About CF Energy

Statement from the Chair of the Board

It is vital to improve energy structure, energy security, and thus prompt advancement in society. Driven by the various factors, our national energy system is in a time of great reform.

CF Energy Inc. strives to be a participant and witness of energy revolution of China. In recently years, we have explored international LNG trade routes as well as developed the model of district integrated smart energy and have attained initial success. We hope to make a difference in the national energy reform.


Dear Shareholders,

In 2018, our Company’s founder and former Chairman Mr. Huajun Lin served his last as the Chairman and CEO of Changfeng Energy Inc. In February of 2019, Mr. Lin formally stepped down as the Chairman and CEO of the Company and have entrusted his legacy to the board, the management, and me. As the new Chairman and CEO of CF Energy Corp. (formerly Changfeng Energy Inc.), it is my honor to report that in the last year of Mr. Lin’s leadership, we have achieved several important milestones.

CF Energy is in an unprecedented position for growth and we have seen continued results in 2018 for project development. In line with CF Energy’s strategy to develop integrated smart energy systems, the Haitang Bay Integrated Smart Energy Project has secured a 30-year concession right as well as signed its first official client. The Meishan Project, the Guangdong Gaoyao Project, and Changfeng’s subsidiary, Riheng Energy in northern China have all shared significant advances in project development. In April 2019, we finalized and signed the “Meishan New Economic Development Zone Centralized Heating Operating Contract” with the government of the Meishan New Economic Development Zone for the integrated district energy distribution project in Meishan, marking CF’s second integrated energy project.

In 2018, CF Energy was also ranked amongst the 2019 TSX Venture 50 top performers on the TSX Venture Exchange. The ranking is comprised of 10 companies from each of the five industry sectors and selected based on market capitalization growth, share price appreciation, and trading volume. The recognition is an important milestone especially as it comes on the tenth year that we are listed on the TSX Venture exchange. We have always believed in creating value and will continue to deliver results moving and increase value for all stakeholders.

2018 was also a year that brought many challenges for CF Energy. In recent years, the supply volume of pipeline natural gas from gas field has decreased due to the decayed capacity in Yacheng 13-1 gas field of CNOOC, the largest natural gas supplier in Hainan. City natural gas operators used LNG as a supplemental gas source for sales. The use of more expensive LNG as a supplemental gas source was a significant factor in the recent drop in gross profit margin of CF Energy’s Sanya gas distribution operation and it was readily apparent in our 2018 year-end financials. However, the CF management team worked tirelessly to resolve this issue and in June 2019, we signed the purchasing contract for the new Hainan gas source from the gas field “Eastern 13-2” of China National Offshore Oil Corporation. Going forward, with the new gas source available, we expect our overall gross profit margin to improve and normalize at previous levels.

There will continue to be challenges ahead for CF Energy. However, our ability to navigate change and adapt to uncertainty has always been, and continues to be, our greatest strength. On behalf of CF Energy, I would like to thank our customers, shareholders, suppliers, and our dedicated employees.

Sincerely Yours,


Ann (Siyin) Lin
Chairman & CEO
CF Energy Corp.