The Company was first listed on The Stock Exchange
of Hong Kong Limited (the “HK Stock Exchange”) on 7th November,
1994 with the manufacture and sale of office furniture
as its main business.
On 22nd January, 2001, the Group (i.e. the Company and
its subsidiaries) acquired two major businesses namely
(i) the Semiconductor Business and (ii) the Compressor
Business from China Resources (Holdings) Company Limited
(“CRH”), the Company’s substantial and controlling shareholder.
The name of the Company has also been changed from Logic
International Holdings Limited to China Resources Logic
Limited (the “Company” or “CR Logic”). The Group disposed
of its Office Furniture Business in 2005 and Compressor
Business in 2007.
In March 2008, the Group disposed of its Semiconductor
Business to its listed subsidiary CSMC Technologies Corporation
(presently known as China Resources Microelectronics Limited).
Simultaneous to the disposal of the Semiconductor Business,
the Group acquired from a subsidiary of CRH the entire
issued voting share capital of Redland Concrete Limited
(“Redland Concrete”) for a cash consideration of approximately
HK$217.7 million. Redland Concrete is principally engaged
in the production and sale of ready mixed concrete in Hong
On 21st August, 2008, the Company announced that
it has entered into a share purchase agreement with CRH
the entire issued share capital of China Resources Gas
Limited for a consideration of HK$3,814.8 million. China
Resources Gas Limited through its subsidiaries in the PRC,
operates a portfolio of city gas distribution business
including natural or petroleum gas pipelines, CNG filling
stations and bottled LPG distribution. The transaction
was completed on 30th October, 2008.
On 1st December, 2008,
the Company announced the disposal of the Ready Mixed Concrete
Business to China Resources
Holdings Limited for a consideration of HK$293.8 million.
The name of the Company has also been changed from China
Resources Logic Limited to China Resources Gas Group Limited.
Positioning & Strategy
The continued economic growth and the rapid industrialisation
and urbanisation in China has spiked the demand for energy
in China. In order to reduce reliance on polluting energy
sources such as coal and crude oil, the PRC government
has, in recent years, taken many steps to promote the
development and utilisation of less polluting energy
sources. Natural gas is considered a cleaner but relatively
new conventional energy source compared to coal and crude
oil. The PRC government has therefore been supportive
of the development of natural gas.
The percentage of energy
consumption from natural gas in the PRC is very low compared
to international average
levels. According to BP Statistical Review of World Energy
June 2008, for 2007, natural gas only accounted for 2.71%
of China’s total primary energy consumption, which is lower
than Asia’s average consumption of 9.96% and far lower
than the international average of 23.05%. The Company therefore
believes that there is significant room for further increases
in the utilisation of natural gas in China.
natural gas supply, the “West to East Gas Transmission” pipelines
were constructed with the support
of the PRC government to bring natural gas from the Xinjiang
Autonomous Region to the coastal regions of the PRC. The
PRC government is also planning to construct the second
phase of the “West to East Gas Transmission” pipelines
to import gas from Central Asia and Russia; build pipelines
from the gas-rich Sichuan province to coastal regions of
the PRC and build LNG terminals in coastal cities. In addition,
the PRC government has promulgated various policies and
guidelines to encourage and rationalise the usage of natural
gas. For example, in July 2008, the National Development
and Reform Commission issued a natural gas usage policy
(天然氣利用政策) for this purpose. The policy specifically states
that municipal residential and commercial users shall have
preferential access to natural gas.
The Company believes
that, leveraging on the superior customer mix of the Group,
excellent relationships with
governments and gas suppliers, the China Resources branding
effect and excellent management team, together with all
of the above factors that show the natural gas industry
in China offers significant opportunity for future growth,
the company is well positioned to further expand and establish
itself as one of the leaders in the city gas distribution
business in the PRC.
To Become China’s Leading Gas
||Favorable industry fundamentals
||Strong platform for
and superior customer mix
and government relationships
||“China Resources” value