Ipco International Limited announced that on 30 September 2017, the subsidiary in Guangshui completed construction of a substation link and an 18 km pipeline from Yang Zhai to Wang Jia Peng. This pipeline will enable natural gas transmission from the new substation link to its Phase One network in Guangshui, as well as a new industrial park. The total cost was approximately RMB 65 million, which should provide the infrastructure required to support revenue and earnings growth as the customer base continues to expand. The subsidiary in Anlu intends to build a 28 km new gas pipeline from the Xiaochang gateway station to the Anlu new sub-station. Construction is expected to commence in 2018 at a total cost of approximately RMB 70 million. The new pipeline will enable the Anlu subsidiary to increase its natural gas supply to 880 million cubic meters per annum, allowing the transmission and distribution of natural gas to new geographic areas and to meet higher demand during the winter season. In addition, factories in the area that are currently using coal are converting to natural gas. The construction will be funded by the company's internal resources and local bank borrowings and is not expected to have a material impact on the Group's earnings per share or net tangible assets for the financial year ending 30 April 2018.