The company has achieved gross revenues of nearly 50% of total 2006 sales turnover during the quarter ended September 2007. The net profit margin, which has been 37.13% over the last four quarters, has jumped to over 46% during the rapid growth phase of the quarter ended September 2007. The Operating Margin has crossed 50% during this period, reflecting professional management of overheads. The company is based in Beijing, but the stock has OTC listing in the United States. It is apparent that this chance for American investors to benefit from the China growth story is worth a closer look.
The development of new urban centers in China is a primary reason for world investors to continue supporting the country’s economic growth. Small and medium cities in China are stable platforms for future business growth and profits. This company has more than 60 thousand residential customers for its natural gas distribution business. It has developed five industrial clients as well. The total assets block of over $59 million includes more than 500 miles of delivery pipelines.
The company operates in Hebei, Jiangsu, Shandong, and Anhui, each of which is an important growth center. The management has started construction of new distribution systems, which should see further acceleration of revenue growth. The company sells appliances and meters for natural gas users, and also offers maintenance and repair services. This high level of customer engagement is a sound platform to remain at the forefront of clean energy supplies in China.
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