Investment Rating - The report maintains an **OUTPERFORM** rating for Towngas (3 HK) with a target price of HK$6.39 [3] - The current price is HK$6.30 as of July 25, 2024 [3] - The market capitalization is HK$117.56 billion (US$15.05 billion) [3] Core Views - Towngas has a clear future development strategy with significant breakthroughs in green energy transformation [2] - The company's diversification strategy has been effective, particularly in the mainland urban gas business, which saw an 8% year-on-year growth in 2023 [4] - The green energy transformation has achieved a breakthrough, with the production of SAF and HVO reaching 150,000 tons and 115,000 tons respectively in 2023 [9] - The company's financial performance remains stable, with a 16% year-on-year increase in net profit attributable to shareholders in 2023 [10] Business Growth and Market Expansion - Towngas increased its gas projects in mainland China by 5 to 320 in 2023, with the number of users growing by 2.9 million to 40.19 million [4] - The company's water affairs and environmental businesses have shown stable growth, with innovative attempts such as converting kitchen waste into biogas [4] - The company's green methanol production capacity is expected to reach 120,000 tons, contributing approximately HK$100 million in cash net profit [12] Financial Performance - Despite a 7% year-on-year decrease in total revenue in 2023, Towngas achieved an 11% year-on-year increase in core profit [10] - The company's total assets reached HK$162 billion, with net assets of HK$71.1 billion and cash and bank deposits of HK$9 billion [10] - The company plans to reduce debt by HK$10 billion over the next five years, reflecting its focus on optimizing asset structure and improving capital efficiency [11] Capital Expenditure and Investment Strategy - In 2023, Towngas's capital expenditure was HK$10.2 billion, primarily focused on renewable energy projects, especially photovoltaic investments [11] - The company expects to adjust its capital expenditure to HK$7.1 billion in 2024, with a significant reduction in capital expenditure for Hong Kong China Gas Smart Energy to HK$3.3 billion [11] - The company is actively exploring emerging energy fields such as hydrogen energy, including strategic cooperation with Citybus Group to provide hydrogen refueling station services [12] Profit Forecast and Investment Recommendation - The report forecasts Towngas's main business revenue for FY24-26 to be HK$59.777 billion, HK$62.446 billion, and HK$64.947 billion respectively [13] - The net profit attributable to the parent company is expected to be HK$6.298 billion, HK$6.513 billion, and HK$6.713 billion for the same periods [13] - Based on the DCF model, the target price is expected to be HK$6.39 per share, maintaining the OUTPERFORM rating [13]

Carbon Neutrality and Sustainability Goals - The company has committed to achieving carbon neutrality by 2050 through energy transition and innovation, aiming to reduce greenhouse gas emissions by 10% by 2025 compared to the 2020 baseline[17] - The company aims to reduce the total carbon intensity of gas use by 36% by 2035 compared to 2019, targeting 0.15 kg CO2e/kWh[36] - The company has set a target to reduce greenhouse gas emissions by 10% in its operations by 2025 compared to the 2020 baseline year and to reduce 10 million tons of greenhouse gas emissions annually through measures such as coal-to-gas conversion, photovoltaic power generation, and energy efficiency optimization[83] - The company plans to reduce the total carbon intensity of Hong Kong's gas usage by 36% by 2035 compared to the 2019 baseline year, achieving 0.15 kg of CO2 equivalent per kilowatt-hour[84] Renewable Energy and Green Projects - The company has installed 1.8 gigawatts of photovoltaic capacity across 354 renewable energy projects[14] - The company has processed approximately 1.46 million tons of organic waste by the end of 2023, converting it into bio-natural gas in the Suzhou Industrial Park[14] - The company's carbon intensity in gas production has decreased by 28% compared to the 2005 baseline, reaching 0.549 kg CO2e per unit of gas[19] - The company expects continued growth in renewable energy projects in 2024, with wind and photovoltaic installations playing a crucial role[38] - The renewable energy business achieved profitability in 2023, with 354 projects, an increase of 171 from the previous year[33] - Distributed photovoltaic projects added 1.6 GW in new contracts and 1.2 GW in grid-connected capacity in 2023[33] - The company's organic waste treatment projects processed 1.46 million tons of organic waste in 2023, a 5% increase compared to the previous year[70] - The company has launched the Towngas Smart Operation Platform (TOP) to detect, prevent, and reduce methane leaks, ensuring pipeline safety[85] - The company has incorporated ESG elements into its investment decisions, with 12 related projects approved in December 2023, involving an investment of over RMB 300 million[86] - The company is expanding its sustainable aviation fuel (SAF) production capacity, with a new plant in Malaysia expected to increase annual SAF production to 650,000 tons within two years[107] - The company's innovative waste-to-energy system for Maxim's food factory reduces carbon emissions by 800 tons annually[53] Financial Performance and Metrics - The company's profit attributable to shareholders for 2023 was HK$6.07 billion, a 16% increase from the previous year[25] - The company's revenue for 2023 was HK$56.971 billion, a 7% decrease from the previous year[25] - The company's basic earnings per share for 2023 were HK$0.325, a 16% increase from the previous year[25] - The company's profit attributable to shareholders in 2023 was HKD 1.575 billion, a significant increase of 63.2% compared to the previous year[34] - Revenue for 2023 was HKD 56,971.1 million, a decrease of 6.5% compared to HKD 60,953.4 million in 2022[121] - Net profit attributable to shareholders in 2023 was HKD 6,070.1 million, up 15.7% from HKD 5,247.9 million in 2022[121] - Gas sales volume in 2023 was 27,125 million megajoules, a slight decrease from 27,398 million megajoules in 2022[121] - Total number of customers as of December 31, 2023, was 2,019,656, an increase of 1.2% from 1,995,082 in 2022[121] - Total assets as of December 31, 2023, were HKD 71,018.7 million, down 5.5% from HKD 75,138.7 million in 2022[121] - Earnings per share for 2023 were HKD 0.33, up 17.9% from HKD 0.28 in 2022[121] - Dividend per share for 2023 remained stable at HKD 0.35, consistent with 2022[121] - The company's property, plant, and equipment amounted to HKD 73,416.8 million in 2023, a slight decrease from HKD 74,632.1 million in 2022[121] - The company's investment properties were valued at HKD 1,001.1 million in 2023, up 0.5% from HKD 996.5 million in 2022[121] - The company's intangible assets decreased to HKD 4,463.2 million in 2023 from HKD 5,340.2 million in 2022, a reduction of 16.4%[121] - Customer base increased to 2,019,656 as of December 31, 2023, up by 1.2% from 1,995,082 in 2022[122] - Gas sales volume decreased to 27,125 million megajoules in 2023, down by 1.0% from 27,398 million megajoules in 2022[122] - Revenue for 2023 was HK$56,971.1 million, a decrease of 6.5% from HK$60,953.4 million in 2022[122] - Profit after tax for 2023 was HK$7,171.3 million, an increase of 13.4% from HK$6,324.4 million in 2022[122] - Shareholders' profit attributable for 2023 was HK$6,070.1 million, up by 15.7% from HK$5,247.9 million in 2022[122] - Total assets as of December 31, 2023, were HK$71,018.7 million, a decrease of 5.5% from HK$75,138.7 million in 2022[122] - Earnings per share for 2023 were HK$0.33, up by 17.9% from HK$0.28 in 2022[122] - Dividend per share for 2023 was HK$0.35, consistent with the previous year[122] - The company plans to distribute a final dividend of HK$0.23 per share on June 24, 2024[125] - The company's distributable reserves as of December 31, 2023, amounted to HKD 9.365 billion, compared to HKD 10.862 billion in 2022[127] - Charitable donations for the year totaled approximately HKD 4.1 million, down from HKD 8.6 million in 2022[128] Safety and Operational Efficiency - The company has conducted 1,190,700 regular safety inspections for customers in Hong Kong, with a lost-time injury rate of 0.43 for employees and 0.32 for contractors per million working hours[20] - The company has reduced public gas leak incidents by 15% compared to 2022, with IoT-enabled smart stoves, controllers, and gas meters enhancing home safety[20] - The company introduced "phased array ultrasonic testing" technology to enhance gas supply reliability and completed a horizontal directional drilling project benefiting over 20,000 customers[58] - Gas leakage incidents per 10 km of gas pipeline in Hong Kong decreased by 15% in 2023 compared to 2022[101] - Third-party damage to underground pipelines decreased by 50% in 2023[101] - The company has implemented a comprehensive quality management system to monitor production, storage, and distribution facilities, as well as renewable energy systems[109] - The company has established a smart operation platform for its mainland gas business to optimize safety and operational management[109] - The company uses a SCADA system for precise monitoring and data collection to ensure reliable gas delivery[108] - The company has established a liquefied natural gas storage facility and an underground salt cavern gas storage in Jiangsu Province to optimize gas supply management[108] - The company has diversified its gas supply sources, including natural gas from Australia, naphtha from Southeast Asia and Australia, and biogas from Hong Kong landfills[108] Customer and Community Engagement - The company has provided HKD 24 million in benefits to over 42,000 families through its gas discount program[20] - The company has launched the "Green Flame Energy Scientist Cultivation Program," involving 22 primary schools, and collaborated with B.Duck to host the "Green Flame Future Lab" event, attracting over 10,000 participants[16] - The company received over 5,500 commendation letters in 2023, reflecting strong customer satisfaction[56] - The company donated RMB 1 million to support earthquake relief efforts in Gansu Province[94] - The company provided gas fee discounts totaling HKD 24 million, benefiting over 42,000 households[95] - The company donated HKD 4.1 million to support community activities[96] - The company has donated 10,000 smart controllers and smart gas meters to families in need, enhancing home safety for the elderly and their caregivers[91] - The company provided teaching materials worth over RMB 5 million to more than 50 schools and donated nearly 20,000 books through the "Honghua Light Wind Action" initiative[94] Leadership and Governance - Dr. Lee Ka Kit, aged 60, was appointed as Chairman and Non-Executive Director of the company in May 2019[39] - Dr. Lee Ka Shing, aged 52, was appointed as Chairman and Non-Executive Director of the company in May 2019[40] - Dr. Lee Ka Kit is the Chairman and Managing Director of Henderson Land Development Co., Ltd. and Vice Chairman of Henderson Development Ltd.[39] - Dr. Lee Ka Shing is the Chairman and Managing Director of Henderson Land Development Co., Ltd. and Miramar Hotel and Investment Co., Ltd.[40] - Dr. Lee Ka Kit has been a member of the Standing Committee of the 14th National Committee of the Chinese People's Political Consultative Conference since 2021[39] - Dr. Lee Ka Shing is a member of the 14th Beijing Municipal Committee of the Chinese People's Political Consultative Conference[40] - Dr. Lee Ka Kit holds honorary degrees from the University of Hong Kong and Edinburgh Napier University[39] - Dr. Lee Ka Shing holds honorary fellowships from University College London and Hong Kong Hang Seng University[40] - Dr. Lee Ka Kit is the son of Dr. Lee Shau Kee, the controlling shareholder of the company[39] - Dr. Lee Ka Shing is the son of Dr. Lee Shau Kee and the younger brother of Dr. Lee Ka Kit[40] - The company's executive chairman, Sir Li Ka-shing, has been a director since 1984 and is currently the executive chairman of The Bank of East Asia Limited[42] - Professor Poon Chung-kwong, an independent non-executive director, has been a director since 2009 and is the honorary professor and president of The Hong Kong Polytechnic University[42] - Dr. Cheng Mo-chi, an independent non-executive director, has been a director since January 2019 and is a practicing lawyer with extensive experience in the legal field[42] - Mr. Wong Wai-yee, the executive director, joined the group in 1997 as the financial controller and has been the executive director since June 6, 2022[43] - Mr. Yeung Lui-ming, the executive director and chief financial officer, joined the company in 2023 and was appointed as a director in January 2024[44] - The company's board of directors includes several members with extensive experience in finance, management, and international operations[43][44] - The company has a strong focus on sustainable green energy, as indicated by the presence of a dedicated Sustainable Green Energy Office[45] - The company's operations are divided into various segments, including Hong Kong utility business, mainland utility business, and renewable energy business[45] - The company's leadership team includes individuals with significant experience in investment, operations, and human resources[45] - The company's subsidiaries and associated companies are all publicly listed, indicating a broad and diversified business portfolio[42][43] - The company's vision is to become a leading enterprise in green smart energy, creating a sustainable green energy world[154] - The Board has adopted a Board Independence Policy/Mechanism to ensure independent perspectives and opinions are obtained[155] - The Board has adopted a Board Diversity Policy to enhance the quality of the Board's performance by considering diversity in professional experience, skills, knowledge, cultural and educational background, race, age, and gender[156] - The Board has adopted a Nomination Policy to ensure the Board possesses the skills, experience, and diverse perspectives necessary for the company's business[157] - The Board has adopted a Dividend Policy, typically paying dividends twice a year (interim and final), with the possibility of special dividends when deemed appropriate[159] - The Board currently consists of 2 executive directors and 7 non-executive directors, including 3 independent non-executive directors, to ensure strategies protect shareholders' interests[160] - The company received independence confirmation letters from independent non-executive directors in accordance with Listing Rule 3.13[160] - Mr. Yang Leiming was appointed as an executive director on January 1, 2024, and confirmed his understanding of his responsibilities as a company director[160] - The Board of Directors held four meetings in the fiscal year ending December 31, 2023, with all directors attending all meetings except for one independent non-executive director who attended 3 out of 4 meetings[164] - The Audit and Risk Committee held two meetings in the fiscal year ending December 31, 2023, with all members attending both meetings[170] - The company has not implemented any share option or share award plans, and directors' remuneration is determined based on their roles and responsibilities[171] - The Audit and Risk Committee reviewed the 2022 annual and 2023 interim financial reports, recommended the reappointment of PricewaterhouseCoopers as the external auditor, and reviewed the effectiveness of the company's financial controls, risk management, and internal control systems[169] - The Board of Directors ensures that each director, including non-executive and independent non-executive directors, retires at least once every three years in accordance with the Articles of Association[161] - The company's ESG Committee reviewed key ESG performance indicators, including internal carbon pricing implementation, methane leakage reduction, and progress towards the 2035 carbon reduction target for Hong Kong gas[176] - Female employees accounted for 22.4% of the company's Hong Kong business workforce, including gas, telecommunications, and engineering contracting, as of December 31, 2023[179] - The company aims to appoint at least one female board member by December 31, 2024, to promote gender diversity on the board[178] - The average gender pay ratio for full-time employees, including senior management, was approximately 1:1 between male and female employees[179] - The ESG Committee held one meeting in 2023 to discuss ESG ratings, climate-related issues, and ESG-linked executive compensation[176] - The company's board members received an annual fee of HKD 250,000, with additional fees for committee roles, totaling HKD 250,000 for audit and risk committee members and HKD 100,000 for nomination committee members[172] - The company signed the Equal Opportunities Commission's Racial Diversity and Inclusion Employer Charter in 2023, continuing its commitment to workplace diversity[179] - The ESG Committee identified key ESG risks and opportunities, including climate-related disclosures and the latest international ESG standards[176] - The company's nomination committee reviewed board structure, diversity policies, and recommended the appointment of Mr. Yang Leiming as an executive director and ESG committee member effective January 1, 2024[174] - The company provided training on equal opportunity laws and case studies led by professional trainers from the Equal Opportunities Commission to promote workplace inclusion[179] - External auditor fees for statutory audit services amounted to approximately HKD 14.9 million, while non-audit services (including tax services, interim review services, and transaction-related services) totaled approximately HKD 7.8 million for the year ended December 31, 2023[180] - The company maintains a robust risk management and internal control system, with the Board of Directors conducting bi-annual reviews to ensure its effectiveness, covering financial, operational, compliance, and information security controls[181] - The company has established a comprehensive risk management framework to identify, assess, mitigate, report, and monitor key business risks across all operational units[183] - The company is willing to take on reasonable and controllable risks that align with its business development goals, provided they do not compromise safety, infrastructure, financial stability, reputation, legal standing, or environmental impact[184] - The Audit and Risk Management Committee oversees the overall risk management system, with the Executive Risk Management Committee responsible for implementing and maintaining the system within acceptable risk tolerance levels[185] - The company’s risk management process is integrated into daily operations, with regular communication between regional offices, headquarters, and business units to ensure effective risk management and timely reporting[186] - The company established a Board-level Environmental, Social, and Governance (ESG) Committee to integrate ESG strategies into business operations[187] - The company's risk management framework is continuously improved to adapt to the rapidly changing business environment[187] - The company maintains a Shareholder Communication Policy to ensure effective dialogue with shareholders and investors[188] - The 2023 Annual General Meeting was held on June 7, 2023, with all directors in attendance[189] - Shareholders holding at least 5% of total voting rights can request the convening of a general meeting[190] - Shareholders holding at least 2.5% of total voting rights or 50 shareholders can propose resolutions or statements for general meetings[191] - The company has a dedicated contact person, email, and phone number for shareholder inquiries[192] - Shareholders can nominate director candidates by submitting written notices with required details[193] - The company regularly communicates with investors and analysts, especially after interim and annual results announcements[194] - The company's financial statements for 2023 were audited by PricewaterhouseCoopers, covering consolidated financial position, income, and cash flow statements[195] Market and Economic Conditions - Global economic growth is expected to slow from 3.5% in 2022 to 3.1% in 2023 and remain at 3.1% in 2024, with global inflation projected to decrease from 8.7% in 2022 to 6.8% in 2023 and 5.8% in 2024[105] - China's GDP grew by

Investment Rating - The report initiates coverage with an "Outperform" rating for Hong Kong and China Gas Company (3 HK) with a target price of HKD 6.39 [3][25]. Core Insights - Hong Kong and China Gas Company has been expanding its new energy business while maintaining steady progress in its core operations, which include gas sales and related services [2][5]. - The company has a market capitalization of HKD 110.65 billion (approximately USD 14.13 billion) and a three-month average daily trading volume of USD 12.68 million [3]. Company Overview - Established in 1862, Hong Kong and China Gas Company is the first public utility in Hong Kong, evolving from a simple gas provider to a leading player in the Chinese energy sector [8][22]. - The company's operations encompass smart energy, city gas pipeline, upstream and midstream projects, water supply and sewage treatment, urban waste resource utilization, and emerging environmental energy [8][22]. Financial Performance - The company reported total revenue of HKD 56.971 billion in 2023, reflecting a year-on-year decrease of 6.53% from HKD 60.953 billion in 2022 [4][24]. - The compound annual growth rate (CAGR) of total revenue from 2014 to 2023 was 7.83% [4][24]. - The net profit attributable to the owners of the company for 2023 was HKD 6.070 billion, an increase of 15.66% compared to HKD 5.248 billion in 2022 [4][14]. Revenue Breakdown - Gas sales and related businesses are the core operations, with gas sales amounting to HKD 42.518 billion in 2023, accounting for 74.63% of total revenue [5][23]. - The revenue from mainland China has been increasing, with sales in 2023 reaching HKD 44.982 billion, representing 78.95% of total revenue [5][23]. Profit Forecast and Valuation - The forecast for main operating revenue for FY24-26 is HKD 59.777 billion, HKD 62.446 billion, and HKD 64.947 billion, respectively, with corresponding net profits of HKD 6.298 billion, HKD 6.513 billion, and HKD 6.713 billion [6][25].

Financial Performance - The group's total revenue for 2023 was HKD 56,971 million, a decrease of 6% compared to HKD 60,953 million in 2022[3] - The net profit attributable to shareholders for the year was HKD 6,070 million, an increase of 16% from HKD 5,248 million in the previous year[3] - The core profit rose by 11% to HKD 5,894 million, compared to HKD 5,325 million in 2022[3] - Total revenue for the year ended December 31, 2023, was HKD 56,971.1 million, a decrease of 6.5% compared to HKD 60,953.4 million in 2022[14] - Net profit for the year increased to HKD 7,171.3 million, up 13.4% from HKD 6,324.4 million in the previous year[14] - Basic earnings per share rose to HKD 32.5, compared to HKD 28.1 in 2022, reflecting a growth of 15.7%[14] - The group reported a decrease in gas sales revenue to HKD 41.46 billion in 2023 from HKD 42.27 billion in 2022, reflecting a decline of 1.9%[28] - The total revenue for 2023 was HKD 54,335.1 million, a decrease from HKD 58,207.2 million in 2022, representing a decline of approximately 3%[30] - Adjusted EBITDA for 2023 was HKD 11,914.8 million, compared to HKD 12,046.4 million in 2022, indicating a slight decrease of about 1%[31] - The net profit for the year 2023 was HKD 7,171.3 million, down from HKD 6,324.4 million in 2022, reflecting a decrease of approximately 13%[31] Customer and Sales Growth - The total gas sales volume in Hong Kong was approximately 27,125 million megajoules, a slight decrease of 1% year-on-year[7] - The number of customers in Hong Kong increased by 24,574 to reach 2,020,000 by the end of 2023, representing a growth of 1%[3] - The mainland gas sales volume increased by 8% year-on-year, with a total of 34,699 million cubic meters sold[3] - The total gas sales volume for the group in 2023 was approximately 34.7 billion cubic meters, representing an 8% increase from the previous year[9] - The number of gas customers increased to approximately 40.19 million, a growth of 7.8%[9] Dividends and Shareholder Returns - The company plans to distribute a final dividend of HKD 0.23 per share, maintaining a total annual dividend of HKD 0.35 per share[6] - The company declared an interim dividend of HKD 0.12 per share and proposed a final dividend of HKD 0.23 per share, maintaining the same dividend levels as in 2022[38] - The company maintained a consistent dividend payout of HKD 6,531.0 million for both 2023 and 2022[14] Investment and Development - The company invested approximately HKD 10.2 billion in production facilities, pipelines, and other fixed assets to support ongoing business development[5] - The company is actively developing hydrogen energy and has signed a memorandum of understanding to use hydrogen as an alternative fuel for public buses[8] - The renewable energy business continues to expand, with a cumulative signed photovoltaic capacity of 2.96 GW and 1.8 GW connected to the grid[2] - The renewable energy business achieved profitability in 2023, with a total of 354 renewable energy projects, an increase of 171 projects from the previous year[10] - The group signed 1.6 GW of new distributed photovoltaic contracts and connected 1.2 GW to the grid during the year[10] - The group plans to enhance its renewable energy projects, with a focus on wind and solar power, as well as energy storage solutions[12] - The group is expanding its production capacity for sustainable aviation fuel (SAF) and green methanol, with expected annual production of 120,000 tons of green methanol in Inner Mongolia[13] Financial Position and Assets - Non-current assets totaled HKD 135,343.8 million, down from HKD 139,758.3 million in the previous year[16] - Current assets decreased to HKD 24,434.9 million from HKD 28,711.0 million in 2022[16] - Total liabilities decreased to HKD 39,424.5 million from HKD 43,522.8 million in 2022[17] - The company's net assets amounted to HKD 71,018.7 million, down from HKD 75,138.7 million in the previous year[17] - The total assets as of December 31, 2023, amounted to HKD 161,977.6 million, an increase from HKD 159,429.2 million in 2022[32] Financial Risks and Management - The group faces various financial risks, including market risk, credit risk, and liquidity risk, which are managed through fair value measurement of financial instruments[21] - The group has maintained a strong financial position, believing it has sufficient financial resources to meet its obligations[18] - The group’s financial instruments are measured at fair value, with a classification into three levels based on the observability of inputs used in the valuation[21] - The group has adopted new accounting standards effective from January 1, 2023, but these changes did not have a significant impact on the group's performance or financial position[20] Human Resources and Employment - As of December 31, 2023, the group employed 2,135 staff in the Hong Kong gas business, serving 2,019,656 customers, resulting in an overall productivity of 946 customers per employee[51] - The total human resources cost for 2023 was HKD 1.278 billion, an increase of HKD 21 million compared to the previous year[51] - The group’s total employee count, including mainland and overseas operations, was approximately 54,080 as of the end of 2023, an increase of about 210 from the previous year[52] Corporate Governance and Compliance - The group complied with all provisions of the Corporate Governance Code during the year ended December 31, 2023[55] - The group’s auditor provided an unqualified opinion on the financial statements for the years ended December 31, 2022, and 2023, with no significant issues raised[19]

Financial Performance - The group's unaudited net profit after tax for the six months ended June 30, 2023, was HKD 3.614 billion, an increase of HKD 237 million or 7% compared to the same period last year[11]. - The group's revenue, excluding fuel adjustment costs, was HKD 28.603 billion, a slight decrease from HKD 29.032 billion in the previous year[12]. - The after-tax profit attributable to shareholders for the first half of the year was HKD 1.115 billion, an increase of approximately 7.1% compared to the same period last year[22]. - The company reported a total comprehensive income of HKD 1,595.6 million for the period, significantly higher than HKD 778.0 million in 2022[28]. - The net profit for the period was HKD 4,319.5 million, representing an increase of 6.5% compared to HKD 4,056.5 million in 2022[28]. - The company's revenue for the six months ended June 30, 2023, was HKD 29,177.6 million, a decrease of 1.8% from HKD 29,721.0 million in 2022[27]. - The total revenue for the six months ended June 30, 2023, was HKD 27,902.1 million, compared to HKD 29,721.0 million for the same period in 2022, representing a decrease of approximately 6.1%[47]. - Adjusted EBITDA for the six months ended June 30, 2023, was HKD 6,680.6 million, down from HKD 6,522.7 million in 2022, indicating a slight increase of 2.4%[48]. Customer and Market Growth - The number of customers in Hong Kong reached 2,005,023, an increase of 9,941 customers compared to the end of 2022[13]. - The total gas sales volume in Hong Kong for the first half of 2023 was 14,966 million megajoules, a marginal increase of 0.6% year-on-year[13]. - The group's gas sales volume in mainland China increased to 17,454 million cubic meters, up from 16,057 million cubic meters in the previous year[12]. - The total gas sales volume for the utility business was approximately 17.5 billion cubic meters, an increase of 8.7% compared to the same period last year[15]. - The number of gas customers in mainland China increased to over 38.56 million, a growth of 7.1% year-on-year[15]. Strategic Initiatives and Business Development - The group maintained its strategy for zero carbon emissions and underwent a strategic business restructuring during the period[11]. - The group established a gas supply business segment, enhancing procurement, distribution, and storage capabilities, with total gas storage capacity nearing 400 million cubic meters after the commissioning of two new wells[16]. - The group is advancing renewable energy initiatives, focusing on hydrogen, energy storage, and smart energy, with a new research institute established in Shenzhen to foster clean energy technology[18]. - The company aims to achieve carbon neutrality by 2050, actively expanding low-carbon businesses such as renewable energy and hydrogen energy[23]. - The group signed strategic cooperation agreements with government agencies in Jiangsu and Shandong to promote energy-saving initiatives in public institutions[16]. Financial Position and Assets - The company's total assets as of June 30, 2023, were HKD 130,703.9 million, down from HKD 139,758.3 million at the end of 2022[29]. - The net asset value of the company was HKD 71,618.9 million, a decrease from HKD 75,138.7 million in the previous year[30]. - The group’s total liabilities decreased to HKD 17,611.8 million as of June 30, 2023, from HKD 22,004.3 million at the end of 2022, marking a decline of approximately 20.0%[66]. - The group’s total financial assets as of June 30, 2023, amount to HKD 5,204.5 million, compared to HKD 6,853.0 million as of December 31, 2022, indicating a decrease of approximately 24%[39]. Cash Flow and Investments - Net cash from operating activities for the six months ended June 30, 2023, was HKD 5,215.9 million, an increase of 17.4% from HKD 4,442.9 million in 2022[31]. - Net cash outflow from investing activities was HKD 3,987.8 million, compared to HKD 2,763.4 million in the previous year, reflecting a significant increase in investment expenditures[31]. - The group reported a cash outflow of HKD 2.066 billion from the sale of EcoCeres after accounting for cash and cash equivalents received[80]. - The group’s net cash outflow from acquisitions during the period was HKD 221.7 million[86]. Dividends and Shareholder Returns - A mid-term dividend of HKD 0.12 per share was declared for shareholders listed on the register as of August 31, 2023[24]. - The company paid dividends totaling HKD 4,291.8 million during the period, consistent with the previous year's dividend payments[32]. - The group plans to declare an interim dividend of HKD 2,239.2 million for 2023, maintaining the same level as the previous interim dividend[57]. Environmental and Social Governance - The board of directors established an Environmental, Social, and Governance (ESG) Committee on March 17, 2023, chaired by Mr. Wong Wai-yi[108]. - The group recognized a net gain of approximately HKD 4,700,000,000 from the sale of part of its equity in EcoCeres, Inc. as part of a business restructuring aimed at reducing carbon emissions[54]. Employee and Operational Efficiency - The number of employees in the Hong Kong gas business as of June 30, 2023, was 2,100, serving 2,005,023 customers, with a slight increase in productivity[93]. - The company plans to enhance customer service and operational efficiency through business innovation and digital applications, supporting gas sales in Hong Kong[25].

Financial Performance - For the first half of 2023, the group reported a net profit of HKD 3.614 billion, an increase of 7% compared to the same period last year, with earnings per share at HKD 0.194[3]. - The group achieved a post-tax profit attributable to shareholders of HKD 1.115 billion in the first half of 2023, representing an increase of approximately 7.1% compared to the same period last year[13]. - The net profit for the period was HKD 4,319.5 million, up from HKD 4,056.5 million in the previous year, indicating an increase of about 6.5%[20]. - The total comprehensive income for the period was HKD 1,595.6 million, significantly higher than HKD 778.0 million in the previous year, marking an increase of approximately 104.0%[20]. - The group reported a total revenue of HKD 29,177.6 million for the first half of 2023, a decrease from HKD 29,721.0 million in the same period of 2022, representing a decline of approximately 1.8%[19]. - Adjusted EBITDA for the group was HKD 6,680.6 million, compared to HKD 6,522.7 million in the previous year, reflecting an increase of 2.4%[34]. Gas Sales and Customers - Total gas sales in Hong Kong reached 14,966 million megajoules, a slight increase of 0.6% year-on-year, driven by a 22% growth in industrial gas sales due to the recovery of the tourism and catering sectors[4][5]. - In mainland China, gas sales volume was approximately 17.454 billion cubic meters, representing a year-on-year increase of nearly 9%[2][4]. - The total gas sales volume for the public utility business was approximately 17.5 billion cubic meters, an increase of 8.7% year-on-year, with gas customers growing to over 38.56 million[7]. - The number of gas customers in Hong Kong increased to 2,005,023, up by 9,941 customers from the end of 2022[4][5]. Renewable Energy Initiatives - The renewable energy distributed photovoltaic business has progressed well, with 91 zero-carbon smart park projects developed, totaling over 2.20 GW of signed capacity[2]. - The group aims to achieve carbon neutrality by 2050, actively expanding renewable energy and hydrogen-related low-carbon businesses[14]. - The renewable energy business has developed high-quality projects across 22 provincial regions, with 91 zero-carbon smart parks under development as of June 30, 2023[13]. - The group signed contracts for over 2.20 GW of photovoltaic installed capacity and connected over 1.12 GW to the grid by June 30, 2023[13]. Strategic Developments - The group has established a gas sourcing business segment to enhance its gas supply chain and reduce costs, with a total gas storage capacity nearing 400 million cubic meters[8]. - The group has signed strategic cooperation agreements with public institutions in Jiangsu and Shandong provinces to promote energy-saving initiatives and green transformation[8]. - The group exited a 25% stake in Shanghai Gas Co., recovering RMB 4.663 billion, while continuing to strengthen strategic cooperation in gas resources and renewable energy[2]. - The group has established a clean energy research institute in Shenzhen, focusing on five key R&D areas: hydrogen energy, energy storage, energy digitalization, renewable energy, and energy efficiency[9]. Financial Position and Liabilities - As of June 30, 2023, the group's current liabilities net amount is approximately HKD 7 billion, primarily due to the utilization of HKD 18.5 billion in short-term borrowings[23]. - The group's net assets stood at HKD 71.6 billion, down from HKD 75.1 billion at the end of 2022, indicating a decrease of approximately 4.5%[22]. - The total equity of the group is HKD 71.6 billion, compared to HKD 75.1 billion in the previous period, reflecting a decline of about 4.5%[22]. - The group reported a deferred tax liability of HKD 42.0 billion as of June 30, 2023, compared to HKD 39.6 billion at the end of 2022, representing an increase of approximately 6.1%[22]. Investments and Capital Management - The group plans to invest in renewable energy projects and enhance energy management technology to provide comprehensive energy solutions, aligning with national green development goals[17]. - The group issued a total of HKD 24.91 billion in medium-term notes as of June 30, 2023, compared to HKD 24.07 billion as of December 31, 2022, reflecting an increase of approximately 3.5%[52]. - The group successfully raised RMB 1.5 billion through the issuance of panda bonds in June 2023, with an average interest rate of 3.27%[52]. - The group’s long-term bank loans amounted to HKD 10.93 billion as of June 30, 2023, compared to HKD 8.29 billion as of December 31, 2022[53]. Human Resources and Governance - The total number of employees in the Hong Kong gas business was 2,100 as of June 30, 2023, compared to 2,076 a year earlier, showing a slight increase in workforce[49]. - The group reported a human resources cost of HKD 619 million for the first half of the year, which is an increase of HKD 4 million compared to the same period last year[49]. - The group has complied with all provisions of the Corporate Governance Code as of June 30, 2023[57].

香港中華煤氣有限公司 3 （股份代號： ） 二 零 二 二 年 年 報 願景 致力發展成為綠色智慧能源之領先企業，創造 可持續的綠色能源世界。 使命 為客戶供應安全、可靠、潔淨的智慧能源，提供優質服 務，履行社會責任，確保業務持續增長，提高股東投資 回報，為地球、社會和持份者帶來長遠利益。 目錄 2 2022年獎項及榮譽 61 2022年財務分析 4 2022年環境、社會及管治 62 十年業務結果比較 成績摘要 64 董事會報告 8 2022年業務版圖 76 企業管治報告 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等 內容而引致之任何損失承擔任何責任。 香 港 中 華 煤 氣 有 限 公 司 THE HONG KONG AND CHINA GAS COMPANY LIMITED (根據公司條例在香港註冊成立之有限公司) (股份代號: 3) 2022年 全 年 業 績 初 步 公 布 全年業務經營概況  年內集團整體售氣量在持續低落的大環境之下仍保持平穩，可再生能源項目 的拓展也得到穩步推進，初具規模化發展的基礎。  集團在內地的業務平穩發展，已於28個省級地區取得合共624個項目，本年度 新增的主要為可再生能源項目。  本年度集團股東應佔稅後溢利為港幣52億4千8百萬元，較上年度增加 港幣2億3千1百萬元，上升約5%，每股基本盈利為港幣28.1仙。  擬派末期股息每股港幣23仙。 主 席 報 告 ｢為了實現每個夢想，我們致力守護未來世代的環境資源，同時兼顧 ...

2022 中期報告 書 （股份代號：3） （根據公司條例在香港註冊成立之有限公司） 公司資料 | --- | |----------------| | | | | | 董事 | | 李家傑（主席） | | 李家誠（主席） | | 林高演 | | 馮孝忠 | | 李國寶 * | | 潘宗光 * | | 鄭慕智 * | | 黃維義 | | 何漢明 | * 獨立非執行董事 常務董事 黃維義 執行董事、首席財務總裁 暨公司秘書 何漢明 | --- | |-------| | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | |----------------|-------| | | | | | | | | | | 薪酬委員會 | | | 李國寶（主席） | | | 李家傑 | | | | | | 李家誠 | | | 潘宗光 | | | 鄭慕智 | | | --- | --- | |----------------|-------| | | | | | | | 提名委員會 | | | 李家傑（主席） | | | 李家誠（主席） | | | 李國寶 ...

香港中華煤氣有限公司 二零二一年年報 The Hong Kong and China Gas Company Limited 香港中華煤氣有限公司 香港北角渣華道363號23樓 www.towngas.com 二零二一年 年報 香港中華煤氣有限公司 （股份代號：3） f （）環保生活每一天 | --- | --- | --- | --- | --- | --- | --- | |-------|----------------------|-------|------------------|-------|--------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 目 錄 | | | | | | | | 02 2021 年獎項及榮譽 | 12 | 主席報告 | 42 | 多元化業務 | | | 04 | 邁向可持續發展未來 | 20 | 董事會 | ...