Xinao Gas Holdings Limited Proposes Placing of 180 Million Shares Priced Between HK$1.15 to HK$1.59

To Raise Up to HK$286 Million



Apr 03, 2001, 01:00 ET from Xinao Gas Holdings Limited

    HONG KONG, April 3 /PRNewswire/ -- Xinao Gas Holdings Limited ("Xinao Gas"
 or "the Group"), a non state-owned piped gas distributor, today announced the
 issue of 180 million new shares at a price of between HK$1.15 to HK$1.59 per
 share, which will be placed to professional, institutional and other
 investors.  Approximately HK$207 million to HK$286 million will be raised
 based on the price range of between HK$1.15 to HK$1.59 per share.
 Approximately 80% of the net proceeds will be used for the construction of the
 pipeline infrastructure; approximately 18% will be used to acquire companies,
 and the remaining 2% will be used to develop internal capabilities to
 manufacture stored value card gas metres.
     Mr. Wang Yusuo, Chairman and Executive Director of Xinao Gas, said, "We
 are delighted to see that the Group has achieved such significant milestones
 in our corporate development.  The Group will further expand its piped natural
 gas business using the proceeds raised through the proposed placing, to cater
 for increasing demand in downstream natural gas consumption in the PRC."
     Xinao Gas was founded by Mr. Wang Yusuo, Chairman and Executive Director
 of the Group and his wife, Ms. Zhao Baoju in 1993.  Business operations began
 when Mr. Wang and Ms. Zhao formed Langfang Xinao in the Langfang Economic and
 Technical Development Zone to engage in the investment in, and the operation
 and management of, the gas pipeline infrastructure and the sale and
 distribution of piped gas.  The Group's other services include the sale of gas
 appliances and equipment, as well as the provision of repair and maintenance
 services.  Currently the Group's business has expanded from Hang Fang City in
 Hebei Provine to Liaochang, Miyun and Huludao, located in Shandong Province,
 Beijing Municipality, and Liaoning Province respectively.  Subsequent to the
 listing, the Group's business will further expand through the acquisition of
 companies in Pinggu, Huangdao and Changping, and the establishment of new
 companies in Jingzhou, Chengyang, and Zhucheng, which are located in Hubei
 Province, Beijing Municipality and Shandong Province.  After listing and
 completion of acquisition, the Company will have 10 gas projects in total.
     Mr. Wang continued, "Natural gas is one of the cleanest fossil fuels
 available and is also economical, convenient, safe and efficient.  In line
 with the active promotion and support of the use of natural gas by the PRC
 government, with the aim of alleviating pollution problems from coal
 combustion, we believe that the natural gas market presents tremendous
 potential for growth."
     In its tenth five-year plan for 2001 to 2005, the PRC Government has
 re-affirmed its commitment to making significant investments in the expansion
 of the natural gas pipeline infrastructure over the next decade.  One of the
 PRC government's major projects is the construction of "West to East
 Pipelines", a long distance pipeline for the transportation of natural gas
 from the reserve-rich western provinces of the PRC to the more affluent
 provinces in the east.  Construction of the approximately 4,200 km West to
 East Pipelines has been approved by the State Council and is expected to be
 completed by 2003.  The West to East Pipelines are estimated to supply
 approximately 20 billion cubic meters of gas per annum by 2010.
     As at February 28, 2001, Xinao Gas has four gas projects in operation,
 which together have 257 km of main pipelines and branch pipelines and
 7 processing stations.  The combined designed daily capacity of the four
 existing projects amounted to 561,800 cubic meters.  The Group currently has
 over 78,000 contracted gas supply locations and has already connected made
 over 67,000 residential and 250 commercial and industrial customers.  The
 installed designed daily capacity for commercial and industrial customers
 exceeded 148,000 cubic meters, and the total amount of gas supplied in 2000
 reached 16.9 million cubic meters.
     Connection fees and gas usage charges are the major sources of income for
 the Group.  The Group recorded a turnover of RMB52.9 million in 1999,
 representing a 28.7% increase when compared to 1998's turnover of RMB41.1
 million.  Turnover in 2000 amounted to RMB 122.3 million, representing a sharp
 increase of 130%.  The Group also achieved significant growth in net profit.
 Net profit for 1998, 1999 and 2000 were RMB9.3 million, RMB15.1 million and
 RMB37.4 million respectively, representing compound annual growth rate of 100%
 for the past three years.
     Mr. Wang concluded, "Looking ahead, we will continue to strengthen our
 position as a leading non state-owned piped gas distributor.  Apart from
 developing the existing operational areas, we will continue to extend our
 business across the regions within the reach of the West to East Pipelines,
 thus enlarging our client base and scale of operations.  The Group will focus
 on business expansion in Shanghai Municipality, Tianjin Municipality, Jiangsu,
 Zhejiang and Auhui provinces.  We are confident that the Group will achieve
 escalating growth rates and generate significant returns to our shareholders."
     Dealings in the Company's shares on GEM of The Stock Exchange of Hong Kong
 Limited is expected to commence on Thursday, April 12, 2001.  The stock code
 is 8149.  N M Rothschild & Sons (Hong Kong) Limited is the Sponsor to the
 listing and ABN AMRO Rothschild is the Global Coordinator, Lead Manager and
 Bookrunner for the placing.
     For online clips of Xinao's investor presentation (Mandarin) and media
 conference (Mandarin), they will be available on April 4, 2001 after 12:00
 noon Hong Kong time at URLs:
 http://events2.broadcastone.net/8149/20010403i/default.htm and
 http://events2.broadcastone.net/8149/20010403/default.htm respectively.
 
 

SOURCE Xinao Gas Holdings Limited
    HONG KONG, April 3 /PRNewswire/ -- Xinao Gas Holdings Limited ("Xinao Gas"
 or "the Group"), a non state-owned piped gas distributor, today announced the
 issue of 180 million new shares at a price of between HK$1.15 to HK$1.59 per
 share, which will be placed to professional, institutional and other
 investors.  Approximately HK$207 million to HK$286 million will be raised
 based on the price range of between HK$1.15 to HK$1.59 per share.
 Approximately 80% of the net proceeds will be used for the construction of the
 pipeline infrastructure; approximately 18% will be used to acquire companies,
 and the remaining 2% will be used to develop internal capabilities to
 manufacture stored value card gas metres.
     Mr. Wang Yusuo, Chairman and Executive Director of Xinao Gas, said, "We
 are delighted to see that the Group has achieved such significant milestones
 in our corporate development.  The Group will further expand its piped natural
 gas business using the proceeds raised through the proposed placing, to cater
 for increasing demand in downstream natural gas consumption in the PRC."
     Xinao Gas was founded by Mr. Wang Yusuo, Chairman and Executive Director
 of the Group and his wife, Ms. Zhao Baoju in 1993.  Business operations began
 when Mr. Wang and Ms. Zhao formed Langfang Xinao in the Langfang Economic and
 Technical Development Zone to engage in the investment in, and the operation
 and management of, the gas pipeline infrastructure and the sale and
 distribution of piped gas.  The Group's other services include the sale of gas
 appliances and equipment, as well as the provision of repair and maintenance
 services.  Currently the Group's business has expanded from Hang Fang City in
 Hebei Provine to Liaochang, Miyun and Huludao, located in Shandong Province,
 Beijing Municipality, and Liaoning Province respectively.  Subsequent to the
 listing, the Group's business will further expand through the acquisition of
 companies in Pinggu, Huangdao and Changping, and the establishment of new
 companies in Jingzhou, Chengyang, and Zhucheng, which are located in Hubei
 Province, Beijing Municipality and Shandong Province.  After listing and
 completion of acquisition, the Company will have 10 gas projects in total.
     Mr. Wang continued, "Natural gas is one of the cleanest fossil fuels
 available and is also economical, convenient, safe and efficient.  In line
 with the active promotion and support of the use of natural gas by the PRC
 government, with the aim of alleviating pollution problems from coal
 combustion, we believe that the natural gas market presents tremendous
 potential for growth."
     In its tenth five-year plan for 2001 to 2005, the PRC Government has
 re-affirmed its commitment to making significant investments in the expansion
 of the natural gas pipeline infrastructure over the next decade.  One of the
 PRC government's major projects is the construction of "West to East
 Pipelines", a long distance pipeline for the transportation of natural gas
 from the reserve-rich western provinces of the PRC to the more affluent
 provinces in the east.  Construction of the approximately 4,200 km West to
 East Pipelines has been approved by the State Council and is expected to be
 completed by 2003.  The West to East Pipelines are estimated to supply
 approximately 20 billion cubic meters of gas per annum by 2010.
     As at February 28, 2001, Xinao Gas has four gas projects in operation,
 which together have 257 km of main pipelines and branch pipelines and
 7 processing stations.  The combined designed daily capacity of the four
 existing projects amounted to 561,800 cubic meters.  The Group currently has
 over 78,000 contracted gas supply locations and has already connected made
 over 67,000 residential and 250 commercial and industrial customers.  The
 installed designed daily capacity for commercial and industrial customers
 exceeded 148,000 cubic meters, and the total amount of gas supplied in 2000
 reached 16.9 million cubic meters.
     Connection fees and gas usage charges are the major sources of income for
 the Group.  The Group recorded a turnover of RMB52.9 million in 1999,
 representing a 28.7% increase when compared to 1998's turnover of RMB41.1
 million.  Turnover in 2000 amounted to RMB 122.3 million, representing a sharp
 increase of 130%.  The Group also achieved significant growth in net profit.
 Net profit for 1998, 1999 and 2000 were RMB9.3 million, RMB15.1 million and
 RMB37.4 million respectively, representing compound annual growth rate of 100%
 for the past three years.
     Mr. Wang concluded, "Looking ahead, we will continue to strengthen our
 position as a leading non state-owned piped gas distributor.  Apart from
 developing the existing operational areas, we will continue to extend our
 business across the regions within the reach of the West to East Pipelines,
 thus enlarging our client base and scale of operations.  The Group will focus
 on business expansion in Shanghai Municipality, Tianjin Municipality, Jiangsu,
 Zhejiang and Auhui provinces.  We are confident that the Group will achieve
 escalating growth rates and generate significant returns to our shareholders."
     Dealings in the Company's shares on GEM of The Stock Exchange of Hong Kong
 Limited is expected to commence on Thursday, April 12, 2001.  The stock code
 is 8149.  N M Rothschild & Sons (Hong Kong) Limited is the Sponsor to the
 listing and ABN AMRO Rothschild is the Global Coordinator, Lead Manager and
 Bookrunner for the placing.
     For online clips of Xinao's investor presentation (Mandarin) and media
 conference (Mandarin), they will be available on April 4, 2001 after 12:00
 noon Hong Kong time at URLs:
 http://events2.broadcastone.net/8149/20010403i/default.htm and
 http://events2.broadcastone.net/8149/20010403/default.htm respectively.
 
 SOURCE  Xinao Gas Holdings Limited