FY2011 Annual Results Briefing 29 June 2011 Emerging into Prosperity

TABLE OF CONTENTS Management Members 3Major FY2011 Milestones 5Operational Highlights 7Financial Highlights 15Outlook 18 2

MANAGEMENT MEMBERS

MANAGEMENT MEMBERS Mr. Ying Xue Pang – Joint Managing Director & Executive President Mr. Kevin Zhu – Executive Director & Vice President Mr. Frank Li – General Manager, IR Department 4 Presenter: Mr. Eric Leung – Joint Managing Director & President

MAJOR FY2011 MILESTONES

6 Acquired 28 city concessions in 11 provinces and territories, including Gansu, Liaoning, Heilongjiang, Guangdong, Guangxi, Jiangxi, Hubei, Hebei, Henan, Shandong and Anhui Provinces and Regions. Started trial operation of our 7th long distance pipeline project in Chongqing with designed transmission capacity of 2 bn m 3. In March 2011, signed the agreement to acquire Panva Gas, the biggest LPG downstream retailer in China, which owns 450 LPG retail and 220 franchised class III stations and services more than 4m households in 8 provinces and regions. The downstream penetration enables China Gas to: a. Enjoy additional downstream margin b. Reduce unit cost of supply c. Increase sales volume d. Mitigate price fluctuation risk

OPERATIONAL HIGHLIGHTS FY2011

PIPED GAS SALES VOLUME 8 PeriodSales Growth – Total FY1128.5% FY1054.5% FY % PeriodSales Growth – Natural Gas Only FY1131.7% FY1058.7% FY % Total sales volume (million m 3 )

NATURAL GAS CONSUMPTION BREAKDOWN 9 Customer Sales Volume Growth in FY11 % of Total Volume CNG Stations53.9%8.5% Commercial45.8%11.1% Industrial25.3%67.6% Residential45.0%12.8% Natural gas sales volume (million m 3 )

NATUAL GAS CUSTOMER DATA 10 Customer GrowthOrganicAcquired FY11 Portfolio Total Change from FY10 Portfolio Total Residential901,982339,3886,078, %4,837,436 Industrial , %810 Commercial3, , %33,476 CNG Stations %91 Customer Tariffs (ex-tax) (RMB / m 3 )FY11Change from FY10FY10FY09 Residential % Industrial % Commercial % CNG Stations %

DAILY CONSUMPTION & PENETRATION RATE 11 Natural gas daily consumption Urban population covered and penetration rate Penetration Rate Unit: ’000 m 3 Unit: million

OTHER OPERATIONAL DATA 12 FY11Change from FY10FY10FY09 Residential Connection Fee (RMB per customer) 2, %2,3682,437 Total Pipelines (km) 59, %31,51325,886

LPG 13 FY11FY10FY09* Sale tonnage (ton)984,600944,000495,155 Gross Margin (%)+ 4.8%+ 8.7%+5.7% Operating Margin (%)- 0.3%+ 1.6%- 0.2% * Only half year data as China Gas commenced LPG business in Sep.2008

14 Beijing Shanghai Heilongjiang Jilin Liaoning Inner Mongolia Xinjiang Tibet Qinghai Gansu Ningxia Shaanxi Shanxi Henan Shandong Hebei Jiangsu Anhui Zhejiang Fujian Jiangxi Hunan Guangdong Taiwan Guangxi Hainan Yunnan Guizhou Sichuan Chongqing Tianjin Hubei NATURAL GAS PROJECTS LOCATIONS Shaanxi Baoji, Qishan Xian, Yulin Hebei Cangzhou, Cangzhou Economic Development Zone, Nanpi, Qinghe, Leting, Xinle, Gaocheng, Pingshan, Feng Nan, Neiqiu, Wangdu, Nanbao, Bohai New Area, Hebei Pipeline, Tang County Hubei Yichang, Xiaogan, Hanchuan, Yingcheng, Yunmeng, Suizhou, Tianmen, Guangshui, Dangyang, Xiaogan Pipeline, Dangyang Pipeline, Huanggang-Daye pipeline, Wuhan Qingshan Hunan Yiyang, Yuanjiang, Youxian Guangdong Maoming, Conghua, Meizhou, Yunfu, Shanwei, Xinxingxian, Fengshunxian, Pingyuanxian, Huazhou, Dapu, Wuhua Guangxi Yuling, Qinzhou, Liuzhou, Fongchenggang, Laibin, Baise, Nanning City, Nanning Dongmeng Development Zone, Bobai, Wuxuan Chongqing Dianjiang E&P, Yubei District, Dingwang purification, Chongqing Pipeline Inner Mongolia Hohhot, Wushenqi, Wushenqi Pipeline, Changmeng Pipeline, Baotou, 4 counties, Etoke Banner, Etuokeqi, Alashan, Zuoqi Tenggeli Industrial Zone Ningxia Zhongwei Fujian 29 city gas concessions Jiangsu Pizhou, Yangzhong, Nanjing (Jiang Bei, Pukou), Xuzhou (Jiawang), Xuzhou (Xinyi), Yangzhou Anhui Wuhu, Huainan, Shouxian, Suzhou, Wuhuxian, Nanling, Huoshan, Fengtai, Wuwei, Xiuningxian, Huoqiu, Maoji Zhejiang Hangzhou (Xiaoshan), Taizhou, Jinhua, Hangzhou Jiangdong Industrial Zone Liaoning Dalian, Fushun, Jinzhou, Sujiatun(Shenyang), Jinzhou D. Zone, Liaoyang, Gaizhou, Zhuanghe, Linghai, Pulandian, Liaoyang Economic Zone, Jinzhou Longxiwan, Zhuanghe I. Park Shandong Dezhou, Qingdao, 3 cities from Zhongyu Gas Tianjin Tianjin Pipeline Heilongjiang Harbin, Jiamusi, Shuangcheng, Mudanjiang, Jiagedaqi Jiangxi Nanchang (Wanliqu), Xinfeng Henan 8 city gas concessions from Zhongyu Gas Gansu Lingtai County

FINANCIAL HIGHLIGHTS FY2011

FINANCIAL SUMMARY – INCOME STATEMENT 16 HK$ ('000)FY11% changeFY10FY09 Turnover 15,861, %10,211,9596,323,823 Piped Gas Sales 6,359, %3,831,6272,678,377 Connection Fees 2,346, %1,461,5731,127,403 LPG Sales 6,654, %4,637,9242,272,173 Others 501, %280,835245,870 Gross Profit 2,910, %2,116,2921,429,349 EBITDA 2,426, %1,765,5681,078,684 EBIT 1,778, %1,270,881732,085 Profit after tax 781, %1,015,501133,959 Core Earnings (ex non-cash & non operating items) 827, %590,085263,697 Gross Margin – Gas Sales* 17.5%-20.8%19.1% Gross Margin – Connection Fees* 68.4%-70.6%67.4% Gross Margin – LPG Sales 4.8%-8.7%5.7% * Excluding Zhongyu Gas

FINANCIAL SUMMARY – BS & DEBT POSITION 17 HK$ ('000)FY11 FY10 (restated) Total Assets30,886,52822,997,594 Total Equity10,338,1565,230,237 Shareholder's Equity8,764,6764,123,022 Cash6,729,0334,361,419 Short-term Bank Debt7,312,837*5,332,060** Long-term Bank Debt7,720,3277,984,046 Net Gearing Ratio48%124% * of which HK$3,333,668,000 was Shanghai Zhongyou LPG trade finance related facilities ** of which HK$2,450,349,000 was Shanghai Zhongyou LPG trade finance related facilities

OUTLOOK

19 OUTLOOK FY2012FY2013 Gas volume (m 3 )5.2 bn6.2bn New residential connections950,0001,000,000 CNG stationsto reach LPG sales (million ton) Enhance organic growth of existing city gas projects in terms of residential penetration, industrial connections and CNG stations rollout Implement “Hub-Satellite City” investment program to acquire more city concessions Continue to develop CNG/LNG stations Active rollout of LPG downstream retail distribution network and achieve industry integration

20 DISCLAIMER Statements in this presentation and handout that are not strictly historical are “forward-looking” statements. Forward-looking statements involve risks and uncertainties, including, but not limited to, continued acceptance of the Company’s product and services in the marketplace, competitive factors, new products and technology changes, the Company’s dependence upon third party suppliers and other risks detailed from time to time in the presentation, handout and other related documents. China Gas is not responsible for the accuracy and completeness of the contents of such presentations and/or other documents. The materials and information in the presentations and other documents are for informational purposes only, and are not an offer or solicitation for the purchase or sale of any securities or financial instruments or to provide any investment service or investment advice.