The Hong Kong and China Gas Company Limited (HCIL) is engaged in the production, distribution and marketing of gas, water and related activities in Hong Kong and mainland China. The Company is also engaged in property development and investment activities in Hong Kong. HCIL’s revenue is mainly generated from the production, distribution and marketing of gas, water and related activities (Gas and Water businesses). During the year ended December 31, 2008, the Company’s total mainland operations, ranging from its piped city-gas projects, upstream and midstream operations, new energy developments to water businesses, consisted of 86 projects and ventures in 18 provinces, municipalities and autonomous regions across the country. HCIL’s midstream ventures consist of natural gas pipelines in Anhui, Hebei and Zhejiang provinces, as well as its project in Jilin.