昆 侖 能 源 有 限 公 司 Kunlun Energy Company Limited (incorporated in Bermuda with limited liability 於百慕達註冊之有限公司） (Stock Code 股份代號：00135.HK) NOTIFICATION LETTER 通知信函 Date as postmarked Dear Non-registered Holder(s) (Note 1) , – Notice of publication of 2025 Interim Report (the "Current Corporate Communication") The English and Chinese versions of the Company's Current Corporate Communications are available on the Company's website at www.kunlun.com.hk and the website of The Stock Exchange of Hong Kong Limited (the ...

[Chairman's Statement](index=3&type=section&id=Chairman's%20Statement) Kunlun Energy's Chairman's Statement outlines H1 2025 operating performance, strategic progress, and future outlook, highlighting revenue growth, core business development, and breakthroughs in strategic, digital, and multi-energy integration projects [Overall Performance Highlights (H1 2025)](index=3&type=section&id=1.1%20Overall%20Performance%20Highlights%20(H1%202025)) In H1 2025, revenue grew 4.97% to RMB 97.543 billion, but profit attributable to shareholders decreased 4.36% to RMB 3.161 billion, with increases in natural gas retail, LPG sales, LNG processing, and crude oil sales H1 2025 Key Financial and Operating Indicators | Indicator | Amount/Quantity | Y-o-Y Change | | :--- | :--- | :--- | | Revenue | RMB 97.543 billion | Increase 4.97% | | Profit Attributable to Shareholders | RMB 3.161 billion | Decrease 4.36% | | Natural Gas Retail Volume | 16.666 billion cubic meters | Increase 2.23% | | LPG Sales Volume | 3.0684 million tons | Increase 4.87% | | LNG Self-produced, Processed, and Vaporized/Loaded Volume | 9.651 billion cubic meters | Increase 1.13% | | E&P Crude Oil Sales Volume | 4.12 million barrels | Increase 1.98% | [Business Review](index=4&type=section&id=1.2%20Business%20Review) H1 2025 saw the company navigate a complex global gas market and domestic consumption pressure, achieving stable operations and resilient profitability through optimized resource allocation, market penetration, and seizing growth opportunities, while advancing core businesses, strategic digital projects, multi-energy integration, and improving ESG performance - In H1 2025, the global gas trade landscape underwent profound adjustments, with prices in the three major international markets rising year-on-year, while domestic natural gas supply and demand remained loose, apparent consumption slightly decreased, and terminal market competition intensified[15](index=15&type=chunk)[18](index=18&type=chunk) - The company directly addressed challenges, focusing on expanding scale, increasing users, optimizing structure, and controlling costs, while advancing modern marketing and corporate governance, optimizing resource allocation, deepening existing markets, and seizing incremental opportunities, achieving stable and controlled operations, steady business performance, and strong profit resilience[16](index=16&type=chunk)[18](index=18&type=chunk) [Core Business Development](index=5&type=section&id=1.2.1%20Core%20Business%20Development) The company focused on urban gas, exceeding **16.853 million households**, with natural gas sales up 10.05%, LNG loading volume up 75.5% and record pre-tax profit, and optimized LPG sales with industrial direct supply up 8.9% - Total users in the urban gas core business exceeded **16.853 million households**, with natural gas sales totaling **29.095 billion cubic meters**, a **10.05% year-on-year increase**, solidifying its industry-leading position[19](index=19&type=chunk)[21](index=21&type=chunk) - LNG loading volume increased by **75.5% year-on-year**, the overall maintenance cycle for LNG plants shortened by **25%**, and pre-tax profit from plants reached **RMB 140 million**, marking the best performance for the same period in history[19](index=19&type=chunk)[21](index=21&type=chunk) - LPG sales structure continued to optimize, with industrial direct supply sales increasing by **8.9% year-on-year**[19](index=19&type=chunk)[21](index=21&type=chunk) H1 2025 Key Financial Indicators | Indicator | Amount (RMB) | | :--- | :--- | | Total Revenue | 97.54 billion | | Net Profit Attributable to Parent | 3.16 billion | | Free Cash Flow | 3.06 billion | [Strategic and Digital Projects](index=5&type=section&id=1.2.2%20Strategic%20and%20Digital%20Projects) Significant progress was made in key infrastructure, including innovative construction at Fujian LNG terminal, Donggang undersea tunnel completion, and over 50% progress on Jiangsu LNG terminal's third-phase pier, alongside steady digital transformation with Kunlun ERP launch, AI video surveillance, and 18% growth in online value-added services - Fujian LNG terminal pioneered domestic LNG wall construction, and the Donggang undersea tunnel was fully opened; the controlling project for Jiangsu LNG terminal's third-phase pier is over halfway complete, expected to add **6.25 million tons/year** of receiving capacity by 2029[20](index=20&type=chunk)[22](index=22&type=chunk) - Dongjiakou LPG storage facility commenced operations, and the preliminary design for Jiangsu Yancheng LPG import terminal and storage project received approval[20](index=20&type=chunk)[22](index=22&type=chunk) - Kunlun ERP system launched, with information enhancement projects like production operation platforms and smart IoT underway; AI video surveillance was fully implemented in high-risk areas, significantly improving safety through technology[20](index=20&type=chunk)[22](index=22&type=chunk) - Kunlun Huixiang+ integrated into the Yunmengze platform, with online sales of value-added services increasing by **18% year-on-year**[20](index=20&type=chunk)[22](index=22&type=chunk) [Multi-energy Integration and Emerging Sectors](index=6&type=section&id=1.2.3%20Multi-energy%20Integration%20and%20Emerging%20Sectors) The company achieved breakthroughs in multi-energy integration, securing **25,000 kW** of clean energy quotas, adding **185,000 kW** in gas-fired power, reaching **11.091 million kW** total installed capacity, successfully grid-connecting two pressure differential power projects, completing 88 distributed PV projects, registering its first controlled integrated energy demonstration project, and accelerating marine LNG bunkering with **108% growth** - Secured **25,000 kW** of clean energy quotas, participated in and commissioned **16** natural gas power generation projects, adding **185,000 kW** in gas-fired power, bringing total installed capacity to **11.091 million kW**[23](index=23&type=chunk)[25](index=25&type=chunk) - Two pressure differential power generation projects successfully connected to the grid as the first batch of demonstration zero-carbon stations[23](index=23&type=chunk)[25](index=25&type=chunk) - A total of **88** distributed photovoltaic projects were completed, with an installed capacity of **16,000 kW** and power generation of **8.771 million kWh**[23](index=23&type=chunk)[25](index=25&type=chunk) - The first controlled integrated energy demonstration project, Chongqing Tongliang Distributed Energy Project, completed business registration, with **10** integrated energy projects commissioned and operating[23](index=23&type=chunk)[25](index=25&type=chunk) - Marine LNG bunkering business accelerated, achieving normalized bonded services in Shenzhen, Zhoushan, and Hong Kong, with bunkering volume increasing by **108% year-on-year**[23](index=23&type=chunk)[25](index=25&type=chunk) [ESG and Corporate Governance](index=6&type=section&id=1.2.4%20ESG%20and%20Corporate%20Governance) The company deeply integrated ESG into corporate governance, enhancing compliance and market-oriented mechanisms, earning an "Excellent" rating in SASAC's "Double Hundred Action" reform, significantly improving ESG performance with MSCI A-rating and Wind AA-rating, and innovating biodiversity protection with projects selected as national exemplary cases - Deepened the rule of law in enterprise management and compliance enhancement, with increasingly完善 market-oriented operating and incentive mechanisms, earning an 'Excellent' rating in SASAC's 'Double Hundred Action' deepening reform assessment[24](index=24&type=chunk)[26](index=26&type=chunk) - ESG performance significantly improved, with MSCI (Morgan Stanley Capital International) rating upgraded to **A** and Wind rating raised to **AA**[24](index=24&type=chunk)[26](index=26&type=chunk) - Innovatively promoted biodiversity protection, with Hainan 'Wenfeng Luyuan' self-contributed biodiversity conservation area selected as an excellent enterprise ESG case by the Ministry of Ecology and Environment[24](index=24&type=chunk)[26](index=26&type=chunk) [Dividend Policy](index=7&type=section&id=1.3%20Dividend%20Policy) The company maintains its commitment to long-term shareholder value through a stable dividend policy, with the Board declaring an interim dividend of **RMB 16.60 fen per share**, a **1.16% year-on-year increase**, and a payout ratio of **45.47%** H1 2025 Interim Dividend | Indicator | Amount | Y-o-Y Change | | :--- | :--- | :--- | | Interim Dividend Per Share | RMB 16.60 fen | Increase 1.16% | | Payout Ratio | 45.47% | - | [Operating Results by Business Segment](index=7&type=section&id=1.4%20Operating%20Results%20by%20Business%20Segment) This section details the H1 2025 operational and financial performance of core business segments, including natural gas sales, LPG sales, LNG processing and terminal, and exploration and production, with varied results across segments [Natural Gas Sales Business](index=7&type=section&id=1.4.1%20Natural%20Gas%20Sales%20Business) The natural gas sales business added **5** urban gas projects, with sales volume up **10.05%** to **29.095 billion cubic meters**, retail volume up **2.23%**, and **398,800** new users; revenue grew **6.06%**, but profit before income tax decreased **10.55%** - Added **5** urban gas projects, distributed across **3** provinces: Inner Mongolia, Shandong, and Guizhou[29](index=29&type=chunk)[34](index=34&type=chunk) Natural Gas Sales Business H1 2025 Performance | Indicator | Amount/Quantity | Y-o-Y Change | | :--- | :--- | :--- | | Natural Gas Sales Volume | 29.095 billion cubic meters | Increase 10.05% | | Retail Gas Volume | 16.666 billion cubic meters | Increase 2.23% | | New Users | 398,800 households | - | | Revenue | RMB 80.078 billion | Increase 6.06% | | Profit Before Income Tax | RMB 4.477 billion | Decrease 10.55% | [LPG Sales Business](index=7&type=section&id=1.4.2%20Sales%20of%20LPG%20Business) LPG sales volume increased **4.87%** to **3.0684 million tons** and revenue grew **1.03%** through optimized resource allocation and "molecular sales" strategy; despite market price declines, reasonable profitability was maintained, but profit before income tax decreased **3.03%** - Optimized resource allocation, promoted 'molecular sales' to precisely match products with user demand, strictly controlled procurement costs, and expanded competitive bidding and online sales[31](index=31&type=chunk)[36](index=36&type=chunk) - Optimized sales structure, vigorously expanded LPG industrial direct supply channels, and added **5** new industrial direct supply users[31](index=31&type=chunk)[36](index=36&type=chunk) LPG Sales Business H1 2025 Performance | Indicator | Amount/Quantity | Y-o-Y Change | | :--- | :--- | :--- | | LPG Sales Volume | 3.0684 million tons | Increase 4.87% | | Revenue | RMB 13.020 billion | Increase 1.03% | | Profit Before Income Tax | RMB 544 million | Decrease 3.03% | [LNG Processing and Terminal Business](index=8&type=section&id=1.4.3%20LNG%20Processing%20and%20Terminal%20Business) LNG processing and terminal business maintained specialized development and lean management, ensuring safe and stable operation of receiving terminals; LNG vaporization and loading volume increased **1.66%**, average load factor rose **1.4 percentage points**, revenue decreased **1.58%**, but profit before income tax grew **11.41%** due to loss-reduction initiatives - Adhered to specialized development, market-oriented operations, lean management, and integrated coordination, continuously enhancing the overall value creation capability of the LNG processing and terminal business[38](index=38&type=chunk)[43](index=43&type=chunk) - Vigorously implemented special actions to address losses at LNG plants, achieving tangible results and further solidifying the profit base[38](index=38&type=chunk)[43](index=43&type=chunk) LNG Processing and Terminal Business H1 2025 Performance | Indicator | Amount/Quantity | Y-o-Y Change | | :--- | :--- | :--- | | LNG Vaporization and Loading Volume | 7.899 billion cubic meters | Increase 1.66% | | Average Terminal Load Factor | Up 1.4 percentage points | - | | Self-produced and Sold | 417 million cubic meters | Decrease 10.52% | | Toll Processing Volume | 1.335 billion cubic meters | Increase 2.14% | | Revenue | RMB 4.371 billion | Decrease 1.58% | | Profit Before Income Tax | RMB 1.836 billion | Increase 11.41% | [Exploration and Production Business](index=8&type=section&id=1.4.4%20Exploration%20and%20Production%20Business) E&P crude oil sales volume increased **1.98%** to **4.12 million barrels**; however, due to falling international crude oil prices, average selling prices declined, leading to a **15.91%** decrease in crude oil sales revenue and a **64.94%** drop in profit before income tax - Affected by falling international crude oil prices, the average realized crude oil selling price decreased from **USD 67.77/barrel** last year to **USD 62.88/barrel**[41](index=41&type=chunk)[45](index=45&type=chunk) Exploration and Production Business H1 2025 Performance | Indicator | Amount/Quantity | Y-o-Y Change | | :--- | :--- | :--- | | Crude Oil Sales Volume | 4.12 million barrels | Increase 1.98% | | Crude Oil Sales Revenue | RMB 74 million | Decrease 15.91% | | Profit Before Income Tax | RMB 61 million | Decrease 64.94% | [Business Outlook](index=9&type=section&id=1.5%20Business%20Outlook) The company anticipates slow global natural gas demand growth in H2 2025, with accelerated domestic economic restructuring and green transition, emphasizing natural gas's bridging role; confident in full-year performance, it will leverage policy opportunities, address uncertainties strategically, and during the "15th Five-Year Plan" period, drive stable terminal gas business, enhance digital safety operations, and build an integrated energy supply ecosystem - Global natural gas market demand is expected to grow slowly in H2 2025, with accelerated domestic economic restructuring, industrial upgrading, and green and low-carbon transition, continuously highlighting natural gas's bridging and supporting role[46](index=46&type=chunk)[48](index=48&type=chunk) - The company will anchor its five major development strategies of 'innovation, green, market, capital, and low cost,' strengthening management, driving innovation, accelerating transformation, and continuing the development momentum towards a greener industry, safer operations, finer management, and more efficient governance[47](index=47&type=chunk)[49](index=49&type=chunk)[58](index=58&type=chunk) - During the '15th Five-Year Plan' period, the company will continue to promote stable development of terminal gas business, enhance digital safety operation levels and value creation capabilities, optimize business layout, accelerate the construction of an integrated gas-power-cooling-heating energy supply 'ecosystem,' cultivate and strengthen new productive forces, and actively build a green integrated energy supply system[47](index=47&type=chunk)[49](index=49&type=chunk) [Key Focus Areas for H2 2025](index=10&type=section&id=1.5.1%20Key%20Focus%20Areas%20for%20H2%202025)) In H2 2025, the company will focus on five key areas: optimizing and expanding urban gas, enhancing LNG value chain, improving LPG resource value, accelerating green and low-carbon transition, and deepening reform and innovation to boost vitality, aiming for greater efficiency, profitability, growth, and an intelligent ecosystem - Optimize and expand urban gas business, striving for **10** new projects to be commissioned and consolidated within the year, increasing the controlling stake in high-quality projects, and enhancing net profit attributable to the parent company[50](index=50&type=chunk)[53](index=53&type=chunk) - Enhance LNG value chain creation capabilities, maintain high-load operation of LNG receiving terminals, optimize inspection and maintenance mechanisms, expand liquid sales in vehicle and marine transportation, and innovate marine bunkering business models in the Guangdong-Hong Kong-Macao Greater Bay Area[51](index=51&type=chunk)[53](index=53&type=chunk) - Improve LPG resource value creation capabilities, intensify market segmentation, achieve secondary value creation in residential terminals, expand incremental and efficient import resources, and accelerate the commencement of construction for Jiangsu Yancheng LPG import terminal and storage facility[52](index=52&type=chunk)[53](index=53&type=chunk) - Accelerate green and low-carbon transformation and upgrading, promote the development of emerging industries, create a 'second growth curve,' push for **2** gas-fired power projects to be commissioned within the year, raise the proportion of zero-carbon stations to **15%**, and deepen the 'natural gas + green electricity' sales cooperation model[54](index=54&type=chunk)[56](index=56&type=chunk) - Deepen reform and innovation to stimulate vitality, improve corporate governance, meticulously cultivate 'Double Hundred Reforms,' strengthen cost and expense control, strictly control capital expenditures, accelerate the promotion of Kunlun ERP and Yunmengze smart platform, drive AI large model applications, and research and formulate a new three-year dividend distribution plan for 2026-2028[55](index=55&type=chunk)[57](index=57&type=chunk) [Acknowledgement](index=12&type=section&id=1.6%20Acknowledgement) The Chairman, on behalf of the Board, extended sincere gratitude to all employees, customers, and shareholders for their dedication, efforts, understanding, support, companionship, and trust - The Board sincerely thanks all employees for their dedication and hard work, customers for their understanding and support, and shareholders for their companionship and trust[59](index=59&type=chunk)[60](index=60&type=chunk) [Management Discussion and Analysis](index=13&type=section&id=Management%20Discussion%20and%20Analysis) Management Discussion and Analysis reviews H1 2025 financial and operational performance, emphasizing adherence to strategic goals, natural gas sales-driven revenue growth, cost control, liquidity, capital resources, corporate governance, and shareholder matters, including interim dividend declaration [Overall Performance Summary](index=13&type=section&id=2.1%20Overall%20Performance%20Summary) In H1 2025, the company adhered to its five major development strategies of "innovation, green, market, capital, and low cost," achieving stable operations and strong profit resilience through enhanced marketing, modern governance, optimized resource allocation, and seizing growth opportunities - The company consistently adhered to its five major development strategies of 'innovation, green, market, capital, and low cost,' deeply advancing modern marketing and corporate governance, actively optimizing resource allocation, cultivating existing markets, seizing incremental opportunities, ensuring stable and controlled operations, and maintaining strong profit resilience[62](index=62&type=chunk)[67](index=67&type=chunk) [Financial Performance Review](index=13&type=section&id=2.2%20Financial%20Performance%20Review) In H1 2025, revenue grew **4.97%** due to increased natural gas sales, while net other income decreased due to government subsidy project progress; procurement, services, and other expenses rose with natural gas purchases, employee compensation costs fell due to reduced headcount, depreciation and amortization saw reasonable growth, other SG&A expenses decreased due to strict cost control, interest expenses significantly declined, and share of profit from associates decreased due to falling international crude oil prices H1 2025 Key Financial Data Changes | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | Y-o-Y Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Revenue | 97,543 | 92,922 | 4.97% | Increase in natural gas sales volume | | Other gains, net | 381 | 746 | -48.93% | Impact of government subsidy project progress | | Purchases, services and others | 84,778 | 79,752 | 6.30% | 10% increase in natural gas purchase volume | | Employee compensation costs | 2,850 | 3,169 | -10.07% | Decrease in headcount and personnel transfer | | Depreciation, depletion and amortization | 2,800 | 2,754 | 1.67% | Maintained reasonable growth | | Other selling, general and administrative expenses | 1,121 | 1,230 | -8.86% | Strict expense control, optimized organizational structure | | Interest expenses | 323 | 411 | -21.41% | - | | Share of profit less loss of associates | 294 | 335 | -12.24% | Decrease in international crude oil prices | [Liquidity and Capital Resources](index=14&type=section&id=2.3%20Liquidity%20and%20Capital%20Resources) As of June 30, 2025, total assets slightly decreased **1.79%** to **RMB 140,825 million**; the gearing ratio significantly improved, falling **3.14 percentage points** to **18.32%**, reflecting reduced interest-bearing borrowings and lease liabilities; total borrowings were **RMB 19,670 million**, with a substantial portion due within one year, exposing the Group to foreign currency exchange risk Assets and Liabilities as of H1 2025 End | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Non-current assets | 84,376 | 86,153 | -1,777 | -2.06% | | Current assets | 56,449 | 57,237 | -788 | -1.38% | | **Total assets** | **140,825** | **143,390** | **-2,565** | **-1.79%** | | **Equity** | | | | | | Share capital and reserves attributable to shareholders of the Company | 66,988 | 65,149 | 1,839 | 2.82% | | Non-controlling interests | 24,080 | 23,686 | 394 | 1.66% | | **Total equity** | **91,068** | **88,835** | **2,233** | **2.51%** | | **Liabilities** | | | | | | Current liabilities | 29,800 | 35,676 | -5,876 | -16.47% | | Non-current liabilities | 19,957 | 18,879 | 1,078 | 5.71% | | **Total liabilities** | **49,757** | **54,555** | **-4,798** | **-8.79%** | | Net current assets | 26,649 | 21,561 | 5,088 | 23.60% | Borrowing Repayment Schedule as of June 30, 2025 | Repayment Period | Amount (RMB million) | | :--- | :--- | | Within one year | 4,243 | | One to two years | 3,089 | | Two to five years | 6,538 | | Over five years | 5,800 | | **Total** | **19,670** | - The Group is exposed to exchange rate risk arising from foreign currency borrowings, facing exchange gains/losses when RMB appreciates/depreciates against other currencies[86](index=86&type=chunk)[89](index=89&type=chunk) [Pledge of Assets](index=15&type=section&id=2.4%20Pledge%20of%20Assets) As of June 30, 2025, **RMB 1,607 million** in borrowings were primarily secured by natural gas tariff rights, and **RMB 693 million** of property, plant, equipment, and land use rights were pledged to banks for **RMB 247 million** in loan facilities - Borrowings of **RMB 1,607 million** were primarily secured by natural gas tariff rights[87](index=87&type=chunk)[90](index=90&type=chunk) - Certain property, plant, equipment, and land use rights totaling **RMB 693 million** were pledged to banks for loan facilities of **RMB 247 million** granted to the Group[87](index=87&type=chunk)[90](index=90&type=chunk) [Material Acquisitions and Disposals](index=15&type=section&id=2.5%20Material%20Acquisitions%20and%20Disposals) The Group did not undertake any material acquisitions or disposals during the reporting period - The Group had no material acquisitions or disposals during the period[88](index=88&type=chunk)[91](index=91&type=chunk) [Material Investments](index=16&type=section&id=2.6%20Material%20Investments) The Group's material investments are primarily in associates and joint ventures, with no single associate or joint venture significantly impacting the Group's performance or net assets - The Group's material investments are in its associates and joint ventures[92](index=92&type=chunk)[98](index=98&type=chunk) - No single material associate or joint venture significantly impacted the Group's performance and/or net assets[92](index=92&type=chunk)[98](index=98&type=chunk) [Employees](index=16&type=section&id=2.7%20Employees) As of June 30, 2025, the Group had **23,924** employees globally, a slight decrease from the prior year, with remuneration and benefits determined by market conditions, industry practice, and individual roles, performance, qualifications, and experience Number of Employees | Date | Number of Employees | Period-on-Period Change | | :--- | :--- | :--- | | June 30, 2025 | 23,924 | Decrease of 447 employees | | June 30, 2024 | 24,371 | - | - Remuneration and related benefits are determined based on market conditions, industry practice, and individual employees' duties, performance, qualifications, and experience[93](index=93&type=chunk)[99](index=99&type=chunk) [Contingent Liabilities](index=16&type=section&id=2.8%20Contingent%20Liabilities) The Group is a defendant in certain lawsuits, but management believes any resulting liabilities will not materially adversely affect the Group's financial position or performance - The Group is a defendant in certain cases and a designated party in other litigations[94](index=94&type=chunk)[100](index=100&type=chunk) - Management believes that any liabilities arising therefrom will not have a material adverse effect on the Group's financial position or financial performance[94](index=94&type=chunk)[100](index=100&type=chunk) [Events After the Period](index=16&type=section&id=2.9%20Events%20After%20the%20Period) As of the date of this interim report, the Group had no material events after the reporting period - As of the date of this interim report, the Group had no material events after the period[95](index=95&type=chunk)[101](index=101&type=chunk) [Interim Dividend](index=16&type=section&id=2.10%20Interim%20Dividend) The Board declared an interim dividend of **RMB 16.60 fen** (or **HKD 17.91 cents**) per share for 2025, totaling approximately **RMB 1,437 million**, with shareholders having the option to receive dividends in RMB or HKD H1 2025 Interim Dividend Details | Indicator | Amount | H1 2024 | | :--- | :--- | :--- | | Interim Dividend Per Share (RMB) | 16.60 fen | 16.41 fen | | Interim Dividend Per Share (HKD) | 17.91 HK cents | - | | Total Dividend (RMB) | 1,437 million | 1,421 million | | Payment Date | October 23, 2025 | - | - Shareholders have the option to receive the 2025 interim dividend in RMB or HKD[97](index=97&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[109](index=109&type=chunk) [Closure of Shareholders Register](index=18&type=section&id=2.11%20Closure%20of%20Shareholders%20Register) To determine eligibility for the 2025 interim dividend, the share register will be closed from September 4 to September 5, 2025, with all transfer documents required by 4:30 p.m. on September 3, 2025 Details of Share Register Closure | Item | Date/Time | | :--- | :--- | | Latest time for lodging share transfer documents for registration | 4:30 p.m. on Wednesday, September 3, 2025 | | Closure of Register of Members | From Thursday, September 4, 2025 to Friday, September 5, 2025 (both days inclusive) | | Record Date | Friday, September 5, 2025 | [Changes in Directors' Information](index=18&type=section&id=2.12%20Changes%20in%20Directors'%20Information) Dr. Liu Xiaofeng retired as an independent non-executive director on May 29, 2025, the same day Mr. Guo Zhicheng was appointed, who also resigned from other independent non-executive directorships in May and June 2025 - Dr. Liu Xiaofeng retired as an independent non-executive director effective May 29, 2025[112](index=112&type=chunk)[115](index=115&type=chunk) - Mr. Guo Zhicheng was appointed as an independent non-executive director effective May 29, 2025[113](index=113&type=chunk)[115](index=115&type=chunk) - Mr. Guo Zhicheng resigned as an independent non-executive director of Fantasia Holdings Group Co., Limited effective May 22, 2025, and as an independent non-executive director of Datang Xishi Silk Road Investment Holdings Co., Limited effective June 6, 2025[113](index=113&type=chunk)[115](index=115&type=chunk) [Purchase, Sale or Redemption of Shares](index=19&type=section&id=2.13%20Purchase,%20Sale%20or%20Redemption%20of%20Shares) Neither the company nor its subsidiaries purchased, sold, or redeemed any company shares during the reporting period, and as of June 30, 2025, the company held no treasury shares - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares during the period[116](index=116&type=chunk)[121](index=121&type=chunk) - As of June 30, 2025, the Company held no treasury shares[116](index=116&type=chunk)[121](index=121&type=chunk) [Corporate Governance](index=19&type=section&id=2.14%20Corporate%20Governance) The company is committed to maintaining strict corporate governance practices and has complied with all code provisions of the Corporate Governance Code, with the exception of Non-executive Director Ms. Lü Jing's absence from the Annual General Meeting on May 29, 2025, due to other engagements - The Company is committed to maintaining stringent corporate governance practices and procedures, aiming to enhance investor confidence and the Company's accountability and transparency[117](index=117&type=chunk)[122](index=122&type=chunk) - The Company has complied with all code provisions of the Corporate Governance Code, except that Non-executive Director Ms. Lü Jing was unable to attend the Annual General Meeting held on May 29, 2025, due to other engagements[117](index=117&type=chunk)[118](index=118&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) [Review of Interim Financial Report](index=19&type=section&id=2.15%20Review%20of%20Interim%20Financial%20Report) The Company's Audit Committee reviewed the Group's unaudited consolidated interim financial report without objection, and KPMG also conducted a review in accordance with Hong Kong Standard on Review Engagements 2410, issuing an unmodified review report - The Company's Audit Committee has reviewed the Group's unaudited consolidated interim financial report for the period and raised no objections[119](index=119&type=chunk)[124](index=124&type=chunk) - KPMG has reviewed the Group's unaudited consolidated interim financial report for the period in accordance with Hong Kong Standard on Review Engagements 2410 and issued an unmodified review report[120](index=120&type=chunk)[124](index=124&type=chunk) [Model Code for Securities Transactions by Directors](index=20&type=section&id=2.16%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company adopted written guidelines for directors' securities transactions no less exacting than the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the reporting period - The Company has adopted written guidelines for directors' securities transactions with terms no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[125](index=125&type=chunk)[130](index=130&type=chunk) - Following specific enquiries with all Directors, the Directors have confirmed that they have complied with the Model Code throughout the period[125](index=125&type=chunk)[130](index=130&type=chunk) [Directors' Interests in Contracts](index=20&type=section&id=2.17%20Directors'%20Interests%20in%20Contracts) Neither the company, its subsidiaries, fellow group subsidiaries, nor its holding company entered into any contracts significant to the Group's business in which a director had a material direct or indirect interest, either during or at the end of the reporting period - Neither the Company, any of its subsidiaries, fellow group subsidiaries, nor its holding company entered into any contracts significant to the Group's business in which a Director of the Company had a material direct or indirect interest, either at the end of or at any time during the period[126](index=126&type=chunk)[131](index=131&type=chunk) [Directors' Interests in Shares](index=20&type=section&id=2.18%20Directors'%20Interests%20in%20Shares) As of June 30, 2025, no directors or chief executives of the company held any interests or short positions in the company's shares, underlying shares, or debentures requiring disclosure under Part XV of the Securities and Futures Ordinance or the Listing Rules' Model Code - As of June 30, 2025, none of the Company's directors or chief executives had any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations that were required to be disclosed under Divisions 7 and 8 of Part XV of the Securities and Futures Ordinance or the Model Code set out in the Listing Rules[127](index=127&type=chunk)[132](index=132&type=chunk) [Share Options](index=21&type=section&id=2.19%20Share%20Options) No unexercised share options were granted to the company's directors and employees during the reporting period - During the period, no unexercised share options were granted to the Company's directors and employees[134](index=134&type=chunk)[136](index=136&type=chunk) [Substantial Shareholders' Interest in Shares](index=21&type=section&id=2.20%20Substantial%20Shareholders'%20Interest%20in%20Shares) As of June 30, 2025, the register of substantial shareholders showed PetroChina Hong Kong Ltd. (indirectly owned by CNPC) held **54.38%** of the company's issued share capital, with CNPC also having deemed interests through other subsidiaries, totaling **56.05%** Substantial Shareholders' Shareholding (June 30, 2025) | Name | Direct Interest (Shares) | Indirect Interest (Shares) | Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | PetroChina Hong Kong Ltd. | 4,708,302,133 (L) | – | 54.38% | | PetroChina Company Limited | – | 4,708,302,133 (L) | 54.38% | | Fairy King Investments Ltd. | 144,784,000 (L) | – | 1.67% | | CNPC International Ltd. | – | 144,784,000 (L) | 1.67% | | China National Oil and Gas Exploration and Development Corporation | – | 144,784,000 (L) | 1.67% | | China National Petroleum Corporation (CNPC) | – | 4,853,086,133 (L) | 56.05% | - China National Petroleum Corporation is deemed to have an interest in the **4,708,302,133** shares held by PetroChina Hong Kong and in the **144,784,000** shares held by Fairy King Investments Ltd[139](index=139&type=chunk) [Report on Review of Interim Financial Statement](index=23&type=section&id=Report%20on%20Review%20of%20Interim%20Financial%20Statement) KPMG reviewed Kunlun Energy's unaudited interim financial report for H1 2025, concluding that nothing came to their attention to suggest it was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 [Introduction](index=23&type=section&id=3.1%20Introduction) KPMG reviewed Kunlun Energy Limited's interim financial report for the six months ended June 30, 2025, prepared by the directors in accordance with HKEX Listing Rules and HKAS 34 "Interim Financial Reporting" - KPMG has reviewed the consolidated interim statement of financial position of Kunlun Energy Company Limited and its subsidiaries as of June 30, 2025, and the consolidated interim statement of comprehensive income, consolidated interim statement of changes in equity, and consolidated interim condensed statement of cash flows for the six-month period then ended[144](index=144&type=chunk)[147](index=147&type=chunk) - The directors are responsible for the preparation and presentation of these interim financial statements in accordance with Hong Kong Accounting Standard 34[144](index=144&type=chunk)[147](index=147&type=chunk) [Scope of Review](index=23&type=section&id=3.2%20Scope%20of%20Review) The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, with a scope narrower than an audit, thus no audit opinion is expressed - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Hong Kong Institute of Certified Public Accountants[146](index=146&type=chunk)[148](index=148&type=chunk) - A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit; accordingly, we do not express an audit opinion[146](index=146&type=chunk)[148](index=148&type=chunk) [Conclusion](index=24&type=section&id=3.3%20Conclusion) Based on KPMG's review, nothing came to their attention to suggest that the interim financial report as of June 30, 2025, was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" - Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements as at June 30, 2025 are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[150](index=150&type=chunk)[151](index=151&type=chunk) [Unaudited Consolidated Interim Statement Of Comprehensive Income](index=25&type=section&id=Unaudited%20Consolidated%20Interim%20Statement%20Of%20Comprehensive%20Income) The unaudited consolidated interim statement of comprehensive income for the six months ended June 30, 2025, shows profit for the period decreased to **RMB 5,002 million** from **RMB 5,320 million** year-on-year; revenue grew **4.97%** to **RMB 97,543 million**, but profit attributable to company shareholders declined **4.36%** to **RMB 3,161 million** [Key Financial Performance Indicators](index=25&type=section&id=4.1%20Key%20Financial%20Performance%20Indicators) This section presents key financial indicators from the consolidated interim statement of comprehensive income for the six months ended June 30, 2025, including revenue, profit before income tax, profit for the period, and basic and diluted earnings per share, with comparative figures for the prior year Consolidated Interim Statement of Comprehensive Income Summary (Six Months Ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 97,543 | 92,922 | 4.97% | | Other gains, net | 381 | 746 | -48.93% | | Profit before income tax expense | 6,737 | 7,249 | -7.06% | | Income tax expense | (1,735) | (1,929) | -9.95% | | Profit for the period | 5,002 | 5,320 | -5.98% | | Profit attributable to shareholders of the Company | 3,161 | 3,305 | -4.36% | | Profit attributable to non-controlling interests | 1,841 | 2,015 | -8.63% | | Total comprehensive income for the period | 4,970 | 5,231 | -5.00% | | Basic and diluted earnings per share (RMB fen) | 36.51 | 38.17 | -4.35% | [Unaudited Consolidated Interim Statement Of Financial Position](index=27&type=section&id=Unaudited%20Consolidated%20Interim%20Statement%20Of%20Financial%20Position) As of June 30, 2025, the Group's total assets slightly decreased to **RMB 140,825 million** from December 31, 2024; total equity increased to **RMB 91,068 million**, while total liabilities decreased to **RMB 49,757 million**, indicating an improved net current asset position [Key Financial Position Indicators](index=27&type=section&id=5.1%20Key%20Financial%20Position%20Indicators) This section presents key financial indicators from the consolidated interim statement of financial position as of June 30, 2025, including non-current assets, current assets, total assets, total equity, current liabilities, non-current liabilities, and total liabilities, with comparative figures for December 31, 2024 Consolidated Interim Statement of Financial Position Summary (As of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Assets** | | | | | | Non-current assets | 84,376 | 86,153 | -1,777 | -2.06% | | Current assets | 56,449 | 57,237 | -788 | -1.38% | | **Total assets** | **140,825** | **143,390** | **-2,565** | **-1.79%** | | **Equity** | | | | | | Share capital and reserves attributable to shareholders of the Company | 66,988 | 65,149 | 1,839 | 2.82% | | Non-controlling interests | 24,080 | 23,686 | 394 | 1.66% | | **Total equity** | **91,068** | **88,835** | **2,233** | **2.51%** | | **Liabilities** | | | | | | Current liabilities | 29,800 | 35,676 | -5,876 | -16.47% | | Non-current liabilities | 19,957 | 18,879 | 1,078 | 5.71% | | **Total liabilities** | **49,757** | **54,555** | **-4,798** | **-8.79%** | | Net current assets | 26,649 | 21,561 | 5,088 | 23.60% | [Unaudited Consolidated Interim Statement Of Changes In Equity](index=29&type=section&id=Unaudited%20Consolidated%20Interim%20Statement%20Of%20Changes%20In%20Equity) The consolidated interim statement of changes in equity shows total equity increased from **RMB 88,835 million** on January 1, 2025, to **RMB 91,068 million** as of June 30, 2025, primarily driven by profit for the period, partially offset by dividends paid to shareholders and non-controlling interests [Equity Movements](index=29&type=section&id=6.1%20Equity%20Movements) This section presents the consolidated interim equity movements for the six months ended June 30, 2025, including opening balance, profit for the period, other comprehensive loss, dividend payments, and other changes, with comparative figures for the prior year Consolidated Interim Statement of Changes in Equity Summary (Six Months Ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Balance at January 1 (Total equity) | 88,835 | 85,783 | | Profit for the period | 5,002 | 5,320 | | Other comprehensive loss | (32) | (89) | | Total comprehensive income for the period | 4,970 | 5,231 | | Transfer between reserves | – | – | | 2024 final dividend (to shareholders of the Company) | (1,314) | (2,457) | | Dividends paid to non-controlling interests | (1,782) | (2,184) | | Others | 359 | 324 | | **Balance at June 30 (Total equity)** | **91,068** | **86,697** | [Unaudited Consolidated Interim Condensed Statement Of Cash Flows](index=31&type=section&id=Unaudited%20Consolidated%20Interim%20Condensed%20Statement%20Of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities was **RMB 4,386 million**, a decrease from the prior year; investing activities generated **RMB 3,058 million** net cash inflow, while financing activities resulted in **RMB 5,843 million** net cash outflow, leading to a net increase of **RMB 1,601 million** in cash and cash equivalents [Cash Flow Summary](index=31&type=section&id=7.1%20Cash%20Flow%20Summary) This section presents key indicators from the consolidated interim condensed statement of cash flows for the six months ended June 30, 2025, including net cash from operating, investing, and financing activities, and cash and cash equivalents at period-end Consolidated Interim Condensed Statement of Cash Flows Summary (Six Months Ended June 30) | Activity Type | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Net cash generated from operating activities | 4,386 | 5,352 | | Net cash generated from/(used in) investing activities | 3,058 | (873) | | Net cash used in financing activities | (5,843) | (2,395) | | Net increase in cash and cash equivalents | 1,601 | 2,084 | | Cash and cash equivalents at January 1 | 27,827 | 27,353 | | Effect of foreign exchange rate changes | 51 | (15) | | **Cash and cash equivalents at June 30** | **29,479** | **29,422** | [Notes to the Unaudited Interim Financial Statement](index=32&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Financial%20Statement) This section provides detailed notes to the unaudited interim financial statements, covering company overview, accounting policies, revenue breakdown, expense details, tax information, earnings per share, dividends, asset changes, and related party transactions, offering crucial context and specifics for understanding the Group's financial reporting [General Information](index=32&type=section&id=8.1%20General%20Information) Kunlun Energy Limited is a Bermuda-incorporated, HKEX-listed investment holding company, ultimately controlled by CNPC, a Chinese state-owned enterprise, primarily engaged in natural gas and LPG sales, LNG processing and terminal operations in China, and crude oil and natural gas E&P in Kazakhstan, Oman, and Thailand - Kunlun Energy Company Limited was incorporated in Bermuda as an exempted company, with its shares listed on The Stock Exchange of Hong Kong Limited[164](index=164&type=chunk)[167](index=167&type=chunk) - The ultimate holding company is China National Petroleum Corporation (CNPC), a state-owned enterprise directly controlled by the Chinese government[164](index=164&type=chunk)[167](index=167&type=chunk) - Its principal activities include natural gas sales, LPG sales, LNG processing and terminal operations in the PRC, and crude oil and natural gas exploration and production in Kazakhstan, Oman, and Thailand[166](index=166&type=chunk)[167](index=167&type=chunk) [Basis of Preparation](index=33&type=section&id=8.2%20Basis%20of%20Preparation) This interim financial report is prepared in accordance with HKEX Listing Rules and HKAS 34 "Interim Financial Reporting," consistent with prior accounting policies but adopting new amended standards; management's judgments, estimates, and assumptions impact reported amounts, and this report should be read in conjunction with the 2024 annual financial statements - These interim financial statements have been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants[168](index=168&type=chunk)[172](index=172&type=chunk) - Management makes judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses as of the reporting date for the current year[170](index=170&type=chunk)[172](index=172&type=chunk) [Changes in Accounting Policies](index=34&type=section&id=8.3%20Changes%20in%20Accounting%20Policies) The Group first applied amendments to HKAS 21 ("The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability") from January 1, 2025, with no material impact on accounting policies or retrospective adjustments, and no other new standards or interpretations not yet effective were applied during the period - The Group has first applied 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability – Amendments to HKAS 21' from January 1, 2025, which did not result in any material impact or retrospective adjustments[174](index=174&type=chunk)[177](index=177&type=chunk) - The Group has not applied any new standards or interpretations that are not yet effective during the current accounting period[175](index=175&type=chunk)[178](index=178&type=chunk) [Revenue](index=34&type=section&id=8.4%20Revenue) The Group's revenue primarily derives from natural gas sales, LPG sales, LNG processing and terminal operations, and crude oil sales, with revenue breakdown from customer contracts disclosed in Note 20 - Revenue primarily refers to income from natural gas sales, LPG sales, LNG processing and terminal operations, and crude oil sales[176](index=176&type=chunk)[179](index=179&type=chunk) [Other Gains, Net](index=35&type=section&id=8.5%20Other%20Gains,%20Net) In H1 2025, net other gains significantly decreased to **RMB 381 million** from **RMB 746 million** in H1 2024, primarily due to reduced government subsidies and increased exchange losses, partially offset by higher rental income Other Gains, Net (Six Months Ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Net exchange losses | (36) | (65) | | Rental income | 198 | 172 | | Government grants and others | 219 | 639 | | **Total** | **381** | **746** | [Interest Expenses](index=35&type=section&id=8.6%20Interest%20Expenses) In H1 2025, total interest expenses decreased **21.41%** year-on-year to **RMB 323 million**, with the average annual interest rate for capitalized borrowing costs at **3.13%**, down from **3.40%** in the prior year Interest Expenses (Six Months Ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Total interest expenses | 339 | 426 | | Less: Amount capitalized | (16) | (15) | | **Total interest expenses** | **323** | **411** | - For the six months ended June 30, 2025, the average annual interest rate used for capitalizing these borrowing costs was **3.13%** (six months ended June 30, 2024: **3.40%**)[183](index=183&type=chunk)[184](index=184&type=chunk) [Profit Before Income Tax Expense](index=36&type=section&id=8.7%20Profit%20Before%20Income%20Tax%20Expense) Profit before income tax expense was calculated after deducting amortization of intangible assets, depreciation and depletion of owned property/right-of-use assets, and inventory costs recognized as expenses, with a reversal of impairment loss on trade receivables recognized during the period Profit Before Income Tax Expense Items (Six Months Ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Amortisation of intangible assets | 40 | 42 | | Depreciation and depletion of owned property, plant and equipment | 2,495 | 2,447 | | Depreciation and depletion of right-of-use assets | 265 | 265 | | Cost of inventories recognised as an expense | 84,816 | 79,793 | | Impairment (reversal)/loss on trade receivables | (29) | 51 | [Income Tax Expense](index=36&type=section&id=8.8%20Income%20Tax%20Expense) In H1 2025, total income tax expense decreased to **RMB 1,735 million**; the PRC corporate income tax rate is primarily **25%**, with preferential rates of **15%** to **20%** in certain regions, and no provision for Hong Kong profits tax was made for the period Income Tax Expense (Six Months Ended June 30) | Tax Type | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Current tax - PRC | 1,728 | 1,847 | | Current tax - Overseas | 11 | 19 | | Deferred tax | (4) | 63 | | **Total** | **1,735** | **1,929** | - The corporate income tax rate in the PRC is primarily **25%**, with preferential rates of **15%** to **20%** in certain regions[189](index=189&type=chunk)[190](index=190&type=chunk) - No provision for Hong Kong profits tax has been made for the six months ended June 30, 2025, as there was no assessable profit subject to Hong Kong profits tax for the period[190](index=190&type=chunk)[192](index=192&type=chunk) [Basic and Diluted Earnings Per Share](index=37&type=section&id=8.9%20Basic%20and%20Diluted%20Earnings%20Per%20Share) In H1 2025, basic earnings per share were **RMB 36.51 fen**, based on profit attributable to company shareholders of **RMB 3,161 million** and a weighted average of **8,659 million** ordinary shares outstanding; diluted earnings per share were the same as basic earnings per share due to no potentially dilutive ordinary shares Basic and Diluted Earnings Per Share (Six Months Ended June 30) | Indicator | 2025 (RMB fen) | 2024 (RMB fen) | | :--- | :--- | :--- | | Basic and diluted earnings per share | 36.51 | 38.17 | - Basic earnings per share are calculated based on the Group's profit attributable to shareholders of the Company of approximately **RMB 3,161 million** and the weighted average of approximately **8,659 million** ordinary shares in issue[194](index=194&type=chunk) - Diluted earnings per share for the six months ended June 30, 2025 and 2024 are the same as the basic earnings per share as there were no potentially dilutive ordinary shares in issue[194](index=194&type=chunk) [Dividends](index=38&type=section&id=8.10%20Dividends) The Board declared an interim dividend of **RMB 16.60 fen per share** for H1 2025; final dividends for 2023 and 2024 were approved and paid, with shareholders having the option to receive them in RMB or HKD Dividend Distribution Details | Dividend Type | Financial Year | Dividend Per Share (RMB fen) | Total Amount (RMB million) | Approval Date | Payment Date | | :--- | :--- | :--- | :--- | :--- | :--- | | Final Dividend | 2023 | 28.38 | 2,457 | May 30, 2024 | July 18, 2024 | | Final Dividend | 2024 | 15.17 | 1,314 | May 29, 2025 | July 18, 2025 | | Interim Dividend | 2025 | 16.60 | 1,437 | August 19, 2025 | Expected October 23, 2025 | - Shareholders have the option to receive dividends in RMB or HKD[195](index=195&type=chunk)[196](index=196&type=chunk) [Property, Plant and Equipment](index=39&type=section&id=8.11%20Property,%20Plant%20and%20Equipment) In H1 2025, the Group added **RMB 391 million** in right-of-use assets and acquired **RMB 1,015 million** in owned property, plant, and equipment; depreciation expenses for right-of-use assets and owned assets were **RMB 265 million** and **RMB 2,495 million**, respectively Property, Plant and Equipment Movements (Six Months Ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Additions to right-of-use assets | 391 | 280 | | Depreciation expense of right-of-use assets | 265 | 265 | | Cost of acquisition of property, plant and equipment | 1,015 | 620 | | Net book value of property, plant and equipment disposed of | 101 | 138 | | Depreciation expense of owned property, plant and equipment | 2,495 | 2,447 | [Investments in Associates](index=40&type=section&id=8.12%20Investments%20in%20Associates) As of June 30, 2025, the Group's share of net assets in associates was **RMB 8,273 million**, a decrease from **RMB 8,567 million** as of December 31, 2024 Investments in Associates (As of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Share of net assets | 8,273 | 8,567 | [Investments in Joint Ventures](index=40&type=section&id=8.13%20Investments%20in%20Joint%20Ventures) As of June 30, 2025, the Group's share of net assets in joint ventures was **RMB 6,285 million**, an increase from **RMB 6,157 million** as of December 31, 2024 Investments in Joint Ventures (As of June 30) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Share of net assets | 6,285 | 6,157 | [Intangible Assets](index=40&type=section&id=8.14%20Intangible%20Assets) As of June 30, 2025, total intangible assets were **RMB 1,480 million**, primarily comprising goodwill, contractual relationships, concessions, and computer software costs, a decrease from **RMB 1,526 million** as of December 31, 2024, mainly due to amortization and disposals Intangible Assets Movements (As of June 30) | Item | June 30, 2025 (RMB million) | June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Balance at December 31 | 1,526 | 1,755 | | Additions | – | 35 | | Disposals | (6) | (94) | | Amortisation for the year | (40) | (42) | | **Balance at June 30** | **1,480** | **1,654** | [Accounts Receivable](index=41&type=section&id=8.15%20Accounts%20Receivable) As of June 30, 2025, accounts receivable net of loss allowance increased to **RMB 3,404 million**, with the majority (**RMB 1,834 million**) aged within three months; the Group's terminal service and crude oil sales revenue are typically collected within 30 to 90 days, while natural gas sales are on cash or credit terms not exceeding 90 days Trade Receivables Ageing Analysis (As of June 30) | Ageing | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Within 3 months | 1,834 | 1,713 | | Between 3 and 6 months | 705 | 58 | | Between 6 and 12 months | 333 | 252 | | Over 12 months | 532 | 521 | | **Total** | **3,404** | **2,544** | - Revenue from terminal services and crude oil sales is generally collected within 30 to 90 days from the invoice date, while natural gas sales are on cash payment or credit terms not exceeding 90 days[210](index=210&type=chunk)[211](index=211&type=chunk) [Share Capital](index=42&type=section&id=8.16%20Share%20Capital) The company's authorized and issued and fully paid share capital remained unchanged during the reporting period, with authorized share capital of **16,000 million** ordinary shares at **HKD 0.01** par value each, totaling **HKD 160 million**, and issued and fully paid share capital of **8,659 million** ordinary shares, totaling **HKD 71 million** (RMB equivalent) Share Capital (As of June 30) | Item | Number of Ordinary Shares (million shares) | Par Value of Ordinary Shares (HKD million) | | :--- | :--- | :--- | | Authorised share capital | 16,000 | 160 | | Issued and fully paid share capital | 8,659 | 71 | [Accounts Payable and Accrued Liabilities](index=43&type=section&id=8.17%20Accounts%20Payable%20and%20Accrued%20Liabilities) As of June 30, 2025, total accounts payable and accrued liabilities decreased to **RMB 24,358 million**, primarily comprising contract liabilities and payables for construction and equipment costs, with most accounts payable aged within three months Accounts Payable and Accrued Liabilities (As of June 30) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Accounts payable | 3,197 | 3,106 | | Contract liabilities | 10,671 | 12,690 | | Salaries and welfare payable | 852 | 326 | | Accrued expenses | 230 | 22 | | Dividends payable | 1,505 | 158 | | Interest payable | 154 | 137 | | Construction and equipment costs payable | 4,611 | 5,541 | | Amounts due to related parties | 2 | 2 | | Other payables | 3,136 | 3,242 | | **Total** | **24,358** | **25,224** | Accounts Payable Ageing Analysis (As of June 30) | Ageing | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Within 3 months | 2,575 | 2,576 | | Between 3 and 6 months | 251 | 116 | | Over 6 months | 371 | 414 | | **Total** | **3,197** | **3,106** | [Borrowings](index=44&type=section&id=8.18%20Borrowings) As of June 30, 2025, the Group's total borrowings decreased to **RMB 19,670 million**, with significant reductions in short-term borrowings and the current portion of long-term borrowings; most borrowings are unsecured, while some are secured by natural gas tariff rights and property, plant, and equipment Borrowings (As of June 30) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Short-term borrowings – unsecured | 965 | 1,188 | | Current portion of long-term borrowings | 3,278 | 7,945 | | **Total current borrowings** | **4,243** | **9,133** | | Long-term borrowings – secured | 1,854 | 2,155 | | Long-term borrowings – unsecured | 16,851 | 20,119 | | Less: Current portion of long-term borrowings | (3,278) | (7,945) | | **Total non-current borrowings** | **15,427** | **14,329** | | **Total borrowings** | **19,670** | **23,462** | - Borrowings of **RMB 1,607 million** were primarily secured by natural gas tariff rights[220](index=220&type=chunk) - Certain property, plant, equipment, and land use rights totaling **RMB 693 million** were pledged to banks for loan facilities of **RMB 247 million** granted to the Group[220](index=220&type=chunk) Borrowings Repayment Schedule (As of June 30) | Repayment Period | Bank Loans (RMB million) | Loans Other Than Bank Loans (RMB million) | | :--- | :--- | :--- | | Within one year | 3,785 | 458 | | One to two years | 2,735 | 354 | | Two to five years | 3,662 | 2,876 | | After five years | 1,301 | 4,499 | | **Total** | **11,483** | **8,187** | [Fair Value Measurement of Financial Instruments](index=45&type=section&id=8.19%20Fair%20Value%20Measurement%20of%20Financial%20Instruments) The Group's fair value measurement of financial instruments includes listed and unlisted other financial assets, with listed assets valued using Level 1 (quoted prices) and unlisted assets using Level 3 (significant unobservable inputs); no transfers occurred between fair value hierarchies during the period, and the carrying amounts of financial instruments measured at cost or amortized cost do not materially differ from their fair values - Three-level hierarchy for fair value measurement of financial instruments: Level 1 (quoted prices in active markets), Level 2 (observable market data), Level 3 (significant unobservable inputs)[222](index=222&type=chunk)[223](index=223&type=chunk) Fair Value Measurement of Other Financial Assets (As of June 30) | Type | Fair Value June 30, 2025 (RMB million) | Classification June 30, 2025 | Fair Value December 31, 2024 (RMB million) | Classification December 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Listed | 247 | Level 1 | 221 | Level 1 | | Unlisted | 43 | Level 3 | 43 | Level 3 | | **Total** | **290** | | **264** | | - For the six months ended June 30, 2025 and 2024, there were no transfers between Level 1 and Level 2, or into or out of Level 3[226](index=226&type=chunk)[229](index=229&type=chunk) - There were no material differences between the carrying amounts and fair values of the Group's financial instruments measured at cost or amortized cost[228](index=228&type=chunk)[231](index=231&type=chunk) [Segment Information](index=47&type=section&id=8.20%20Segment%20Information) The Group's business is organized into four operating segments: natural gas sales, LPG sales, LNG processing and terminal, and exploration and production; segment performance is assessed based on profit before income tax expense and share of profit/loss from associates and joint ventures; segment assets exclude deferred and current taxes, other financial assets, and investments in associates and joint ventures; corporate headquarters segment performance includes interest income, exchange gains/losses, and corporate expenses - The Group organizes its business by products and services into four operating segments: natural gas sales, LPG sales, LNG processing and terminal, and exploration and production[233](index=233&type=chunk)[234](index=234&type=chunk)[237](index=237&type=chunk) - Operating segment performance is assessed based on profit/(loss) before income tax expense and share of profit less loss of associates and joint ventures for each segment[235](index=235&type=chunk)[237](index=237&type=chunk) H1 2025 Business Segment Performance Summary | Segment | Revenue from External Customers (RMB million) | Profit/(Loss) Before Income Tax Expense (RMB million) | | :--- | :--- | :--- | | Natural Gas Sales | 80,078 | 4,477 | | LPG Sales | 13,020 | 544 | | LNG Processing and Terminal | 4,371 | 1,836 | | Exploration and Production | 74 | 61 | | Corporate Headquarters | – | (181) | | **Total** | **97,543** | **6,737** | H1 2025 Business Segment Assets Summary | Segment | Segment Assets (RMB million) | Investments in Associates (RMB million) | Investments in Joint Ventures (RMB million) | | :--- | :--- | :--- | :--- | | Natural Gas Sales | 82,824 | 7,239 | 4,918 | | LPG Sales | 5,829 | 499 | – | | LNG Processing and Terminal | 18,512 | 130 | – | | Exploration and Production | 1,061 | 405 | 1,367 | | Corporate Headquarters | 16,541 | – | – | | **Total** | **124,767** | **8,273** | **6,285** | - For the six months ended June 30, 2025 and 2024, no revenue from a single customer accounted for more than **10%** of the Group's revenue[241](index=241&type=chunk)[242](index=242&type=chunk) [Commitments](index=50&type=section&id=8.21%20Commitments) As of June 30, 2025, the Group had significant capital commitments contracted but not yet recognized as liabilities totaling **RMB 2,719 million**, primarily for property, plant, and equipment Capital Commitments (As of June 30) | Item | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Property, plant and equipment | 2,719 | 3,284 | [Related Party Transactions](index=51&type=section&id=8.22%20Related%20Party%20Transactions) The Group engages in extensive related party transactions with its ultimate holding company, CNPC, its subsidiaries, and other state-owned entities, including the purchase and provision of products and services, natural gas sales to associates and joint ventures, and related party receivables/payables, with key management compensation also disclosed - China National Petroleum Corporation (the Company's controlling shareholder) is a stat

Core Viewpoint - The urban gas industry is facing significant challenges due to stagnation in traditional gas sales and safety production pressures, prompting leading companies to strengthen their integrated energy business and explore new growth avenues [1][2]. Industry Overview - The urban gas sector is under pressure, with several companies divesting gas project subsidiaries since June, including major players like Kunlun Energy [1]. - A total of 8 gas project divestitures have been recorded, surpassing the previous year's figures, indicating a trend of companies exiting underperforming assets [1]. - Financial performance of divested companies shows a notable decline, with all five disclosed projects reporting significant profit drops in the first half of the year [1][2]. Financial Performance - As of July, the net profit of Luoyang PetroChina Kunlun Gas Co. shifted from a profit of 320,000 yuan at the end of 2024 to a loss of 1.27 million yuan [2]. - Fujian Longzhou Haiyou New Energy Co. saw its losses increase by 140% to 621,200 yuan compared to the end of the previous year [2]. - Lulong County Huagang Qiangguo Gas Co. experienced a staggering 430% increase in net losses, reaching 4.174 million yuan [2]. Leading Companies' Performance - Among the four major urban gas companies, only Honghua Smart Energy reported a slight net profit increase of 2% to 758 million HKD (approximately 694 million yuan) [3]. - New Hope Energy, China Resources Gas, and Kunlun Energy all experienced varying degrees of profit decline, with decreases of 5.6% to 2.429 billion yuan, 30.5% to 2.403 billion HKD (approximately 2.2 billion yuan), and 4.36% to 3.161 billion yuan, respectively [3]. - The primary factors affecting performance include declines in gas sales and connection service revenues [3]. Strategic Shifts - Honghua Smart Energy attributes its profit growth to the continuous expansion of its renewable energy business, which saw a 5% increase in net profit to 172 million HKD, surpassing gas connection service revenue [5]. - The company emphasizes the need to enhance integrated energy service capabilities to meet diverse energy demands from industrial clients [5]. - New Hope Energy's management highlights the potential of its diversified energy business as a second growth curve, leveraging existing customer bases and digital capabilities for future growth [5].

Investment Rating - The report maintains a positive outlook on the power and gas sectors, recommending various companies within these industries for investment [5][14]. Core Insights - The report highlights the competitive results of the electricity pricing mechanism in Shandong, indicating that wind power is favored over solar power, with wind power pricing at 0.319 CNY/kWh and solar at 0.225 CNY/kWh [9][10]. - A new pricing mechanism for nearby consumption of renewable energy has been established, clarifying economic responsibilities and allowing renewable projects to pay for supply reliability [12][13]. - Global gas prices are showing mixed trends, with European and Asian prices rising while U.S. prices are declining, reflecting varying supply and demand dynamics [15][20]. Summary by Sections 1. Electricity: Shandong Pricing Mechanism and New Renewable Energy Policies - Shandong's first competitive pricing results show wind power projects with a total capacity of 3.5911 GW and a mechanism electricity price of 0.319 CNY/kWh, while solar projects have a capacity of 1.265 GW and a price of 0.225 CNY/kWh [9][11]. - The new pricing mechanism for nearby consumption aims to enhance the utilization of renewable energy and reduce the pressure on the power system [12][13]. 2. Gas: Global Price Variations - As of September 12, U.S. Henry Hub spot prices are at $2.94/mmBtu, down 3.61% week-on-week, while European TTF prices are at €32.00/MWh, up 1.27% [15][16]. - The report notes that U.S. gas production remains high despite a slight decline, while European prices are influenced by supply constraints and increased heating demand due to cooler temperatures [15][20]. 3. Weekly Market Review - The gas sector outperformed the Shanghai and Shenzhen 300 index, while the public utilities, power, and environmental sectors underperformed [36]. 4. Company and Industry Dynamics - Recent announcements include the implementation of market-oriented pricing reforms for renewable energy in Jiangxi province, effective from October 2025 [40]. - The report also discusses various company announcements, including operational updates and financial instruments [43]. 5. Key Company Valuation Tables - The report provides valuation metrics for key companies in the public utility sector, highlighting buy and hold recommendations for several firms based on their earnings and price-to-earnings ratios [45][46].

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION 此乃要件 請即處理 If you are in any doubt as to any aspect of this document or as to the action to be taken, you should consult your stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other professional adviser. 截至2025年6月30日止六個月之中期股息 股息貨幣選擇表格 NAME(S) AND ADDRESS OF REGISTERED SHAREHOLDER(S) 登記股東姓名╱名稱及地址 IMPORTANT NOTES: 重要提示： To the Directors of Kunlun Energy Company Limited 閣下如對本文件任何內容或應採取之行動有任何疑 ...

Core Viewpoint - Ping An Electric (001359.SZ) is actively engaging with the supply chain opportunities related to the Yaxia Hydropower Project, which sets higher standards for insulation performance, reliability, and durability of power generation and transmission equipment [1] Company Overview - The company primarily engages in the production of electric power, electrical, thermal mica insulation materials, composite components for new energy safety protection, and fiberglass cloth and products [1] Market Opportunity - The Yaxia Hydropower Project, recognized as a world-class large-scale hydropower initiative, presents significant market opportunities for domestic companies capable of producing high-end mica insulation materials [1]

Core Viewpoint - The performance of the four major city gas companies in China faced pressure in the first half of the year, with only Honghua Smart Energy achieving a net profit growth of 2%, while the others experienced declines in net profit [1][3]. Financial Performance Summary - **Honghua Smart Energy**: Revenue of 10.437 billion HKD (approximately 9.555 billion RMB), a decrease of 0.6% year-on-year; net profit increased by 2% to 758 million HKD (approximately 694 million RMB) [2][3]. - **Kunlun Energy**: Revenue of 97.543 billion RMB, an increase of 4.97% year-on-year; net profit decreased by 4.36% to 3.161 billion RMB [2][3]. - **Xinao Energy**: Revenue of 55.673 billion RMB, an increase of 2% year-on-year; net profit decreased by 5.6% to 2.429 billion RMB [2][3]. - **China Resources Gas**: Revenue of 49.785 billion HKD (approximately 45.579 billion RMB), a decrease of 4.4% year-on-year; net profit decreased by 30.5% to 240.3 million HKD (approximately 220 million RMB), the largest decline among the four companies [2][3]. Market Conditions - The domestic natural gas market was affected by multiple factors, including high temperatures, slow recovery of manufacturing PMI, rising natural gas prices in Europe and the US, and US tariff issues, leading to overall weak performance [3]. - China's apparent natural gas consumption was 211.97 billion cubic meters, a decrease of 0.9% year-on-year, which directly impacted the gas sales revenue growth of city gas companies [3]. Business Segment Performance - **China Resources Gas**: All five business segments saw revenue declines, with the core gas sales and distribution segment generating revenue of 44.298 billion HKD, a decrease of 3.5% year-on-year [6]. - **Kunlun Energy**: Revenue from the natural gas sales segment increased by 6% to 80.078 billion RMB, while the exploration and production segment saw a significant decline of 15.9% to 0.74 billion RMB due to falling international oil prices [8]. - **Xinao Energy**: The company reported a 1.9% increase in natural gas retail sales volume to 12.953 billion cubic meters, but the wholesale business faced pressure with a 17.2% increase in revenue to 14.467 billion RMB, resulting in a loss in gross profit [9]. Strategic Developments - **Honghua Smart Energy**: The company attributed its profit growth to the continuous expansion of renewable energy business and stable gas business profits, with a 5% increase in net profit from renewable energy [10]. - **China Resources Gas**: The company signed 71 new distributed photovoltaic projects and 35 distributed energy projects, indicating a strategic shift towards renewable energy [7]. - **Xinao Energy**: The company advanced its electricity market business, adding significant capacity in solar and energy storage projects [9].

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年8月31日 | | | | 狀態: 新提交 | | --- | --- | --- | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | | | | 公司名稱: | 昆侖能源有限公司 | | | | | | 呈交日期: | 2025年9月1日 | | | | | | I. 法定/註冊股本變動 | | | | | | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | 於香港聯交所上市 (註1) | 是 | | 證券代號 (如上市) | 00135 | 說明 | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 16,000,000,000 | HKD | | 0.01 HKD | | 160,000,000 | | 增加 / 減少 (-) | | | | | | ...

Investment Rating - The report maintains an "Overweight" rating for the gas industry [1]. Core Insights - The report highlights a slight increase in raw gas demand leading to a minor rise in US gas prices, while European storage advancements have contributed to a decrease in gas prices [4][9]. - The overall supply-demand dynamics indicate a modest increase in raw gas demand, with US natural gas market prices rising by 3.3% week-on-week as of August 27, 2025 [16]. - The report emphasizes the ongoing integration of Jiufeng Energy and the gradual implementation of pricing reforms across the country, which are expected to enhance profitability and valuation recovery for city gas companies [35]. Price Tracking - As of August 29, 2025, the week-on-week changes in gas prices are as follows: US HH +3.3%, European TTF -6.6%, East Asia JKM -2.9%, China LNG ex-factory price 0%, and China LNG CIF price -6.2% [9][14]. - The average total supply of natural gas in the US increased by 0.1% week-on-week to 1,127 billion cubic feet per day, while total demand decreased by 3.5% to 1,025 billion cubic feet per day [16]. Supply and Demand Analysis - The report notes that the storage pace in Europe is slower than expected, leading to a week-on-week decrease in European gas prices by 6.6% [17]. - In China, the apparent consumption of natural gas from January to July 2025 increased by 0.3% year-on-year to 246.1 billion cubic meters, attributed to warmer winter conditions affecting heating gas demand [22][27]. Pricing Progress - The report states that 65% of cities have implemented residential pricing reforms, with an average price increase of 0.21 yuan per cubic meter [35]. - The introduction of a new pricing mechanism for provincial natural gas pipeline transportation is expected to lower costs for downstream users and promote industry growth [35]. Investment Recommendations - The report recommends focusing on companies that can optimize costs and benefit from the ongoing pricing reforms, particularly highlighting New Energy, China Gas, and Kunlun Energy as key investment opportunities [4][35]. - It also suggests monitoring companies with quality long-term contracts and flexible scheduling capabilities, such as Jiufeng Energy and Xin'ao [4].

Core Viewpoint - The company reported a mixed performance for the first half of 2025, with revenue growth but a decline in net profit, highlighting the challenges faced in the natural gas sector amidst a slight decrease in national consumption [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 97.543 billion yuan, a year-on-year increase of 4.97% [1] - Shareholder profit attributable to the company was 3.161 billion yuan, a decrease of 4.36% year-on-year [1] - The interim dividend was set at 0.1660 yuan per share, an increase of 0.0019 yuan per share compared to the previous year [1] Group 2: Natural Gas Sales - The company maintained a high growth rate in natural gas sales, with total sales volume reaching 29.095 billion cubic meters, a year-on-year increase of 10.0% [1] - Retail gas volume was 16.666 billion cubic meters, up 2.2% year-on-year, while distribution and trading gas volume increased by 22.6% to 12.429 billion cubic meters [1] - The average selling price of natural gas was 2.77 yuan per cubic meter, while the average purchase price was 2.33 yuan per cubic meter, resulting in a weighted average price difference of 0.44 yuan per cubic meter, a decrease of 0.01 yuan year-on-year [1] Group 3: LNG and LPG Business - LNG receiving station processing volume was 7.899 billion cubic meters, a year-on-year increase of 1.7%, with an average load factor of 86.8%, up 1.4 percentage points [2] - Revenue from LNG receiving stations was 2.382 billion yuan, a year-on-year increase of 2.3%, with a tax profit of 1.701 billion yuan, up 5.4% [2] - LPG sales volume reached 3.0684 million tons, a year-on-year increase of 4.9%, but revenue was 13.020 billion yuan, a slight increase of 1.0%, with tax profit decreasing by 3.0% to 544 million yuan [2] Group 4: Dividend and Investment Value - The company plans to distribute an interim dividend of 0.1660 yuan per share, with an expected annual payout ratio of 45% [3] - The anticipated dividend yield based on the current stock price is 4.92%, indicating stable investment value [3] - Projected earnings for 2025-2027 are 6.361 billion, 6.836 billion, and 7.366 billion yuan, with corresponding EPS of 0.73, 0.79, and 0.85 yuan, and PE ratios of 9.15, 8.51, and 7.90 respectively [3]