China Natural Gas, Inc. (CHNGQ)

[MONEYMADE]

INSANE dip....vol is very scarry nearly half the os!

[abcal]

Nice dip,bought some in!

[maverick1974]

What's wrong with the stock - 30%

[Stock]

NAME/SYMBOL CHANGES

Updated Date Old Symbol Old Name New Symbol New Name Comment

14:14 5/13/2009 CHNG China Natural Gas, Inc. Common Stock CANL China Natural Gas, Inc. New Common Stock 1-2 R/S **

[bradford86]

he writes for otcinvestor. just lookin.

[di4]

No, I don't know who or where he is?? Sorry.

[bradford86]

anyone know where Justin Kuepper is?

[di4]

China Natural Gas Approved for Listing on the NASDAQ Global Market
Jun 3, 2009 8:00:00 AM


Email Story Discuss on ZenoBank

View Additional Profiles-- Trading on NASDAQ will commence June 5th under the symbol "CHNG"--


NEW YORK, June 3 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (the "Company") (OTC Bulletin Board: CANL), a leading provider of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, today announced that it has received approval for listing on the NASDAQ Global Market.


The Company anticipates that its shares of common stock will commence trading on the NASDAQ Global Market on June 5, 2009, under the symbol "CHNG." Until that time, the Company's shares will continue to trade on the OTC Bulletin Board under the symbol "CANL."


Mr. Qinan Ji, CEO and Chairman of the Board of China Natural Gas, Inc., commented, "We are very proud to be listing on the Nasdaq Global Market, an effort that highlights our commitment to not only raise our visibility among the investment community but also increase the liquidity and trading efficiencies of our common stock. We believe this is a significant milestone in our Company's history as we continue to leverage our strong brand and considerable operational scale to expand our geographical presence and steadily grow our CNG customer base. We are steadfast in continually improving our corporate governance and business operations, and I am confident in our management team and in our competitive advantages. We aim to deliver sustained strong financial results and to ultimately reward our supportive shareholders with greater share value."


About China Natural Gas, Inc.

China Natural Gas, Inc., ("CANL"), is the first China-based natural gas retailing company publicly traded in the U.S. The Company owns and operates a network of CNG filling stations as well as a 120-kilometer compressed natural gas pipeline in Xi'an, a fast growing Chinese city with population of 8.5 million and "gateway" to China's vast Western regions. CANL retails natural gas at company-owned filling stations, delivers natural gas services to residential, commercial and industrial customers, and converts gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. It is estimated that there are already 5,000 buses and 20,000 taxis using CNG in Xi'an.


Safe Harbor Statement:

This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the progress of construction and development activities, fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies.


CONTACT:
Michael Tieu
ICR, Inc.
[phone]


SOURCE China Natural Gas, Inc.



----------------------------------------------
Michael Tieu of ICR
Inc.
[phone]
for China Natural Gas
Inc.

[di4]

China Natural Gas Awarded Exclusive 'Green Card' for Xi'an International Business Port Project
May 26, 2009 8:00:00 AM


Email Story Discuss on ZenoBank

View Additional ProfilesNEW YORK, May 26 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC Bulletin Board: CANL) ("the Company"), a leading provider of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, today announced that its project with Xi'an International Business Port ("the Port") has been awarded an exclusive "green card", which qualifies the Port project for various preferential policies.


The green card's advantages include favorable pricing on land purchase, discounted bank loans, preferred financing rights, and substantial logistical support from Xi'an's Transportation, Telecommunication and Utility Departments. The Port is intended to become one of the largest logistic and business hubs connecting Western and Eastern China, as well as transiting and distributing inland products. It is one of the major projects in the 11th 5-year-plan of Shaanxi province, and is also listed as one of the major projects of the national 11th 5-year-plan by National Committee of Development and Reform. Covering an area of approximately 8 square kilometers, the Port was recently chosen as one of 2009's key construction projects by the Committee of Development and Reform of Xi'an and is expected to receive government investment of approximately RMB9.8 billion (US $1.4 billion).


Mr. Qinan Ji, CEO and Chairman of the Board of China Natural Gas, commented, "We are very proud that China Natural Gas was selected as a strategic partner for Xi'an International Port for the installation and construction of natural gas delivery systems, as well as natural gas filling stations in the areas. This multi-dimensional project, which covers industrial, commercial and residential users, should further strengthen our government relationships and our reputation in the city of Xi'an. We are delighted to be awarded the green card for the Xi'an International Port Project. We believe our leading market position in Xi'an and proven capabilities of safely executing natural gas projects through various successful projects over the past years enabled us to win this green card award. The green card demonstrates Xi'an local government's commitment to improve energy efficiency and expand natural gas application, and as a market leader, we feel confident about our attractive business opportunities and our ability to deliver sustained solid financial performance in the years ahead."


About China Natural Gas, Inc.


China Natural Gas, Inc., ("CANL"), is the first China-based natural gas retailing company publicly traded in the U.S. The Company owns and operates a network of CNG filling stations as well as a 120-kilometer compressed natural gas pipeline in Xi'an, a fast growing Chinese city with population of 8.5 million and "gateway" to China's vast Western regions. CANL retails natural gas at company-owned filling stations, delivers natural gas services to residential, commercial and industrial customers, and converts gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. It is estimated that there are already 5,000 buses and 20,000 taxis using CNG in Xi'an.


Safe Harbor Statement:


This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the progress of construction and development activities, fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies.


SOURCE China Natural Gas, Inc.



----------------------------------------------
Michael Tieu of ICR
Inc.
[phone]

[Bourbon_on_my_cornflakes]

NASDAQ listing should be coming soon

[di4]

China Natural Gas Announces Ticker Symbol Change to CANL
May 13, 2009 9:15:00 AM


Email Story Discuss on ZenoBank

View Additional ProfilesNEW YORK, May 13 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC Bulletin Board: CANL), one of the leading providers of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, today announced that its stock will begin trading under a new stock symbol, "CANL," on the OTC Bulletin Board at the open of business on May 13, 2009.


Pursuant to OTCBB rules, a change of the Company's stock symbol is required due to the Company's 1-for-2 reverse stock split.


Reverse Stock Split

Effective today, May 13, 2009, every two shares of CHNG will exchange for one share of CANL. The reverse stock split will be effected simultaneously for all of the Company's common stock and the exchange ratio will be the same for all of the Company's common stock. The reverse stock split will affect all of the Company's common stockholders uniformly and will not affect any stockholder's percentage ownership interests in the Company or proportionate voting power, except to the extent that the reverse stock split results in any stockholders owning a fractional share.


Fractional Share

No scrip or fractional certificates will be issued in connection with the reverse stock split. Instead, any fractional share that results from the reverse stock split will be rounded up to the next whole share. This is being done to avoid the expense and inconvenience of issuing and transferring fractional shares of our common stock as a result of the reverse stock split.


Beginning at the effective time, each certificate representing Old Shares (CHNG) will be deemed for all corporate purposes to evidence ownership of New Shares (CANL). The Company's transfer agent, Interwest Transfer, Inc., is acting as exchange agent for purposes of implementing the exchange of stock certificates. Interwest is located at 1981 Murray Holladay Road, Suite 100 Salt Lake City, UT 84117. Their telephone number is [phone]. Holders of Old Shares may surrender certificates representing Old Shares for certificates representing New Shares. No new certificates will be issued to a stockholder until such stockholder has surrendered such stockholder's outstanding certificate(s) to the exchange agent. The Company will be responsible for the payment of all fees, including the transfer agent's fee, associated with certificate exchange and delivery.


About China Natural Gas, Inc.

China Natural Gas, Inc., ("CANL"), is the first China-based natural gas retailing company publicly traded in the U.S. The Company owns and operates a network of CNG filling stations as well as a 120-kilometer compressed natural gas pipeline in Xi'an, a fast growing Chinese city with population of 8.5 million and "gateway" to China's vast Western regions. CANL retails natural gas at company-owned filling stations, delivers natural gas services to residential, commercial and industrial customers, and converts gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. It is estimated that there are already 5,000 buses and 20,000 taxis using CNG in Xi'an.


Safe Harbor Statement:

This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the progress of construction and development activities, fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies.




SOURCE China Natural Gas, Inc.



----------------------------------------------
Michael Tieu of ICR
Inc.
[phone]
[e-mail]

[di4]

China Natural Gas Announces First Quarter 2009 Financial Results and 1-for-2 Reverse Stock Split
May 12, 2009 6:00:00 AM


Email Story Discuss on ZenoBank

View Additional Profiles- 1Q09 Revenue Increases 32.1% YoY to $18.5 Million -


- 1Q09 Gross Margin Increases 859 Basis Points YoY to 52.0% -


- 1Q09 Net Income Increases 49.6% YoY to $4.2 Million -


-1Q09 Diluted EPS Increases 52.6% to $0.29 -


NEW YORK, May 12 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC Bulletin Board: CHNG), one of the leading providers of pipeline natural gas for industrial, commercial and residential use and compressed natural gas (CNG) for vehicular fuel in Xi'an, China, today announced its financial results for the first fiscal quarter ended March 31, 2009 and a 1-for-2 reverse stock split effected April 28, 2009.


First Quarter 2009 Results


Revenue in the first quarter of 2009 increased 32.1% to $18.5 million from $14.0 million in the first quarter of 2008. The increase in revenue was driven by a 31.9% increase in sales of natural gas to $15.0 million from $11.3 million, and a 54.1% increase in installation and other sales to $2.4 million from $1.5 million. Gasoline revenue was $1.2 million, an increase of 3.9% from $1.1 million in the prior year's period. In the first quarter of 2009, gasoline contributed $1.2 million, or 6.3% of total revenue, compared to $1.1 million, or 8.1% of total revenue, in the prior year's period. As the revenue contribution from gasoline became material, the Company began to break out revenue contribution from the sale of gasoline through its CNG fueling stations in the fourth quarter of 2008.


Gross profit in the first quarter of 2009 increased 58.2% to $9.6 million, from $6.1 million in the first quarter of 2008. Gross margin expanded 859 basis points to 52.0% in the first quarter from 43.4% in the first quarter of 2008. Gross margin performance reflects increased sales of natural gas, which generated gross margin of approximately 54.9%, compared to 45.5% in the prior year's period.


Operating income in the first quarter of 2009 increased 47.8% to $5.6 million from $3.8 million in the prior year's period. Operating margin in the first quarter of 2009 was 30.4%, compared to 27.2% in the prior year's period. Operating expenses in the first quarter of 2009 were $4.0 million, compared to $2.3 million in the prior year's period, reflecting expanded business operations.


Net income in the first quarter of 2009 increased 49.6% to $4.2 million, or $0.29 per diluted share, from $2.8 million, or $0.19 per diluted share, in the first quarter of 2008.


Mr. Qinan Ji, Chairman and CEO of China Natural Gas, commented, "We are pleased with strong financial performance in the first three months of 2009. During this quarter, we signed an agreement with the governments of Yulin city and Shaanxi province that secured our power supply and provided a cost savings of approximately RMB 26 million. We became the exclusive provider of natural gas services to Xi'an Baqiao Science and Technology Industrial Park, a transportation hub to eastern China. We also grew our customer base for CNG to nearly 100,000 accounts. We believe that all of these factors will contribute to our sustained strong performance in the future."


Liquidity and Capital Resources

As of March 31, 2009, the Company increased cash and cash equivalents by $3.2 million to $9.1 million, compared to $5.9 million as of December 31, 2008. Cash flows from operations grew 78.1% YoY to $6.2 million, versus $3.5 million a year ago. The Company invested an additional $2.5 million to construction in progress related to its LNG project. Accounts receivable was a modest $0.9 million, and DSOs remained significantly below 10 days.


Reverse Stock Split

All share and per share amounts used in the Company's discussion on financial results, consolidated financial statements and notes thereto have been retroactively restated to reflect the 1-for-2 reverse stock split, which was effected on April 28, 2009. Although this reverse stock split has already occurred under Delaware corporate law, the Company advises that the Company's common stock continues to trade under the OTCBB ticker symbol, "CHNG" on a pre 1-for-2 reverse stock split basis. The Company is currently in the process of working with OTC Bulletin Board through FINRA to ensure that the Company's common stock will trade on a post 1-for-2 reverse stock split basis as soon as possible.


Financial Outlook for 2009

The Company anticipates full year 2009 revenue will grow 15% to 20% to a range of $78 million to $83 million, from $68 million in 2008. The Company estimates full year 2009 net income will grow 15% to 22% to a range of $17.5 million to $18.5 million, from $15.2 million in 2008.


Mr. Ji concluded, "As demonstrated by our strong performance in revenue growth, gross margin expansion, and solid cash flows, the first quarter is a good start for China Natural Gas in 2009. We are very pleased with the arrival of Ms. Veronica Chen to our senior management team, as we welcome her multi-cultural experience, profound knowledge of financial systems and markets, and impressive professional and academic achievements. Ms. Chen will work closely with me in helping China Natural Gas accomplish its strategic objectives in 2009 and beyond. For the remainder of 2009, we remain committed to listing on NASDAQ. We are focused on steadily growing our CNG customer base, as we leverage our considerable operational scale. I am confident in our management team and in our competitive advantages, and I look forward to delivering sustained strong financial results and to ultimately reward our supportive shareholders with greater share value.


Conference Call

The management team will hold a conference call on Tuesday, May 12, 2009, at 8:00 am ET to discuss its first quarter 2009 results. Listeners may access the call by dialing 1-888-677-8769 or 1-913-312-1514 for international callers. A webcast will also be available via the Company's website at www.naturalgaschina.com. A replay of the call will be available through May 19, 2009. Listeners may access the replay by dialing 1-888-203-1112 or 1-719-457-0820 for international callers, access code: 6108490.


About China Natural Gas, Inc.

China Natural Gas, Inc., ("CHNG"), is the first China-based natural gas retailing company publicly traded in the U.S. It currently owns and operates a network of CNG retail filling stations as well as a 120 kilometer long compressed natural gas pipeline in Xi'an, China. Xi'an is a fast growing Chinese city supported by a population of 8.5 million and is the "gateway" to the broad Western regions of China. CHNG currently retails natural gas at company-owned filling stations, delivers natural gas services to residential, commercial and industrial customers, and converts gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. Currently it is estimated that there are 5,000 buses and 20,000 taxis using CNG in Xi'an.


This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the progress of construction and development activities, fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies.



CHINA NATURAL GAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(Unaudited)

Three Months Ended March 31,
2009 2008

Revenue
Natural gas revenue $ 14,965,819 $ 11,345,319
Gasoline revenue 1,174,398 1,130,750
Installation and other 2,387,449 1,549,605
Total revenue 18,527,666 14,025,674
Cost of revenue
Natural gas cost 6,746,929 6,182,274
Gasoline cost 1,130,057 1,068,037
Installation and other 1,017,028 686,887
Total cost of revenue 8,894,014 7,937,198
Gross profit 9,633,652 6,088,476
Operating expenses
Selling expenses 2,324,228 1,341,614
General and administrative expenses 1,681,921 939,325
Total operating expenses 4,006,149 2,280,939
Income from operations 5,627,503 3,807,537
Non-operating income (expense):
Interest income 8,908 55,285
Interest expense (581,492) (359,660)
Other income (expense), net (2,303) 304
Change in fair value of warrant 197,051 -
Foreign currency exchange loss (50,788) (7,430)
Total non-operating expense (428,624) (311,501)
Income before income tax 5,198,879 3,496,036
Provision for income tax 997,256 687,465
Net income 4,201,623 2,808,571
Other comprehensive income
Foreign currency translation
gain (loss) (152,115) 2,303,002
Comprehensive income $ 4,049,508 $ 5,111,573
Weighted average shares outstanding
Basic 14,600,152 14,600,152
Diluted 14,600,152 14,667,042
Earnings per share
Basic $ 0.29 $ 0.19
Diluted $ 0.29 $ 0.19



CHINA NATURAL GAS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2009 AND DECEMBER 31, 2008

March 31, December 31,
2009 2008
(Unaudited)
ASSETS
------
CURRENT ASSETS:
Cash & cash equivalents $ 9,058,361 $ 5,854,383
Accounts receivable 946,047 906,042
Other receivable - employee advances 180,205 332,263
Inventories 488,221 519,739
Advances to suppliers 684,632 837,592
Prepaid expense and other current assets 953,578 838,294
Loan receivable 293,000 293,400
Total current assets 12,604,044 9,581,713
PROPERTY AND EQUIPMENT, NET 74,549,788 76,028,272
CONSTRUCTION IN PROGRESS 25,110,473 22,061,414
DEFERRED FINANCING COSTS 1,644,372 1,746,830
OTHER ASSETS 9,278,092 8,844,062
TOTAL ASSETS $123,186,769 $118,262,291
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 1,103,837 $ 800,013
Other payables 336,936 124,151
Unearned revenue 1,138,536 944,402
Accrued interest 531,111 861,114
Taxes payable 1,904,943 1,862,585
Total current liabilities 5,015,363 4,592,265
LONG TERM LIABILITIES:
Notes payable, net of discount $14,844,315
and $15,478,395 as of March 31, 2009 and
December 31, 2008, respectively 25,155,685 24,521,605
Redeemable liabilities - warrants 17,500,000 17,500,000
Derivative liabilities - warrants 817,257 -
Total long term liabilities 43,472,942 42,021,605
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $0.0001 per share;
5,000,000 shares authorized; none issued - -
Common stock, $0.0001 per share; 45,000,000
shares authorized, 14,600,152 shares
issued and outstanding at March 31, 2009
and December 31, 2008 1,460 1,460
Additional paid-in capital 25,271,339 32,115,043
Cumulative translation adjustment 8,508,945 8,661,060
Statutory reserves 4,284,815 3,730,083
Retained earnings 36,631,905 27,140,775
Total stockholders' equity 74,698,464 71,648,421
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $123,186,769 $118,262,291



CHINA NATURAL GAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(Unaudited)
Three Months Ended
March 31,
2009 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $4,201,623 $ 2,808,571
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 1,389,565 656,587
Loss on disposal of building
improvements and equipment - 11,957
Amortization of discount on senior notes 170,712 146,663
Amortization of financing costs 38,578 56,270
Stock based compensation 14,842 -
Change in fair value of warrants (197,051) -
Change in assets and liabilities:
Accounts receivable (41,244) (163,656)
Other receivable - employee advances 151,617 -
Inventories 30,812 (782,687)
Advances to suppliers 151,828 63,341
Prepaid expense and other current assets (100,912) (257,016)
Accounts payable and accrued liabilities 304,860 95,847
Other payables 212,961 1,129
Unearned revenue 195,435 22,709
Accrued interest (330,003) 73,717
Taxes payable 44,898 768,939
Net cash provided by operating activities 6,238,521 3,502,371
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (13,484) (555,720)
Proceeds from short term investments - 243,200
Additions to construction in progress (2,552,098) (9,586,215)
Prepayment on long term assets (426,913) (4,128,711)
Payment for intangible assets (35,822) -
Payment for land use rights - (25,091)
Net cash used in investing activities (3,028,317) (14,052,537)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from senior notes - 40,000,000
Payment for offering costs - (2,122,509)
Net cash provided by financing activities - 37,877,491
Effect of exchange rate changes on cash and cash
equivalents (6,226) 635,076
NET INCREASE IN CASH & CASH EQUIVALENTS 3,203,978 27,962,401
CASH & CASH EQUIVALENTS, BEGINNING OF PERIOD 5,854,383 13,291,729
CASH & CASH EQUIVALENTS, END OF PERIOD $9,058,361 $41,254,130
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid, net of capitalized interest $1,084,130 $ -
Income taxes paid $ 997,257 $ 57,893

SOURCE China Natural Gas, Inc.



----------------------------------------------
Michael Tieu of ICR
Inc.
[phone]
[e-mail]
for China Natural Gas
Inc.

[di4]

China Natural Gas to Report First Quarter 2009 Financial Results on May 11, 2009
May 6, 2009 8:00:00 AM


Email Story Discuss on ZenoBank

View Additional Profiles-- Company to Hold Conference Call on May 12, 2009 --


NEW YORK, May 6 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC Bulletin Board: CHNG), one of the leading providers of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, today announced that it plans to release its first quarter 2009 financial results on Monday, May 11, 2009, after the market closes.


The management team will hold a conference call on Tuesday, May 12, 2009, at 8:00 am ET to discuss its first quarter 2009 results. Listeners may access the call by dialing 1-888-677-8769 or 1-913-312-1514 for international callers. A webcast will also be available via the Company's website at www.naturalgaschina.com.


A replay of the call will be available through May 19, 2009. Listeners may access the replay by dialing 1-888-203-1112 or 1-719-457-0820 for international callers, access code: 6108490.


About China Natural Gas, Inc.


China Natural Gas, Inc., ("CHNG"), is the first China-based natural gas retailing company publicly traded in the U.S. The Company owns and operates a network of CNG filling stations as well as a 120-kilometer compressed natural gas pipeline in Xi'an, a fast growing Chinese city with population of 8.5 million and "gateway" to China's vast Western regions. CHNG retails natural gas at company-owned filling stations, delivers natural gas services to residential, commercial and industrial customers, and converts gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. It is estimated that there are already 5,000 buses and 20,000 taxis using CNG in Xi'an.


Safe Harbor Statement:


This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the progress of construction and development activities, fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies.




SOURCE China Natural Gas, Inc.



----------------------------------------------
Michael Tieu of ICR
Inc.
[phone]
for China Natural Gas
Inc.

[10Q Detective]

Is CNHG management practicing sleight of hand? The company purportedly owns property and equipment worth $76 million, up from $32 million in fiscal 2007. However, the 10Q Detective observes that at December 31, 2008, one consultant based in California served as CHNG’s accountant—

http://10qdetective.blogspot.com/2009/03/misdirection-at-china-natural-gas.html

[*MARINE 1*]

Quarterly Report out(10-Q)
Date : 11/13/2008 @ 3:08PM

[$to©k_Pi©ker™]

that is a ton of reading, sir

[kodi]

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

Victor Marrero USDJ

A. BODISEN DEFENDANTS’ MOTION TO DISMISS
Bodisen Defendants move to dismiss the Complaint on the
grounds that, with regard to each claim, Plaintiffs failed to
adequately plead (1) a material misrepresentation or omission;
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 25 of 40
26
(2) scienter; (3) loss causation; and (4) wrongdoing by the
Individual Defendants. The Court agrees that Plaintiffs have
failed to adequately plead a material misrepresentation or
omission in accordance with the heightened pleading standards
of Rule 9(b) and the PSLRA.
1. Relationship with NYGG
Bodisen Defendants argue that Bodisen did not have a duty
to disclose its relationship with NYGG because NYGG was not a
related party within the definition used by the SEC. Under
Rule 10b-5, silence absent a duty to disclose is not
misleading. Plaintiffs rely on SEC v. Enter. Solutions, Inc.,
142 F. Supp. 2d 561, 574 (S.D.N.Y. 2001) and 17 C.F.R. §
229.404(d), for the proposition that Bodisen had a duty to
disclose its relation with NYGG under the rule requiring the
disclosure of all transactions involving promoters. However,
the regulations define a “promoter” as:
(i) Any person who, acting alone or in conjunction with
one or more other persons, directly or indirectly takes
initiative in founding and organizing the business or
enterprise of an issuer; or
(ii) Any person who, in connection with the founding and
organizing of the business or enterprise of an issuer,
directly or indirectly receives ... 10 percent or more of
any class of securities of the issuer or 10 percent or
more of the proceeds from the sale of any class of such
securities.
17 C.F.R. § 240.12b-2. Plaintiffs do not allege that NYGG was
involved in founding or organizing Bodisen or that NYGG
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 26 of 40
27
received the any payments in connection with the founding and
organizing of Bodisen necessary to place NYGG within the
regulatory definition of a promoter. Accordingly, the Court
finds that 17 C.F.R. § 229.404(d) did not impose a duty on
Bodisen to disclose its relationship with NYGG.
In the Complaint, Plaintiffs also note Financial
Accounting Standards Board (“FASB”) Statement of Financial of
Accounting Standard (“SFAS”) No. 57, which defines related
parties to include:
Affiliates of the enterprise ... principal owners of
the enterprise; its management; members of the immediate
families of principal owners of the enterprise and its
management; and other parties with which the enterprise
may deal if one party controls or can significantly
influence the management or operating policies of the
other to an extent that one of the transacting parties
might be prevented from fully pursuing its own separate
interests.
Plaintiffs do not allege that NYGG was an owner or manager of
Bodisen, or that NYGG controlled or significantly influenced
the management or operating procedures of Bodisen.
Accordingly, FASB SFAS No. 57 does not provide a basis for
imposing on Bodisen a duty to disclose its relationship or
transactions with NYGG.
Plaintiffs also claim that because Bodisen mentioned NYGG
in certain press releases and SEC filings, “[e]ach of these
disclosures triggered a duty for Bodisen to disclose all other
information regarding the NYGG/Bodisen relationship that would
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 27 of 40
28
be material to investors.” (Lead Plaintiffs Opposition to
Motion of Bodisen Defendants to Dismiss for Failure to State
a Claim, dated Mar. 18, 2008 (“Pls.’ Opp. to Bodisen”) at 11.)
Bodisen Defendants argue that Plaintiffs offer no authority to
support this argument. However, the Court notes that “[a]
duty to disclose arises whenever secret information renders
prior public statements materially misleading ....” San
Leandro Emergency Med. Group Profit Sharing Plan v. Philip
Morris Companies, Inc., 75 F.3d 801, 810 (2d Cir. 1996)
(quoting In re Time Warner Inc. Sec. Litig., 9 F.3d 259, 268
(2d Cir. 1993)); see also Gross v. Summa Four, Inc., 93 F.3d
987, 992 (1st Cir. 1996) (“When a corporation does make a
disclosure - whether it be voluntary or required - there is a
duty to make it complete and accurate.”).
Plaintiffs argue that Bodisen Defendants did not make
“meaningful disclosures about the Company’s close relationship
with NYGG or We and the material information about NYGG and
We’s troubling background that was concealed.” (Pls.’ Opp.
to Bodisen at 11.) Bodisen Defendants argue that they
disclosed the relationship in SEC filings and press releases
by stating that NYGG had acted as an advisor to Bodisen for
the purposes of, among other reasons, raising capital, and
assisting with brand recognition, fund raising, and stock
liquidity. Additionally, Bodisen Defendants assert that when
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 28 of 40
29
Bodisen issued a press release stating that NYGS had provided
research coverage on Bodisen, it noted that NYGG was the
parent company of NYGS.
Plaintiffs specifically claim that Bodisen Defendants
should have disclosed information regarding Wei’s background.
However, Plaintiffs do not allege that Bodisen Defendants had
any knowledge of Wei’s prior disciplinary history. See Novak,
216 F.3d at 308 (“Corporate officials need not be clairvoyant;
they are only responsible for revealing those material facts
reasonably available to them.”) Plaintiffs have otherwise
failed to identify any specific information that Bodisen
Defendants should have disclosed in order to make their
statements regarding NYGG complete and not misleading.
Accordingly, the Court grants Bodisen Defendants’ motion
to dismiss Plaintiffs’ claims regarding Bodisen’s relationship
with NYGG.
2. Description of Products and Technology
Bodisen Defendants argue that Plaintiffs have failed to
allege that its statements regarding “proprietary technology”
and its descriptions of its products as “organic” and
“biotech” and were misleading.
Plaintiffs claim that Bodisen’s use of the term
“proprietary technology” was misleading because Bodisen held
no patents. Bodisen Defendants counter that Bodisen publicly
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 29 of 40
30
acknowledged that it held no patents, that the legal
definition of proprietary technology is broader than simply
holding a patent, and that this definition encompasses its
confidential manufacturing process. The Court agrees. Legal
protections extend not just to patents, but also to trade
secrets, which may include: “any formula, pattern, device or
compilation of information which is used in one’s business,
and which gives [one] an opportunity to obtain an advantage
over competitors who do not know or use it.” Integrated Cash
Mgmt. Servs., Inc. v. Digital Transactions, Inc., 920 F.2d
171, 173 (2d Cir. 1990) (quoting Restatement of Torts § 757,
comment b). Because Plaintiffs rely solely on Bodisen’s lack
of patents, Plaintiffs have failed to allege that Bodisen
Defendants’ use of the term proprietary technology was false
or misleading. Accordingly, Plaintiffs’ claim based on
Bodisen Defendants’ use of the term “proprietary technology”
is dismissed.
Plaintiffs state that “Bodisen’s repeated use of the term
‘biotech’ was materially false and misleading.” (Pls.’ Opp.
to Bodisen at 13.) However, Plaintiffs’ only factual
allegation is that Bodisen used the term biotech in its name
and that a newspaper article stated “Bodisen isn’t biotech.”
(Compl. ¶ 26.) Plaintiffs fail to allege in any detail how
this use was false or misleading, but rather, rely on
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 30 of 40
31
conclusory statements in the Complaint. Plaintiffs do not
define biotech nor demonstrate how Bodisen Defendants’ use of
the term was incorrect. Accordingly, Plaintiffs have failed
to satisfy their pleading burden of explaining why the
statements were fraudulent. See Cosmas, 886 F.2d at 11; see
also Rombach v. Chang, 355 F.3d 164, 174 (2d Cir. 2004)
(“[P]laintiffs must do more than say that the statements in
the press releases were false and misleading; they must
demonstrate with specificity why and how that is so.”).
Plaintiffs allege that Bodisen Defendants falsely
described their products as organic, when Wei admitted in a
the September 2006 Article that the products are not organic
as defined by United States and European standards.
Defendants respond that the products were used solely in
China, and therefore significance of the term “organic” to
investors was based on its use in China, not in the United
States.
Plaintiffs fail to articulate their definition of
organic, and do not make any specific statements as to how
Bodisen’s products fail to comply with any standard definition
of organic, but rather, rely solely on a statement attributed
to Wei that he did not believe the products were organic.
Plaintiffs have thus failed to satisfy their pleading burden
of demonstrating why the statements were fraudulent. Id.
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 31 of 40
2 Plaintiffs also claim that the internal controls and GAAP compliance
statements were false because Bodisen failed to disclose its relationship
with and payments to NYGG. Because the Court held above that Bodisen had
no duty to disclose this information, the Court will not address
Plaintiffs’ internal controls and GAAP compliance arguments relying on the
failure to disclose Bodisen’s relationship with NYGG.
32
3. Beneficial Ownership, Internal Controls and GAAP
Compliance
Plaintiffs’ claims regarding beneficial ownership,
internal controls, and GAAP compliance can be analyzed
together, as Plaintiffs’ allegations are that Bodisen
Defendants falsely reported Bodisen’s beneficial ownership,
and because of this, statements regarding adequate internal
controls and compliance with GAAP were also false and
misleading.2
Bodisen Defendants move to dismiss this claim arguing
that Plaintiffs have not alleged how the statements regarding
beneficial ownership were false, but rather, rely on the AMEX
letter, which stated that Bodisen’s beneficial ownership
records did not match that of its transfer agent. The Court
agrees.
Plaintiffs have not alleged exactly which statements
regarding beneficial ownership were false nor explained how
the statements were false, but instead rely on vague and
conclusory statements that are not supported by any specific
factual allegations. Plaintiffs use of large block quotes
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 32 of 40
33
from SEC filings and press releases, followed by generalized
explanations of how the statements were false or misleading
are not sufficient to satisfy the heightened pleading
requirements. See In re Sina Corp. Sec. Litig., No. 05 Civ.
2514, 2006 WL 2742048, at *6 (S.D.N.Y. Sept. 26, 2006).
Additionally, Plaintiffs do not explain how the reported
beneficial ownership differs from that recorded by Bodisen’s
transfer agent, why such statements were false and misleading,
and how this circumstance renders false Bodisen Defendants’
statements regarding GAAP compliance and adequate internal
controls. See In re Scottish Re Group Sec. Litig., 524 F.
Supp. 2d 370, 378 (S.D.N.Y. 2007) (denying motion to dismiss
where four confidential witnesses, who were former employees
of the defendant, asserted precisely the controls the
defendant was lacking, and how that impacted the defendant’s
ability to function as an insurance company). The AMEX
letters upon which Plaintiffs rely are not sufficient, as they
lack the particularity required by Rule 9(b) and the PSLRA.
Such allegations are not sufficient to satisfy the pleading
standard, because “allegations of GAAP violations or
accounting irregularities, standing alone, are insufficient to
state a securities fraud claim.” Novak, 216 F.3d at 309.
Thus, Plaintiffs have failed to plead with particularity
their claims regarding beneficial ownership, internal
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 33 of 40
34
controls, and GAAP compliance. Accordingly, Plaintiffs claims
on these bases are dismissed.
4. Plaintiffs’ Section 20(a) Claim
Because Plaintiffs failed to allege a primary violation
of Section 10(b), the Complaint does not satisfy the first
element of a prima facie Section 20(a) claim. Accordingly,
Plaintiffs’ Section 20(a) claim is dismissed.
B. KABANI’S MOTION TO DISMISS
Plaintiffs allege that Kabani falsely stated that
Bodisen’s financial reports were prepared in conformity with
GAAP, when they were not because of the failure to disclose
material related party transactions, the failure to review and
reconcile shareholder ownership records, and the failure to
maintain adequate internal accounting controls.
Kabani moves to dismiss on the grounds that (1) NYGG was
not a related party; and (2) the alleged misstatements
occurred in unaudited portions of the SEC filings for which
management, and not Kabani, were responsible. The Court
agrees.
1. Related Party Transactions
Because the Court held above that Bodisen was not
required to disclose its relationship with NYGG as a related
party transaction, Plaintiffs’ claim regarding Kabani’s
misstatements or omissions based on this argument must
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 34 of 40
35
necessarily fail as well.
2. Beneficial Ownership and Internal Controls
As held above, Plaintiffs’ internal controls and
beneficial ownership claims against Bodisen Defendants fail to
satisfy the heightened pleading requirements of Rule 9(b) and
the PSLRA. Therefore, Plaintiffs’ claims against Kabani based
on these same allegations must necessarily fail as well.
However, even if Plaintiffs had sufficiently alleged that
Bodisen had misrepresented its beneficial ownership and
internal controls, Plaintiffs’ claim against Kabani would fail
because Plaintiffs failed to identify a material
misrepresentation of Bodisen’s financial condition in its
audited financial statements. See In re Ramp Corp. Sec.
Litig., No. 05 Civ. 6521, 2006 WL 2037913, at *8 (S.D.N.Y.
July 21, 2006). Without a materially false statement in the
company’s financial statements, the quality of the audit
performed by Kabani is immaterial. See id. “Compliance with
GAAP is relevant only insofar as it provides the investing
public with a level of assurance that the financial statements
accurately reflect the company’s financial position when
measured against [GAAP].” Id. (citing In re WorldCom Sec.
Litig., 352 F. Supp. 2d. 472, 495 (S.D.N.Y. 2005); In re
WorldCom Sec. Litig., 346 F. Supp. 2d. 628, 664 (S.D.N.Y.
2004)). If the financial statements accurately disclose the
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 35 of 40
36
financial condition when measured against GAAP, then the
investing public has received all that it is entitled to
receive from the auditor certifying its audit of those
financial statements. See id.
Accordingly, Kabani’s motion to dismiss pursuant to Rule
12(b)(6) is granted.
C. DEFENDANTS’ MOTION TO STRIKE
Defendants’ move to strike Plaintiffs’ allegations based
on the AMEX delisting notices pursuant to Rule 12(f). Under
Rule 12(f) a court may strike from a pleading any redundant,
immaterial, impertinent, or scandalous matter. Generally,
motions to strike are viewed with disfavor and infrequently
granted. See In re Merrill Lynch & Co., Inc. Research Reports
Sec. Litig., 218 F.R.D. 76, 78 (S.D.N.Y. 2003) (citing Eskofot
A/S v. E.I. Du Pont De Nemours & Co., 872 F. Supp. 81, 93
(S.D.N.Y. 1995)).
Defendants rely on Lipsky v. Commonwealth United Corps.,
551 F.2d 887 (2d Cir. 1976), for the proposition that
Plaintiffs may not rely on the AMEX’s delisting letters
because the letters were not based on findings of fact
resulting in a final adjudication. Defendants’ reliance is
misplaced, as Lipsky referred to the use of a consent decree
as collateral estoppel, and Courts have found that such
evidence may be used as part of the factual background of a
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 36 of 40
37
case. See ClearOne Commc’n, Inc. v. Lumbermens Mut. Cas. Co.,
No. 04 Civ. 119, 2005 WL 2716297, at *8 n.10 (D. Utah Oct. 21,
2005).
The Court finds that Plaintiffs’ use of Bodisen’s press
releases, which quote the AMEX letters, was not “redundant,
immaterial, impertinent, or scandalous.” Rule 12(f).
Accordingly, Defendants’ motion to strike allegations in the
Complaint pursuant to Rule 12(f) is denied.
D. LEAVE TO REPLEAD
When a cause of action is dismissed because of pleading
deficiencies, the usual remedy is to permit plaintiff to
replead his or her case. See Fed. R. Civ. P. 15(a) (“Rule
15(a)”). Whether to permit a plaintiff to amend his pleadings
is a matter committed to the Court’s “sound discretion.”
McCarthy v. Dun & Bradstreet Corp., 482 F.3d 184, 200 (2d Cir.
2007). Rule 15(a) provides that leave to amend a complaint
“shall be freely given when justice so requires.” Fed. R.
Civ. P. 15(a). In particular, regarding claims of fraud,
“[p]laintiffs whose complaints are dismissed pursuant to Rule
9(b) are typically given an opportunity to amend their
complaint.” Olsen v. Pratt & Whitney Aircraft Div. of United
Techs. Corp., 136 F.3d 273, 276 (2d Cir. 1998) (citing Luce v.
Edelstein, 802 F.2d 49, 56 (2d Cir. 1986)); see also Lazard,
473 F. Supp. 2d at 590 (stating that leave to replead is
Case 1:06-cv-13220-VM Document 88 Filed 09/18/2008 Page 37 of 40
38
“especially appropriate when claims are dismissed under Rule
9(b) because the law favors resolving disputes on their
merits”).
Bodisen Defendants argue that Plaintiffs should be denied
leave to replead. At this stage, the Court finds such a
course premature, especially where Plaintiffs’ claims are
dismissed for lack of particularity. Therefore, Bodisen
Defendants’ request to deny leave to replead is denied.
IV. ORDER
Accordingly, it is hereby
ORDERED that the motion of defendants Bodisen Biotech,
Inc., Bodisen, Bo Chen, Wang Chunsheng, Karen Quiong Wang, and
Yiliang Lai (Docket No. 46) to dismiss the Consolidated
Amended Class Action Complaint herein pursuant to Federal Rule
of Civil Procedure 12(b)(6) is GRANTED; and it is further
ORDERED that the motion of defendant Kabani (Docket No.
49) to dismiss the Consolidated Amended Class Action Complaint
herein pursuant to Federal Rule of Civil Procedure 12(b)(6) is
GRANTED; and it is further
ORDERED that the motion of defendant Kabani (Docket No.
49) to strike allegations from the Complaint pursuant to
Federal Rule of Civil Procedure 12(f) herein is DENIED; and it
is and it is finally
ORDERED that Plaintiffs are granted leave to file, by not more than 20 days from this order.

Victor Marrero USDJ
filed 9/18/08

[INDY]

WEBSITE:

HTTP://www.naturalgaschina.com

[INDY]

About China Natural Gas, Inc.

China Natural Gas, Inc., ("CHNG"), is the first China-based natural gas retailing company publicly traded in the U.S. It currently owns and operates a network of CNG retail filling stations as well as a 120 kilometer long compressed natural gas pipeline in Xi'an, China. Xi'an is a fast growing Chinese city supported by a population of 8.5 million and is the "gateway" to the broad Western regions of China. CHNG has three business segments: retail natural gas at company-owned filling stations, end user delivery of natural gas services to residential, commercial and industrial customers, and conversion of gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. Currently it is estimated that there are 5,000 buses and 20,000 taxis using CNG in Xi'an.

[INDY]

NEWS 10/6:

China Natural Gas Launches New Company Website

NEW YORK, Oct 06, 2008 /PRNewswire-FirstCall via COMTEX/ -- China Natural Gas, Inc. (OTC Bulletin Board: CHNG), one of the leading providers of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, today announced the completion and launch of a new corporate website, accessible at www.naturalgaschina.com.
Mr. Qinan Ji, CEO and Chairman of China Natural Gas, Inc, stated, "Today's new website launch is a response to our many shareholders and constituents who have suggested that we provide a more complete corporate website so that we better articulate our Company's growth story. We hope that our new site will be a go-to resource for Company information, updates and events."

[INDY]

CONTACT INFORMATION:

China Natural Gas, Inc.
Tang Xing Shu Ma Building
Suite 418
Tang Xing Road, Xian High Tech Area
Xian, Shaanxi Prv.
China
Phone: [phone]

[willy1015]

CHNG done well lately and BBCZ will follow as they hold a big position in Co. Read news,,,and can be bought at .16 today.

[$to©k_Pi©ker™]

Similar stock that is growing a little faster is CPBY. Both CHNG and CPBY are very good stocks though!

[willy1015]

I like this stock and am buying. Also like BBCZ as they have a BIG position in the company and you can buy for .40.
GLTA

[museman]

Here is another ...stock picker:
http://investorshub.advfn.com/boards/board.aspx?board_id=9868

[War_Eagle215]

hey discuss a few here:
http://investorshub.advfn.com/boards/board.aspx?board_id=11687

I haven't looked around to much.
I am playing around with a couple of pinks that are China(GLCC) and (MONA--RM into a china)

[$to©k_Pi©ker™]

definately Portwood. I have a nice collection of Asian ADR's i am either invested in or watching. Do you know a good board on IHUB where they discuss these companies?

[War_Eagle215]

Seems that there are a lot of HOT stocks in China right now!

[$to©k_Pi©ker™]

Definately keeping a very close eye on this one. As you stated, SE Asian ADR's are the way to go right now. Most of the American companies are overvalued. Asian, specifically Chinese companies, are undervalued AND the economy is growing at a fast rate.

I have been focusing most all my research on these Asian ADR's instead of the overvalued American companies - i think that is the way to go.

[War_Eagle215]

NEW YORK, April 2, 2008 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC:CHNG) (BULLETIN BOARD: CHNG) , one of the leading providers of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial and residential use in Xi'an, China, announced today that it has built two new CNG filling stations in Xi'an City, in the Shaanxi Province of China. The filling stations have all of the government permits they need to operate and are now selling natural gas for CNG powered vehicles. Today's announcement brings the Company's total CNG filling stations in operation to 28.

"We are so pleased to continue our station build out in 2008 as we further enhance our presence in the Shaanxi Province. We believe there is significant opportunity to build out our filling network as more and more drivers and local governments seek the benefits of CNG, which is significantly more affordable and energy efficient than gasoline. In fact, in Xi'an City alone, we estimate there are roughly 700,000 motor vehicles, of which only eight percent are currently using CNG. We are working diligently to capitalize on this market opportunity," stated Mr. Qinan Ji, CEO and Chairman of the Board of China Natural Gas, Inc.

About China Natural Gas, Inc.

China Natural Gas, Inc., ("CHNG"), is the first China-based natural gas retailing company publicly traded in the U.S. It currently owns and operates a network of CNG retail filling stations as well as a 120 kilometer long compressed natural gas pipeline in Xi'an, China. Xi'an is a fast growing Chinese city supported by a population of approximately eight million and is the "gateway" to the broad Western regions of China. CHNG has three business segments: retail natural gas at company-owned filling stations, end user delivery of natural gas services to residential, commercial and industrial customers, and conversion of gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. Currently it is estimated that there are 5,000 buses and 20,000 taxis using CNG in Xi'an.

This press release may contain forward-looking statements. These statements are based on the current expectations or beliefs of China Natural Gas, Inc. management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the fluctuation of natural gas prices, the availability of natural gas supplies, changes in governmental regulations and/or economic policies.

DATASOURCE: China Natural Gas, Inc.


CONTACT: In the U.S., Ashley Ammon MacFarlane or Wei-Jung Yang, both of

Integrated Corporate Relations, [phone]; or In Asia, Dan Joseph, of

Integrated Corporate Relations, Inc., [phone], all for China Natural

Gas, Inc.

[War_Eagle215]

It looks like things are starting to move here.

China is a booming area

[War_Eagle215]

China Natural Gas Reports First Quarter 2008 Financial Results
Monday May 19, 8:50 am ET


NEW YORK, May 19 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC Bulletin Board: CHNG - News), one of the leading providers of pipeline natural gas for residential, commercial and industrial use and compressed natural gas (CNG) for vehicular fuel in Xi'an, China, today announced its first quarter financial results for the period ended March 31, 2008.

Financial Highlights for the First Quarter 2008:
-- Revenue increased 108.0% year over year to $14.0 million
-- Gross profit increased 73.1% year over year to $6.1 million
-- Income from operations increased 52.2% year over year to $3.8 million
-- Non-cash non-operating expense of $202,933 related to the 5.0%
Guaranteed Senior Notes issued in the first quarter of 2008


"We are very pleased to continue to demonstrate strong earnings growth, which speaks to the underlying strength of our business. During the first quarter of 2008, we added three new CNG filling stations and 5,769 new residential, commercial and industrial pipeline natural gas customers. As of March 31, 2008, we had a total of 27 CNG filling stations and 90,269 residential, commercial and industrial pipeline natural gas customers. As we expand our business to additional Chinese regions other than Shaanxi Province and Henan Province, we expect the increasing demand for natural gas continues to drive robust financial performance in the second quarter and the fiscal year of 2008," stated Mr. Qinan Ji, Chairman and CEO of China Natural Gas, Inc.

Mr. Ji continued, "Our LNG processing and distribution plant is under smooth and intensive construction. In addition, in April 2008, we entered into an agreement with the Xi'an Internal Port Administrative Committee to participate in the multi-year development of Xi'an International Port District and Baliu Ecological Park. We expect these projects to support our long term growth and we will continue to update investors with the progress."

Revenue for the first quarter was $14.0 million, an increase of 108.0% compared to $6.7 million in the first quarter of 2007. The increase in revenue was due primarily to contributions from additional CNG filling stations which were not built or generating revenue in the first quarter of 2007, as well as the increase in residential, industrial and commercial pipeline customers to approximately 90,269 from 75,000 in the first quarter of 2007. Revenue from sales of natural gas increased 130.4% to $11.3 million from $4.9 million in the prior year period, generating 81.0% of total revenue in the first quarter of 2008. Installation and other revenue increased 47.3% to $2.7 million from $1.8 million in the first quarter of 2007, generating 19.0% of total revenue in the first quarter of 2008.

Gross profit increased 73.1% to $6.1 million in the first quarter of 2008 from $3.5 million in the first quarter of 2007. Gross margin was 43.4%, compared to 52.2% in the prior year's period. Gross margin performance is primarily attributable to the followings: (1) increase in revenue generated from Company-owned CNG stations in the Henan Province, which generate a lower gross margin than CNG stations in Xi'an, Shaanxi Province and (2) installation and other revenue reflects an increase in revenue generated from the Company's auto conversion business, which generates a lower gross margin than installation or construction revenue.

In the first quarter of 2008, operating income increased 52.2% to $3.8 million from $2.5 million in the first quarter of 2007. Operating expenses in the first quarter of 2008 were $2.3 million, compared to $1.0 million in the first quarter of 2007. The increase reflected larger business operations with 27 natural gas filling stations operating during the first quarter of 2008, as well as continued expenses related to the identification of future natural gas filling station locations and costs associated with the government licensing and approval process. Operating margin was 27.1%, compared to 26.9% in the fourth quarter of 2007 and 37.1% in the first quarter of 2007, reflecting increased contribution from natural gas sales and higher operating expenses associated with a larger sales force, the purchase of tankers and higher utilities expense.

During the first quarter of 2008, the Company began to recognize non-cash non-operating expense related to the 5.0% Guaranteed Senior Notes ("Notes") issued to Abax Lotus in January and March 2008. As a result, non-operating expense increased to $311,501 from non-operating income of $9,792 in the first quarter of 2007. The increase is primarily due to $146,663 for the amortization of discount on the Notes and $56,270 for the amortization of deferred offering costs, as well as an interest expense of $156,727.

Net income was $2.8 million, or $0.10 per diluted share, for the first quarter of 2008. Excluding the effect of the non-cash amortization expense of $202,933, net income would have been $3.0 million or $0.11 per diluted share, compared to $2.1 million, or $0.09 per diluted share, in the first quarter of 2007.

Balance Sheet

As of March 31, 2008, the Company had $41.3 million in cash and cash equivalents on hand, compared to $13.3 million as of December 31, 2007.

Fiscal Year 2008 Update

For the fiscal year 2008, the Company continues to anticipate revenue and net income growth of at least 70%. Please note that this financial guidance excludes the impact of interest charges and other costs associated with the Company's 5.0% Guaranteed Senior Notes due 2014 in an aggregate principal amount of $40 million and warrants representing the right to purchase 2,900,000 shares of the Company's common stock to Abax Lotus Ltd.

About Non-GAAP Financial Measures

This press release contains non-GAAP financial measures for earnings that exclude the effect of non-cash non-operating expense of $202,933 related to the Senior Notes issued in January and March 2008. China Natural Gas' management uses those non-GAAP financial measures when it internally evaluates the performance of business and makes operating decisions, including internal budgeting and performance measurement. China Natural Gas believes that providing the non-GAAP measures is useful to investors for a number of reasons. The non-GAAP measures provide a consistent basis for investors to understand China Natural Gas' financial performance in comparison to historical periods, and it allows investors to evaluate China Natural Gas' performance using the same methodology and information as that used by China Natural Gas' management. However, investors need to be aware that non-GAAP measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and they involve the exercise of judgment of which charges are excluded from the non-GAAP financial measure.

The following table provides the non-GAAP financial measure and the related GAAP measure and provides a reconciliation of the non-GAAP measure to the equivalent GAAP measure.




CHINA NATURAL GAS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(Unaudited)

[$to©k_Pi©ker™]

2 posts the last few months, where did everyone go?

[$to©k_Pi©ker™]

2 posts last few months, where did everyone go?

[$to©k_Pi©ker™]

Just filtered this out in my 'undervalued mid/micro' search. This is a nice one. Gonna do a little more digging, but this appears to be a no-brainer.

[pinoleropuro]

nice action yesterday!
up over 13% and it looks like for now it still has room to grow!

[frenchee]

China Natural Gas Announces $40 Million Financing


- $20 Million Guaranteed Senior Notes Closed + Incremental $20 Million Arranged - - $40 Million in Total Anticipated for Working Capital and LNG/CNG Build Out -


NEW YORK, Jan. 30 /PRNewswire-FirstCall/ -- China Natural Gas, Inc. (OTC Bulletin Board: CHNG), one of the leading providers of pipeline natural gas for industrial, commercial and residential use and compressed natural gas (CNG) for vehicular fuel in Xi'an, China, today announced the closing of the first round of a $40 million debt financing with Abax Lotus, an affiliated entity of Abax Global Capital ("AGC").

Qinan Ji, Chief Executive Officer and Chairman of the Board of the Company, stated "We are very pleased to have entered into the financing agreement with Abax Lotus. This capital will allow us to strengthen our leadership position in China in-line with our strategic growth initiatives, especially our LNG plans. We are also pleased to have Abax Global Capital's support and look forward to the contribution the firm will make as an experienced investor."

The net proceeds from the offering will be used for the construction of the Company's previously announced LNG processing facility in the Shaanxi Province and for the construction and acquisition of additional CNG filling stations throughout Xi'an and other regions of China.

Donald Yang, President of AGC, stated, "We are confident our investment in China Natural Gas will allow the Company to implement its business initiatives and maintain its robust growth trajectory. We look forward to continuing our working relationship with the Company."

Pursuant to the terms of purchase agreement, the Company issued to AGC 5% Guaranteed Senior Notes due 2014 in the principal amount of RMB 145 million (approximately $20 million) and seven-year warrants exercisable for up to 2.9 million shares of the Company's common stock at an initial exercise price of US$ 7.3652 per share, which represents a 20% premium to the volume weighted average price for the 15 consecutive trading days ending January 28, 2008. In addition, the Company will issue to AGC an additional 5% Guaranteed Senior Notes due 2014 in the principal amount of RMB 145 million (approximately $20 million) on or before March 3, 2008 subject to the Company meeting certain closing conditions. The Company has also granted AGC an option to purchase up to RMB 73 million (approximately $10 million) in principal amount of its 5% Guaranteed Senior Notes due 2014.

In connection with the sale of the Senior Notes, the Company will enter into an indenture agreement, which requires the Company to pay additional interest at the rate of 3.0% per annum if the Company has not obtained a listing of its common stock on the Nasdaq Global Market, the Nasdaq Capital Market or the New York Stock Exchange one year from the date of issuance and maintained such listing continuously thereafter as long as the Senior Notes are outstanding.

The Company will also enter into an investor rights agreement, a registration rights agreement covering the shares of common stock issuable upon exercise of the warrants and a share pledge agreement. More information can be obtained from the Company's recently filed Form 8-K.

[kodi]

They had to milk the cow for a while, they must have piles of cash.

[Alex Chory]

looks like this is getting ready to go under silent pretenses

[Alex Chory]

hmmmmmmm, ok great, I wanted to add a little more but maybe wait a tad bit longer, thanks for the input.

[frenchee]

China NG is currently consolidating or basing. That's natural after a big move. If I had the stock now, I'd sell on a decisive close < 6.50 and hold otherwise.

[Alex Chory]

anything going to happen here with this stock?

went long weeks ago.

was trending up now don't know what to think?

thanks

[frenchee]

looks like the bounce might have started today...

[Golden Cross]

I think so and we should see soon before heading back up imo... Could have been nice profit taking but we will see now where support is going to be imo..glty

[frenchee]

Gateway_Stocks, Why? Is it trendline support?

[Golden Cross]

Looks ready to bounch upwards again imo...glta

[One Man Army]

Back in again riding the waves for free shares

[kodi]

Back in at 7.75

[kodi]

Yeah it seems like it has to pull back some.. they need to grab some cash to build more stations,, good for us grqbing more shares..!!! I have buys in for the morning chng and bbcz,, I'm trying to play devis advocate in my mind cus this seems like a slam dunk and we have all missed easy layins,, what if the chinese government that owns 80% of the large oil companies .. bumps us out so they can take the market and screw those American investors???? any other problems anyone sees ?? or the lawsuit on bbcz any thoughts???

[frenchee]

Looks like CHNG is rolling over as it is setting marginally below it up trend line. If it decisively breaks trend line support, appears 10.21 would be next stop.