2022 Interim Results Presentation August 2022 Table of Contents Financial Performance Operating Performance Natural Gas Distribution Business Oil and Gas Production Business Q&A Session 2 Key Performance Indicators +39% +78% +18% Revenue (HK$) 1H2022: 8,180 Million 1H2021: 6,952 Million Natural Gas Sales and Transmission Volume (Cubic Meters) 1H2022: 3,291 Million 1H2021: 2,928 Million Recurring Profit Attributable to Owners of the Company (HK$) 1H2022: 496 Million 1H2021: 357 Million Profit attributable to ...

Financial Performance - FY2024 revenue reached HKD 2,184 million, an increase of 11% compared to FY2023's HKD 1,971 million[5] - Gross profit for FY2024 was HKD 701 million, representing an 84% increase from FY2023's HKD 380 million[5] - For the year ended December 31, 2024, the Group recorded revenue of HK$17,655 million, a decrease of 4.7% from HK$18,528 million in 2023[63] - The overall gross profit increased to HK$2,184 million, representing a growth of 10.8% compared to HK$1,971 million in 2023[65] - Profit attributable to the owners of the Company was HK$181 million, turning from a loss in the previous year[65] Natural Gas Operations - Natural gas sales and transmission volume for FY2024 was 7,229 million cubic meters, a 3% increase from FY2023's 7,008 million cubic meters[6][7] - The Group's natural gas sales volume for 2024 reached 4.584 billion cubic meters, a year-on-year increase of 0.2%[41] - The transmission volume of natural gas increased by 8.7% year-over-year, totaling 2,645 million cubic meters[37] - Residential gas consumption rose by 4.3% to 1,026 million cubic meters, while industrial and commercial users consumed 3,178 million cubic meters, a 0.6% increase[38] - The Group connected 86,344 new residential users in 2024, bringing the total to 2,128,280[39] Production and Reserves - The Group's average daily production in Canada was 5,082 barrels of oil equivalent in FY2024, with proved reserves of approximately 31.89 million barrels of oil equivalent[16] - The exploration and production business has proved plus probable reserves of approximately 50.47 million barrels of oil equivalent, indicating significant growth potential[16] Infrastructure and Expansion - The Group has established 71 concession rights and built a city pipeline network to supply natural gas to various users[12] - Approximately 25,751 km of natural gas pipelines have been completed across 13 provinces, enhancing revenue from natural gas transmission[18] - The Group aims to expand its market presence by entering provinces with natural gas sales volume below 100 million cubic meters in 2024[20] Operational Efficiency and Management - The construction of intelligent gas systems achieved full coverage of SCADA and GIS, enhancing operational efficiency and management[36] - The Group's marketing management improved resource allocation, increasing low-cost resource procurement and reducing high-cost resource share[32] - The Group's operational efficiency was enhanced through integrated management of marketing, customer service, and finance[33] Financial Management and Stability - Total indebtedness as of December 31, 2024, amounted to HK$8,542 million, an increase from HK$7,712 million in 2023[71] - Cash and cash equivalents increased to HK$4,348 million from HK$3,246 million in 2023[72] - The Group's net debt-to-assets ratio improved to 20.3% from 21.4% in 2023, indicating stable financial and liquidity conditions[72] - The total staff cost for the year ended December 31, 2024, remained stable at HK$534 million, consistent with 2023[79] Governance and Management Team - The company has a strong governance structure with multiple committees including the CG Committee and the Remuneration Committee[106][113] - The management team includes members with advanced degrees from prestigious universities such as Peking University and the University of Minnesota[104][106][113] - Mr. Xu Tie-liang has extensive experience in energy, investments, and management, holding a PhD in Global Business Administration[104] Risks and Compliance - The Group faces risks related to natural gas price control, which may affect profitability if price increases cannot be passed through[126] - Foreign exchange risk exists due to the Group's operations in the PRC and Canada, with major transactions conducted in Renminbi[133] - The Company complies with relevant laws and regulations, including the Bermuda Companies Act and Hong Kong Companies Ordinance[144] Shareholder Engagement and Dividends - The Board resolved not to recommend any final dividend for the year ended December 31, 2024, consistent with the previous year[97] - The register of members will be closed from 26 May 2025 to 30 May 2025 for the upcoming annual general meeting, ensuring proper governance and shareholder engagement[153][158] Environmental and Social Responsibility - The Group emphasizes environmental policies and plans to implement stringent measures to address environmental issues[138] - The Group did not make any charitable donations during the year, maintaining a focus on operational expenditures[162][168]

Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 17,655 million, a decrease of 4.7% compared to HKD 18,528 million in 2023[3] - Gross profit increased by 10.8% to HKD 2,184 million, resulting in a gross margin of 12.4%, up from 10.6% in the previous year[3] - Operating profit rose to HKD 1,355 million, compared to HKD 1,045 million in 2023, reflecting a strong operational performance[6] - The net profit for the year was HKD 701 million, significantly higher than HKD 380 million in the previous year[6] - Total revenue for the year ended December 31, 2024, was HKD 17,655,191, a decrease of 4.7% from HKD 18,527,804 in 2023[20] - Revenue from the sale and transportation of natural gas and related products was HKD 14,021,865, slightly down from HKD 14,096,140 in the previous year[20] - Revenue from gas pipeline connection and construction services decreased significantly to HKD 532,338 from HKD 1,145,077[20] - Revenue from the extraction and production of crude oil and natural gas was HKD 462,240, down from HKD 501,798[20] - Revenue from the production and sale of coal-based clean energy and related products decreased to HKD 2,638,748 from HKD 2,784,789[20] - The group reported a pre-tax profit of HKD 1,019,652 for the year, with a net profit of HKD 701,162 after tax[26] - The pre-tax profit for the year was HKD 720,539,000, a significant increase compared to the previous year's loss of HKD 232,496,000[36] - The net profit for the year amounted to HKD 380,154,000, reflecting a recovery from the previous year's loss[28] Assets and Liabilities - Total assets decreased to HKD 20,696 million from HKD 20,841 million in 2023, indicating a slight contraction in the asset base[10] - Total liabilities increased to HKD 13,484 million from HKD 13,279 million, reflecting a rise in financial obligations[11] - Trade receivables as of December 31, 2024, were HKD 675,711,000, an increase from HKD 639,015,000 in the previous year[41] - Trade payables decreased significantly to HKD 330,350,000 from HKD 750,385,000 year-on-year[43] - Total debt increased to HKD 8.542 billion from HKD 7.712 billion in the previous year, while cash and cash equivalents rose to HKD 4.348 billion from HKD 3.246 billion[61] - The net debt to asset ratio improved to 20.3% from 21.4% in the previous year, indicating stable financial and liquidity management[61] Operational Highlights - Total natural gas sales and transmission volume reached 7,229 million cubic meters, an increase of 3.2% from 7,008 million cubic meters in 2023[3] - The group's natural gas sales volume for 2024 is recorded at 4.584 billion cubic meters, a year-on-year increase of 0.2%[47] - The pipeline transportation volume reached 2.645 billion cubic meters, an increase of 8.7% compared to the previous year[47] - The number of new residential users added in 2024 is 86,344, down from 128,395 in 2023, bringing the total to 2,128,280[48] - Employee benefits expenses for the year were HKD 534,445,000, slightly up from HKD 533,778,000 in the previous year[30] - The total number of full-time employees increased slightly to 4,814 from 4,798 in the previous year, with total employee costs remaining stable at HKD 534 million[65] Strategic Initiatives - The company plans to continue expanding its operations in the energy sector, focusing on natural gas distribution and related services in China and Canada[13] - The company is actively investing in new technologies and products to enhance its service offerings and market position[13] - The group aims to enhance operational efficiency and customer experience through the establishment of a "smart operation brain" and digital transformation initiatives[51] - The company plans to strengthen resource management and optimize resource paths to reduce transportation costs and build a stable and diversified resource supply system[51] - The group is focusing on high-quality development and aims to enhance shareholder returns and cash flow management by integrating resources and exploring customer value[51] - The company is committed to enhancing its corporate culture and promoting core values to drive sustainable development and competitiveness[57] - The group will implement a digital asset management system to achieve full lifecycle management of assets and improve asset utilization efficiency[54] Governance and Compliance - The company did not declare a final dividend for the year ended December 31, 2024, consistent with the previous year[34] - The group expects that the adoption of new accounting standards will not have a significant impact on the consolidated financial statements[19] - The company did not hold any significant investments or make any major acquisitions or disposals during the reporting period[62][63] - There were no significant contingent liabilities or major lawsuits as of December 31, 2024[68][72] - The Audit Committee, established in 1998, is responsible for recommending the appointment and remuneration of external auditors and reviewing the group's interim and annual reports[83] - The Audit Committee consists of three independent non-executive directors, with Liu Zhihong serving as the chairperson, and has reviewed the audited financial statements for the year ending December 31, 2024[83] - The independent auditor, KPMG, has confirmed that the financial figures in the performance announcement are consistent with the audited financial statements for the year ending December 31, 2024[84] Acknowledgments - The company expresses gratitude to all employees for their hard work and to shareholders for their continued support[85]

Financial Performance - Revenue for the six months ended June 30, 2024, was HK$9,292,107, a decrease of 1.64% from HK$9,447,389 in the same period of 2023[9]. - Gross profit for the period was HK$1,134,941, down 7.15% from HK$1,222,501 in 2023[9]. - Operating profit decreased to HK$895,669, a decline of 5.78% compared to HK$950,546 in the previous year[9]. - Profit for the period was HK$590,806, representing a decrease of 16.54% from HK$707,428 in 2023[10]. - Total comprehensive income for the period was HK$261,249, down 23.59% from HK$341,913 in the same period last year[10]. - Basic and diluted earnings per share were both HK$5.488, a decrease from HK$6.824 in 2023[10]. - The profit for the period was HK$268,971,000, compared to HK$334,493,000 for the same period in 2023, indicating a decline of approximately 19.6%[17]. - Total comprehensive income for the period was HK$261,249,000, down from HK$341,913,000 in the previous year, representing a decrease of about 23.6%[17]. - The Group's profit attributable to owners for the six months ended June 30, 2024, was approximately HK$268,971,000, down 20% from HK$334,493,000 in 2023[42]. - Profit attributable to owners of the Company was HK$269 million, representing a decrease of 20% compared to the previous year[67]. Assets and Liabilities - Total assets as of June 30, 2024, were HK$20,201,856, a decrease from HK$20,841,051 at the end of 2023[11]. - Total liabilities decreased to HK$12,754,401 from HK$13,279,109 at the end of 2023[14]. - Total equity attributable to owners of the Company was HK$3,909,551, down from HK$3,818,216 at the end of 2023[14]. - The Group's total indebtedness as of June 30, 2024, was HK$8,003 million, up from HK$7,712 million at the end of 2023[67]. - The net debt-to-assets ratio was 23% as of June 30, 2024, compared to 21% at the end of 2023[67]. - Cash and cash equivalents increased to HK$2,497,411 from HK$2,095,411 at the end of 2023[11]. - Cash and cash equivalents as of June 30, 2024, were HK$3,293 million, compared to HK$3,246 million at the end of 2023[67]. Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2024, was HK$637,466,000, a decrease of 8.9% compared to HK$699,993,000 for the same period in 2023[18]. - Net cash generated from investing activities decreased significantly to HK$72,009,000 from HK$242,780,000, reflecting a decline of 70.3% year-over-year[18]. - Net cash used in financing activities improved to (HK$251,520,000) from (HK$1,238,038,000), indicating a reduction of 79.7% in cash outflow[18]. - The effect of foreign exchange rate changes on cash and cash equivalents was a loss of HK$55,955,000, compared to a loss of HK$121,261,000 in the previous year[18]. Business Operations - The company aims to create value for customers, platforms for employees, and returns for shareholders as part of its core objectives[2]. - The company is focused on developing clean energy and expanding its market presence in various provinces across China[2]. - The company operates multiple major trunk pipelines, including the West-to-East lines and various city gas projects[4]. - The company is actively pursuing new business opportunities in provinces with lower natural gas sales volumes, aiming for expansion[4]. - The company has a strategic focus on enhancing its LNG processing capabilities to meet growing energy demands[4]. - The Group operates in four reportable segments, focusing on sales and distribution of natural gas, gas pipeline construction, and production of coal-derived clean energy[27]. - The Group's principal business activities include investment in energy-related businesses in the PRC and West Central Alberta, Canada[19]. Corporate Governance - The company has established a strong corporate governance structure with various committees overseeing operations and compliance[7]. - The Audit Committee is responsible for overseeing the financial reporting system and reviewing interim and annual reports[98]. - The Audit Committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards[99]. - The company has adhered to all relevant provisions of the corporate governance code for the six months ended June 30, 2024[100]. - The roles of Chairman and Chief Executive Officer are held by Mr. Xu Tie-liang, which the Board believes ensures consistent leadership[97]. Market and Economic Context - China's GDP grew by 5.0% year-on-year to RMB61.7 trillion in the first half of 2024, with natural gas consumption increasing by 8.7% to 210.8 billion cubic meters[62]. - The decline in revenue was primarily due to a decrease of approximately HK$259 million in the gas pipeline construction segment, attributed to the downturn in the property market in China[53]. - The Group's total natural gas sales and transmission volume increased by 11% year-on-year to 3,881 million cubic meters in the first half of 2024, with transmission volume rising by 22% to 1,449 million cubic meters[55]. - Residential gas consumption reached 595 million cubic meters, while industrial and commercial users consumed 1,656 million cubic meters, marking an 8% increase year-on-year[56]. Shareholder Information - As of June 30, 2024, Mr. Xu Tie-liang holds 1,592,634,130 shares, representing approximately 28.25% of the company's issued share capital[81]. - Sino Vantage, wholly owned by Great Xu, also holds 1,592,634,130 shares, equating to 28.25% of the company's issued share capital[83]. - The total number of shares held by substantial shareholders, including Sino Vantage and Great Xu, is 1,592,634,130, which is 28.25% of the issued share capital[83]. - The company has no recorded interests or short positions from other parties in the shares or underlying shares as of June 30, 2024[84]. - The Group did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[76]. Future Plans - The Group plans to implement its "14th Five-Year Plan" in the second half of 2024, focusing on enhancing internal management and optimizing business presence[64]. - The Group plans to continue implementing the "14th Five-Year Plan" and expand its market presence while optimizing its business layout[66].

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，概不對因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 * （於百慕達註冊成立之有限公司） （股份代號：603） 截至二零二四年六月三十日止六個月之中期業績 中期業績 中油燃氣集團有限公司（「公司」）董事（「董事」）局（「董事局」）宣佈公司及其附 屬公司（統稱「集團」）截至二零二四年六月三十日止六個月（「期內」）之未經審 核簡明綜合中期業績。 期內之未經審核簡明綜合財務資料未經審核，但經由公司審核委員會（「審核 委員會」）審閱。 營運數據摘要 | --- | --- | |-------|----------------------------------------------| | | | | ‧ | 天然氣銷氣量 24.32 億立方米，同比增加 6% ； | | ‧ | 天然氣輸氣量 14.49 億立方米，同比增加 22% ； | | ‧ | 新增居民用戶 48,007 戶及工商業用戶 779 戶。 | – 1 – 簡明綜合全面收益表 截至二零二四年六 ...

Financial Performance - Revenue for the year ended December 31, 2023, was HK$18,527,804,000, an increase of 7.1% from HK$17,296,675,000 in 2022[49]. - Gross profit decreased to HK$1,971,124,000, down 7.0% from HK$2,120,798,000 in the previous year[49]. - Operating profit for 2023 was HK$1,044,751,000, a decline of 39.3% compared to HK$1,722,794,000 in 2022[49]. - Profit for the year was HK$380,154,000, significantly lower than HK$1,187,813,000 in 2022, representing a decrease of 68.0%[49]. - Total comprehensive income for the year was HK$91,551,000, a decrease of 61.4% from HK$237,294,000 in 2022[51]. - The loss attributable to owners of the Company was HK$232,496,000, compared to a profit of HK$730,144,000 in the previous year[51]. - Basic and diluted loss per share for the year was (4.7) HK cents, down from earnings of 14.9 HK cents in 2022[51]. Financial Position - Total assets decreased to HK$20,841,051,000 from HK$21,709,615,000, reflecting a decline of 4.0%[54]. - Total equity decreased to HK$7,561,942,000 from HK$7,850,546,000, a decline of 3.7%[58]. - Cash and cash equivalents decreased to HK$2,095,411,000 from HK$3,329,715,000, a decline of 37.0%[54]. - Non-current liabilities, including senior notes, totaled HK$4,647,569,000, up from HK$4,456,392,000, an increase of 4.3%[58]. - Current liabilities increased to HK$8,631,540,000 from HK$9,402,677,000, a decrease of 8.2%[58]. Risks and Uncertainties - The Group faces risks related to natural gas price control, as the city-gate price is influenced by wellhead prices and local pricing bureau decisions, which may affect profitability[8]. - The wellhead prices for residential and fertilizer users are fixed, while industrial and commercial users may experience price variations, posing potential risks for the Group[8]. - The Group's financial conditions and operational results may be impacted by various risks and uncertainties, which are outlined in the annual report[8]. - The existence of a material uncertainty regarding the Group's ability to continue as a going concern was indicated due to the suspension of trading of the Company's shares since April 2, 2024[96]. - There is material uncertainty regarding the Group's ability to achieve its plans, which could affect its going concern status[98]. Governance and Management - The Group's independent non-executive directors bring extensive experience in financial and administrative management, contributing to corporate governance[5]. - The Group's strategic focus includes evaluating investment opportunities and managing external investments to drive growth[2]. - The Group's investment opportunities and treasury management in the upstream business in North America are overseen by the investment department manager, who has over eight years of experience[2]. Cash Flow and Financing - Cash generated from operations was HK$1,954,999,000, with taxation paid amounting to HK$327,503,000, compared to HK$3,079,070,000 and HK$221,064,000 in the previous year[86]. - Net cash generated from operating activities was HK$1,627,496,000, down from HK$2,858,006,000, indicating a decrease of about 43%[86]. - The net cash used in financing activities was HK$1,406,598,000, slightly lower than HK$1,417,548,000 in 2022[91]. - The Group has obtained a syndicated term loan facility of US$235 million for 36 months, with the option to extend the due date to 60 months after the first utilization date[96]. Share Capital and Dividends - The Board resolved not to recommend any final dividend for the year ended December 31, 2023, consistent with the previous year[31]. - The company did not issue any shares or debentures during the year ended December 31, 2023[67]. - The share capital remained stable with no new shares issued during the reporting period[67]. Accounting and Reporting - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance[95]. - The Group has adopted several amendments to accounting standards effective from January 1, 2023, including HKAS 1 and HKFRS 17, which are not expected to significantly affect current or future financial periods[101]. - The Group identified misstatements in prior years related to revenue recognition and construction costs, leading to adjustments in financial statements[133]. Investments and Market Dynamics - The Group is primarily engaged in energy-related investments in the PRC and West Central Alberta, Canada[94]. - The Group's activities are influenced by global oil and natural gas prices, which are affected by North American supply and demand dynamics[189]. - The Group's equity investments are long-term strategic investments chosen for their growth potential and are regularly monitored for performance against expectations[195]. Financial Risks - The Group faces various financial risks, including market risk, credit risk, and liquidity risk, which are actively managed by the management team[155]. - Management has established a policy to manage foreign exchange risk primarily through sourcing supplies in the same currency[156]. - The Group's interest rate risk arises from borrowings and senior notes, with variable rate borrowings exposing the Group to cash flow interest rate risk[200].

Revenue and Profitability - For the year ended December 31, 2023, the group reported total revenue of HKD 14,096,140,000 from the sale and transportation of natural gas and related products, a decrease of 3.5% compared to HKD 14,616,792,000 in the previous year[17] - The revenue from gas pipeline connection and construction services increased to HKD 1,145,077,000, representing a growth of 19.3% from HKD 959,762,000 in the prior year[17] - In 2023, the company reported a total comprehensive income of HKD 426,364,000, with a net profit attributable to shareholders of HKD 918,875,000[80] - The basic earnings per share for the year was HKD 18.7, adjusted to HKD 14.9 after reclassification[80] - The overall gross profit decreased by 7.1% to HKD 1.971 billion, down from HKD 2.121 billion in 2022[95] - The operating profit for 2023 was HKD 1,044,751, compared to HKD 1,722,794 in 2022, reflecting a decline of approximately 39.3%[135] - The net profit for the year was HKD 380,154, significantly lower than HKD 1,187,813 in the previous year, marking a decrease of around 68.0%[135] Assets and Liabilities - The total assets and liabilities amounted to HKD 20,841,051,000 as of December 31, 2023, down from HKD 21,709,615,000 in the prior year[7] - The total equity as of December 31, 2023, was HKD 7,561,942,000, a decrease from HKD 7,850,546,000 in the previous year[7] - The total assets of the company as of December 31, 2023, were HKD 22,947,693,000, with total liabilities amounting to HKD 13,967,843,000[82] - As of December 31, 2023, the total debt amounted to HKD 77.12 billion, down from HKD 84.01 billion in 2022[98] - The net debt to asset ratio was 21.4%, slightly up from 20.5% in 2022[98] - The total liabilities decreased to HKD 13,279,109 from HKD 13,859,069 in 2022, indicating a reduction of approximately 4.2%[138] Operational Performance - The group employed 4,775 full-time employees as of December 31, 2023, a decrease from 4,837 in 2022[47] - The average operating netback was CAD 31.19 per barrel of oil equivalent in 2023, down 35.9% from CAD 48.67 per barrel of oil equivalent in 2022[62] - The group’s production in 2023 was 5,469 barrels of oil equivalent per day, remaining nearly unchanged from the previous year[62] - The average price of crude oil realized by the group was CAD 96.69 per barrel in 2023, a decrease of 17.6% from CAD 117.32 per barrel in 2022[62] - The total gas sales volume recorded was 4.575 billion cubic meters, a 2.4% increase from 4.468 billion cubic meters in 2022[89] - The pipeline transportation volume increased significantly by 68.4%, reaching 2.433 billion cubic meters[89] Financial Management and Strategy - The group has significant uncertainty regarding its ability to continue as a going concern, dependent on meeting conditions for syndicated loan financing and resuming trading of its shares[11] - The group has pledged certain properties and equipment as collateral for bank borrowings amounting to HKD 170,000,000[27] - The group anticipates that the adoption of new accounting standards will not have a significant impact on its performance and financial position[36] - The company aims to enhance operational efficiency and market share through strategic planning focused on growth and quality improvement[65] - The company plans to strengthen its resource allocation and risk management to ensure stable energy supply and quality service[65] - The group has secured a USD 235 million syndicated loan financing, with additional commitments of USD 95 million from lenders post-year-end[120] Market and Customer Insights - The group had no external customers contributing more than 10% to its revenue for the year ended December 31, 2023[40] - The average credit period granted to trade customers is between 60 to 90 days, with ongoing monitoring of overdue trade receivables[103] - The group has launched a series of self-branded gas appliances, enhancing its brand influence in the region and achieving good revenue results in value-added services[107] Future Outlook and Initiatives - The company plans to actively initiate new business layouts in comprehensive energy services and renewable energy, focusing on green low-carbon circular economy development[93] - The company emphasizes the importance of energy security and high-quality development in its future strategic initiatives[66] - The group has developed photovoltaic projects in Shandong and Wuhan, marking its first steps in the renewable energy sector[107]

Financial Performance - Revenue for the six months ended June 30, 2023, was HK$9,250,424,000, an increase from HK$8,179,795,000 in the same period of 2022, representing a growth of approximately 13.1%[8] - Gross profit for the period was HK$1,198,691,000, compared to HK$1,256,333,000 in the previous year, indicating a decrease of about 4.6%[8] - Operating profit decreased to HK$927,033,000 from HK$1,087,056,000, reflecting a decline of approximately 14.7%[8] - Profit for the period was HK$767,745,000, down from HK$884,947,000 in the prior year, representing a decrease of about 13.2%[10] - The company reported a profit before taxation of HK$963,089,000, compared to HK$1,055,857,000 in the same period last year, a decrease of approximately 8.8%[8] - Total comprehensive income for the period was HK$222,294,000, down from HK$381,810,000 in the previous year, reflecting a decline of about 41.9%[1] - Basic and diluted earnings per share for the period were both HK$8.190, down from HK$10.965 in the previous year, indicating a decrease of approximately 25.5%[11] Assets and Liabilities - As of June 30, 2023, total assets amounted to HK$21,431,295,000, a decrease from HK$22,947,693,000 as of December 31, 2022, representing a decline of about 6.6%[13] - Total liabilities as of June 30, 2023, amounted to HK$12,369,618,000, down 11.5% from HK$13,967,843,000 at the end of 2022[22] - The total equity attributable to owners of the company was HK$9,061,677,000 as of June 30, 2023, compared to HK$8,979,850,000 at the beginning of the year, indicating a growth of about 0.9%[1] - The company’s retained profits as of June 30, 2023, were HK$5,155,934,000, compared to HK$4,758,859,000 at the beginning of the year, an increase of approximately 8.3%[1] Cash Flow - For the six months ended June 30, 2023, the net cash generated from operating activities was HK$702,179,000, a decrease of 29.1% compared to HK$990,397,000 for the same period in 2022[32] - The company reported a net cash used in financing activities of HK$1,159,674,000 for the first half of 2023, significantly higher than HK$307,766,000 in the same period of 2022[32] - Cash and cash equivalents at the end of the period were HK$2,913,189,000, a decrease from HK$3,162,402,000 at the end of June 2022[32] Segment Performance - For the six months ended June 30, 2023, the Group's total revenue was HK$9,250,424,000, with segment revenues from natural gas sales at HK$7,270,183,000, gas pipeline construction at HK$418,360,000, crude oil and natural gas production at HK$241,923,000, and coal-derived clean energy sales at HK$1,319,958,000[48] - Segment results for natural gas sales were HK$753,694,000, for gas pipeline construction were HK$182,138,000, for crude oil and natural gas production were HK$81,069,000, and for coal-derived clean energy were HK$5,198,000[48] Market and Strategic Initiatives - The company is focusing on expanding its natural gas sales, with provinces reporting sales volumes exceeding 500 million cubic meters in the first half of 2023[16] - The company is preparing to enter new provinces for business expansion in the near term, indicating a strategic move towards market growth[16] - The Group aims to optimize business layout and innovate business models while expanding gas sources and developing markets[91] Governance and Compliance - The Company has complied with the relevant code provisions set out in the Corporate Governance Code during the six months ended 30 June 2023, except for certain deviations[143] - The Audit Committee, comprising three independent non-executive Directors, reviewed the unaudited interim financial statements for the six months ended 30 June 2023[146] - The company remains committed to adhering to corporate governance codes, ensuring transparency and accountability in its operations[152]

Financial Performance - Revenue grew by 13% to HKD 9.250 billion, compared to HKD 8.180 billion in the previous year[2][3] - Gross profit was HKD 1.199 billion, down from HKD 1.256 billion year-on-year[3] - Operating profit decreased to HKD 927 million from HKD 1.087 billion in the previous year[3] - Profit attributable to owners of the company was HKD 402 million, a decrease from HKD 553 million year-on-year[9] - Total comprehensive income for the period was HKD 381 million, compared to HKD 337 million in the previous year[9] - The group reported a total profit before tax of HKD 963,089,000 for the six months ended June 30, 2023, compared to HKD 767,745,000 for the same period in the previous year, indicating an increase of approximately 25.5%[35] - The total revenue for the group for the six months ended June 30, 2023, was HKD 9,250,424,000, compared to HKD 8,179,795,000 for the same period in the previous year, representing a growth of approximately 13.1%[35] - The group recorded a revenue of HKD 9.25 billion for the six months ended June 30, 2023, representing a 13% increase from HKD 8.18 billion in the same period of 2022[81] Assets and Liabilities - Total assets amounted to HKD 21.431 billion, down from HKD 22.948 billion at the end of the previous year[10] - Total liabilities decreased to HKD 12,369,618,000 as of June 30, 2023, from HKD 13,967,843,000 as of December 31, 2022, representing a reduction of approximately 11.5%[27] - The group's total assets as of June 30, 2023, were HKD 21,431,295,000, down from HKD 22,947,693,000 as of December 31, 2022, indicating a decrease of approximately 6.6%[27] - Total debt as of June 30, 2023, was HKD 7.65 billion, down from HKD 8.40 billion as of December 31, 2022[83] Equity and Earnings - The group’s total equity increased to HKD 9,061,677,000 as of June 30, 2023, compared to HKD 8,979,850,000 as of December 31, 2022, reflecting a growth of approximately 0.9%[27] - The company reported a basic and diluted earnings per share of HKD 8.190, down from HKD 10.965 in the previous year[9] - The diluted earnings per share for the six months ended June 30, 2023, was approximately HKD 0.082, based on a profit attributable to shareholders of approximately HKD 402,116,000[21] Operational Highlights - Natural gas sales volume reached 3.766 billion cubic meters, an increase of 14%[2] - The total gas sales and transmission volume for the first half of 2023 was 3.766 billion cubic meters, a 14% increase from 3.291 billion cubic meters in the same period of 2022[73] - External customer sales for the gas pipeline construction and connection segment amounted to HKD 7,270,183,000 for the six months ended June 30, 2023[35] - The group added 68,836 residential users, bringing the total to 1,982,377, and added 552 commercial users, totaling 17,248[51] Financial Management - Financial income increased to HKD 123 million from HKD 89 million year-on-year[3] - The group’s financial income and other losses, net, amounted to HKD 122,630,000 for the six months ended June 30, 2023[35] - The group’s trade receivables as of June 30, 2023, were HKD 1,129,110,000, an increase from HKD 997,933,000 as of December 31, 2022[45] - The group’s cash and cash equivalents as of June 30, 2023, were not explicitly stated but are part of the total assets reported[27] - The average cost of the group's debt was 5% as of June 30, 2023, compared to 4% in the same period of 2022[57] - The net debt to asset ratio increased to 22% as of June 30, 2023, compared to 19% as of December 31, 2022[101] Strategic Initiatives - The company continues to focus on expanding its energy-related business in China and Canada, including natural gas operations and clean energy products[12] - The group plans to explore new energy projects, including integrating photovoltaic systems into residential users[51] - The group plans to continue expanding its market presence and optimizing its business layout following the acquisition of Shandong Shengli Co., Ltd.[79] - The group aims to enhance internal management and innovate business models to meet customer demands while deepening its core business[79] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has ensured compliance by all directors during the six months ended June 30, 2023[109] - The audit committee, established in 1998, consists of three independent non-executive directors and has reviewed the unaudited interim financial statements for the six months ended June 30, 2023[111] - The board includes four executive directors and three independent non-executive directors, ensuring a balance of power and authority within the governance structure[112] Dividends - The group will not declare any interim dividend for the six months ended June 30, 2023[69] - The group did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[91]

Financial Performance - The Group recorded revenue of HK$17,421 million for the year ended 31 December 2022, representing a 21.5% increase from HK$14,342 million in 2021[11]. - Profit attributable to owners of the Company rose by 2% to HK$919 million in 2022, up from HK$904 million in 2021[167][168]. - The average operating netback was CAD48.67 per barrel of oil equivalent, representing a 38.5% increase compared to CAD35.15 per barrel of oil equivalent in the previous year[2]. - The Group achieved a crude oil price of CAD117.32 per barrel in 2022, a year-on-year increase of 49.4% from CAD78.51 per barrel in 2021[2]. - The Group's natural gas sales and transmission volume increased alongside rising upstream oil prices, contributing to revenue growth[167][168]. Production and Operations - The average daily production of the Group's upstream business increased to 5,492 BOE/Day in 2022, reflecting an 11.3% growth compared to 4,936 BOE/Day in 2021[3][4]. - The Group's domestic natural gas production exceeded 217 billion cubic meters in 2022, with apparent consumption reaching 366.3 billion cubic meters, while imports decreased by 9.9% to 109.25 million tons[141]. - The company supplied 5,899 million cubic meters of natural gas in 2022[196]. - The company operates 71 concession rights and has built city pipeline networks to supply natural gas to local users[198]. - The company has established 3 LNG plants in Qinghai Province and Chongqing Municipality to support natural gas supply[198]. Strategic Initiatives - The Group plans to focus on high-quality development and optimize its strategic layout in response to carbon neutrality goals, enhancing its management and staff capabilities[6][9]. - The Group's strategic implementation plan focuses on resource acquisition, market development, and non-gas business strategies, supported by five key strategic initiatives[141]. - The Group's strategic measures include talent strengthening, organizational support, quality and efficiency improvement, cost reduction, and cultural leadership to achieve long-term goals[166]. - The Group has completed approximately 20,620 km of natural gas pipelines across 13 provinces, enhancing revenue from natural gas transmission[178][190]. - The Group is focused on resource acquisition, market development, and non-gas business as part of its development strategy[166]. Financial Position - The total assets of the Group as of 31 December 2022 were HK$22,948 million, compared to HK$22,649 million in 2021[19]. - The Group's total liabilities amounted to HK$13,968 million as of 31 December 2022, up from HK$13,830 million in 2021[19]. - There is a liquidity risk that the Group may not meet its obligations due to inadequate funding or asset liquidation[96]. - The Group's liquidity risk is managed at divisional and departmental levels[75]. Employee and Management - The Group employed 4,837 full-time employees as of 31 December 2022, an increase from 4,704 in 2021[19]. - The Group has maintained a competitive remuneration package to attract and motivate employees[105]. - The Group's organizational structure and management mechanisms were optimized to support strategic goals[141]. Regulatory and Compliance - The Group reported no significant breaches of applicable laws and regulations that impacted its operations during the year[104]. - The Group faces risks related to environmental regulations and may implement stringent measures to address these issues[101]. Risks and Uncertainties - The Group's financial conditions and results of operations are subject to various risks and uncertainties[69]. - The Group's operations may be affected by risks related to natural gas price control, which could impact profitability[70]. - The Group has not engaged in any hedging transactions to manage foreign exchange risks, considering the risk between HKD and RMB to be low[99]. - The Group's financial performance may be affected by various risks and uncertainties related to its business operations[92]. Dividends and Shareholder Matters - The Board resolved not to recommend any final dividend for the year ended 31 December 2022, consistent with the previous year[30][32]. - The Board does not recommend a final dividend for the year ended 31 December 2022[112]. Recent Developments - The establishment of a Network Security and Informatization Leading Group was completed, defining a three-year digital planning blueprint and advancing the smart gas project[140][142]. - The Group's financial sharing platform procurement was completed, enhancing digital transformation efforts[140]. - The Group's medium and long-term digital planning construction was completed, marking a significant step in its informatization efforts[140]. - There were no significant events occurring after the end of the reporting period up to the date of the report[110].