Zhongcheng Energy Holdings Co., Ltd. is a leading operator of natural gas filling stations for vehicles in Jilin Province, China. According to the F&S report, based on compressed natural gas sales in 2016, we ranked second in the compressed natural gas filling station market in Jilin Province, with a market share of 6.2%. The Group's business history can be traced back to 1997, when it was Changchun Yitonghe Petroleum Distribution Co., Ltd., which was engaged in the natural gas and petroleum business. In 2007, we established a wholly-owned subsidiary company, Longjing Zhongcheng, to engage in gas station business. In view of the growing maturity of the compressed natural gas fueling market in Jilin Province, Changchun Yitong River began planning to build a hybrid fuel station, sell gasoline and compressed natural gas at the same time, and seize the opportunity to buy companies engaged in the compressed natural gas filling station business to further expand the compressed natural gas station network. Today, the Group's gas stations are spread all over Northeast China. The main operating subsidiaries are Changchun CNPC, Jilin Jieneng, Wuchang Gas, Hengtai Energy, Jilin Dongkun Gas, Jixi Zhongcheng, Longjing Zhongcheng, Meihekou Yujia Petrochemical, Yanbian Zhongcheng and Yanbian Xinyuan Natural Gas. Currently, the Group operates 14 self-operated gas stations, 6 joint venture gas stations, and 5 commissioned gas stations in Yitong River. We mainly sell compressed natural gas to end customers at gas stations, such as private car owners and drivers of public transport vehicles such as buses, taxis, long-distance transport trucks, etc.
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