Environmental Sustainability and Carbon Management - The Hong Kong and China Gas Company Limited aims to achieve carbon neutrality by 2050 through energy transformation and innovation, including renewable energy development and carbon management initiatives [13]. - The company has set a new target to reduce greenhouse gas emissions by 10% by 2025 compared to the 2020 baseline, equating to a reduction of 10 million tons annually [16]. - The carbon intensity of gas production in Hong Kong decreased by 23% compared to 2005, with emissions at 0.588 kg CO2 equivalent per GJ of gas produced [18]. - The group aims to focus on clean energy development, particularly natural gas, and accelerate the development of renewable energy production and utilization [32]. - The group established a zero-carbon technology investment fund with a total scale of RMB 10 billion, with the first phase raising RMB 5 billion to invest in renewable energy, energy storage, and smart grid technologies [32]. - The company is exploring the feasibility of extracting hydrogen from gas for applications such as hydrogen fuel cells in buses, with hydrogen content in supplied gas at 49% [17]. - The company is committed to providing carbon management services to industrial and commercial customers to achieve their carbon reduction goals [54]. - The company is actively enhancing R&D in energy management technologies and zero-carbon solutions, focusing on renewable energy and advanced energy storage systems [58]. - The company aims to develop 200 zero-carbon smart parks equipped with photovoltaic systems by 2025, focusing on regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area [57]. - The company has established a carbon asset management company to assist clients in achieving carbon reduction goals through carbon measurement, trading, and management services [56]. Financial Performance and Revenue Growth - The operating revenue for 2021 was HKD 53,564 million, representing a 31% increase from HKD 40,927 million in 2020 [25]. - The group’s net profit attributable to shareholders after one-time provisions was HKD 5.01 billion, down HKD 990 million, or 16.5% year-on-year, with earnings per share of HKD 0.269 [32]. - The company reported a significant increase in revenue, achieving a total of HKD 21 billion for the year, representing a growth of 10% compared to the previous year [46]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 8% to 12% [46]. - The company reported a total revenue of HKD 53,563.7 million for the year ended December 31, 2021, compared to HKD 40,927.0 million in 2020, representing a growth of 30.0% [160]. - The profit before tax for the same period was HKD 8,380.7 million, down from HKD 8,925.6 million in 2020, indicating a decrease of 6.1% [160]. - The company declared a final dividend of HKD 0.23 per share, following an interim dividend of HKD 0.12 per share, totaling HKD 6,531.0 million in dividends for 2021 [160]. Customer Growth and Market Expansion - The total number of customers as of December 31, 2021, reached 1,964,937, an increase of 1% from 1,943,777 in 2020 [25]. - The number of gas customers increased to approximately 35.03 million, marking a growth of 10% [36]. - The company is expanding its market presence in Southeast Asia, targeting a 20% increase in market share within the next two years [46]. - The company completed an investment in Shanghai Gas, holding a 25% direct stake, which serves 6.4 million customers, increasing the group's total customer base to over 41 million [75]. - The number of new customers increased by 21,160, bringing the total to over 196,000 households, a rise of 1.1% from the end of 2020 [82]. Community Engagement and Social Responsibility - The company provided over 592,700 volunteer service hours and supported 830 families with meal packages through its community care initiatives [18]. - The company organized community care activities, distributing 18,960 fresh meal packages to 830 needy families during the pandemic [124]. - The company has been recognized with multiple service awards, including the "Star Diamond Service Award" for public utilities, reflecting its commitment to service excellence [94]. - The company expresses gratitude for the support received during the pandemic and is actively involved in related relief efforts [41]. - Since 2013, the company has donated educational supplies worth over RMB 4.5 million to 43 schools across 14 provinces, benefiting over 9,000 students [133]. Innovation and Technology Development - The company hosted the first TERA-Award competition to explore innovative solutions in smart energy, attracting over 200 entries from 23 countries and regions [20]. - The company is leveraging cloud computing, SaaS, and smart IoT systems in collaboration with Tencent to build a smart energy platform [54]. - The company launched a new series of smart home products, including gas alarms and home water purification systems, in 2021 [75]. - The company is considering strategic acquisitions to enhance its service offerings, with potential targets identified in the renewable energy sector [46]. - The company is actively pursuing market expansion in various provinces, including Hebei and Henan, to enhance its operational footprint [145]. Operational Efficiency and Cost Management - The company plans to enhance operational efficiency, targeting a 5% reduction in operational costs through process optimization [46]. - The company achieved a gas pipeline leakage rate per 100 kilometers that decreased by 28.8% compared to the previous year [21]. - The company has implemented a comprehensive quality management system to monitor all critical production, storage, and distribution facilities [147]. - The company emphasizes employee training and has established emergency response plans, conducting regular simulation exercises [147]. - The company is focused on reducing risks associated with third-party damage to critical infrastructure and ensuring business continuity [147]. Governance and Compliance - The group strictly adheres to local laws and regulations in Hong Kong and mainland China, including compliance with the Gas Safety Ordinance [163]. - The company has implemented a zero-tolerance policy towards corruption and related fraudulent activities, in compliance with the Prevention of Bribery Ordinance [162]. - The board is committed to good corporate governance, emphasizing accountability and transparency to meet stakeholder needs [195]. - The company has confirmed ISO14064 greenhouse gas quantification and verification certification with key suppliers, enhancing its environmental credentials [140]. - The company has established various urban gas projects across multiple provinces, including Guangdong and Hainan, to expand its market presence [142].

Financial Performance - The group reported a net profit of HKD 4.2 billion for the six months ended June 30, 2021, an increase of HKD 1.23 billion or 41.4% compared to the same period last year[2]. - The group's revenue, excluding fuel adjustment costs, was HKD 24.405 billion, up from HKD 17.965 billion in 2020, representing a growth of 36.5%[3]. - The after-tax profit attributable to shareholders for the first half of the year was HKD 778 million, an increase of approximately 34% compared to the same period last year[14]. - The company reported a revenue of HKD 24,727.6 million for the six months ended June 30, 2021, representing a 35.6% increase from HKD 18,235.3 million in 2020[20]. - The net profit for the period was HKD 4,868.5 million, up 52.7% from HKD 3,188.1 million in the previous year[21]. - Basic and diluted earnings per share increased to HKD 22.5, compared to HKD 14.3 in 2020, reflecting a growth of 57.7%[20]. - The total comprehensive income for the period was HKD 5,199.7 million, significantly higher than HKD 1,383.1 million in 2020[21]. - The company declared a dividend of HKD 2,239.2 million for the period, compared to HKD 2,132.6 million in the previous year[20]. Customer and Market Growth - The number of customers in Hong Kong increased to 1,952,813 as of June 30, 2021, a rise of 9,036 from the end of 2020[3]. - The mainland city gas sales volume reached 15.899 million cubic meters, a significant increase from 12.453 million cubic meters in the previous year, reflecting a growth of 27.5%[3]. - The group’s Hong Kong gas sales volume was approximately 14,735 million megajoules, a decrease of 2.8% compared to the same period last year[7]. - The number of gas customers increased to approximately 33.02 million, representing an 8% growth year-on-year[9]. - The group’s performance in the mainland China segment showed a revenue of HKD 15,970.6 million for the six months ended June 30, 2021, compared to HKD 11,154.1 million in the same period of 2020, indicating a growth of 43.1%[39]. Renewable Energy and Sustainability Initiatives - The group plans to enhance its annual production capacity of hydrogenated vegetable oil from 250,000 tons to 350,000 tons, with a 90% reduction in emissions[5]. - The group aims to develop renewable energy projects, focusing on photovoltaic power and biomass fuel production, in line with national carbon neutrality goals[6]. - The group has established R&D bases in Shanghai and Suzhou to produce advanced biofuels from agricultural waste and non-edible oils[5]. - The group has been recognized for its ESG performance, ranking first in the Greater China Sustainable Development Index[6]. - The group has made significant progress in smart energy business expansion, securing multiple zero-carbon smart industrial park projects, with investments expected to commence in Q3 2021[10]. - The group plans to continue expanding its renewable energy business, which is expected to contribute to future revenue growth[36]. Financial Position and Assets - The company’s total assets less current liabilities amounted to HKD 123,218.9 million as of June 30, 2021, an increase from HKD 120,473.9 million at the end of 2020[22]. - The company’s total liabilities increased to HKD 43,357.8 million from HKD 41,320.6 million at the end of 2020[23]. - The company’s total equity attributable to shareholders as of June 30, 2021, was HKD 61,667.3 million, up from HKD 56,033.8 million a year earlier[26]. - The company’s cash and cash equivalents balance as of June 30, 2021, was HKD 8,374.1 million, slightly up from HKD 8,347.0 million at the end of the previous year[24]. - The group’s financial assets at fair value increased to HKD 3,913.2 million as of June 30, 2021, up from HKD 3,752.2 million at the end of 2020, reflecting a growth of 4.3%[35]. Capital Expenditures and Investments - The group has committed capital expenditures for property, plant, and equipment of HKD 5,550 million as of June 30, 2021, slightly down from HKD 5,662.6 million as of December 31, 2020[18]. - The group has committed approximately HKD 4.23 billion for new projects in mainland China as of June 30, 2021, down from HKD 9.66 billion as of December 31, 2020[18]. - The group acquired businesses with a total purchase price of HKD 231.1 million, with a provisional goodwill of HKD 124.1 million calculated based on future profitability[64]. - The group reported a cash outflow of HKD 128.5 million related to business acquisitions during the reporting period[66]. Corporate Governance and Shareholder Information - Major shareholders include Dr. Li Ka-shing and Mr. Li Ka-shing, each holding 41.53% of the company's equity as of June 30, 2021[77]. - The board of directors includes Dr. Li Ka-Shing as chairman and Mr. Li Ka-Cheung as a non-executive director[87]. - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange Listing Rules as of June 30, 2021[73]. - The company has not recorded any other individuals with interests in shares or related shares as of June 30, 2021[82]. Risk Management and Financial Risks - The group continues to face various financial risks, including market risk, credit risk, and liquidity risk[30]. - The group has not made any changes to its risk management policies since the end of the previous year[30]. - The fair value of contingent liabilities related to the acquisition of a subsidiary in 2015 is based on a discount rate of 4.0%[34].

Financial Performance - The total operating revenue for the year 2020 was HKD 40,927 million, a slight increase of 1% compared to HKD 40,628 million in 2019[8]. - The net profit attributable to shareholders decreased by 14% to HKD 6,007 million from HKD 6,966 million in the previous year[8]. - The company reported a post-tax profit of HKD 72,556 million, an increase of approximately 3% from the previous year[15]. - The group’s net profit attributable to shareholders for the year was HKD 6.007 billion, a decrease of approximately 14% compared to the previous year[18]. - The company reported a significant increase in revenue, with a year-over-year growth of 15%[35]. - The company provided a positive outlook for the next quarter, projecting a revenue increase of 10%[35]. - The company’s total liabilities increased to HKD 41,320.6 million in 2020 from HKD 38,905.9 million in 2019, representing an increase of approximately 10.5%[150]. Customer Metrics - The number of customers as of December 31, 2020, reached 1,943,777, reflecting a growth of 1% from 1,933,727 in 2019[8]. - The number of gas customers increased to approximately 31.81 million, reflecting a growth of 7%[22]. - The customer base reached approximately 2 million, with a continuous focus on enhancing service quality and safety measures[79]. - The company expects the number of gas users to increase to 40 million by 2021, contributing to a larger urban gas group[30]. Gas Sales and Operations - The gas sales volume for the year was 27,947 million megajoules, down 3% from 28,712 million megajoules in 2019[8]. - The total gas sales volume in Hong Kong for 2020 was approximately 27,947 million MJ, a slight decrease of 2.7% year-on-year[19]. - The total gas sales volume for urban gas business was approximately 26.9 billion cubic meters in 2020, representing a 5% increase compared to 2019[45]. - The highest hourly demand for gas reached 511 thousand cubic meters, an increase of 8% from 473 thousand cubic meters in 2019[8]. Investments and Projects - The group invested HKD 7.295 billion in production facilities, pipelines, and other fixed assets to expand existing and new businesses in Hong Kong and mainland China[18]. - The group has 436 projects across 27 provinces, autonomous regions, and municipalities in mainland China, as well as one project in Thailand[5]. - The group plans to trial production of sustainable aviation fuel (SAF) based on biomass fuel within the year to cultivate new market growth points[19]. - The group is actively expanding its biomass utilization projects, with two pilot projects in Hebei province expected to commence trial production in the second and fourth quarters of 2021[26]. Environmental Initiatives - The group aims to promote natural gas as a clean energy application to replace high-emission fossil fuels like coal and oil[19]. - The group has received the "Hong Kong Environmental Excellence Award" for its ESG performance, indicating its leadership in environmental, social, and governance responsibilities[19]. - The company is committed to addressing environmental pollution caused by burning agricultural waste through efficient utilization projects[30]. - The company is exploring patented biomass gasification technology to convert agricultural waste into hydrogen-rich gas[93]. Corporate Governance and Compliance - The group strictly adheres to local laws and regulations, including the Prevention of Bribery Ordinance, and has implemented a zero-tolerance policy towards corruption[154]. - The company has a robust risk management system in place to prevent gas leaks or explosions, ensuring compliance with the Gas Safety Ordinance[154]. - The board has established governance functions to review and monitor compliance with legal and regulatory requirements, as well as training for directors and senior management[181]. - The company has adopted a whistleblowing policy to provide guidance for reporting misconduct related to financial reporting or other matters[198]. Employee and Community Engagement - The number of employees as of December 31, 2020, was 2,130, up from 2,096 in 2019, indicating a 2% increase[8]. - The average training hours per employee in Hong Kong for 2020 was 17.5 hours, with a focus on developing a talent pipeline[120]. - The company provided 30,000 meal packages to 1,000 families in need to alleviate their dietary expenses during the pandemic[101]. - The company organized volunteer services totaling 16,633 hours in Hong Kong and 714,300 hours in mainland China[115]. Future Outlook and Strategic Plans - The company anticipates a recovery to high growth in business in a relatively short time post-pandemic[30]. - The company is focusing on cost-saving measures and optimizing operational processes to enhance service levels and operational efficiency[30]. - The company is actively pursuing market expansion through strategic partnerships and acquisitions in the energy sector[133]. - The company is committed to increasing its market share in the clean energy sector through innovative projects and technologies[133].

Financial Performance - The group's operating profit after tax for the six months ended June 30, 2020, was HKD 3.517 billion, a decrease of HKD 366 million or 9.4% compared to the same period last year [2]. - The group's net profit attributable to shareholders was HKD 2.667 billion, down HKD 1.222 billion or 31.4% year-on-year, with earnings per share at HKD 0.15 [3]. - Total revenue, excluding fuel adjustment costs, was HKD 17.965 billion, a decline of 9.8% from HKD 19.924 billion in 2019 [3]. - Revenue for the six months ended June 30, 2020, was HKD 18,235.3 million, a decrease of 10.4% compared to HKD 20,351.9 million in 2019 [17]. - Net profit for the period was HKD 3,188.1 million, representing a decline of 29.0% from HKD 4,485.4 million in 2019 [18]. - The total comprehensive income for the period was HKD 1,383.1 million, significantly lower than HKD 4,531.9 million in 2019 [18]. - The company reported a total comprehensive income of HKD 1,204.1 million for the period, compared to a total comprehensive income of HKD 2,666.9 million in the previous year [56]. Customer and Market Insights - The number of customers in Hong Kong reached 1,935,512, an increase of 1,785 from the end of 2019 [4]. - The group plans to enhance its integrated energy station business, combining electricity, natural gas, and renewable energy to improve energy efficiency [6]. - The company anticipates stable growth in the number of customers in Hong Kong for 2020, despite challenges posed by the COVID-19 pandemic and economic conditions [15]. Operational Developments - The total gas sales volume in mainland China was approximately 12.453 billion cubic meters, a decrease of 4% compared to the same period last year [6]. - The group’s total gas sales volume in Hong Kong was approximately 15,165 million megajoules, a decrease of 3.9% year-on-year [4]. - The group has obtained a total of 267 projects in 26 provinces and municipalities in mainland China, an increase of 2 projects from the end of last year [5]. - The group is actively developing new environmental energy businesses, including coalbed methane liquefaction and biomass conversion, contributing to business growth [5]. - The group is focused on expanding its environmental protection business, including kitchen waste treatment and waste-to-energy projects, to enhance operational synergies and revenue stability [8]. Financial Position and Capital Management - The group reported a net loss in other comprehensive income of HKD 1,269.4 million, primarily due to foreign exchange differences [22]. - The company reported a total asset net of current liabilities of HKD 113,015.9 million, slightly down from HKD 114,302.6 million at the end of 2019 [19]. - The net assets of the company were HKD 72,585.6 million, a decrease from HKD 75,396.7 million in the previous year [20]. - The group believes it has sufficient financial resources to meet its obligations, supported by available credit and expected cash flows [24]. - The total liabilities as of June 30, 2020, were HKD 14,532.0 million, slightly down from HKD 14,718.0 million as of December 31, 2019 [52]. Investments and Projects - The group has invested in 7 water supply projects in mainland China, including joint ventures and independent projects in Jiangsu and Anhui provinces [8]. - The organic waste resource utilization project in Suzhou has processed over 100,000 tons of organic waste, generating nearly 3 million cubic meters of biogas for urban use [7]. - The group has secured a 50-year contract for a liquefied natural gas receiving station in Tangshan, Hebei, allowing for the import of 1 million tons of LNG annually, significantly boosting storage capacity [7]. - The advanced biofuel business in Jiangsu Province's Zhangjiagang City is set to commence production in the third quarter of this year, utilizing self-developed technology [16]. Dividends and Shareholder Returns - The group’s interim dividend per share remains unchanged at HKD 0.12 [3]. - The board declared an interim dividend of HKD 0.12 per share, payable to shareholders on September 14, 2020 [14]. - The company declared a dividend of HKD 2,132.6 million, compared to HKD 2,031.0 million in 2019 [17]. Risk Management and Compliance - The group faced several financial risks, including market risk, credit risk, and liquidity risk, with no changes in risk management policies since the end of the previous year [27]. - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2020 [66]. - The audit and risk committee reviewed the unaudited consolidated interim financial statements for the six months ended June 30, 2020, with no modifications in the review report from the external auditor [67]. Shareholder Information - Major shareholder Dr. Li Ka-shing holds 7,379,707,351 shares, representing 41.53% of the total issued shares as of June 30, 2020 [74]. - Timpani Investments Limited holds 5,703,993,415 shares, accounting for 32.10% of the total issued shares as of June 30, 2020 [74]. - The company holds 7,379,707,351 shares, representing a significant voting power exceeding one-third at the shareholders' meeting [76].

Environmental Commitment and Sustainability - The company is committed to supplying environmentally friendly energy and products, aiming to create a sustainable future for the next generation [2]. - The company actively invests in research and development to seek breakthroughs in innovative technologies to address global environmental challenges [2]. - The company has been recognized for its corporate social responsibility efforts, receiving the Hong Kong Environmental Excellence Award and the Environmental Leadership Award from Bank of China (Hong Kong) [4]. - The group is committed to environmental sustainability, with initiatives to convert kitchen waste and other refuse into natural gas and solid fuels [151]. - The company is focusing on developing smart integrated energy stations and diversifying its energy portfolio to enhance energy efficiency and reduce emissions [157]. - The board announced a new strategy focusing on sustainability, aiming for a 30% reduction in carbon emissions by 2025 [166]. Financial Performance - The total revenue for the year was HKD 40,628 million, an increase of 4% from HKD 39,073 million in the previous year [136]. - The net profit attributable to shareholders decreased by 25% to HKD 6,966 million, down from HKD 9,313 million in the previous year [144]. - The company declared a dividend of HKD 5,924 million, an increase of 10% from HKD 5,385 million in the previous year [136]. - The company’s earnings per share decreased to HKD 0.412, down 25% from HKD 0.550 in the previous year [144]. - The company reported a significant increase in revenue, achieving a total of HKD 10.5 billion for the fiscal year, representing a 15% year-over-year growth [166]. - The company provided an optimistic outlook, projecting a revenue growth of 12% for the next fiscal year, targeting HKD 11.8 billion [166]. Customer Growth and Market Expansion - The number of customers as of December 31 reached 1,933,727, an increase of 1% from 1,908,511 in the previous year [136]. - The number of gas customers increased to approximately 29.78 million, representing an 8% growth [144]. - The company serves nearly 30 million customers across 132 gas projects in 23 provinces, autonomous regions, and municipalities in mainland China [174]. - User data showed a growth in active users, reaching 10 million, which is a 15% increase compared to the previous quarter [164]. - The company is expanding its market presence in mainland China, aiming to increase its market share by 5% over the next two years [166]. Operational Developments and Projects - The company invested HKD 70,500 million in production facilities, pipelines, and other fixed assets to expand its operations [147]. - The total number of projects in mainland China reached 265, covering 26 provinces and municipalities [147]. - The group has invested and operated 7 water supply projects in mainland China, including joint ventures in Suzhou and Wuhu, contributing to stable revenue and high environmental benefits [151]. - The company has initiated 11 new projects in 2019, including gas pipeline projects and distributed energy projects, to increase gas consumption among industrial customers [154]. - The company plans to expand its production capacity to 250,000 tons annually by mid-2020, with the project expected to yield good economic benefits [153]. Challenges and Responses - The group is facing challenges due to the COVID-19 pandemic, which has led to a significant reduction in industrial gas and water demand [151]. - The company is actively pursuing cost-cutting measures and innovation to enhance customer service and operational efficiency [157]. - The company anticipates that the demand for gas will gradually return to normal levels as business operations resume post-pandemic [157]. Research and Development - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience [164]. - Research and development investments increased by 25%, totaling HKD 500 million, to drive innovation in energy solutions [166]. - The company is actively exploring integrated and distributed energy service opportunities, including commercial hot water and heating services [154]. Strategic Initiatives - The company is exploring environmental projects in the Guangdong-Hong Kong-Macao Greater Bay Area to seize investment opportunities [157]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of $200 million allocated for potential deals [164]. - The establishment of the National Pipeline Company in December 2019 is expected to promote the market-oriented reform of the natural gas sector [157]. Product and Service Innovations - The company launched a new gas safety initiative, conducting safety checks and promoting gas safety knowledge to over 6 million customers [187]. - The company is developing a smart kitchen series with IoT capabilities, with some products expected to launch in 2020 [186]. - New product launches are expected to contribute an additional HKD 1 billion in revenue, with a focus on smart home technologies [167].

Financial Performance - The group's unaudited profit attributable to shareholders for the six months ended June 30, 2019, was HKD 3.889 billion, a decrease of HKD 900 million or 18.8% compared to the same period last year [2]. - The company reported a decrease in local gas sales volume of 2.4% to 15,776 million megajoules due to economic slowdown and higher average temperatures [4]. - The net profit for the period was HKD 4,485.4 million, down from HKD 5,371.2 million in the previous year, indicating a decrease of about 16.5% [21]. - The company’s basic and diluted earnings per share were HKD 23.0, down from HKD 28.3 in the previous year, indicating a decline of approximately 18.6% [21]. - The company’s after-tax profit attributable to shareholders for the first half of the year was HKD 756 million, an increase of approximately 14% compared to the same period last year [13]. - The total comprehensive income for the period was HKD 4,531.9 million, compared to HKD 4,544.6 million in the same period of 2018, indicating a marginal decline [27]. - The total revenue for the six months ended June 30, 2019, was HKD 20,351.9 million, an increase of 5.8% from HKD 19,241.6 million in the same period of 2018 [50]. - The adjusted EBITDA for the group was HKD 5,878.1 million, with a breakdown of HKD 2,619.7 million from Hong Kong and HKD 2,888.8 million from mainland China [52]. Revenue and Sales - Revenue, excluding fuel adjustment costs, was HKD 19.924 billion, up from HKD 18.744 billion in 2018, representing an increase of 6.3% [3]. - Gas sales, including fuel adjustment fees, amounted to HKD 15,733.2 million, up from HKD 14,641.1 million, reflecting a growth of 7.5% [50]. - The revenue from gas, water, and related businesses in Hong Kong was HKD 5,207.3 million, while mainland China contributed HKD 13,020.1 million [52]. - The group’s other sales revenue reached HKD 647.6 million, compared to HKD 621.0 million in the previous year, indicating a growth of 4.5% [50]. Customer Growth - The number of Hong Kong gas customers reached 1,920,595, an increase of 12,084 customers compared to the end of 2018 [4]. - The company anticipates stable growth in the number of customers in Hong Kong, supported by government efforts to increase land and housing supply [18]. - The company’s pipeline gas business continues to grow, with an increasing customer base in both Hong Kong and mainland China, which will support the development of new businesses [19]. Investments and Projects - The group has invested in seven water supply projects across various provinces, including a new project in Guangdong Province, marking its first investment in the Greater Bay Area, which aligns with national development goals [8]. - The group is actively enhancing its gas storage capacity in Jiangsu Province, with the first phase of a gas storage facility under construction, aiming for a total capacity of approximately 460 million standard cubic meters, with three wells already operational since October 2018 [7]. - The second phase of the gas storage project plans to construct 12 additional wells, increasing total storage capacity to over 1 billion standard cubic meters, which will support gas supply during peak winter demand in East China [7]. - The group has obtained a total of 260 projects in mainland China, an increase of 6 projects compared to the end of last year [5]. - The company added 5 new projects in 2019, including distributed energy projects in various provinces, enhancing its project development capabilities [13]. Financial Management - The group plans to increase its medium-term note issuance limit from HKD 139 billion to USD 3 billion, enhancing future financing flexibility [15]. - The issuance of new perpetual securities at a coupon rate of 4.75% received over 14 times subscription, reflecting strong market demand [15]. - The group’s interest expenses decreased to HKD 559.5 million from HKD 609.4 million year-on-year, showing improved financial management [21]. - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 4,876.2 million, a decrease of 2.7% compared to HKD 5,010.6 million in the same period of 2018 [25]. - The total liabilities as of June 30, 2019, amounted to HKD 737.3 million, down from HKD 827.8 million as of December 31, 2018 [45]. Environmental Initiatives - The group’s waste treatment facility in Suzhou Industrial Park processes 500 tons of kitchen waste daily, converting it into natural gas and other products, and is the first of its kind in municipal environmental sanitation [8]. - The group is exploring high-quality public utility projects in mainland China, leveraging synergies between urban gas, midstream natural gas, and water services for stable revenue and environmental benefits [9]. - The group has established research bases in Shanghai and Suzhou to develop new energy-saving and emission-reduction technologies, with production bases under construction in East and North China expected to commence operations by the end of 2019 [19]. Shareholder Information - The board declared an interim dividend of HKD 0.12 per share, payable to shareholders listed on the register on September 13, 2019 [17]. - The proposed interim dividend for 2019 is HKD 2,031.0 million [73]. - The total number of issued shares increased to 16,925,052,244 as of June 30, 2019, up from 15,386,411,131 at the end of 2018, reflecting a growth of 10.0% [71]. - The total equity held by major shareholders and related parties is substantial, indicating strong control over the company [92]. Corporate Governance - The group has complied with all corporate governance codes as of June 30, 2019 [84]. - Dr. Li Ka-Kit was appointed as the chairman of the board and the nomination committee after the annual general meeting on May 28, 2019 [96]. - The board of directors includes independent non-executive directors such as Dr. Li Ka-Kit and Dr. Cheng Mu-Chi [99].

Financial Performance - The company reported a total revenue of 132 million, showing a slight increase from the previous period[22]. - The company reported a significant increase in revenue, achieving a total of 205 million in the latest quarter, reflecting a growth of 15% year-over-year[23]. - The group’s revenue from gas sales reached HKD 40 billion in 2018, indicating a steady growth trend[1]. - The total revenue for 2018 was HKD 39,073.0 million, up from HKD 32,476.5 million in 2017, reflecting a year-over-year increase of about 20.0%[182]. - The net profit attributable to shareholders for 2018 was HKD 9,312.8 million, an increase from HKD 8,225.3 million in 2017, which is a rise of about 13.2%[182]. - The profit before tax for 2018 was HKD 12,339.5 million, compared to HKD 11,096.7 million in 2017, indicating a growth of approximately 11.2%[182]. - The earnings per share for 2018 was HKD 0.61, compared to HKD 0.54 in 2017, representing an increase of approximately 12.9%[182]. - The proposed dividend for 2018 was HKD 3,538.9 million, up from HKD 3,217.2 million in 2017, reflecting an increase of about 10.0%[182]. Customer Growth - User data indicates a growth in active users, reaching 131,130, which represents a significant increase compared to last year[22]. - User data showed an increase in active users, reaching 1.2 million, which is a 20% increase compared to the previous quarter[23]. - The number of customers as of December 31, 2018, reached 1,908,511, an increase from 1,883,407 in 2017, representing a growth of approximately 1.3%[182]. - The number of gas customers in mainland China increased to approximately 27.54 million, representing a growth of 9%[34]. Market Expansion and Investment - The company is focusing on new product development, particularly in the areas of distributed energy and LNG stations[22]. - Market expansion efforts include the establishment of new gas supply projects in Hainan and other regions[22]. - The company is exploring potential acquisitions to enhance its market position in the energy sector[22]. - Investment in biomass and other renewable energy projects is a key strategy moving forward[22]. - The company plans to expand its market presence and enhance its service offerings in the energy sector[24]. - The company is actively investing in gas infrastructure in mainland China to supply reliable clean energy to homes and businesses[61]. - The company plans to invest in more LNG receiving stations to meet the growing demand for clean energy, with negotiations ongoing for projects expected to start in 2020[71]. Environmental Initiatives - The company has initiated a pilot project in Tangshan, Hebei Province, utilizing patented technology to convert agricultural waste into furfural and fiber pulp, marking a significant step towards a green economy[7]. - The company is committed to creating economic value for shareholders and the community through its gas, water, and environmental services, promoting a green and low-carbon lifestyle[2]. - The company has reduced carbon emissions by 430,000 tons through its landfill gas application project, equivalent to the carbon absorption of 18.5 million trees annually[138]. - The company is developing new energy-saving and emission-reduction technologies, with several projects expected to commence production within the year[41]. - The company is actively seeking environmentally friendly projects in the Greater Bay Area to align with national development policies and seize investment opportunities[43]. Operational Efficiency - The company aims to improve its logistics capabilities for coal transportation, which is expected to enhance operational efficiency[22]. - The company plans to enhance its distribution network, aiming for a 20% increase in efficiency by the end of the fiscal year[23]. - The company aims to enhance production efficiency and utilize innovative technologies to ensure safe and stable gas supply[137]. - The company has implemented employee training programs and asset management systems to enhance operational safety and security[168]. Awards and Recognition - The company received multiple awards in 2018, including the Supreme Care Award and the Most Creative Award from the "Industrial Love" recognition program[5]. - The company has been recognized multiple times for its outstanding family-friendly employer initiatives[163]. - The "Cooking Together" program for elderly individuals has been recognized with multiple awards, including the "Best Dementia Care Program Award" at the Asia-Pacific Innovation in Elderly Care Services Awards[146]. Community Engagement - The company participated in 265 community service activities in Hong Kong, contributing a total of 91,628 service hours, with cumulative service hours reaching 875,677[145]. - The company donated over 408,600 RMB worth of gifts to more than 13,300 needy individuals, with around 1,800 volunteers packaging nearly 51,000 rice dumplings[146]. - The company organized educational activities to raise awareness of environmental issues among students and teachers[144]. Safety and Compliance - The company conducted safety and risk audits for 106 joint ventures in the 2017-2018 period, with nearly half receiving a "superior" rating of over 90 points[79]. - The overall safety performance of joint ventures improved significantly, with an 80% reduction in accident rates compared to 2009[79]. - The company emphasizes customer safety and regularly conducts safety inspections to ensure the safe operation of gas installations and equipment[80]. - The company has established a comprehensive quality management system to monitor all critical distribution and storage facilities, ensuring compliance with international standards[168].