Core Viewpoint - Tianlun Gas (01600) has shown a strong upward trend in its stock price since April, leading the gas industry sector, with the gas stock index reaching a maximum increase of 17.33% during the same period, indicating a favorable market outlook for the gas sector in the second half of the year [1][2]. Company Performance - Tianlun Gas reported a revenue of 4.242 billion RMB for the first half of 2025, reflecting a year-on-year growth of 10.6% [3]. - The company declared an interim dividend of 0.046 RMB per share, with a core profit payout ratio of 35%, demonstrating its commitment to returning value to shareholders [4]. Business Segments - The gas sales business acted as a stabilizing force, with revenue from gas sales increasing by 12.8% to 3.64 billion RMB, driven by a 15.3% increase in total gas sales volume to 1.268 billion cubic meters [6]. - Retail gas sales volume remained stable at 880 million cubic meters, supported by a 3.6% increase in pipeline gas users to 5.933 million [6][7]. - The wholesale gas sales volume surged by 74.7% to 388 million cubic meters, significantly contributing to the revenue growth [6]. Value-Added Services - Value-added services emerged as a new growth driver, with revenue reaching 231 million RMB, a year-on-year increase of 27.6%, accounting for 5.4% of total revenue [8]. - The home decoration service segment grew by 44% to 190 million RMB, indicating successful market penetration [8]. Industry Outlook - The gas industry faces a mixed environment in the first half of 2025, with opportunities arising from government investments of 800 billion RMB in gas and water infrastructure, alongside challenges of supply surplus and demand slowdown [5]. - The apparent consumption of natural gas in China decreased by 0.9% year-on-year to 2.1197 billion cubic meters, reflecting a 4.7 percentage point decline in growth compared to the same period in 2024 [5]. Future Prospects - The gas industry is expected to see improved supply-demand dynamics in the second half of the year, with potential recovery in natural gas consumption driven by economic stimulus and reduced tariff impacts [10][11]. - Tianlun Gas is well-positioned to benefit from the accelerating pricing mechanism, with its unique customer structure and geographical advantages enhancing its resilience [13][14]. - The company has outlined detailed plans for the second half of the year to ensure high-quality growth, aiming to conclude the "14th Five-Year Plan" successfully [14][15].

Core Viewpoint - Xinjiang Torch Gas Co., Ltd. is responding to the Shanghai Stock Exchange's inquiry regarding its acquisition of equity and related party transactions, emphasizing the evaluation methods and financial metrics used in the assessment of the target company, Yushan Litai [1][2]. Group 1: Acquisition and Valuation - The company received an inquiry letter from the Shanghai Stock Exchange on May 16, 2025, regarding the acquisition of Yushan Litai and related transactions [1]. - The valuation of Yushan Litai was conducted using both the income approach and the asset-based approach, with the income approach yielding a valuation of 129.46 million yuan and an appreciation rate of 203.20%, while the asset-based approach resulted in a valuation of 43.74 million yuan and an appreciation rate of 2.44% [1]. - The final transaction price was negotiated at 125 million yuan, although the evaluation process and basis were not disclosed [1]. Group 2: Financial Metrics and Projections - The evaluation process involved forecasting key parameters such as revenue, costs, expenses, net profit, and cash flows, with a focus on the future cash flow discounting method (DCF) [2][3]. - The forecast period for Yushan Litai's operations is set until 2030, with a stable profit level expected in the perpetual phase starting from 2031 [3]. - The weighted average cost of capital (WACC) was used as the discount rate, calculated based on the company's specific financial characteristics [3][4]. Group 3: Historical Performance and Future Outlook - Yushan Litai's historical revenue is derived from gas sales, installation services, and value-added services, with gas sales being the primary business [5][6]. - The company has experienced fluctuations in gas supply and sales due to changes in supply sources and market conditions, with a notable recovery in user numbers and consumption expected following the integration into the national pipeline network [6][7]. - Future sales volume is projected to increase due to the addition of new residential and commercial users, driven by lower gas costs and government initiatives [7][8]. Group 4: Cost and Profitability Analysis - The main costs associated with the gas business include natural gas procurement, depreciation, operational labor costs, and safety production expenses [8][9]. - The management anticipates maintaining a stable gross margin, with projections indicating a gradual increase in profitability over the forecast period [9][10]. - The installation business, which supports gas user acquisition, is expected to see growth due to the ongoing demand for new installations [10][11].