Investment Rating - The report initiates coverage with an "OUTPERFORM" rating for Kunlun Energy, with a target price of HKD 7.96 per share [3][23][86] Core Insights - Kunlun Energy is one of the largest domestic natural gas terminal utilization and LPG sales enterprises in China, primarily engaged in urban gas, natural gas pipelines, LNG and CNG terminals, natural gas power generation, LNG processing and storage, and LPG sales [6][89] - The company has achieved steady revenue growth, reaching RMB 87.072 billion in H1 2023, a year-on-year increase of 3.8%, with a pre-tax profit of RMB 6.791 billion, reflecting an 8.2% growth [7][90] - Natural gas sales account for 79.1% of total revenue, with a year-on-year growth of 8.5%, while LPG sales contribute 15.8% [8][90] Company Overview - Kunlun Energy, established in 1994 and listed on the Hong Kong Stock Exchange, has shifted its focus from oil exploration to domestic natural gas sales and comprehensive utilization, emphasizing LNG business development [6][69] - The company operates across 31 provinces in China, with an annual natural gas sales volume of 20 billion cubic meters and an LNG receiving capacity of 19 million tons [6][89] Financial Performance Review - The revenue breakdown for H1 2023 includes natural gas sales at RMB 68.896 billion, LPG sales at RMB 13.804 billion, LNG processing and storage at RMB 3.764 billion, and exploration and production at RMB 0.608 billion [8][90] - The company has maintained a stable cash flow, with a current ratio around 1 and a net debt-to-equity ratio around 0.7 [10][73] Business Segment Analysis - Natural gas sales volume grew by 9.0% year-on-year in H1 2023, reaching 23.916 billion cubic meters, with retail gas volume increasing by 9.5% [10][91] - The natural gas price differential was RMB 0.495 per cubic meter, showing a stable upward trend [13][91] - LPG sales reached 293.69 million tons in H1 2023, with a year-on-year increase of 5.17% [15][78] Emerging Business Developments - The company is focusing on green development and has entered the field of wind-solar-thermal integrated power generation, with 3 million kilowatts of new energy indicators obtained [22][92] - Kunlun Energy is diversifying its energy offerings to meet various user needs, promoting the operation of 12 projects and the orderly development of 24 projects [22][92] Profit Forecast and Valuation - The forecast for main operating revenue for FY23-25 is RMB 182.16 billion, RMB 195.07 billion, and RMB 207.95 billion, with corresponding net profits of RMB 6.11 billion, RMB 6.46 billion, and RMB 6.49 billion [23][93]

Financial Performance - The Group recorded natural gas sales volume of 23,916 million cubic metres, representing a year-on-year increase of 9.04%[9] - Revenue reached RMB 87,072 million, an increase of RMB 3,208 million or 3.83% year-on-year[9] - Profit attributable to shareholders was RMB 3,222 million, reflecting a year-on-year increase of 4.61%[6] - The Group's net profit increased by 12.00% year-on-year to RMB 5,041 million, significantly improving operational efficiency[10] - Profit before income tax was RMB 6,791 million, reflecting an increase of RMB 516 million or 8.22% year-on-year[164] - Other net gains for the period amounted to approximately RMB 239 million, compared to a net loss of RMB 76 million in the same period of 2022, mainly due to increased government subsidies and reduced exchange losses[34] - Employee compensation costs were approximately RMB 2,628 million, a decrease of 7.33% from RMB 2,836 million in the same period last year, mainly due to a reduction in headcount[36] - Interest expenses for the period were approximately RMB 436 million, a decrease of 5.83% compared to RMB 463 million for the same period last year[41] Sales and User Growth - The total number of users exceeded 15 million, with retail sales volume increasing to 14,787 million cubic metres, a year-on-year increase of 9.50%[10] - The company added 506,900 new users, including 492,600 residential and 14,300 industrial and commercial users, bringing the cumulative total to 15.2202 million[17] - The company achieved natural gas sales volume of 23,916 million cubic meters, a year-on-year increase of 9.04%, with retail gas sales volume at 14,787 million cubic meters, up 9.50%[17] Business Segments and Revenue Sources - Revenue from the natural gas sales business reached RMB 69,859 million, representing an 8.89% year-on-year increase, while profit before income tax was RMB 4,887 million, up 26.08%[18] - LNG sales from self-operation, processing, and gasification totaled 8,432 million cubic metres, representing a decrease of 8.11%[7] - LPG sales volume was 2.9369 million tonnes, a year-on-year increase of 5.17%, but revenue decreased by 7.99% to RMB 13,855 million[20] - LNG gasification and entrucking volume at Jingtang and Jiangsu terminals totaled 7,336 million cubic meters, down 6.73% year-on-year, with revenue from LNG processing and terminal business at RMB 5,188 million, a decrease of 14.42%[22][23] Strategic Initiatives and Future Outlook - The Group launched its first customized insurance product, with sales on platforms increasing by 17.8 times year-on-year[14] - The Group acquired 3 million kilowatts of new energy indicators and put eight new energy projects into operation[14] - The company is focusing on green development, acquiring 3 million kilowatts of new energy indicators and launching 8 new energy projects[16] - The Group aims for approximately 7% year-on-year growth in domestic natural gas consumption in the second half of the year, despite a complex business environment[182] - The company plans to optimize market structure and profitability while focusing on high-end markets and key infrastructure projects like the Fujian LNG terminal[26] Cost Management and Efficiency - Purchases, services, and others totaled approximately RMB 73,949 million, an increase of 4.53% from RMB 70,745 million for the same period last year, attributed to rising procurement costs for natural gas[35] - Other selling, general and administrative expenses were approximately RMB 1,373 million, a decrease of 21.00% from RMB 1,738 million for the same period last year, due to strict cost control measures[41] - Depreciation, depletion, and amortisation for the period was approximately RMB 2,896 million, representing an increase of 19.18% compared to RMB 2,430 million for the same period last year[41] Corporate Governance and Compliance - The Company has maintained compliance with all code provisions in the Corporate Governance Code during the Period[56] - The Audit Committee has reviewed the unaudited interim financial report for the Period, which was also reviewed by PricewaterhouseCoopers[57] - The Company adopted new bye-laws on May 31, 2023, to comply with Core Shareholder Protection Standards[54] Shareholder Information - The Board of Directors resolved not to recommend the payment of any interim dividend for the period ended 30 June 2023[52] - The final dividend for 2022 was RMB 2,198 million, reflecting the company's commitment to returning value to shareholders[85] - The company did not grant any unexercised share options to directors or employees during the reporting period[69]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 87,072 million, reflecting a 3.83% increase from RMB 83,864 million in 2022[2] - Profit attributable to shareholders rose by 4.61% to RMB 3,222 million from RMB 3,080 million in the previous year[3] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 11.10% to RMB 9,729 million compared to RMB 8,757 million in 2022[1] - The company reported a total comprehensive income of RMB 5,115 million, up from RMB 4,410 million in the previous year[2] - Total revenue for the six months ended June 30, 2023, was RMB 89,510 million, an increase from RMB 86,460 million in the same period of 2022, representing a growth of approximately 3%[11] - Profit before tax for the period was RMB 6,201 million, compared to RMB 5,696 million in the previous year, indicating an increase of about 8.9%[12] - The company reported a net profit of RMB 5,041 million for the six months ended June 30, 2023, compared to RMB 4,501 million in the same period of 2022, marking an increase of approximately 12%[12] - Profit before income tax was RMB 6.791 billion, an increase of RMB 516 million or 8.22% year-on-year[25] Sales and Volume - Total natural gas sales volume increased by 9.04% to 23,916 million cubic meters compared to 21,933 million cubic meters in 2022[1] - The natural gas sales segment generated revenue of RMB 69,859 million, while LPG sales contributed RMB 13,855 million, LNG processing and storage brought in RMB 5,188 million, and exploration and production accounted for RMB 608 million[11] - The total number of users exceeded 15 million, with retail gas sales increasing to 14.787 billion cubic meters, a year-on-year increase of 9.50 percentage points in retail proportion[26] - Natural gas sales volume reached 23.916 billion cubic meters, a year-on-year increase of 9.04%, with retail gas volume at 14.787 billion cubic meters, up 9.50%[28] - LPG sales volume increased by 5.17% to 2.937 million tons, but revenue decreased by 7.99% to RMB 13.855 billion[29] - LNG processing and storage revenue decreased by 14.42% to RMB 5.188 billion, with profit before income tax down 19.94% to RMB 1.341 billion[31] - Crude oil sales dropped by 13.73% to 4.84 million barrels, with revenue falling 48.61% to RMB 608 million due to lower average selling prices[32] Assets and Liabilities - The total assets as of June 30, 2023, were RMB 138,537 million, compared to RMB 138,892 million at the end of 2022[4] - Current assets net value increased to RMB 19,156 million from RMB 16,955 million in the previous year[5] - Total liabilities decreased slightly to RMB 56,478 million from RMB 58,190 million[5] - Total assets for the segments as of June 30, 2023, amounted to RMB 122,918 million, compared to RMB 123,476 million as of June 30, 2022[11] - The capital debt ratio decreased to 23.68% as of June 30, 2023, down from 24.26% as of December 31, 2022, representing a reduction of 0.58 percentage points[43] - Total borrowings as of June 30, 2023, were RMB 24,670 million, with RMB 5,618 million due within one year[44] - The value of properties, plants, and equipment pledged as collateral for loans was RMB 755 million as of June 30, 2023, down from RMB 958 million as of December 31, 2022[45] Operational Highlights - The company has made significant progress in strategic infrastructure projects, including the completion of the joint venture registration for the Fujian LNG receiving station[27] - The company has acquired 3 million kilowatts of new energy indicators and has launched 8 new energy projects[27] - The company expects domestic natural gas consumption to grow by approximately 7% year-on-year in the second half of the year[33] - The company plans to enhance safety standards and improve digital management systems to strengthen operational safety[34] - Focus will be on expanding high-end markets and key infrastructure projects, particularly in Fujian LNG receiving station[34] - The company aims to accelerate the development of renewable energy projects in Xinjiang and Shandong, enhancing its role in the new energy system[34] Employee and Governance - Employee compensation costs decreased by 7.33% to RMB 2.628 billion due to a reduction in workforce[38] - The company employed 28,139 employees globally as of June 30, 2023, a decrease from 30,655 employees in the same period last year[46] - The company did not recognize any revenue from a single customer that exceeded 10% of total revenue for the periods reported[13] - The company adopted new articles of association on May 31, 2023, to comply with the core shareholder protection levels as per the listing rules[48] - The board decided not to recommend any interim dividend for the period ending June 30, 2023[47] Future Outlook - The company plans to implement several accounting standard revisions effective January 1, 2024, including classifications of liabilities and cash flow statements, which are anticipated to have no significant impact on future transactions[9] - The detailed interim financial results will be published by September 15, 2023, on the stock exchange and the company's website[52]

Financial Performance and Costs - Purchases, services, and others increased by 26.0% to RMB146,077 million, driven by higher natural gas purchase volume and prices[55] - Employee compensation costs rose by 4.8% to RMB5,749 million due to business growth and economic inflation[55] - Depreciation, depletion, and amortization increased by 5.7% to RMB4,887 million, remaining stable throughout the year[55] - Other selling, general, and administrative expenses grew by 10.9% to RMB3,770 million, mainly due to increased royalty expenses and natural gas business expansion[55] - Interest expenses increased by 14.8% to RMB899 million, while total interest expenses decreased by 7.5% to RMB968 million due to improved weighted average interest rates[55] - Share of profits less losses of associates decreased by 39.9% to RMB525 million, primarily due to higher exchange losses and increased operating costs at associates[56] Assets and Liabilities - Total assets increased by 4.8% to RMB138,892 million as of December 31, 2022[58] - Gearing ratio decreased by 0.66% to 24.26% as of December 31, 2022[58] - Total borrowings as of December 31, 2022, amounted to RMB25,081 million, with repayments scheduled within one year (RMB5,287 million), one to two years (RMB2,906 million), two to five years (RMB9,591 million), and after five years (RMB7,297 million)[59] - Assets pledged to banks amounted to RMB958 million as of 31 December 2022, down from RMB1,025 million in 2021[62] Exchange Rate and Risk Management - The company is exposed to exchange rate risks due to foreign currency borrowings, with potential gains or losses depending on RMB appreciation or depreciation[61] Corporate Governance and Board Structure - The Board fully supports the Chief Executive Officer and senior management in discharging their responsibilities[79] - The Board has a strong element of independence, enabling effective exercise of independent judgement[83] - The Board comprises Executive Directors and Independent Non-executive Directors, including Mr. Qian Zhijia as CEO and Chairman of the Sustainability Committee[83] - The Company has received written annual confirmation from each Independent Non-executive Director regarding their independence[85] - Independent Non-executive Directors bring a wide range of business and financial expertise, experiences, and independent judgement to the Board[85] - The Board has adopted a Board Diversity Policy and Nomination Policy to align with board diversity requirements[87] - The Board is responsible for major transactions, policy approvals, overall strategy, budget, internal control, and risk management systems[80] - The Company has arranged appropriate insurance cover for Directors' and officers' liabilities arising from corporate activities[79] - The Board ensures compliance with all applicable rules and regulations, with Directors having access to relevant information and company secretary services[80] - The Board meets the Listing Rules requirements, including the appointment of at least three Independent Non-executive Directors, with at least one possessing appropriate professional qualifications[84] Investment and Project Management - The company optimized its investment management system and completed the revision of its Investment Management Measures, enhancing investment control and risk management[133] - The company adhered to the principles of rigorous, accurate, and effective investment, improving the annual investment plan and ensuring project quality from the source[133] - The company strengthened project organization and leadership, ensuring efficient, high-quality, and safe completion of key construction projects[134] - The company enhanced the control of the whole life cycle of engineering projects, providing fixed-point guidance and special training to improve legal compliance management[134] - The company strictly managed contractor qualifications and personnel, ensuring effective quality control in engineering projects[134] Future Outlook and Strategic Plans - In 2023, the company expects gas consumption to grow at a rate of more than 6%, driven by economic recovery and increased demand in various sectors[138] - The company plans to leverage low-carbon transformation opportunities by deploying new energy and expanding new business models focused on customer needs[138] - The company aims to create a new model of digital governance and achieve high-quality growth by integrating gas with other new energies[138] Legal and Compliance - The company has complied with relevant laws and regulations, obtaining necessary business licenses, qualifications, approvals, and permits for its operations[141] - The company has not engaged in any illegal or non-compliant acts that would significantly impact its normal and continuous operations[141] Dividend Policy and Shareholder Returns - The company's dividend policy aims to distribute not less than 25% of annual consolidated profit attributable to shareholders[65][69] - The board considers business conditions, working capital needs, expansion plans, and macroeconomic factors when proposing dividends[66][70] Legal Disputes and Contingencies - The group is involved in certain lawsuits, but management believes any resulting liabilities will not materially affect financial performance[64][68] Employee and Organizational Changes - The group had 30,916 employees globally as of 31 December 2022, a decrease from 32,136 in 2021[63][67] - The company completed the disposal of 60% equity interest in Beijing Pipeline and 75% equity interest in Dalian LNG for RMB38,462 million in 2021[62]

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 171,944 million, representing a 24.1% increase from RMB 138,547 million in 2021[1] - Profit before income tax expenses increased by 7.7% to RMB 11,392 million from RMB 10,576 million in the previous year[1] - Core profit attributable to shareholders rose by 25.2% to RMB 6,281 million compared to RMB 5,016 million in 2021[1] - The company reported a net profit of RMB 8,203 million for the year, down from RMB 26,337 million in 2021, primarily due to discontinued operations[4] - The company reported a net profit for continuing operations of RMB 8,203 million for the year 2022, compared to RMB 7,878 million in 2021, reflecting an increase of approximately 4.1%[12] - Profit attributable to shareholders was RMB 5.228 billion, up RMB 0.087 billion or 1.7% compared to the previous year[28] - Basic earnings per share for the year were RMB 60.38, a slight increase of 1.7% from RMB 59.37 in 2021[1] - Basic earnings per share for the year were RMB 0.6038, reflecting a stable performance[20] Revenue Breakdown - Natural gas sales volume reached 44,988 million cubic meters, an increase of 7.1% from 41,999 million cubic meters in 2021[1] - Retail gas sales volume increased by 8.0% to 27,762 million cubic meters from 25,710 million cubic meters in the previous year[1] - Natural gas sales generated revenue of RMB 131,892 million in 2022, up from RMB 105,044 million in 2021, marking a growth of approximately 25.6%[13] - LPG sales revenue increased to RMB 29,224 million in 2022 from RMB 24,038 million in 2021, which is a growth of about 21.7%[13] - LNG processing and storage services revenue rose to RMB 8,542 million in 2022, compared to RMB 7,733 million in 2021, indicating an increase of approximately 10.5%[13] - Natural gas sales revenue reached RMB 133.987 billion, a year-on-year increase of 25.8%[31] Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 138,892 million, compared to RMB 132,582 million in 2021[5] - Total liabilities, including accounts payable and contract liabilities, amounted to RMB 27.720 billion[26] - The total assets of the company as of December 31, 2022, were RMB 138,892 million, up from RMB 132,582 million in 2021, representing a growth of about 4.9%[12] - The capital debt ratio decreased to 24.26% from 24.92% the previous year, indicating improved financial stability[44] Dividends - The company declared a dividend of RMB 25.39 per share, up 22.2% from RMB 20.78 in the previous year[1] - The proposed final dividend for 2022 is RMB 0.2539 per share, compared to RMB 0.2078 per share in 2021, with a total payout of approximately RMB 2,198 million[55] - The dividend payout ratio for 2022 is approximately 35.00%, consistent with the previous year[55] Operational Highlights - In 2022, natural gas retail volume increased by 8.0% to 27.762 billion cubic meters, with total customers growing by 867,400 to 14.713 million[29] - The company signed 62 cooperation framework agreements and added 23 new projects, increasing annual sales capacity by over 3.2 billion cubic meters[29] - The company achieved a retail gas volume growth of 10% and added 800,000 new users[1] - LNG processing and storage revenue grew by 19.4% to RMB 12.810 billion, with 15 LNG plants operating and processing volume increasing by 3.23 billion cubic meters[31] Costs and Expenses - Interest expenses for continuing operations amounted to RMB 899 million in 2022, compared to RMB 783 million in 2021, which is an increase of about 14.8%[16] - Procurement, services, and other costs rose by 26.0% to approximately RMB 146,077 million, compared to RMB 115,893 million last year[39] - Employee compensation costs increased by 4.8% to approximately RMB 5,749 million, up from RMB 5,485 million last year[40] Corporate Governance and Future Plans - The ESG rating improved from BB to BBB, reflecting enhanced corporate governance and sustainability efforts[30] - The company aims to achieve over 10% growth in operating income year-on-year[1] - The company is actively promoting 30 new energy projects and aims to establish 10 "zero-carbon demonstration stations"[1] Shareholder Information - The 2023 Annual General Meeting is scheduled for May 31, 2023, with the notice sent to shareholders along with the 2022 Annual Report[57] - Share transfer registration will be suspended from May 25, 2023, to May 31, 2023, to determine eligibility for attending the AGM and receiving the 2022 final dividend[58] - The deadline for submitting share transfer documents for AGM voting eligibility is May 24, 2023, at 4:30 PM[58] - The deadline for submitting share transfer documents to qualify for the 2022 final dividend is June 6, 2023, at 4:30 PM[58]

Financial Performance - Revenue for the period was approximately RMB83,864 million, reflecting a year-on-year increase of 29.54%[7] - Profit attributable to shareholders was RMB3,080 million, an increase of 18.64% year-on-year[8] - Profit before income tax was RMB6,275 million, reflecting a year-on-year increase of 24.26%[25] - The total profit for the period attributable to shareholders was RMB 3,080 million from continuing operations, compared to RMB 2,596 million in the previous year, representing an increase of approximately 18.6%[92] - The profit for the period from continuing operations was RMB 4,501 million, an increase from RMB 3,797 million in the same period of 2021, reflecting a growth of about 18.5%[90] - The total comprehensive income for the period was RMB 4,410 million, down from RMB 22,124 million in the previous year, indicating a significant decrease of approximately 80.1%[90] Sales and Volume Metrics - The Group's natural gas sales volume reached 21,933 million cubic metres, representing a year-on-year increase of 4.21%[8] - LNG sales volume totaled 9,176 million cubic metres, marking a 5.56% increase[7] - Retail gas sales volume increased by 12.13% year-on-year, totaling 13,504 million cubic meters[26] - The sales volume of crude oil in the Exploration and Production business decreased by 7.88% to 5.61 million barrels[7] - The profit of the LPG business increased by 34.71% year-on-year, demonstrating strong performance amid market challenges[12] Market and Strategic Initiatives - The Group aims to leverage the "dual carbon" target to enhance energy transformation and integrated energy projects[13] - The Group plans to expand its market presence through mergers and acquisitions as regional integration progresses[14] - The Group aims to enhance synergies among various gas products and improve the LPG industry chain layout[19] - The Group plans to accelerate the development of integrated energy projects for carbon neutrality in emerging towns and new industrial zones[18] - The company is considering strategic acquisitions to enhance its market position, with a budget of $200 million allocated for potential deals[176] User Growth and Customer Base - The number of new users amounted to 408,600, representing an 11.76% year-on-year increase[26] - User data indicates a growth in customer base by 20%, with total users now exceeding 5 million[176] Cost and Expense Management - Employee compensation costs for the period were approximately RMB2,836 million, an increase of 13.94% compared to RMB2,489 million for the same period last year[46] - Depreciation, depletion, and amortisation amounted to approximately RMB2,430 million, representing a 6.39% increase from RMB2,284 million for the same period last year[46] - Other selling, general, and administrative expenses were approximately RMB1,738 million, reflecting a 30.87% increase from RMB1,328 million for the same period last year[46] - Interest expenses for the period were approximately RMB463 million, a significant increase of 76.05% compared to RMB263 million for the same period last year[46] Assets and Liabilities - As of June 30, 2022, total assets were approximately RMB133,931 million, an increase of RMB1,349 million or 1.02% from RMB132,582 million as of December 31, 2021[48] - Total liabilities decreased to RMB 56,343 million as of June 30, 2022, from RMB 56,721 million at the end of 2021[96] - The Group's total liabilities decreased slightly to RMB 26,809 million as of June 30, 2022, from RMB 27,267 million as of December 31, 2021, reflecting a 1.7% decline[139] Cash Flow and Investments - Net cash generated from operating activities for the six months ended June 30, 2022, was RMB 6,497 million, an increase of 97% compared to RMB 3,284 million for the same period in 2021[102] - The company reported a net cash used in investing activities of RMB (14,678) million for the six months ended June 30, 2022, compared to a net cash generated of RMB 29,685 million in the same period of 2021[102] - The company’s capital expenditure for the six months ended June 30, 2022, was RMB 17,023 million, reflecting ongoing investments in its operations[102] Corporate Governance and Compliance - The interim financial statement was authorized for issue on August 23, 2022, and prepared in accordance with HKAS 34[105] - The review of the interim financial statement was conducted in accordance with Hong Kong Standard on Review Engagements 2410, ensuring compliance with relevant accounting standards[172] - PricewaterhouseCoopers serves as the auditor for Kunlun Energy Company Limited, ensuring the integrity of the financial reporting process[175] - The company has established principal board committees, including an Audit Committee, to oversee financial practices and compliance[175] Future Outlook and Development - The company has outlined a future outlook projecting a revenue growth of 12% for the next fiscal year[176] - New product development includes the launch of a sustainable energy solution expected to contribute an additional $100 million in revenue[176] - Investment in technology R&D has increased by 25%, focusing on innovative energy solutions[176] - Sustainability initiatives are a priority, with a commitment to reduce carbon emissions by 30% over the next five years[176]

Financial Performance - Total revenue for the year reached RMB 138,547 million, representing a significant increase compared to previous years[34] - The profit attributable to shareholders for the year was RMB 23,016 million, showing strong financial performance[34] - Earnings per share (basic) for the year was RMB 70.02, demonstrating robust profitability[34] - Revenue for the year ended December 31, 2021, was RMB 138,547 million, an increase from RMB 109,251 million in 2020, representing a growth of approximately 26.8%[37] - Profit for the year attributable to shareholders was RMB 26,337 million, significantly up from RMB 9,732 million in 2020, marking an increase of about 171.5%[37] - Core profit before income tax expense reached RMB 10,599 million, compared to RMB 7,562 million in the previous year, reflecting an increase of approximately 40.1%[37] - The net profit margin for 2021 was 5.69%, slightly up from 5.30% in 2020[38] - The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was RMB 15,476 million, up from RMB 12,342 million in 2020, representing a growth of approximately 25.0%[37] Natural Gas and LPG Sales - Cumulative users of the natural gas service reached 1,488,000, with 41,999 new users added during the year[9] - Natural gas sales volume was reported at 106,528 million cubic metres, contributing to the overall revenue growth[9] - The sales volume of liquefied petroleum gas (LPG) was recorded at 658,000 tonnes, indicating a stable demand in the market[35] - For the year ended December 31, 2021, the sales volume of city gas reached 336 million cubic meters, an increase from 274 million cubic meters in 2020[40] - The sales volume of natural gas was 420 million cubic meters, up from 378 million cubic meters in 2020, reflecting a growth of approximately 11.1%[40] - The sales volume of LPG was 599,000 tonnes, compared to 521,000 tonnes in 2020, indicating a growth of about 15%[40] - The LNG gasification volume for 2021 was 153 million cubic meters, an increase from 113 million cubic meters in 2020[43] Market Expansion and Strategic Initiatives - The company aims to transform into an internationally renowned integrated green energy provider, focusing on green development strategies[7] - The company plans to expand its market reach and invest in new technologies to support its green energy initiatives[7] - The Group completed the acquisition of entire equity interests in 10 urban gas projects of Xinjiang Xintai Company, enhancing its market reach[68] - The Group plans to expand LNG transportation and develop onshore and offshore LNG refilling systems, including the offshore LNG refilling project in Shenzhen[77] - The Group aims to construct pilot "net zero emission" stations and participate in negative carbon projects to build a green corporate brand[79] Corporate Governance - The Company has complied with all Code Provisions of the Corporate Governance Code throughout the Year[136] - The Board is collectively responsible for promoting the success of the Company by directing and supervising its affairs[137] - The Company has adopted a Board Diversity Policy to align board diversity[145] - The day-to-day management is delegated to the Chief Executive Officer and senior management, with periodic reviews of delegated functions[140] - The Company has arranged appropriate insurance cover for Directors' and officers' liabilities[141] Dividends and Shareholder Returns - The special dividend declared was RMB 213.66 per share, reflecting the company's commitment to returning value to shareholders[33] - The proposed final dividend for 2021 is RMB20.78 cents per share, totaling approximately RMB1,799 million, with a payout ratio of approximately 35.00%[134] - The dividend policy allows for a minimum distribution of 25% of the group's annual consolidated profit attributable to shareholders, subject to various criteria[129][132] Operational Efficiency and Financial Health - Current liabilities decreased to RMB 34,219 million from RMB 44,593 million in 2020, indicating improved liquidity[37] - The company’s gearing ratio improved to 24.92% in 2021 from 25.11% in 2020, indicating a slight reduction in financial leverage[38] - The average finance cost was not specified but is a critical metric for assessing financial health[40] - The liabilities-to-adjusted EBITDA ratio and other financial ratios were not detailed but are essential for evaluating leverage and operational efficiency[40] ESG and Sustainability - The Group's ESG rating improved to BB, and it was selected for the "Central Enterprise ESG·Pioneer 50 Index" by MSCI[73] - The Group is committed to achieving the "dual carbon" goals while addressing cost pressures and market changes through lean management initiatives[76] Employee and Management Information - As of December 31, 2021, the company conducted a review of the Board's diversity in age, years of service, and title[148] - The company had approximately 32,136 employees globally, a decrease from 36,396 employees in 2020[126][127] - Employee compensation costs rose to approximately RMB5,485 million, an increase of 16.70% from RMB4,700 million last year, attributed to the cancellation of social insurance contribution waivers[112]

Financial Performance - The revenue for the period was approximately RMB64,739 million, representing an increase of 38.59% year-on-year[4]. - Profit attributable to owners of the Company from continuing operations was RMB2,596 million, representing an increase of 249.87% year-on-year[5]. - The profit before income tax expense was RMB5,050 million, representing a year-on-year increase of 83.70%[10]. - Profit attributable to owners of the Company surged to RMB 20,461 million, marking a year-on-year increase of 765.89%[28]. - Profit for the period from continuing operations was RMB 3,797 million, up from RMB 1,616 million in the previous year, indicating a growth of 134.5%[85]. - Total comprehensive income for the period reached RMB 22,124 million, significantly higher than RMB 4,163 million in the same period last year, reflecting a substantial increase of 431.5%[85]. - The company reported a profit for the period of RMB 22,225 million, compared to RMB 4,192 million in 2020, marking an increase of 429.5%[85]. Sales and Volume Metrics - The Group's natural gas sales volume was 21,046 million cubic metres, representing an increase of 30.95% year-on-year[7]. - The sales volume of LPG was 3.0159 million tonnes, representing an increase of 28.17% year-on-year[7]. - The sales volume of crude oil in the Exploration and Production business was 6.09 million barrels, representing a decrease of 0.65% year-on-year[8]. - The apparent consumption of natural gas in the PRC was 182.7 billion cubic metres, representing a year-on-year increase of 17.40%[11]. - The sales volume of natural gas reached 21,046 million cubic metres, a year-on-year increase of 30.95%, with retail gas sales volume at 12,042 million cubic metres, up 20.20%[30]. - The number of new users increased by 397,000, representing a year-on-year growth of 37.47%, bringing the cumulative number of users to 12,755,000[30]. Revenue Breakdown - Revenue from natural gas sales was RMB 50,273 million, reflecting a year-on-year increase of 36.91%, with profit before income tax at RMB 2,859 million, up 29.90%[31]. - LPG sales volume was 3.0159 million tonnes, a year-on-year increase of 28.17%, with revenue of RMB 10,861 million, representing a 55.82% increase[35]. - The LNG processing and terminal segment generated revenue of RMB 4,462 million, a year-on-year increase of 18.01%, with profit before income tax at RMB 1,479 million, up 52.32%[38]. - The Natural Gas Sales segment generated revenue of RMB 50,273 million, an increase of 1.4% compared to RMB 49,600 million in the previous year[146]. - The LNG Processing and Terminal segment reported revenue of RMB 4,462 million, up from RMB 3,436 million, reflecting a growth of 30%[146]. - The Sales of LPG segment achieved revenue of RMB 10,861 million, slightly increasing from RMB 10,834 million, indicating a growth of 0.25%[146]. Corporate Strategy and Development - The Group aims to enhance the quality and efficiency of its end-user business by optimizing investment projects and strengthening cooperation with local governments[18]. - The Group plans to accelerate the integration and development of natural gas and new energy, focusing on pilot programs for combined natural gas and photovoltaic power generation[22]. - The Group will actively promote the rural gas program, supporting the construction of safe storage tanks and micromanagement network gas supply systems in rural areas[21]. - The Group's strategy includes the development of distributed integrated energy supply businesses based on the city gas distribution network, aiming to enhance brand recognition and customer loyalty[24]. - The Group's operating results exceeded expectations, marking a strong start for the high-quality development of the "14th Five-Year" Plan period[15]. Corporate Governance and Compliance - The Group is committed to modernizing its corporate governance system to strengthen core competitiveness and maximize corporate value[25]. - The company has maintained compliance with all code provisions in the Code on Corporate Governance Practices during the period[67]. - The Audit Committee reviewed the accounting policies and internal controls related to the preparation of the unaudited interim financial report[68]. - The Directors do not recommend a payment of an interim dividend for the six months ended June 30, 2021, consistent with the same period in 2020[119]. Assets and Liabilities - Total assets of the Group as of June 30, 2021, were approximately RMB146,463 million, a decrease of RMB8,525 million or 5.50% from RMB154,988 million as of December 31, 2020[55]. - The gearing ratio of the Group increased to 26.62% as of June 30, 2021, compared to 25.11% as of December 31, 2020, an increase of 1.51 percentage points[55]. - Current liabilities rose to RMB 50,101 million, up from RMB 44,593 million, representing an increase of 12%[92]. - Total liabilities as of June 30, 2021, were RMB 73,870 million, an increase from RMB 70,461 million, indicating a growth of 3.9%[92]. - Cash and cash equivalents increased significantly to RMB 48,559 million from RMB 16,273 million, showing a growth of 198%[90]. Discontinued Operations - The company completed the disposal of equity interest in PetroChina Beijing Gas Pipeline Co., Ltd. and PetroChina Dalian LNG Co., Ltd. in March 2021, which were presented as discontinued operations[1]. - The company agreed to sell a 60% equity interest in Beijing Pipeline and a 75% equity interest in Dalian LNG to PipeChina for approximately RMB 40,886 million, with an estimated gain on disposal of RMB 16,981 million recorded[151]. - Cash consideration received from the disposal of discontinued operations amounted to RMB 39,070 million, with a carrying amount of net assets sold at RMB 20,796 million[168]. - The gain on disposal of discontinued operations before income tax was RMB 18,274 million, resulting in a post-tax gain of RMB 16,981 million[168]. Related Party Transactions - The Group has extensive transactions with the CNPC Group, which may affect the terms of transactions compared to unrelated parties[185]. - The provision of products by the CNPC Group to the Company amounted to approximately RMB27,043 million for the six months ended 30 June 2021, a decrease of 2% from RMB27,599 million for the same period in 2020[188]. - The provision of services by the CNPC Group to the Company was approximately RMB3,544 million for the six months ended 30 June 2021, an increase of 75.5% from RMB2,017 million for the same period in 2020[188]. - The sales of natural gas to certain associates and joint ventures amounted to approximately RMB1,567 million for the six months ended 30 June 2021, significantly up from RMB645 million for the same period in 2020, representing a 143% increase[191].

Financial Performance - Revenue for 2020 reached RMB 109,251 million, an increase from RMB 101,794 million in 2019, representing a growth of approximately 5.4%[6] - Profit attributable to owners of the Company for 2020 was RMB 6,063 million, up from RMB 5,551 million in 2019, reflecting a year-over-year increase of about 9.2%[6] - Core profit attributable to owners of the Company was RMB 5,506 million in 2020, down from RMB 6,252 million in 2019, showing a decline of approximately 11.9%[6] - The Company reported an adjusted EBITDA of RMB 12,342 million for 2020, slightly down from RMB 12,406 million in 2019[6] - Net profit margin increased to 5.30% in 2020 from 4.53% in 2019, a rise of 0.77 percentage points[75] - Return on total assets (ROA) improved to 5.48% in 2020 compared to 4.71% in 2019, an increase of 0.77 percentage points[75] - Earnings per share (basic) rose to RMB 70.02 in 2020 from RMB 66.71 in 2019[75] - Profit before income tax was RMB 8,107 million, representing a year-on-year increase of RMB 1,093 million or 15.58%[97] - Profit attributable to owners of the Company was RMB 6,063 million, an increase of RMB 512 million or 9.22% year-on-year[97] Sales and User Growth - The cumulative number of users for the gas projects reached 12,358,100, with new users added during the year[3] - Natural gas sales volume for the year was 87,995 million cubic meters, compared to 37,763 million cubic meters in the previous year, indicating a significant increase[3] - Sales volume of city gas reached 274 million cubic meters in 2020, up from 200 million cubic meters in 2019, representing a 37% increase[78] - Natural gas sales volume was 378 million cubic meters in 2020, compared to 280 million cubic meters in 2019, marking a 35% increase[78] - Retail gas sales volume was 21,694 million cubic metres, representing a year-on-year increase of 20.45%[135] - The cumulative number of users reached 12,358,100, a year-on-year increase of 9.59%[135] Asset Management - Non-current assets decreased to RMB 81,145 million in 2020 from RMB 118,247 million in 2019, a reduction of about 31.4%[6] - Current assets increased significantly to RMB 73,843 million in 2020 from RMB 29,650 million in 2019, marking an increase of approximately 149.5%[6] - Total assets of the Group as of December 31, 2020, were approximately RMB 154,988 million, an increase of RMB 7,091 million or 4.79% from RMB 147,897 million as of December 31, 2019[165] - Total borrowings as of December 31, 2020, were RMB 27,673 million, down from RMB 34,499 million in 2019[166] Dividends and Payouts - Dividend per share significantly increased to RMB 234.67 in 2020 from RMB 26.30 in 2019, with a dividend payout ratio of 30.01%[75] - A final dividend of RMB21.01 cents per share and a special dividend of RMB213.66 cents per share are proposed, totaling RMB234.67 cents per share, compared to RMB26.3 cents per share in 2019[118] - The total proposed dividends for 2020 amount to approximately RMB20,320 million, while the 2019 dividend was RMB2,277 million[121] - The payout ratio for 2020 is approximately 30.01%, down from 39.42% in 2019[121] Strategic Initiatives - The Company plans to continue expanding its gas projects and exploring new markets to enhance its operational capacity and user base[3] - The Group aims to transform from a natural gas distributor to an internationally renowned integrated green energy provider[97] - The Group's strategies include innovation, green operation, market expansion, capital management, and cost reduction[97] - The Group plans to expand the end-user retail sales business and explore new markets to enhance profit and ensure sustainable growth[111] - The Group will promote the synergetic development of the LNG industrial chain, optimizing the sales system and increasing capacity utilization rates of LNG plants[112][113] - The Group will explore new energy and non-gas businesses, focusing on energy conservation and emission reduction, and developing integrated green energy supply stations[115] Corporate Governance - The Company has adopted corporate governance practices based on the CG Code and complied with all Code Provisions during the year[186] - The Board is responsible for leadership and control of the Company, overseeing policy matters, strategies, budgets, and risk management systems[186] - The Company has established clear directions regarding the powers of management and reporting requirements to the Board[186] - The Board consists of a balanced mix of skills and experience, with a strong element of independence, ensuring effective independent judgment[187] - The Company has adopted a Board Diversity Policy to enhance the diversity of its Board members[190] Market Outlook - The GDP growth forecast for China is set at above 6% for the year, driven by high-quality development and increased demand for clean energies, including natural gas[106][107] - Natural gas consumption in China is expected to reach 420 billion to 440 billion cubic meters by the end of the "14th Five-Year" plan period, with an average annual growth rate of approximately 5.7%[106][107]

Financial Performance - Profit attributable to owners of the Company was RMB2,363 million, representing a decrease of 24.82%[6] - Revenue for the Period was approximately RMB52,254 million, representing a decrease of 2.41%[6] - Profit before income tax was RMB6,131 million, down RMB1,542 million or 20.10% compared to the previous year[15] - The profit for the period was approximately RMB4,192 million, a decrease of 20.44% compared to RMB5,269 million for the same period last year[60] - Total comprehensive income for the period was RMB4,163 million, a decline of 21.5% from RMB5,316 million in the previous year[101] - Basic earnings per share attributable to owners of the Company was 27.29 RMB cents, compared to 38.90 RMB cents in the same period of 2019, reflecting a decrease of 29.5%[101] Revenue and Sales - The Group's natural gas sales volume was 16,072 million cubic metres, representing an increase of 27.61%[7] - The sales volume of crude oil in the Exploration and Production business was 6.13 million barrels, representing a decrease of 9.85%[7] - Revenue from the natural gas pipeline business reached RMB 5,330 million, representing a year-on-year increase of 2.52%[24] - The Natural Gas Sales segment generated revenue of RMB 42,838 million for the six months ended June 30, 2020, compared to RMB 43,338 million in the same period of 2019[168] - The LNG Processing and Terminal segment reported revenue of RMB 3,501 million for the six months ended June 30, 2020[168] Operational Metrics - The Group ensured zero cases of infection in production and office sites during the pandemic[10] - The average terminal utilization rate decreased by 11.46 percentage points during the Period[21] - The number of new users amounted to 288,800, including 287,400 new residential users, bringing the cumulative total to 11,565,700 users[19] - The Group developed 31 new projects across 20 provinces, with 26 projects acquired through mergers and acquisitions[17] Costs and Expenses - Employee compensation costs for the Period were approximately RMB2,230 million, a decrease of 2.83% from RMB2,295 million for the same period last year[49] - Selling, general and administrative expenses for the Period were approximately RMB1,104 million, representing a decrease of 17.92% from RMB1,345 million for the same period last year[52] - Interest expenses for the Period were approximately RMB525 million, a decrease of 6.75% from RMB563 million for the same period last year[52] - Depreciation, depletion, and amortisation for the Period increased by 10.78% to approximately RMB3,472 million compared to RMB3,134 million for the same period last year[50] Assets and Liabilities - The total assets of the group increased by RMB3,583 million or 2.42% to approximately RMB151,480 million as of June 30, 2020, compared to RMB147,897 million as of December 31, 2019[61] - The gearing ratio increased to 31.13% as of June 30, 2020, compared to 30.72% as of December 31, 2019, representing an increase of 0.41 percentage points[61] - The group had total borrowings of RMB35,298 million, with repayment due within one year amounting to RMB8,333 million[63] - Current liabilities rose to RMB40,971 million, compared to RMB39,297 million at the end of 2019, indicating an increase of 4.3%[105] Market and Economic Context - The PRC's GDP achieved a year-on-year growth of 3.2% in the second quarter of 2020, recovering from a decline of 6.8% in the first quarter[9] - The national production volume and net imported volume of natural gas in the first half of the year increased by 4.0% year-on-year[9] - The PRC government continues to implement strategies to expand domestic demand and promote a higher level of opening to overseas markets, which will benefit the Group's business optimization and market development[27] Corporate Governance and Compliance - The Company has complied with all code provisions in the Code on Corporate Governance Practices during the period[79] - The unaudited consolidated interim financial information has been reviewed by the Audit Committee and the Company's auditor, KPMG[81] - The Company maintains stringent corporate governance practices to enhance investor confidence and accountability[79] Impact of COVID-19 - The COVID-19 pandemic has introduced additional uncertainties affecting the Company's operations and financial position, prompting the implementation of contingency measures[193] - The Company has been closely monitoring the impact of the pandemic on its business and will continue to review its contingency measures as the situation evolves[193] Future Outlook and Strategy - The Group aims to enhance the integrated development of the LNG industrial chain, focusing on terminal refilling and unified resource procurement[34] - The development of LPG sales business will be accelerated, with a focus on expanding market benefits and promoting dual gas sources for industrial customers[35] - The natural gas market reform is expected to provide better development opportunities and market space for the Group[28]