China Gas Holdings Limited 中國燃氣控股有限公司* (Incorporated in Bermuda with limited liability) （於百慕達註冊成立之有限公司） (Stock Code 股份代號: 384) N O T I F I C AT I O N L E T T E R 通 知 信 函 23 December 2024 To ensure timely receipt of the latest Corporate Communications, the Company recommends you provide your email address by scanning your personalized QR code printed on the reply form (the "Reply Form") on the reverse side. Alternatively, you may sign and return the Reply Form to the Share Registrar. If the Company does not ...

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company experienced a revenue decline of 2.6% year-on-year to HKD 35.11 billion in the first half of the 2024/25 fiscal year, while gross profit increased by 2.3% to HKD 5.86 billion. The attributable profit decreased by 3.8% to HKD 1.76 billion [3][6] - The company plans to distribute an interim dividend of HKD 0.15 per share, unchanged from the previous year, resulting in a dividend yield of 7.8% based on the closing price on December 6, 2024 [4][10] - Natural gas retail volume grew by 1.4% year-on-year, with a gross margin increase to HKD 0.59 per cubic meter. The full-year gross margin guidance remains at HKD 0.53 per cubic meter, while the retail gas growth forecast has been adjusted down to 2% [3][7] Summary by Sections Financial Performance - For the first half of the 2024/25 fiscal year, the company reported a revenue of HKD 35.11 billion, a decrease of 2.6% year-on-year, and a gross profit of HKD 5.86 billion, an increase of 2.3%. The attributable profit was HKD 1.76 billion, down 3.8% [3][6] - The natural gas sales segment saw a revenue decline of 9.6% to HKD 19.64 billion, while segment profit increased by 6.3% to HKD 1.66 billion [4][7] Business Segments - The LPG business segment reported a revenue increase of 13.5% to HKD 9.558 billion, but segment profit decreased to HKD 2.01 million. The value-added services segment's revenue rose by 1.0% to HKD 2.57 billion, with segment profit increasing by 11.0% to HKD 1.24 billion [4][10] - The company achieved 904,000 new residential connections in the first half of the fiscal year, with a full-year target of 1.2 to 1.4 million connections [8] Future Outlook - The company expects attributable net profits for the fiscal years 2024/25, 2025/26, and 2026/27 to reach HKD 3.763 billion, HKD 3.992 billion, and HKD 4.423 billion, representing year-on-year growth of 18.1%, 6.1%, and 10.8% respectively [4][10]

CHINA GAS HOLDINGS LIMITED 中國燃氣控股有限公司* （於百慕達註冊成立之有限公司） 香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 份 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 （ 股 份 代 號：384 ） 關連交易 成立合資公司 成立合資公司 於二零二四年十二月六日（交 易 時 段 後），智 慧 能 源（本 公 司 之 全 資 附 屬 公 司）、亮 創 及 Dragon Media訂 立 合 資 協 議，據 此 成 立 合 資 公 司 以 投 資、開 發 及 運 營 生 物 質 能 源 相 關 項 目。合 資 公 司 於 成 立 後 將 成 為 本 公 司 的 附 屬 公 司，其 財 務 業 績 亦 將 於 本 集 團 的 財 務 報 表 綜 合 入 賬。 上市規則之涵義 劉 明 輝 ...

Investment Rating - The report maintains a "Buy" rating for China Gas [5] Core Views - China Gas reported a slight decline in revenue and net profit for the fiscal year 2023/24, with revenue at HKD 35.105 billion, down 2.6% year-on-year, and net profit at HKD 1.761 billion, down 3.8% year-on-year, primarily due to delays in government subsidies and increased costs [5][6] - The company's gas sales volume increased by 0.9% year-on-year to 17.13 billion m³, with town gas sales up 1.4% [5] - The retail gas gross margin improved by HKD 0.02/m³ to HKD 0.59/m³, with residential gas prices rising to HKD 2.85/m³, an increase of HKD 0.08/m³ year-on-year [5] - The company experienced a decline in new residential user connections, down 14% year-on-year, but saw significant growth in industrial and commercial connections [5] - Value-added services and comprehensive energy businesses showed rapid growth, contributing positively to the company's performance [5] Summary by Sections Financial Performance - For the fiscal year 2023/24, the company reported revenue of HKD 81.41 billion, a decrease of 11.5% year-on-year, and a net profit of HKD 3.185 billion, down 25.8% year-on-year [6][9] - The earnings per share (EPS) for 2024/25 is projected to be HKD 0.73, with subsequent years showing growth [6][9] Business Segments - The gas sales business showed a recovery trend, with a focus on increasing commercial user connections through market development strategies [5] - The connection and engineering business accounted for 22.6% of the company's total pre-tax profit, indicating a stabilization in this segment [5] Future Outlook - The report anticipates a recovery in gas sales volume and profitability in the second half of the fiscal year, driven by improved pricing mechanisms and recovering industrial demand [5] - The company has adjusted its profit forecasts for the fiscal years 2024/25 to 2026/27, reflecting a more conservative outlook due to various operational challenges [5]

| 股息派發日 | 2025年2月18日 | | --- | --- | | | 香港中央證券登記有限公司 | | 灣仔 | | | 股份過戶登記處及其地址 | 皇后大道東183號 | | 合和中心17樓 | | | | 1712至1716號舖 | | 香港 | | | 代扣所得稅信息 | | | 股息所涉及的代扣所得稅 | 不適用 | | 發行人所發行上市權證/可轉換債券的相關信息 | | | 發行人所發行上市權證/可轉換債券 | 不適用 | | 其他信息 | | | 其他信息 | 不適用 | | 發行人董事 | | | 於本公告日期，劉明輝先生、黃勇先生、朱偉偉先生、李晶女士、劉暢女士及趙琨先生為本公司執行董事；熊斌先生、劉明興先 | 生、姜新浩先生及Ayush GUPTA先生為本公司非執行董事；以及趙玉華先生、毛二萬博士、陳燕燕女士、張凌先生及馬蔚華博士 | | 為本公司獨立非執行董事 | | 第 2 頁 共 2 頁 v 1.1.1 EF003 免責聲明 | 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a decrease in revenue and net profit for the first half of FY2025, with total revenue at HKD 35.734 billion, down 2.70% year-on-year, and net profit at HKD 1.761 billion, down 3.81% year-on-year. The company aims to maintain a dividend of HKD 0.5 per share for the full year, corresponding to a dividend yield of 8.0% [2] - Retail gas volume growth was below expectations, but segment profits showed steady growth. The company adjusted its retail gas volume growth target for the year from +5% to +2% due to lower-than-expected sales [2] - The company is experiencing a gradual price adjustment in its city gas projects, with a price difference increase of 0.29 RMB per cubic meter, and 62% of residential gas volume has achieved price alignment [2] Summary by Sections Financial Performance - For FY2023A, total revenue was HKD 92.423 billion, with a year-on-year growth of 4.31%. For FY2024A, revenue is projected to decrease to HKD 81.863 billion, a decline of 11.43%. The net profit for FY2023A was HKD 4.293 billion, down 43.96% year-on-year, while FY2024A is expected to further decline to HKD 3.185 billion, a decrease of 25.82% [1][2] - The earnings per share (EPS) for FY2023A was HKD 0.79, projected to decrease to HKD 0.59 for FY2024A, with a price-to-earnings (P/E) ratio of 7.89 for FY2023A and 10.64 for FY2024A [1][2] Segment Performance - The natural gas sales segment saw a profit increase of 6.28% to HKD 1.658 billion, while the connection business segment's profit rose by 13.45% to HKD 0.521 billion. The engineering design and construction segment experienced a significant profit increase of 36.25% to HKD 0.349 billion [2] - The LPG sales segment's profit plummeted by 98.96% to HKD 0.02 billion due to various market factors, while the value-added services segment's profit increased by 15.37% to HKD 1.002 billion [2] Future Outlook - The company has revised its net profit forecasts for FY2025 to HKD 3.955 billion, down from the previous estimate of HKD 4.017 billion, with expected growth rates of 24%, 12%, and 10% for FY2025, FY2026, and FY2027 respectively [2] - The P/E ratios for FY2025, FY2026, and FY2027 are projected to be 8.56, 7.64, and 6.96 respectively [2]

Investment Rating - The report maintains a **Neutral** rating for China Gas (384 HK) with a target price of HKD 5.92, representing a potential downside of 8.1% from the current price of HKD 6.44 [1][3] Core Views - China Gas' 1H FY25 earnings declined by 3.8% YoY to HKD 1.76 billion, missing market expectations by approximately 15% due to losses from joint ventures, higher taxes, and increased minority interests [1] - Retail gas sales volume grew by only 1.9% YoY in 1H FY25, dragged down by weak industrial gas demand, which grew by only 1% YoY [2] - The company's gas sales gross margin improved by RMB 0.02 per cubic meter to RMB 0.59, driven by residential gas price adjustments in 32 cities [2] - New residential connections declined by 14% YoY in 1H FY25 due to reduced rural coal-to-gas conversions and weak property sales [2] - The report downgrades FY25-27 earnings forecasts by 13-19%, reflecting slower industrial gas growth and reduced new residential connections [2] - Management expects the spin-off of value-added services to the US market to provide a second growth driver, but the timeline remains unclear [2] Financial Performance Summary - Revenue is expected to decline by 6.8% YoY in FY25 to HKD 75.9 billion, followed by a gradual recovery with 2.7% and 2.9% growth in FY26 and FY27, respectively [4] - Net profit is forecasted to grow by 18.8% YoY in FY25 to HKD 3.78 billion, with further growth of 6.7% and 5.7% in FY26 and FY27, respectively [4] - EPS is expected to decline by 4.6% YoY in FY25 to HKD 0.70, with subsequent growth of 6.7% and 5.7% in FY26 and FY27, respectively [4] - The company's P/E ratio is projected to increase from 8.8x in FY24 to 9.3x in FY25, before declining to 8.7x and 8.2x in FY26 and FY27, respectively [4] - Dividend yield is expected to remain stable at 5.4% from FY25 to FY27, with a maintained dividend payout of HKD 0.35 per share [4] Operational Data and Forecasts - Total retail gas sales volume is expected to grow by 2.2% YoY in FY25 to 24.04 billion cubic meters, with growth slowing to 2.5% and 2.7% in FY26 and FY27, respectively [8] - Residential gas sales volume is forecasted to grow by 0.5% YoY in FY25 to 8.97 billion cubic meters, while industrial gas sales are expected to decline by 3.3% YoY to 14.65 billion cubic meters [8] - The gas sales gross margin is projected to remain stable at RMB 0.53 per cubic meter from FY25 to FY27 [8] - New residential connections are expected to decline by 5.2% YoY in FY25 to 1.27 million households, with further declines of 4.6% and 7.6% in FY26 and FY27, respectively [8] Valuation and Peer Comparison - China Gas is trading at a discount to its peers, with a FY25E P/E of 9.3x compared to the sector average of 12.0x [9] - The company's FY25E P/B ratio of 0.63x is below the sector average of 1.0x [9] - Among peers, China Gas has the lowest potential upside of -8.1%, compared to 27.4% for Kunlun Energy (135 HK) and 24.6% for ENN Energy (2688 HK) [13]

Financial Performance - For the six months ended September 30, 2024, the company reported a revenue of HKD 35,105,202, a decrease of 2.6% compared to HKD 36,049,154 for the same period in 2023[2]. - The gross profit for the same period was HKD 5,855,695, representing a gross margin of approximately 16.7%[3]. - The net profit attributable to the company's owners was HKD 1,760,747, down from HKD 1,830,412 in the previous year, indicating a decline of 3.8%[8]. - The total comprehensive income for the period was HKD 3,879,660, compared to HKD 3,396,983 in the prior year, reflecting an increase of 14.2%[10]. - Basic earnings per share for the period were HKD 0.3271, a decrease from HKD 0.3400 in the same period last year[11]. - The group reported a total segment profit of HKD 3,856,283 thousand for the six months ended September 30, 2024, compared to HKD 3,673,888 thousand for the same period in 2023, reflecting a growth of approximately 5%[34][37]. - The attributable profit declined by 3.8% to HKD 1,760,747,000, with basic earnings per share at HKD 0.327, also down by 3.8%[63]. - Free cash flow was HKD 2,222,093,000, down from HKD 4,974,242,000 year-on-year[101]. Assets and Liabilities - Non-current assets increased to HKD 106,183,466 as of September 30, 2024, up from HKD 103,450,545 as of March 31, 2024[14]. - Current assets totaled HKD 47,290,062, an increase from HKD 45,247,179 in the previous reporting period[14]. - The company's total assets less current liabilities amounted to HKD 105,671,479, compared to HKD 98,315,467 in the prior year[18]. - The total equity attributable to the company's owners was HKD 57,123,321, an increase from HKD 53,927,655 as of March 31, 2024[20]. - The group has total bank loans and other loans amounting to HKD 46,397,031,000 as of September 30, 2024[107]. - The group has pledged bank deposits of HKD 232,854,000, and properties, plants, and equipment valued at HKD 8,935,040,000 as of September 30, 2024[111]. Revenue Streams - The group's revenue decreased by 2.6% year-on-year to HKD 35,105,202,000[63]. - The segment revenue from natural gas sales was HKD 19,641,836 thousand for the six months ended September 30, 2024, down from HKD 21,718,489 thousand for the same period in 2023, a decrease of approximately 9.6%[34][37]. - The sales revenue from liquefied petroleum gas (LPG) amounted to HKD 9,557,976,000, reflecting a year-on-year increase of 13.5%[85]. - The group achieved LPG sales of 201,800 tons, which is a 1.9% increase year-on-year[85]. - The sales volume of urban and rural pipeline gas was 9.33 billion cubic meters, an increase of 1.4% compared to the same period last year[80]. Expenses and Financial Management - The interest and other income and losses for the six months ended September 30, 2024, amounted to HKD 71,135 thousand, while the financial expenses were HKD 407,825 thousand[33]. - The group’s income tax expense for the six months ended September 30, 2024, was HKD 647,264 thousand, an increase from HKD 412,023 thousand for the same period in 2023, representing a rise of approximately 57%[39][41]. - Financial expenses decreased by 16.7% to approximately HKD 828,740,000 compared to the previous year[96]. Dividends and Shareholder Information - The board declared an interim dividend of HKD 0.15 per share for the six months ended September 30, 2024, consistent with the previous year's dividend[50]. - The interim dividend will be paid in cash, with shareholders having the option to receive new shares under a scrip dividend scheme[50]. - The expected cash interim dividend checks and shares under the scrip dividend scheme will be mailed around February 18, 2025[51]. Operational Strategies and Market Position - The group is actively exploring innovative business growth paths and enhancing operational efficiency through digital transformation[60]. - The group emphasizes safety operations and aims to enhance safety management as a core objective[61]. - The group is focusing on expanding value-added services and kitchen renovation business in response to market opportunities[61]. - The group plans to actively expand its market presence in the real estate sector, with new user installation business expected to stabilize[117]. - The group aims to enhance its operational strategy by focusing on customer orientation and value creation, while exploring new business areas such as energy storage and biomass energy[116]. Market Conditions and Economic Outlook - The Chinese government has introduced significant policies to stabilize the economy, which is expected to positively impact the natural gas industry[56]. - The group anticipates that the Chinese government will introduce more concrete and effective stimulus policies to stabilize the economy, positively impacting the capital market[115]. - The global LNG prices have stabilized at low levels, providing a favorable environment for the group's operations[55].

EF003 | 香港中央證券登記有限公司 | | | --- | --- | | 灣仔 | | | 皇后大道東183號 | 股份過戶登記處及其地址 | | 合和中心17樓 | | | 1712至1716號舖 | | | 香港 | | | 代扣所得稅信息 | | | 股息所涉及的代扣所得稅 | 不適用 | | 發行人所發行上市權證/可轉換債券的相關信息 | | | 發行人所發行上市權證/可轉換債券 | 不適用 | | 其他信息 | | | 其他信息 | 不適用 | | 發行人董事 | | | 於本公告日期，劉明輝先生、黃勇先生、朱偉偉先生、李晶女士、劉暢女士及趙琨先生為本公司執行董事；熊斌先生、劉明興先 | 生、姜新浩先生及Ayush GUPTA先生為本公司非執行董事；以及趙玉華先生、毛二萬博士、陳燕燕女士、張凌先生及馬蔚華博士 | | 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因 | | --- | --- | | | 股票發行人現金股息（可選擇以 ...

China Gas Holdings Limited 中國燃氣控股有限公司* China Gas Holdings Limited (the "Company") – Notice of Publication of Circular, Notice of Special General Meeting and Proxy Form (the "Current Corporate Communications") (Incorporated in Bermuda with limited liability) （於百慕達註冊成立之有限公司） (Stock Code 股份代號: 384) N O T I F I C AT I O N L E T T E R 通 知 信 函 29 November 2024 Dear non-registered shareholder(s), The Current Corporate Communications of the Company have been published in English and Chinese languages and are availa ...