The importance of Chaozhou City’s ceramics industry to Ouhua Energy’s interests can hardly be understated. Widely regarded as the “Ceramics Capital” of the PRC, and with a national market valued at RMB 60 billion, the ceramics industry offers substantial revenue, especially when LPG costs account for 40% of its production costs.
Nonetheless, at Ouhua Energy, while we value our relations with our customers from the ceramics industry very deeply, we are careful not to practise over-reliance on any single category of customers. Since June 2006, we have successfully concluded LPG sales with select foreign customers within the PRC, and we will continue to explore similar opportunities whenever possible.
However, our core customer base still consists mainly of lower-tier gas distributors in the country, some of whom share exclusive contracts that range typically from two to five years. We count six related contract distributors and 13 third party contract distributors, amongst our loyal customers, and we certainly look forward to expanding our reach in the coming years.