• Sales are up 48% (ttm) and EPS more than 150% (ttm) in the past year.
• SGAS’ peers trade at a P/E of 14x, while it trades at 4.08x.
• SGAS has exclusive concession right agreements with local governments for up to 30 years in the provinces where it operates.
• Chinese demand for natural gas is expected to triple by 2020 while imports decrease.
• If the stock were valued at the industry P/E, it would trade at $1.68, a return of more than 180% from the current price level.

• Revenues increased 38.1% year-over-year to $7.0 Million in 1Q10 over $5.0 million in 1Q09.
• Gross Profit increased 68.0% year-over-year to $2.1 Million in 1Q10 over $1.3 million in 1Q09. Gross Margins increased to 30.5% in 1Q10 up from 25.1% in 1Q09.
• Operating Income increased 72.5% year-over-year to $1.0 million in 1Q10 over $0.5 million in 1Q09.

The Company, through its indirectly wholly-owned subsidiary, Beijing Zhong Ran Wei Ye Gas Co., Ltd. ("Beijing Gas"), and the subsidiaries of Beijing Gas, is a leading developer of natural gas distribution systems in small and medium size cities in China, as well as a distributor of natural gas to residential, commercial and industrial customers in China. The Company owns and operates natural gas distribution systems in 35 small and medium-sized cities serving approximately 152,000 residential and seven industrial customers. Facilities include approximately 1,040 kilometers of pipeline and delivery networks with a current daily capacity of approximately 110,000 cubic meters of natural gas. The Company owns and operates natural gas distribution systems in Hebei, Jilin, Jiangsu, Anhui and Yunnan Provinces and Beijing.

- Gary Mckenzie Interviews CFO Zhang Yu Gang June 24th, 2010