CF Energy (CFY) has announced several updates in the company's business operations, including on-track development for two of its smart energy projects.
Regulatory officials in Hainan Province, China, have introduced new rules relating to the distribution of natural gas.
According to the new rules, certain service charges relating to the distribution of natural gas to customers in Sanya will be abolished.
The new rules will impact the company’s pipeline connection fees, and the company estimates a reduction in revenue of around two per cent as a result of this regulatory change.
CF Energy plans to grow its customer base and optimize district gas supply and operational costs to offset the decreased revenue.
In addition to the new rules, CF Energy announced that it invested approximately RMB13,040,000 (C$2,561,886) in Blue Valley Intelligence Technology, a privately held electric vehicle battery technology development and service company in China.
Blue Valley Intelligence Technology estimates that there could be four million battery-swap-type electric vehicles on the road in China by 2024.
CF Energy currently has two electrical vehicle battery swap stations in Sanya City, a third that will soon be operational in Zhuhai City, and a fourth planned for development in Haikou.
CF Energy is a natural gas distribution company.
CF Energy Corp. (CFY) is down 6.56 per cent and is trading at $0.57 per share as of 9:30 am ET.