On May 16, "2023 Sichuan Project Investor Reverse Roadshow" of Tian Lun Gas came to a successful conclusion in Chengdu, Sichuan Province. Tian Lun Gas' management met with more than ten domestic and overseas investors, visited several projects in Sichuan, and had discussions and field visits focusing on the Group's industrial layout and future development themes.
The management of Tian Lun Gas stated that with the implementation of various policies for steady growth in the first quarter of 2023, the positive impact of China's economic recovery has extended to the gas industry, and the demand from industrial and commercial customers has fully rebounded. At the meeting, the management gave a detailed introduction to Tian Lun Gas and the projects in Sichuan. Tian Lun Gas has planned three urban gas projects in Sichuan Province, including the Jintang Project, Xindu Project, and Mianzhu Project. In 2022, the retail gas sales volume of the three urban gas projects accounted for 14% of the Group's total gas sales, and the retail gas sales income represented 11% of the total gas sales income. The annual gas sales exceeded 200 million cubic meters, with a high gross margin for gas sales. The company acquired the Deyang Company in 2021, and the industrial gas sales of Deyang Company account for more than 90% of its total sales, with the total gas sales exceeding 100 million cubic meters. In the future, Deyang Company's industrial customers will continue to maintain steady growth. In addition, a natural gas price guidance mechanism has been fully established. The upstream gas price guidance work has been carried out smoothly, and the gas price transmission fluctuations have been successfully passed on to the customers in the first quarter.
At the meeting, the management stated that Tian Lun Gas would continue to steadily develop the urban gas market, seek greater development, and also continue to explore the Sichuan gas market to achieve steady growth in performance through refined management. According to statistics, in the first quarter of 2023, Tian Lun Gas' three urban gas projects in Sichuan recorded an operating profit of RMB 36.65 million, a nearly 6% increase year-on-year. The commercial and industrial retail gas sales increased by 10% year-on-year, and the income from commercial and industrial retail gas sales increased by 17% year-on-year.
Mr. Peng Yuhua, regional general manager of Tian Lun Gas in Sichuan, stated that based on the business achievement in the first quarter and April in Sichuan, he is confident in achieving or even exceeding the operating targets for the first half of the year.
In this reverse roadshow, having visited numerous key industrial enterprises in Sichuan, including Sichuan Chuanrun Chemical, Zhiyuan Lithium and Panpan Foods, investors have shown a strong interest in Sichuan projects, and the comprehensive development achievements of the urban gas projects have also been highly lauded.
As an important urban gas region for Tian Lun Gas, the Group has carried out strategic layouts in multiple core urban clusters in Sichuan, and the Group's operational map has now expanded to 16 provinces and 69 cities. This reverse roadshow saw positive interaction between two parties. During communication, investors learned that Tian Lun Gas has advantages in its urban gas business development model, such as economies of scale, cost control, and a solid pool of customers, which makes them more optimistic about the prospects of Tian Lun Gas. Moreover, through communication, investors gained a better understanding of Tian Lun Gas's core competitiveness and development potential and further strengthened the capital market's confidence in the future development of Tian Lun Gas.