CHINA GAS HOLD (00384) accelerates its transformation into intelligent operations. In the future, the penetration rate of AI in its core business will exceed 90%.

As a leading enterprise in the CHINA GAS HOLD industry, in recent years, CHINA GAS HOLD (00384) has continuously increased its investment in artificial intelligence (AI) technology, and has achieved a series of important results. Since January 2025, with the domestic large-scale DeepSeek model sparking a new round of "AI algorithm and computational power revolution" globally, the global competition landscape and development logic of artificial intelligence have once again undergone profound changes. CHINA GAS HOLD actively embraces change, continuously combining its rich industry experience, application scenarios, and rapidly evolving AI large-scale model technology. By empowering safe operations, enterprise management, and customer service with AI, exploring innovative applications of AI in the gas industry, and comprehensively promoting corporate intelligent transformation, it injects new energy into the industry's intelligent upgrade. Highlights of achievements: AI empowerment for many years Witnesses transformation in all scenarios It is understood that over the years, CHINA GAS HOLD has achieved precise risk control in safe operations by relying on advancing AI technology, with improvements in efficiency and reliability. The Long-Mingzhong system independently developed by China Gas constantly analyzes AI big data, sending out 250,000 warning messages throughout the year, with a safety hazard closure rate exceeding 98%. The AI approval rate has increased by 90%, achieving instant compliance checks to avoid potential losses exceeding tens of millions. In addition, CHINA GAS HOLD has also integrated AI technology with OMP, engineering visualization systems, and SCADA cloud platforms to monitor the real-time operational status of 100,000 devices, achieving an accurate fault prediction rate of 88%. Preventive maintenance has reduced downtime by 15,000 hours annually, and equipment failure rates have decreased by 30%. The pass rate of welding quality has increased to over 98%, with a 45% decrease in quality accident rate year-on-year. AI is also a "magic weapon" to improve corporate management efficiency, helping to boost enterprise management efficiency and cost optimization. For example, CHINA GAS HOLD utilizes AI technology to assist risk control departments such as legal affairs in AI contract review, achieving 90% automatic identification of contract risk points by the legal compliance system, a 30% improvement in review efficiency, and a reduction of over 1 hour in single contract review time. In terms of HR management intelligence, CHINA GAS HOLD uses AI technology to reduce the payroll calculation error rate in the PS system (HR management) to 0.05% and shorten the performance assessment cycle by 65%. AI also serves as an efficient IT operations assistant, allowing CHINA GAS HOLD to automatically classify 90% of IT operation work orders, reduce fault handling time by 50%, increase operational efficiency by 60%, and improve knowledge base call speed by 5 times. In terms of customer service, AI can also enhance user experience and achieve record high satisfaction levels. It is reported that CHINA GAS HOLD's intelligent customer service center handles an average of 32,000 voice commands per day, with a recognition accuracy of 91%, a 35% reduction in manual costs, and a customer satisfaction rate of 93%. AIDIGIHUMAN "RanXiaoZhi": combining voice and animation interaction, achieves a satisfaction rate of over 97%, reducing the pressure on manual customer service by 40%. Security image recognition: processing an average of 60,000 images per day, achieving a recognition accuracy of 99.7%, and reducing manual review costs by 70%. In terms of market and operations, AI enables data-driven decision-making and efficient resource allocation. For example, CHINA GAS HOLD's smart trading platform dynamically optimizes the matching of natural gas supply and demand through AI, leading to an expected 50% reduction in external procurement contracts. Big customer volume analysis helps recover monthly gas losses exceeding 2 million cubic meters. CHINA GAS HOLD GIS system enhances emergency response efficiency by 50%, achieves 100% automation coverage for pipeline data quality checks, and accurately restores 100% of underground pipeline trends. In addition, in terms of intelligentization of the smart trading platform, CHINA GAS HOLD is optimizing the supply and demand matching of natural gas by analyzing a large amount of data and complex constraints, ensuring efficient distribution of resources and dynamically adjusting supply plans to meet demand at different times and locations while minimizing costs and waste, thus improving overall operational efficiency and reliability. Through scenarios such as monthly resource optimization, transmission and distribution path optimization, and annual procurement plans, external procurement contracts are expected to be reduced by 50%, saving costs in the millions. Through AI algorithms, the company can also analyze real-time fluctuations in gas prices in various regions of the country and customer gas usage behavior. Based on the AI large model base, the smart trading platform can predict market demand for the next quarter, generate differentiated pricing strategies. For example, the intelligent gas system through big data AI monitoring discovered abnormal gas usage data from multiple users in a certain location, issued warnings, helped the company investigate and successfully address serious safety hazards such as gas leaks and thefts, potentially saving hundreds of thousands of dollars in losses. Future prospects: AI penetration rate of core business will exceed 90%, laying the foundation of "AI" for a century-old foundation The world is changing rapidly, AI is advancing rapidly, and whether for individuals, enterprises, or even countries, we all face unprecedented changes and opportunities. Enterprises and employees who are complacent and resistant to change will eventually be crushed and abandoned by the wheels of the AI era. Those who understand and utilize AI well will not only enhance their abilities but also become favored figures to steer the train of the times. Recently, at the 2025 annual conference of CHINA GAS HOLD, several members of the board of directors and core management team of the company all mentioned the profound shock and inspiration that DeepSeek has brought to themselves and the gas industry. Liu Minghui, Chairman and President of CHINA GAS HOLD, expressed at the meeting that CHINA GAS HOLD will invest more comprehensively and deeply in AI application research, using the latest and best AI technology, focusing on technology implementation, further promoting the company's intelligent transformation, enhancing the company's capabilities in safe operations, enterprise management, and customer service, consolidating the company's leading position in the industry, and laying the foundation of "AI" for a century-old business of CHINA GAS HOLD. He also emphasized that all employees must learn DeepSeek.Waiting for knowledge of AI large models, using AI, and utilizing AI effectively.The relevant person in charge of CHINA GAS HOLD's subsidiary introduced that AI technology is applied in various core areas such as software development and operation of the Yi Pin Hui commercial platform. Through practices and trial runs such as code-assisted generation, automated production of product materials, and data-driven selection, AI has demonstrated its value in increasing efficiency in standardized processes. Preliminary application data shows that the technology has improved efficiency by 15%-50% in certain aspects of work, with significant room for further optimization. In terms of safety management, CHINA GAS HOLD will continue to deepen the application of AI, building a comprehensive early warning big data platform to monitor key information such as overdue safety inspections and households not checked for over two years in real time; the "AI operational brain" constantly monitors safety dynamics, anticipates potential risks in advance, ensures timely detection and proper handling of hazards, providing scientific basis for safety management and ensuring gas safety for users. In meter reading management, CHINA GAS HOLD will utilize the latest AI data analysis technology to deeply analyze meter reading data, predict customers' gas usage, optimize meter reading and billing plans, improve efficiency, reduce human errors, enhance service accuracy and reliability, and make meter reading work more scientifically reasonable. At the same time, thorough analysis of user gas consumption behavior is carried out using the big data platform to provide personalized gas usage recommendations and service plans, further enhancing user service experience and satisfaction levels. Han Peng, General Manager of the Digital Development Department of CHINA GAS HOLD, stated, "AI is not just a tool, but also the core engine reshaping the industry ecosystem. We will use technology as the link to drive the gas industry from being 'experience-driven' to 'data-intelligence-driven', providing a template for a safe, efficient, and green future energy system." Industry Value: Applying AI is not only an opportunity, but also a responsibility to create a benchmark for smart energy for the benefit of the people. Han Peng mentioned that CHINA GAS HOLD will invest over 3 billion yuan, focusing on three major directions: digital twin center, low-carbon intelligent operation, and overall user experience upgrade. In the next three years, the penetration rate of AI in CHINA GAS HOLD's core business will exceed 90%, further reducing operating costs by 20%; constructing the industry's first gas digital twin center, covering over 80% of the national pipeline network, setting a new benchmark for industry development. The digital twin center will cover over 80% of the national pipeline network, achieving real-time simulation and intelligent control, further reducing operating costs by 20%; the direction of low-carbon intelligent operation will combine AI and Internet of Things technologies to optimize energy distribution and loss control, helping achieve the goal of "dual carbon"; the upgrade of overall user experience will deepen applications such as AIDIGIHUMAN and intelligent customer service, aiming to surpass 99% in customer satisfaction and establish industry service standards. From risk warning to resource optimization, from efficiency reform to experience upgrade, CHINA GAS HOLD is leveraging AI technology to drive the comprehensive intelligence transformation of the gas industry. DeepSeek represents China leading the new global AI wave, and CHINA GAS HOLD's rich history of AI application practice cases and achievements not only validate the feasibility of AI technology implementation but also open up infinite imagination space for "AI + green energy" for the public. "The rapid development of artificial intelligence technology is reshaping the gas industry in ways we have never seen before. As a pioneer in the industry, CHINA GAS HOLD deeply understands that AI is not just a technology tool, but also the core engine driving industry transformation and serving national strategies," said Liu Minghui. "The gas industry is closely related to the national economy and people's livelihoods. Applying AI is not only an opportunity but also a responsibility. As a leading company in the industry, CHINA GAS HOLD has the responsibility to create a smarter and safer energy enterprise benchmark for users and the government in China. We firmly believe that with AI as the link, the gas industry will be safer, more efficient, and greener, injecting boundless energy into the country's high-quality development. China Gas is willing to work together with all sectors, using technology as the wings, mission as the rudder, and jointly writing a brilliant chapter of the new era of smart energy!"