Development of Shaanxi Natural Gas Co., Ltd.

The company is the only natural gas pipeline operator in Shaanxi Province, responsible for the planning, construction and management of long-distance natural gas pipelines in the province. After more than ten years of development, the company has built eight long-distance pipelines, including Jingbian -Xi 'an No.1 and No.2 line, Xianyang-Baoji No.1 and No.2 line, Xi 'an-Weinan, Xi 'an-Shangluo, Baoji-Hanzhong and Hanzhong-Ankang, with a total mileage of 1899 km, forming a gas trunk network from Jingbian to Xi 'an in northern Shaanxi, extending the east and west wings of Guanzhong, covering most areas in northern Shaanxi and Guanzhong. By the end of 20 10, the company's total assets reached more than 4 billion yuan, and its gas supply scope has covered 69 counties and districts in the whole province 10 city, with a population of about 8 million, and accumulated gas supply to the downstream 123 billion cubic meters. It is the largest professional company of its kind in China with the widest pipe network coverage.

For more than ten years, relying on Shaanxi's abundant natural gas resources, the company seized the opportunity, accelerated the pace of development, paid close attention to construction and production and operation, and achieved safe and stable gas supply, which won the affirmation and trust of users and governments at all levels and established a good social public image. Shaanxi Provincial Government entrusts our company to implement the Second West-to-East Gas Transmission Line, use Sichuan gas to enter Shaanxi and other natural gas resources, and build and operate a long-distance natural gas pipeline in southern Shaanxi, so our company has a broader development space in the future.

As a listed company, the company has a sound corporate governance structure, scientific and perfect management system, advanced technology, standardized operation and good performance. The completed pipelines all adopt international advanced SCADA control system and satellite communication mode for production management and data transmission. In 2005, the company passed the ISO900 1 quality management system, ISO 1400 1 environmental management system and OHSMS 1800 1 occupational health and safety management system certification. It has formed a relatively complete management system with strong investment and operation capabilities. In the past three years, the compound growth rate of the company's main business income and net profit exceeded 20% and 27% respectively, and its performance continued to grow steadily.

According to the company's development strategy and planning, a "four vertical, two horizontal and one hub pipe network transmission and distribution system" covering Shaanxi Province will be built, and the goal of gasifying Shaanxi Province will be realized at the end of the Twelfth Five-Year Plan.