Towngas China will focus on new energy projects including the Shanxi-based Compressed Natural Gas Filling Station. The Shanxi operation will turn coalbed methane into the liquefied form used in heavy duty trucks. Inner Mongolia Erdos Coal-based Chemical Processing with an annual production of 0.2 million tons is to begin operations next year.

The company's mainland gas business recorded only single digit growth during the first quarter largely owing to a suspension of production in the export-heavy industry. The suspension was prolonged by the Lunar New Year holiday. Towngas China however said it has its sites set on the market of 1.3 billion potential customers on the mainland, offering enormous room for expansion despite the current economic downturn.

According to the company's statement, its profit from mainland operations rose 64 percent in 2008 while its Hong Kong component decreased.

Chan said the company maintains a healthy gearing ratio in spite of the $1 billion bond issue last August which according to the chairman serves as a long term and stable financing source for the company.

In response to the company's share repurchase, Chan said the program is likely to lift share prices.

Chan also said easing investment limits for mainland public welfare undertakings is good news for Hong Kong enterprises. If there are opportunities on the mainland requiring financing the company would consider investing in areas that are open to Hong Kong companies under recent revisions to the Closer Economic Partnership Arrangement.