China Natural Gas Announces Financial Expectations
07 Juni 2007 - 11:01PM
PR Newswire (US)
Revenue and Net Income Growth of 70% in 2007 and 2008 NEW YORK,
June 7 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC:CHNG)
(BULLETIN BOARD: CHNG) , one of the leading providers of compressed
natural gas (CNG) for vehicular fuel in Xi'an, China, today
announced financial expectations for 2007 and 2008. Mr. Qinan Ji,
Chairman and CEO of China Natural Gas, stated, "As of today, we
have 15 retail CNG filling stations contributing to our financial
results and we expect to finish the year with 23 retail CNG filling
stations contributing to our financial results. We are very pleased
with the progress we are making as we capitalize on the opportunity
to provide more and more compressed natural gas to the local
Chinese market." For the year 2007, the Company expects revenue to
increase 70% to $32.0 million from $18.8 million in 2006. The
Company expects net income to increase 70% to $9.3 million in 2007
from $5.5 million in 2006. For the year 2008, the Company
anticipates revenue and net income growth of at least 70%. "The
financial guidance we are formally initiating today primarily
reflects performance from and growth of our retail CNG business and
is based on operating 23 revenue generating retail CNG filling
stations by the end of 2007 and 42 revenue generating retail CNG
stations by the end of 2008. At this time, we are not accounting
for the potential sale of Liquefied Natural Gas (LNG) in our
financial guidance, although we continue to actively explore this
compelling opportunity," concluded Mr. Qinan Ji. Additionally,
today China Natural Gas announces several new corporate
initiatives. By the end of 2007, the Company expects to staff and
have functioning a representative office in the U.S. in order to
facilitate communication with new and existing shareholders and
accountants, as well as potentially manage the process to list the
Company's securities on a national securities exchange. The Company
also anticipates the appointment of a global auditing firm as well
as the appointment of additional independent board directors. About
China Natural Gas, Inc. China Natural Gas, Inc., ("CHNG"), is the
first China-based natural gas company publicly traded in the US. It
currently owns and operates a 120 kilometer long compressed natural
gas pipeline in Xi'an, China, a fast growing Chinese city supported
by a population of approximately eight million and is the "gateway"
to the broad Western regions of China. CHNG has three profitable
business segments: end user delivery of natural gas services to
residential, commercial and industrial customers; wholesale natural
gas to retail natural gas filling stations; and retail natural gas
at company-owned natural gas filling stations. The city of Xi'an
has approximately 20,000 Taxis, 3,000 buses and 2,000 special
purpose vehicles that are powered by compressed natural gas. This
press release may contain forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on the
current expectations or beliefs of China Natural Gas, Inc.
management and are subject to a number of factors and uncertainties
that could cause actual results to differ materially from those
described in the forward-looking statements. DATASOURCE: China
Natural Gas, Inc. CONTACT: Ashley Ammon MacFarlane, or Bill Zima,
both of Integrated Corporate Relations, +1-203-682-8200
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