SPNG(SZ:002267)2022-12-06 01:42Group 1: Company Overview - The main business of Shaanxi Natural Gas Company includes long-distance pipelines and urban gas distribution, accounting for 91% of revenue [2] - The company operates 11 long-distance natural gas pipelines with a total length of 3,000 kilometers and an annual transmission capacity of 13.5 billion cubic meters [2] Group 2: Revenue Breakdown - Urban gas distribution contributes 9% to the company's revenue, with a market coverage of 26% across 107 districts and counties [3] - In 2015, the company sold 4.748 billion cubic meters of gas, a year-on-year increase of 21%, with non-residential users accounting for 36% and residential users 64% [3] - The planned gas sales volume for 2016 is 5.633 billion cubic meters, with future demand growth expected from the increase in liquefied natural gas [3] Group 3: Pricing Analysis - Non-residential pipeline transportation fees were reduced by 10% in June 2015, while residential fees remained unchanged at 0.49 [4] - The company’s selling price for non-residential users is 1.526, while for residential users, it is 1.98 [4] Group 4: Asset Injection Expectations - There are expectations for asset injections from the urban gas companies in Weinan and Tongchuan to avoid competition [4] - Weinan's revenue in 2015 was 170 million, accounting for 3% of the listed company's revenue during the same period [4] Group 5: Cost Management - Management expenses decreased by 20% year-on-year in Q3, attributed to improved management and reduced spending on vehicles and employee benefits [5] - Financial expenses also dropped by 14% year-on-year due to more financing through low-interest short-term loans [5] Group 6: Capital Expenditure - The company has primarily relied on short-term financing recently, with significant capital raised through various debt instruments since its IPO in 2008 [5]