Shanghai City, Shandong Province, Anhui Province, Hainan Province,Guizhou Province and Zhejiang Province, and 22.5 million cubic meters ofnatural gas (HY2018: 38.3 million cubic meters) were sold, recording salesincome of HK$79.2 million (HY2018: HK$138.2 million). In HY2019, the decreasein gas sales volume of the business segment was due to the Group's businessintergration. In order to improve the operation quality of individual projectand coordinate the strategic development of newly acquired projects, the Groupproactively reduced several direct LNG supply projects which have pooroperation quality and little synergy. The Group provided stable gas sources forexisting industrial and commercial users of direct supply service byestablishing the productive partnership with LNG suppliers from the BohaiEconomic Rim and the Yangtze River Delta Economic Zone which will also be twofocused market regions for the Group to conduct business in the future. At theend of May 2019, the Group completed the acquisition of Zhejiang Bo Xin projectserving nearly 100 industrial customers of direct supply service. As there ishigh demand for LNG at the location of Zhejiang Bo Xin project, the YangtzeRiver Delta region, which is characterised by steady upstream gas sources andregular downstream industrial and commercial customers, the project has becomea significant contributor to LNG consumption growth of the Group since thecompletion of the acquisition.

GAS REFUELINGSTATION BUSINESS

The Group sold natural gas to LNG vehicles(trucks and buses) and compressed natural gas ("CNG") vehicles (taxis, busesand private cars). In HY2019, the Group owned 30 gas refueling stationsincluding 17 CNG refueling stations and 13 LNG refueling stations (30 June2018: 34 gas refueling stations including 20 CNG refueling stations and 14 LNGrefueling stations), mainly covering Hainan Province, Anhui Province, ShandongProvince, Guizhou Province, Jilin Province, Shanxi Province and LiaoningProvince. The Group recorded a gas sales volume of 39.8 million cubic meters(HY2018: 40.7 million cubic meters) and sales income of HK$79.1 million(HY2018: HK$65.0 million), representing an increase of 21.7% as compared to thecorresponding period of last year. The number of the Group's gas refuelingstations reduced by 4 as compared to the corresponding period of last year dueto active adjustment. However, leveraging on good operation management, thebusiness volume of gas refueling stations maintained growth and its operation qualitywas further improved.

LNG TRADING ANDDISTRIBUTION BUSINESS

As at 30 June 2019, the Group distributednatural gas to downstream customers with gas sources from LNG receivingterminals in China's coastal regions and gas sources from LNG plants and recordeda total trading volume of 395.0 million cubic meters (HY2018: 97.9 millioncubic meters), representing a significant increase of 303.5% as compared to thecorresponding period of last year through distributing LNG by 67 self-owned naturalgas transportation vehicles (HY2018: 67 natural gas transportation vehicles).The revenue was HK$1,259.0 million (HY2018: HK$315.5 million), representing asignificant increase of 299.0% as compared to the corresponding period of lastyear. The increase during the period was mainly because the Group imported ashipload of LNG in the second half of 2018 and approximately 88 million cubicmeters of which were sold during the period. Meanwhile, with the goodpartnership with upstream gas source suppliers, the Group had  gas sources with lower prices than averagemarket cost. Therefore, the Group's market development capability increasedrapidly and its business scale expanded quickly. In addition, due to thecompletion of the acquisition of Zhejiang Bo Xin project in HY2019 by the Group,a significant LNG business project in the Zhejiang region which had betterupstream gas sources and a huge trading network, contributing to strongergrowth of the Group during the period.

LNG RECEIVINGTERMINAL PROJECTS

PetroChinaJingtang (Jingtang LNG Receiving Terminal)

In HY2019, the total throughput volume ofLNG of Jingtang Receiving Terminal amounted to 3,243.7 million cubic meters, ofwhich the gas volume transported to pipelines through gasification was 2,837.7million cubic meters while the gas transportation volume of a tank truck was406.0 million cubic meters. 4 new storage tanks of the receiving terminal arecurrently under interior construction and the emergency peak adjustment projectis expected to be completed and put into operation in the second half of 2020,which will turn the receiving terminal into China's largest LNG receivingterminal with higher peak adjustment and supply assurance capacity for the timebeing.

New ProjectDevelopment

The Group completed the acquisition ofZhejiang Bo Xin and Xin Te project in June 2019, the consideration of which wasRMB205,000,000 (equivalent to approximately HK$239,174,000).

The principal business of Zhejiang Bo Xinincluded (i) direct supply of LNG to industrial users; and (ii) trading of LNG.It receives stable gas supply from CNOOC's Zhejiang Ningbo LNG terminal andmainly distributes and supplies to large scale industrial users. Zhejiang BoXin's major sales network covers Yangtze River Delta region, which is the keyLNG consumption area in the PRC with developed regional economy and numerousindustrial and commercial enterprises. This area has a strong market demand andthe LNG consumption is expected to have considerable growth potential in thefuture. Xin Te is principally engaged in direct supply of LNG to industrialusers. For the year ended 31 December 2018, Zhejiang Bo Xin had 68 directsupply and trading customers with sales volume of approximately 104,132 tons,whereas Xin Te had 23 direct supply and trading customers with sales volume ofapproximately 14,653 tons. The acquisition was completed in late May 2019,Zhejiang Bo Xin is undergoing the change of name to 北藍博臣能源有限公司 (Beijing Gas BlueSky Bo Chen Energy Limited) and will be engaged in the development of LNGtrading and distribution, direct supply and relevant businesses in easternChina.

The acquisition of Zhejiang Bo Xin demonstratedthe Group's strategic layout of whole LNG industry chain and replenished themarket share and influence of the Group in the midstream and downstream marketof the LNG business in the Yangtze River Delta region, enhancing the overall LNGdistribution capacity and sales capacity of the Group. It will be easier toachieve economies of scale through increasing the total trade volume, therebyimproving the bargaining power of the Group in the upstream market. TheAcquisition will help the Group to achieve cooperation in the Yangtze RiverDelta region with upstream gas suppliers and terminals, coupled with theGroup's established distribution advantages in the Beijing-Tianjin-Hebei regionand other markets, the Group will achieve its strategic planning of importinggas from overseas sources independently in the future and capture more revenueunder the great opportunity of the fast-growing market of imported LNG.

FUTURE PROSPECTS

Looking forward to the second half of2019, the domestic natural gas consumption will continue to maintain a steadygrowth. With the accelerated reform of oil and gas system, and the increasing supplycapacity of natural gas, the natural gas industry will usher the importantdevelopment opportunities. Benefiting from the established system of the wholeLNG value chain business, the Group recorded the considerable growth of gassales from LNG segment, compared to the same period last year. The Zhejiang BoXin project acquired in the first half of the year is an important step for theGroup's layout of the whole LNG value chain, which will help the Group tocooperate closely with the upstream gas sources in the Yangtze River Deltaregion, further enhance existing customers' dependence on us, and promote theexpansion of markets of new customers.

In the Bohai Rim, the Group is alsofocusing on the development opportunities of the whole LNG value chain, and hasachieved the overall market layout of the Group's strategy of "North-SouthConnection". The Group will give full play to the business advantages of thewhole LNG value chain and promote the synergistic effects among upstream,midstream and downstream sectors. By expanding business development in themidstream and downstream, the Group will gain more imported offshore gassources and improve bargaining power. Under the market environment where theLNG is developing rapidly, the Group will seize the opportunity of the industryand strive to increase its ranking within the industry.

In addition, in terms of management, theGroup will strengthen its operation and management, and reduce the costs andimprove efficiency through "multi-tasking strategy". The Group will also effectivelyreduce the management expenses through the management measures such asoptimizing organizational structure, optimizing personnel and strictlycontrolling expenditures. By continuing to strengthen cooperation withcommercial banks, the Group will lower the financial cost of loans. Through thetargeted acquisition of quality projects and enhanced scale advantage, theGroup will thereby improve the overall profitability.

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, the Group's natural gasprojects covered 16 provinces, city and autonomous region in the PRC, namelyLiaoning, Jilin, Hubei, Hebei, Shandong, Anhui, Zhejiang, Shaanxi, Guizhou,Hainan, Guangxi, Guangdong, Ningxia Autonomous Region, Shanxi, Beijing City andShanghai City. The Group is committed to its vision: "develop cleanenergy, enhance customer value, create a beautiful blue sky". In thefuture, it will continue to actively investing and developing natural gasbusiness, as well as participating in the development of natural gas industryvalue chain.