February 2013Corporate Presentation

China Gas Overview

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Natural Gas Services Operator Operates in 172 city concessions with 30-year monopolistic operating right each

Possesses intermediate and arterial gas pipeline networks (excluding pipelines in the premises of our customers) of 35,000 km, serving more than 7.8 million household users and nearly 49,000 industrial and commercial users

The only vertically-integrated LPG operator in PRC

Owns 8 LPG receiving terminals, 285,000 m3 of LPG storage capacity, upstream to downstream distribution network in PRC

Covering wholesale and retail LPG supply in 12 provinces such as Guangdong, Guangxi, Fujian, Zhejiang and Jiangsu

Owns a 49% stake in Panva Gas which controls 450 self-owned retail stores and 120 franchised outlets located in provinces such as Jiangsu, Hubei, and Zhejiang. The Company retains an option to acquire the remaining 51% of Panva

LPG

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NATURAL GAS PROJECT LOCATIONS

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Natural Gas – Business Model

Natural gas fields

Assets owned by the Group:

Main pipelines

Branch pipelines

Pressure regulating boxes

Switches

Processing stations

* Customers’ pipelines which are not owned by the Group are within the customers’ premises and are not highlighted in this diagram

City gate

National or provincial pipelines Storage tanks(spherical or cylinder)

Residentialhouseholds*

Commercial users*Car refueling station

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Natural gas business operates on a cost-plus pricing model

2 main sources of revenue

Gas connection: one-off payment mainly from residential users, less so from industrial and commercial users

Sale of piped gas: recurring income at tariffs approved by the local governments

Natural Gas Pricing System

ExplorationWellhead price

TransportationTransmission tariffs

DistributionDistribution cost + Return

END-USER TARIFF COMPONENTS

NDRC Approval Local Price Bureau Approval

OPERATIONAL PERFORMANCE- 1HFY2013

Piped Gas Volume Growth (as at 30th Sep 2012)

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Tota

l sal

es v

olum

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n m

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Period Volume Growth: Total

1HFY13 26.8%

1HFY12 32.0%

Period Volume Growth: Natural Gas Only

1HFY13 27.6%

1HFY12 30.3%

Natural Gas Volume Growth (as at 30th Sep 2012)

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Nat

ural

gas

sal

es v

olum

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CustomerVolume Growth

in 1HFY13

% of Total Volume

1HFY13 1HFY12

Residential 21.5% 10.5% 11.0%

Industrial 32.0% 71.8% 69.4%

Commercial 8.3% 9.1% 10.7%

CNG Stations 23.8% 8.6% 8.9%

Natural Gas VolumeCustomer Breakdown (as at 30th Sep 2012)

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Customer1HFY12

Portfolio Total

Growth

1HFY13Portfolio Total

Change from 1HFY12Organic Acquired

Residential 6,608,827 591,542 26,108 7,805,544 18.1%

Industrial 1,428 257 9 1,895 32.7%

Commercial 40,553 3,262 172 46,735 15.2%

CNG Stations 112 20 - 153 36.6%

Customer Tariffs (ex-tax) (RMB / m3) 1HFY12 1HFY13Change from

1HFY12

Residential 2.14 2.22 3.74%

Industrial 2.32 2.56 10.34%

Commercial 2.64 2.68 1.52%

CNG Stations 2.67 2.70 1.12%

Natural GasOther Operational Data (as at 30th Sep 2012)

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1H FY13 1H FY12 1H FY11

Residential Connection Fee (RMB per customer) 2,459 2,437 2,484

Urban Population Covered (million) 65.0 62.5 58.9

Household Penetration Rate 39.0% 34.8% 32.7%

LPG: Downstream Retail Focus

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1H FY13* 1H FY12 1H FY11

Sale tonnage (ton) 411,011 417,287 508,482

Gross Margin (%) +5.50% +4.51% -0.14%

Operating Margin (%) -0.46% +1.56% -3.67%

Largest downstream retailer of LPG in China (via 49% owned Panva Gas, expecting to complete acquiring the remaining 51% of it within this year)

Signing dollar margin contracts with wholesale industrial customers to avoid price risk of imported LPG, continued focus on downstream business to improve overall profitability and cost efficiency

* Not inclusive of the operation of the 49% owned Panva Gas

LPG Business Model

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LPG Coverage Network

FINANCIAL PERFORMANCE- 1HFY2013

Financial Summary - Income Statement

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HK$ ('000) 1H FY13 % change 1H FY12

Turnover 8,566,483 8.3% 7,912,488

Gas Sales 3,885,370 15.4% 3,367,891

Connection Fees 1,494,701 23.3% 1,212,634

LPG Sales 2,904,868 -4.9% 3,053,972

Other 281,544 1.3% 277,991

Gross Profit 1,905,334 17.3% 1,623,985

EBIT 1,459,604 64.8% 885,874

Profit after tax 935,009 110.8% 443,622

Profit attributable to owners of the Company 808,200 116.3% 373,608

Basic EPS (HK cents) 18.31 114.9% 8.52

Dividend per share (HK cents) 2.2 -

Gross Margin – Gas Sales 18.8% - 19.0%

Gross Margin – Connection Fees 68.3% - 71.4%

Gross Margin – LPG Sales 5.5% - 4.5%

Financial Summary – Balance Sheet

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HK$ ('000) 1HFY13 FY12

Total Assets 33,344,225 31,874,385

Total Equity 11,842,555 10,876,462

Shareholder's Equity 10,636,785 9,819,685

Cash 5,345,980 5,528,226

Short-term Bank Debt 8,132,015 8,963,385

Of which LPG trade finance related facilities 4,075,587 5,097,600

Long-term Bank Debt 6,525,292 6,406,777

Net Gearing Ratio* 44%* 44%*

* Net gearing ratio is computed based on total net borrowings (total borrowings less cash and trade finances in relation to LPG business) as a percentage of net assets

FY2013 – 2014 GUIDANCE

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Enhance organic growth in existing city gas projects

Increase industrial and commercial customer connections as upstream supplies increase

Expand “Hub-Satellite City” investment program to add more concessions to our portfolio

Complete the acquisition of the remaining 51% of Panva Gas to focus on higher margin retail LPG distribution

Actively promoting environmentally friendly and cost effective CNG and LNG fuels for vehicles and vessels

FY2013 - 2014 Guidance

For the year ended March 31 FY2013 FY2014

Total piped gas volume (m3) 6.8 bn 8 bn

New residential connections 1.1 m 1.1m

CNG stations 175 230

LPG sales (including Panva Gas) 1.5m tons 1.7m tons

STRATEGIC COOPERATION FRAMEWORK AGREEMENT WITH SINOPEC

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Subject to applicable laws and regulations, China Gas and Sinopec intend to implement the following strategic initiatives:

the parties will form a JV company which will utilise the China Gas’s LPG assets, brands and sales channels to distribute the LPG produced by Sinopec’s refineries in the PRC, and jointly develop the LPG retail market in the PRC;

the parties will form a JV company which will utilise the China Gas’s city gas pipeline network and Sinopec’s network of petrol stations in the PRC to convert these petrol stations into petrol/CNG & LNG stations, and jointly develop the rapidly growing car and vessel natural gas refilling market in the PRC;

Sinopec will allow the China Gas priority access to its natural gas resources for the China Gas’s city gas projects;

and others

Strategic Cooperation Framework Agreement with Sinopec

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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. All the directors of China Gas jointly and severally accept full responsibility for the accuracy of the information contained in these materials and confirm, having made all reasonable inquiries, that to the best of their knowledge, opinions expressed in these materials have been arrived at after due and careful consideration and there are no other facts not contained in these materials, the omission of which would make any statement in these materials misleading. 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.

DISCLAIMER