REFERENCE: Jyluenergya OJSC (Kazakhstan) - general information, licenses, characteristics of activities

/IRBIS, information of the KASE Listing commission, Nov 9, 01/ - The following information is published due to the admittance of common inscribed and preferred inscribed shares of Jyluenergya OJSC into official list of the Kazakhstan Stock Exchange (KASE) under category "B". GENERAL INFORMATION Date of initial state registration - March 31, 1994. Legal status - open joint stock company. Primary activities - generation, transmission and sales of heat and hot water supplies. The legal and actual address of the head office - 3a, Sankibai batyr Ave., Aktobe, 463012, Kazakhstan. Tel/ 8 (3132) 577043, fax. 577000. Email: gilu@mail.online.kz. The number of employees as of September 1, 2001 is 616. LICENSES - State license #0000013 of Ministry of Energy and Mineral Resources of Kazakhstan to exploit and repair of high pressure boilers, vessels and pipelines, dated March 26, 2001. - State license #0001043 of Ministry of Energy and Mineral Resources of Kazakhstan to generate and transmit heat, dated August 27, 1998. - State license GSL #003188 of the Construction Committee of Ministry of Economy and Trade of Kazakhstan to engage in construction-mounting activities in Kazakhstan, dated February 16, 2001 (to be renewed each year). CHARACTERISTICS OF ACTIVITIES Jyluenergya OJSC was established on the basis of Heat network enterprises. Presently, the company is the major supplier of heat and hot water in Aktobe and is a natural monopoly entered into the State register of natural monopolies of Kazakhstan. Main income of Jyluenergya OJSC is derived from distribution and transmission of heat. As of July 1, 2001, the company's own heat generation was 5.9% of total heat distributed by the company. The supplier of main volume of heat energy is Aktobe TETS CJSC. The interaction between Jyluenergya OJSC and Aktobe TETS CJSC is done on a long-term basis by signing an agreement reviewed annually. The agreement is based on purchase-sale of heat as a hot water produced by Aktobe TETS CJSC and bought by Jyluenergya OJSC. Dynamics of production figures of Jyluenergya OJSC (th. GCal) ------------------------------------------------------------------- Indicator 1998 1999 2000 as of July 1.01 ----------------------------- ----- ----- ----- --------------- Heat produced by the company 88 99 88 52 Heat received from ATETS CJSC 1,226 1,469 1,510 840 Total 1,314 1,568 1,598 893 Heat loss 132 236 297 175 Heat sold 1,182 1,333 1,301 718 ------------------------------------------------------------------- The cost of sold goods is mainly dependent on the cost of the raw materials, as well as the loss of heat. The main reason for the loss of heat on thermal pipelines is the wearout, which reaches 60.2%. Clients. Now, a total of 64,429 contracts were signed with individuals and about 970 contracts with legal entities to supply heat and hot water to service 1,817 objects. Structure of accounts receivable and payable on heat consumers of Jyluenergya OJSC as of October 1, 2001 (th. KZT) ----------------------------------------------------- Item Accounts receivable Accounts payable -------------- ------------------- ---------------- Population 631,577 1,109 Budget 12,502 210,985 national 9,293 3,241 regional 2,920 96,753 city 290 110,990 Legal entities 36,661 37,462 -------------- ------------------- ---------------- Total 680,894 249,556 ----------------------------------------------------- Jyluenergya OJSC has an acute problem of non-payments. As of October 1, 2001, accounts receivable reached KZT681m. Main source of non-payments is the individuals, who account for KZT632m of debt, including overdue and bad debt - KZT189m. Now, there is an agreement with the Akimat of the city to allocate KZT175m from the budget to pay housing expenses for low- income and unemployed people. To solve this problem a complex work is being done: each apartment is checked for overdue amounts by the employees of customer service department, fines are charged and cases are brought to the court of Aktobe. Production and inventory base. The basis for inventories of Jyluenergya OJSC, as well as for its technological process, is the thermal network. Its length is 195.7 km. Including thermal network from ATETS CJSC is 167.7 km, from the company's boilers - 28 km. Estimated added thermal capacity of the pipelines is 455.44 th. Gcal/h. Jyluenergya OJSC has 15 boilers generating heat. Total capacity of all boilers is 65.9 Gcal/h. Annual generation of heat by the company's boilers is 105.1 th. Gcal/h. There are two types of reasons explaining the presence of the boilers: - There are a number of entities located out of the city, but within the infrastructure of the city. Considering their remote location, the most acceptable way of supplying heat to these objects is to provide them with autonomous source of heat, such as boilers. - Historically it has settled so that the boilers were recorded in the balance sheet of Jyluenergya OJSC from the day they have been put into service and still bound to the company. There are 12 mixing pumping stations in Aktobe which are mainly used to mix the water in thermal networks raising its temperature to the necessary levels and further supply of water with the pumps. One pumping station can supply heat to a number of houses. The company also has a network of elevator units consisting of 79 similar units used in similar way that the pumping stations are used to mix the lesser volumes of water and raising its temperature to necessary levels. The company has vehicles (75 units), including: buses (7); cranes (8); cesspoolage trucks (5); gasoline truck (1); cargo trucks (28); earth moving machinery (10); regular cars (6); welding machinery (8); tractors (2).