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FY2011 Interim Results Briefing29th November 2010

Operational Highlights 1H FY2011

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Piped GasSales Volume (as at 30th Sep 2010)

Period Sales Growth – Total

1H FY11 14.3%

1H FY10 106.0.%

1H FY09 110.9%

Period Sales Growth – Natural Gas Only

1H FY11 21.8%

1H FY10 101.8%

1H FY09 138.0%

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Natural Gas VolumeCustomer Breakdown (as at 30th Sep 2010)

SectorSales Volume Growth

in 1H FY11% of Total

Volume

CNG Stations 72.5% 10.1 %

Commercial 62.6% 12.9%

Industrial 8.3% 64.2%

Residential 42.0% 12.8%

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Natural GasCustomer Data (as at 30th Sep 2010)

Customer Growth Organic Acquired1H FY11

Portfolio TotalChange from

1H FY101H FY10

Portfolio Total

Residential 386,500 409,581 5,633,517 34.2% 4,197,905

Industrial 95 4 909 71.8% 529

Commercial 1,699 1,539 36,714 20.6% 30,454

CNG Stations 17 4 102 41.7% 72

Customer Tariffs (ex-tax) (RMB / m3) 1H FY11 Change from 1H FY10 1H FY10 1H FY09

Residential 2.06 12.0% 1.84 1.82

Industrial 2.16 6.4% 2.03 1.95

Commercial 2.48 7.4% 2.31 2.02

CNG Stations 2.37 10.7% 2.14 2.31

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Penetration Rate

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Natural gas daily consumption Urban population covered and penetration rate

(000

m3 )

Natural GasOther Operational Data (as at 30th Sep 2010)

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1H FY11Change from

1H FY10 1H FY10 1H FY09

Residential Connection Fee (RMB per customer) 2,484 2.7% 2,418 2,228

Total Pipelines (km) 52,746 81.9% 28,990 17,073

Natural GasOther Operational Data (as at 30th Sep 2010)

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LPG Operational Data (as at 30th Sep 2010)

1H FY11 1H FY10

Sale tonnage (ton) 508,482 435,900

Gross Margin (%) -0.14% +8.40%

Operating Margin (%) -3.67% - 0.14%

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Beijing

Shanghai

Heilongjiang

Jilin

Liaoning

Inner MongoliaXinjiang

Tibet

Qinghai

Gansu

Ningxia

Shaanxi

Shanxi

Henan

ShandongHebei

Jiangsu

Anhui

Zhejiang

Fujian

JiangxiHunan

Guangdong TaiwanGuangxi

Hainan

Yunnan

Guizhou

SichuanChongqing

Tianjin

Hubei

Natural GasCurrent Project Locations

Shaanxi Baoji, Qishan Xian, Yulin

Hebei Cangzhou, Cangzhou Economic Development Zone, Nanpi, Qinghe, Leting, Xinle, Gaocheng, Pingshan, Feng Nan, Neiqiu, Wangdu, Nanbao, Bohai New Area, Hebei Pipeline, Tang County

Hubei Yichang, Xiaogan, Hanchuan, Yingcheng, Yunmeng, Suizhou, Tianmen, Guangshui, Dangyang, Xiaogan Pipeline, Dangyang Pipeline, Huanggang-Daye pipeline

Hunan Yiyang, Yuanjiang, Youxian

Guangdong Maoming, Conghua, Meizhou, Yunfu, Shanwei, Xinxingxian, Fengshunxian, Pingyuanxian

Guangxi Yuling, Qinzhou, Liuzhou, Fongchenggang, Laibin, Baise, Nanning City, Nanning Dongmeng Development Zone, Bobai

Chongqing Dianjiang E&P, Yubei District, Dingwang purification, Chongqing Pipeline

Inner Mongolia Hohhot, Wushenqi, Wushenqi Pipeline, Changmeng Pipeline, Baotou, 4 counties, Etoke Banner, Etuokeqi, Alashan, Zuoqi Tenggeli Industrial Zone

Ningxia Zhongwei

Fujian 29 city gas concessions

Jiangsu Pizhou, Yangzhong, Nanjing (Jiang Bei, Pukou), Xuzhou (Jiawang), Xuzhou (Xinyi), Yangzhou

Anhui Wuhu, Huainan, Shouxian, Suzhou, Wuhuxian, Nanling, Huoshan, Fengtai, Wuwei, Xiuningxian

Zhejiang Hangzhou (Xiaoshan), Taizhou, Jinhua, Hangzhou Jiangdong Industrial Zone

Liaoning Dalian, Fushun, Jinzhou, Sujiatun(Shenyang), Jinzhou D. Zone, Liaoyang, Gaizhou, Zhuanghe, Linghai, Pulandian, Liaoyang Economic Zone, Jinzhou Longxiwan New Zone

Shandong Dezhou, Qingdao, 3 cities from Zhongyu Gas

Tianjin Tianjin Pipeline

Heilongjiang Harbin, Jiamusi, Shuangcheng, Mudanjiang, Jiagedaqi

Jiangxi Nanchang (Wanliqu)

Henan 8 city gas concessions from Zhongyu Gas

Gansu Lingtai County

Financial Highlights 1H FY2011

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Financial SummaryIncome Statement

HK$ ('000) 1H FY11 % change 1H FY10

Turnover 6,537,621 66.0% 3,937,292

Gas Sales 2,404,538 52.5% 1,577,112

Connection Fees 1,005,288 79.8% 559,269

LPG Sales 2,897,589 65.8% 1,748,104

Other 230,206 340.0% 52,327

Gross Profit 1,234,712 32.2% 934,031

EBIT 770,123 37.2% 561,507

Profit after tax 123,729 -74.8% 490,778

Core Earnings 296,169 25.5% 236,054

Gross Margin – Gas Sales 20.0% - 22.9%

Gross Margin – Connection Fees 70.7% - 74.8%

Gross Margin – LPG Sales -0.1% - 8.4%

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Financial SummaryBalance Sheet & Debt Position

HK$ ('000) 1H FY11 1H FY10

Total Assets 26,380,903 19,451,891

Total Equity 6,413,152 4,477,943

Shareholder's Equity 4,948,470 3,648,305

Cash 4,258,280 2,503,123

Short-term Bank Debt 5,410,759* 3,102,667

Long-term Bank Debt 8,937,959 7,968,539

* of which HK$2,851,490,000 was Zhongyou Huadian LPG trade finance related facilities

FY2011-12 Outlook

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FY2011-2012 Guidance

FY2011 FY2012

Gas volume (m3) 4.8 bn 6.0 bn

New residential connections 700,000 850,000

CNG stations to reach 120 180

LPG sales (million ton) 1.3 2.0

Enhance organic growth of existing city gas and pipeline projects in terms of residential penetration, industrial connections and CNG station rollout

Continue upstream LPG integration with refineries Sinopec and CNPC and enhance imports through Oman Oil’s connections in the Middle East

Active rollout of LPG downstream retail distribution network through the newly established JV with Oman Oil

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Disclaimer

Statements in this presentation and handout that are not strictly historical are “forward-looking” statements. Forward-looking statements involve risks and uncertainties, including, but not limited to, continued acceptance of the Company’s product and services in the marketplace, competitive factors, new products and technology changes, the Company’s dependence upon third party suppliers and other risks detailed from time to time in the presentation, handout and other related documents. China Gas is not responsible for the accuracy and completeness of the contents of such presentations and/or other documents. The materials and information in the presentations and other documents are for informational purposes only, and are not an offer or solicitation for the purchase or sale of any securities or financial instruments or to provide any investment service or investment advice.