On April 28, 2011, Beijing Sino Gas Weiye Co, an indirect, wholly owned subsidiary of Sino Gas International Holdings, entered into Share Transfer Agreements and other related agreements with Hebei Natural Gas Co. Under the terms of the Agreements, Beijing Sino Gas agreed to sell assets and ownership of three of its indirectly wholly owned subsidiaries, Xinji Zhongchen Gas Co., Jinzhou Weiye Gas Co., and Shenzhou Weiye Gas Co., for total consideration of CNY 44.8 million (about USD 6.68 million). In addition, the parties agreed that the Hebei Gas shall pay the Consideration in four installments pursuant to the terms and conditions set forth in the Agreements.
Our improved operating results are indicative of the continuing strong demand for natural gas in China with the Government's support, rapid urbanization, clean energy promotion and rise in income levels. We will continue to focus on our existing projects in small and medium-sized cities in China, and pursue new business opportunities.
The good results for the first quarter included solid additions made to our ongoing revenue base resulting from the building out of existing distribution networks through aggressively adding new customers. As this imbedded base of customers continues to grow, we expect continuing commensurate growth in our gas sales over time. In targeting second and third tier cities for our future growth, it was always our belief that this sector would particularly benefit from the rapid urbanization and industrialization that China continues to experience.