Zhitong Caijing report Tian Lun Gas (01600) issued an announcement that the Company has formulated the Company's strategic development plans and goals for the next three years (2022-2024) based on the current situation and development trend of the energy industry in recent years.
Since its establishment, the Company has focused on the development of urban gas business, adhered to green and high-quality development, and continued to provide users with safe and economical natural gas products and services. In order to conform to the market trends and assist in China’s carbon peak and carbon neutral goals, the Group intends to develop the main business of urban gas with high quality, while further expanding and innovating low carbon energy business to become China’s first-class supplier and service provider for green low-carbon energy.
一、The strategic positioning is to focus on gas business, through business extension and innovation, to provide users with low-carbon, economical, safe and convenient energy services, with the goal of becoming China's first-class supplier and service provider for green and low-carbon energy supply and service provider
二、Commit to the cause of people’s livelihood, strive to become a centennial brand
三、Purpose and mission to develop clean energy and improve the living environment
四、Strategic Path：
1 High-quality endogenous growth in gas business，The Company strives to explore industrial and commercial users by being user centric to strengthen continuous and deep understanding of users’ energy needs and characteristics. Through adopting flexible pricing policies, providing users with low-carbon integrated energy services, energy-saving services, and other methods, it will be able to reduce costs, increase efficiency, reduce carbon emissions, increase customer stickiness, and widen the user base. Meanwhile, key measures such as increasing clean heating for residents, educating township users in consuming gas, and expanding business to industrial parks and surrounding townships will accelerate the growth of individual households and total gas consumption for existing projects. In terms of gas source optimisation, various measures such as strengthening upstream cooperation, achieving pipeline interconnection, and reinforcing deployment of gas storage will enhance the competitiveness of gas sources and boost the high-quality endogenous growth of the gas business.
2. High-quality mergers and acquisitions in gas business Since its listing in 2010, the Company has increased the number of urban projects from three projects at the time of listing to 69 projects as of 30 June 2021 through high-quality and efficient mergers and acquisitions. The Company will seize important integration opportunities derived from the industry in the next few years, take advantage of Tian Lun Gas’s high-quality and efficient mergers and acquisitions, and focus on key areas (neighbouring regions of provincial capitals, industrial transfer, areas for upgrading natural gas consumption, and gas source production and gathering areas), to obtain high-quality projects (with a high proportion of gas sales profits, a high proportion of industrial and commercial users, and great development potential), thereby achieving regional synergy. Meanwhile, the Company will optimize the investment management mechanism and mobilize all involving parties to facilitate high-quality mergers and acquisitions of the gas business.
3. Strengthening the promotion of innovative business development，The Company plans to strengthen innovative business development in the next three years, and such revenue is expected to account for 10% of the Group’s overall revenue by 2024. In terms of low-carbon energy services, we will customize our promotion on natural gas, photovoltaics, wind energy, geothermal energy, biomass energy, energy storage, hydrogen energy and others in a flexible manner depending on the different energy needs of urban and township users as well as resource quality so as to cater for the locals. In terms of safety and health services, in response to different consumption needs and consumption habits of the users from both cities and townships, the combination of self-owned brands and cross-industry alliances is cultivated to provide users with gas safety value-added services, smart manufacturing of safe and healthy products and living services, etc., thereby improving customer conversion rate and ARPU value (average income per household), and increasing customer stickiness.
4. High-quality enhancement in revenue and profit scale Through achieving the endogenous exploration of gas stock business as well as high-quality extensional mergers and acquisitions, the Company expects to achieve the goal of not less than 25% annual compound growth in overall retail gas sales in the next three years (2022-2024). Meanwhile, achieving a rapid increase in the proportion of revenue from gas sales, value-added services and innovative businesses is able to boost the Company’s sustainable development.
5. Improving safety management standards and ESG With the growth being guaranteed, the Company will continue to enhance safety management, improve the safety structure of Business Division and its member companies, strengthen the safe operation of equipment, optimize the production environment, and strengthen management methods and safety promotion. Meanwhile, the Company plans to continuously implement comprehensive improvement plans for environmental protection, social responsibility and corporate governance (ESG), in order to strengthen the implementation of core development concept in relation to sustainable development as well as fully deploy its business characteristics (i.e. environmental protection), demonstrating full support to the United Nations Sustainable Development Goals. In terms of operation, we actively implement the action plans for “carbon peak” and “carbon neutrality”, and offer long-term commitment to support and achieve sustainable development goals in development strategies and business operations, as well as promote the high-quality development of the Company.
on 26 November 2021,the Company and the SPIC Henan Electric Power Co., Ltd. entered into a strategic cooperation agreement，The two parties agree to promote the national dual-carbon policy, rural revitalization, common prosperity and the ecological protection and high-quality development in the Yellow River Basin on the premise of fulfilling their respective development concepts, and to coordinate their respective advantageous resources to jointly focus on the fields of green and low-carbon energy, green and low-carbon industry, green and low carbon urban and rural construction, green and low-carbon transportation, and circular development of industrial parks. The two parties will create a win-win and sustainable strategic partnership.