About CF Energy

Corporate Profile

CF Energy Corp. (formerly Changfeng Energy Inc.) (“CF Energy” or the “Company”, together with its subsidiaries the “Group”) is a Canadian public company currently traded on the Toronto Venture Exchange (“TSX-V”) under the stock symbol “CFY”. It is an integrated energy provider and natural gas distribution company (or natural gas utility) in the PRC. CF Energy strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC.

CF Energy was founded in 1995 by Mr. Lin Huajun (“Mr. Lin”) , the founding Chairman and CEO of the Company, who had been leading the Group since its inception until he retired in February 2019. Under Mr. Lin’s leadership, the Company successfully listed on the TSX-V in 2008 and diversified from a pure natural gas provider into an integrated smart energy player since 2017.

In 2009, CF Energy was recognized as being one of China’s Top Ten Most Influential Brands in the Natural Gas Industry and in 2019, ranked amongst the 2019 TSX Venture 50 top performers on the TSX Venture Exchange for the 2018 year.

The Company currently focuses on four sectors including natural gas supply, natural gas pipeline installation and connection services, and integrated smart energy and liquefied natural gas (LNG) trading, covering Hainan, Hunan, Jiangxi, Hebei, Sichuan and Guangdong Provinces. During recent years, in order to promote business transformation and upgrading, the Company has continuously increased its investment in research and development (“R&D”) and innovation around its core business. At the same time, as an enterprise with a strong social responsibility, CF Energy is constantly giving back to society under the guideline of the corporate culture "To achieve harmony and prosperity, to do good deeds and make the world a better place." Up to now, the Company together with Mr. Lin have donated nearly RMB15 million to charity.

Natural Gas Business Division

Urban Gas Service Model

In Sanya, Hainan Province, CF Energy has obtained the concessionary rights for natural gas pipeline distribution. The natural gas pipeline network was commenced in 1997, and completed its integration with the city’s main pipeline network in June 2003. To date investment has totaled nearly RMB600 million, supplying over 250,000 residents and 1,000 business users.

In Jiangxi Province, CF Energy has obtained the concessionary rights for natural gas pipeline distribution for Pingxiang City in January 2010. In January 2013, the first phase of the project was completed for ventilation, providing pipeline natural gas for more than 100 ceramic enterprises and nearly 100,000 residents in the area.

Automobile Gas Station Model

In Changsha, Hunan Province, CF Energy's first automobile gas filling station was put into operation in 2010, and quickly became one of the top gas filling stations in Changsha City with the highest daily gas volume. In Sanya, Hainan Province, in 2016, an automobile gas filling station on Luobidong Road was completed and commenced operation, which was subsequently designated as a benchmark project in Hainan Province by the relevant authorities and experts.

Natural Gas Point-to-Point Supply Model

The natural gas point-to-point supply business provided a flexible natural gas supply model for areas not covered by the natural gas pipeline, offering a powerful supplement to the natural gas pipeline network. In early 2018, taking advantage of the opportunity presented by the “coal-to-gas” reform drive for industry and aimed at preserving a beautiful countryside, CF Energy has actively expanded to the northern market through adapting the liquefied natural gas (LNG) point-to-point supply model in Hebei Province, rapidly opening up the market in Shijiazhuang, Baoding, Xingtai and other places while expanding to other provinces to Qinhuangdao, Tangshan, Xingtai and other regions. At present, it supplies on a daily basis about 200,000 cubic meters of gas, to customers include manufacturing enterprises in the ceramics, resistant materials and other industries. It is estimated that the daily gas supply can reach 400,000 cubic meters by the end of 2019. In Hainan Province, the Company is committed to the government’s initiative for "Beautiful countryside construction and transformation of energy generation from firewood to gas," and towards that end has built LNG point supply projects at Wenchang, Lingshui, Ledong and other locations. Its gas supply targets include a rubber factory, a betel nut processing plant and a construction materials factory.

Natural Gas Pipeline Installation Service Division

CF Energy has entered the natural gas market in Guangdong Province starting in 2010 and developed natural gas generation and transportation projects to attract the business of large-scale downstream industrial users. One such project for the Datang Gaoyao Power Plant officially commenced operation on November 14, 2018. The first phase is expected to have a delivery capacity of 680 million cubic meters per year, while the second phase would deliver 1.16 billion cubic meters per year. Presently CF Energy has been engaged in facilitating the transition of COHG Gaoyao Power Plant and Guangdong Samite Ceramics Co., LTD factory from coal-fired to natural gas. It is expected that the projects will be put into operation successively in 2020, and the total gas transmission volume will reach 2 billion square meters per year upon full completion.

Integrated Smart Energy

Perhaps the most effective way to achieve energy conservation and emissions reduction is through integrated regional smart energy projects. This mode of operation is emerging in China to quickly become a burgeoning industry and CF Energy has tapped a unique growth opportunity in this field.

In Sanya, Hainan Province, the Company and the EDF Group, a Fortune 500 Company, have joined forces to invest, construct, and develop low carbon integrated smart energy systems throughout China, through the Sino-Franco Haitang Bay Low Carbon Integrated Energy Project. The Project, planned investment of RMB 1.28 billion, aims to provide centralized cooling services for public buildings within a 98 square kilometer area of Haitang Bay. On January 9th, 2018, a Concession Rights Agreement was signed, witnessed by Chinese President Xi Jinping and French President Emmanuel Macron.

In Meishan, Sichuan province, Hengtai Tianzhiyuan Energy Co., Ltd. was registered and established in May 2018 to construct and operate the comprehensive energy utilization project in the new area of the Meishan economic development zone. An investment of RMB180 million has been earmarked for the construction of an energy station and supporting pipeline network to provide cooling, heating and electrical power supply services for enterprises within the planning area of 36 square kilometers.

Liquefied Natural Gas (LNG) Trading

Sanya Changfeng International Natural Gas Trading Center affiliated with the Company is a spot trading platform for LNG at home and abroad. The business of the platform operated by an independent third party is conducted in accordance with the Standard LNG Trading Agreement (SLTA), providing internationally recognized third-party standard trading contracts, entering standard LNG trading agreements for online trading and assisting in strictly monitored offline delivery. At present, in the early period of the project, research and demonstration work of the natural gas trading facility has been completed, while the Center has entered strategic partnerships with leading upstream and downstream enterprises in the international natural gas supply chain, including BP, Shell, Spain Natural Gas, the NEXT Decade, Mobil Oil, Exelone, Russian Natural Gas, CNPC, Sinopec, Sinotrans, CGNPC, Beijing Gas, Taida Gas, etc.

At the same time, the Company has signed strategic collaboration agreements with Sinopec and Heibei Construction&Investemnt Group Co.,Ltd, and realized cooperation on access to natural gas reception and reserve facilities.

Research and Development

With a focus on the main business, the Company is committed to the direction of industry development and energy technology research. In December 2017, CF Energy and the University of Waterloo in Canada signed a cooperation agreement under which they plan to collaborate to build a R&D center for energy technology and solutions over the next 10 years, so as to promote international cooperation in energy science and technology and the transformation of research results. Closer to home, through cooperation with Anhui Jianzhu University, Chongqing University, Southwest Petroleum University, Chongqing Institute of Science and Technology, Guangdong Institute of Petroleum and Chemical Technology and other domestic colleges and universities, the Company has collaborated to strengthen the nurturing of talent for the industry, and intelligent energy applications research and other aspects of technology development. Together with these partners, the Company aims to make contributions to the reform and development of the national energy industry.

In 2016, the Company set up Sanya Changfeng World Energy Forum Co., Ltd., organizing several seminars with the support of the China Policy Science Research Association. In view of the current reform of the domestic energy industry and atmospheric emissions, new energy innovation, and international cooperation on natural gas production, domestic experts, scholars, business executives and government representatives were invited to exchange views aimed at creating new theoretical concepts as well as practical proposals. In 2017, under the support of the National Energy Administration, the Sanya, Hainan Province Development and Reform Commission, and the People's Government, the Company successfully organized the "2017 Sanya International Energy Forum.” At the Forum, some 500 global energy industry leaders, experts and scholars were invited, and Xinhua News Agency, and CCTV broadcasted to the 220 countries and regions around the globe generated worldwide impact. The company is committed to maintain the Forum as a major platform for the exchange of ideas about international energy.

In the future, CF Energy will accelerate the pace of transformation and upgrade of its operations focusing on its existing business segments, industry strengths and advantages in resources, and advance in both industrial performance and capital utilization. By comprehensively enhancing its core competence as an enterprise, the Company strives to seize the opportunity in the new round of industrial reform to transform into a first-class, internationally respected pioneer in the comprehensive utilization of energy in the domestic industry, as it becomes a new renowned brand among Chinese clean energy enterprises!