China Natural Gas, Inc. (CHNG.PK) Q3 2012 Earnings Call November 12, 2012 8:30 AM ET

Operator

Good morning and welcome to the China Natural Gas Earnings for Third Quarter 2012 Conference Call. All participants will be in a listen-only mode. (Operator Instructions). Please note this event is being recorded.

I would now like to turn the conference over to Jackie Shi, please go ahead.

Jackie Shi
Thank you. Good morning and thank you for joining China Natural Gas third quarter 2012 conference call. Joining us today are, Mr. Kang CEO of the company and Mr. Zhaoyang Qiao, the Chief Financial Officer. I will be interpreting for Mr. Qiao today. We appreciate your patience with interpretation.

Before we begin, I would like to remind all listeners that throughout this call, in addition to historic business, the company and its representative may make statements which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to China Natural Gas. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, our performance and on line assumptions and other statements other than the statements that are historic in nature.

These forward-looking statements are based on management’s expectations and are subject to risk and uncertainties that may result in expectations not being realized and it may cause actual outcome to differ materially from expectations reflected in these forward-looking statements. Potential risks and uncertainties including product and a service demand acceptance, change in technology, our economic conditions, the impact of the comparison of pricing, the impact of government’s regulations and other risks contained in these statements, filed from time to time with the SEC.

Also forward-looking statements whether raising our goal, and whether made by on behalf of the company, express, quality, cash flow statements because forward-looking statements are subject to risk and uncertainties, we caution you not to place undue reliance on these statements. Forward-looking statements made during this conference call only represented management’s estimates as of today November 12, 2012. China Natural Gas assumes no obligations to update these projects in the future at market condition change.

At this point, I would like to turn the call over to Mr. Qiao, the CFO of Natural Gas. Mr. Qiao, please go ahead.

Zhaoyang Qiao
(Interpreted). Welcome everyone to China Natural Gas third quarter 2012 earnings conference call. Today we are very pleased to share with you our quarterly financial results to talk about our future advancements. It is Zhaoyang Qiao the CFO of China Natural Gas.

First, before we go into the details of our third quarter financial results for 2012, please allow me to share with you some highlights of our performance during this quarter. We remain optimistic about the continued support of government policies that are encouraging the adoption of the cleaner burning fuel and the increased adoption of CNG and LNG technology, which we anticipate we have a positive impact on the results of our operations over the coming years.

So far, we have made certain progress in the expansion of both our CNG and LNG business into Hubei Province. In April 2010, we received the approval from local government authorities in Hubei Province to be with LNG fueling station, posting land and in harbors. And the reserve LNG stations, we are currently going through lessons with procedures and had fuelled these LNG stations.

Our revenue in the third quarter 2012 decreased 15.8% to $31.06 million from the $36.90 million in the third quarter of 2011. The decrease was primarily attributable to the sales volume decrease.