Financial Performance - The group's revenue for the six months ended June 30, 2022, increased by 31% to HKD 10.16 billion compared to the same period last year[8]. - Shareholders' profit after tax for the same period was HKD 1.042 billion, a rise of 34% year-on-year, with basic earnings per share at HKD 0.3304, up 26%[5][8]. - Total gas sales volume for the first half of 2022 rose by 4% to 7.541 billion cubic meters, with industrial gas sales accounting for 50% of total sales[9]. - The total revenue from gas and energy sales increased by 33% to HKD 8.637 billion, primarily due to rising unit gas prices[9]. - The company reported a net profit of HKD 903,706,000 for the six months ended June 30, 2022, compared to HKD 778,133,000 for the same period in 2021, marking an increase of about 16.1%[45]. - The basic earnings per share for the six months ended June 30, 2022, was HKD 1.041,609, compared to HKD 0.778,133 in 2021, showing an increase of approximately 33.8%[45]. - The company reported a total comprehensive income of HKD 679,649,000 for the period, down from HKD 818,586,000 in the prior year[27]. - The group reported a total revenue of HKD 9.865 billion for the six months ended June 30, 2022, with a pre-tax profit of HKD 1.448 billion[38]. Operational Highlights - The revenue from gas connection services increased by 32% to HKD 1.195 billion, with 250,000 new customers connected during the period[9]. - The group anticipates an improvement in urban gas profitability in the second half of the year due to expected economic recovery and enhanced gas storage capabilities[10]. - The company raised HKD 2.8 billion from Affinity Equity Partners to accelerate the development of distributed photovoltaic projects[7]. - The group has successfully negotiated the development of 47 zero-carbon smart industrial park projects and has over 200 renewable energy projects across 19 provincial regions[11]. - The group aims to enhance its energy digital services, carbon trading, and energy-saving management for zero-carbon smart parks[11]. - The group expanded its business by adding 52 renewable energy projects in 2022, bringing the total to 108 projects, including distributed photovoltaics and energy storage[12]. Environmental and Governance Initiatives - The group aims to reduce methane emissions in natural gas production to below 0.25% by 2025, aligning with global advanced levels[15]. - The group received multiple ESG awards, including being named "Annual Low Carbon Model" for two consecutive years, recognizing its contributions to low-carbon energy[14]. - The group has committed to enhancing its governance structure by promoting board diversity and appointing Dr. Lu Gonghui as an independent non-executive director[15]. - The group encourages employees to participate in carbon reduction initiatives, resulting in over 10,000 trees planted through its low-carbon environmental program[15]. - The company aims to enhance its ESG performance and invest in innovative environmental technologies to create new growth points[18]. Financial Position and Liquidity - As of June 30, 2022, total non-current assets amounted to HKD 45,285,888 thousand, a slight decrease from HKD 46,510,759 thousand as of December 31, 2021[23]. - Current liabilities decreased to HKD 15,638,225 thousand from HKD 17,371,153 thousand, indicating improved liquidity[24]. - The company's cash and cash equivalents were HKD 6,794 thousand, down from HKD 4,071,107 thousand, indicating a potential liquidity concern[23]. - The company reported a decrease in total liabilities, with non-current liabilities rising to HKD 12,501,660 thousand from HKD 11,692,792 thousand[24]. - The company’s equity attributable to shareholders decreased to HKD 22,338,650 thousand from HKD 22,895,052 thousand, indicating a decline in shareholder value[24]. - The company’s total borrowings included approximately HKD 7.252 billion due within one year, highlighting short-term financial obligations[28]. - The group believes it can meet its financial obligations due within the next year, including approximately HKD 1.230 billion in borrowings[29]. Shareholder Information - As of June 30, 2022, the total equity held by major shareholders in Hong Kong and China Gas Company Limited is approximately 2,162,535,761 shares, representing about 68.33% of the company's issued shares[94]. - Dr. Li Ka Shing is considered to have an interest in 41.53% of the total issued shares of Hong Kong and China Gas Company Limited, which amounts to 7,748,692,715 shares[94]. - The total equity interest of Capstar Holdings and its affiliates is 467,133,333 shares, representing approximately 14.76% of the total issued shares[98]. - The company has not been informed of any major shareholders holding any short positions in shares or related shares as of June 30, 2022[101]. Management Changes - Dr. Zheng Mu Zhi has been appointed as a non-official member of the Executive Council of the Hong Kong SAR since July 1, 2022[114]. - Mr. Huang Wei Yi has been appointed as the Executive Director and CEO of the company, and has taken on multiple directorships in other energy companies since April 2022[114]. - Mr. Ji Wei Yi has been appointed as the Executive Director and Chief Operating Officer of the Gas Business since April 8, 2022[115]. - Dr. Qiu Jian Hang has resigned from the Supervisory Board of the company on April 8, 2022[115].

Financial Performance - The revenue for the year ended December 31, 2021, was HKD 17,125,447, an increase from HKD 12,826,237 in 2020, representing a growth of approximately 33.5%[11] - The profit before tax for 2021 was HKD 2,144,751, slightly down from HKD 2,202,701 in 2020, indicating a decrease of about 2.6%[11] - The net profit for the year was HKD 1,527,092, compared to HKD 1,647,808 in 2020, reflecting a decline of approximately 7.3%[12] - The earnings per share for 2021 was HKD 41.53, down from HKD 49.56 in 2020, which is a decrease of about 16.1%[14] - The net profit attributable to shareholders was HKD 1.612 billion, an increase of approximately 11% compared to the previous year[24] - The company's net profit attributable to shareholders increased by 16.12% to HKD 1.612 billion[33] - Total revenue for 2021 was HKD 171.25 billion, a 33.5% increase from HKD 128.26 billion in 2020[37] - The total operating expenses for 2021 were HKD 150.20 billion, up 36.5% from HKD 110.02 billion in 2020[38] - Financing costs increased by 38.2% to HKD 5.89 billion, primarily due to transitional loans for the acquisition of Shanghai Gas[43] - Net profit for the year was HKD 15.27 billion, a decrease of 7.3% year-on-year, while profit attributable to shareholders was HKD 12.53 billion, down 13.4%[45] Market Expansion and Strategy - The company aims to expand its market presence in Asia by focusing on innovative and environmentally friendly energy solutions[2] - The company plans to enhance its service offerings and operational efficiency to improve customer satisfaction and environmental impact[2] - The company is committed to developing zero-carbon smart parks and expanding its charging station network as part of its sustainability strategy[6] - The company has set a target to develop 32 zero-carbon smart park projects, contributing to its strategic positioning as a comprehensive energy service provider[25] - The company aims to become a leader in China's energy management industry within 5 to 10 years[31] - The company is actively responding to the national "dual carbon" goals, focusing on the simultaneous development of urban gas and renewable energy[29] Renewable Energy Initiatives - The company has been investing in new technologies and renewable energy projects, including solar energy and energy storage systems[6] - The company completed over 110 renewable energy projects by the end of 2021 and aims to secure 200 quality park projects over the next five years[25] - The first phase of the rooftop solar project in Taizhou, Jiangsu Province, has an installed capacity of 80 megawatts[58] - The ongoing rooftop solar project in Tangshan, Hebei Province, has an installed capacity exceeding 60 megawatts[59] - The company has formed a joint venture with CATL to focus on zero-carbon technologies[60] - The company is collaborating with State Power Investment Corporation to develop charging and swapping stations for heavy-duty trucks[60] Customer Growth and Sales Volume - The total gas sales volume increased by 21% to 14.579 billion cubic meters, with a total customer base reaching 15.09 million, an increase of 950,000 customers[25] - Industrial gas sales volume reached 7.667 billion cubic meters, up 28% from 6.008 billion cubic meters in 2020, accounting for 53% of total sales[64] - The company added 950,000 new customers in 2021, bringing the total customer base to 15.09 million[64] - The company plans to add four new city gas projects, expected to contribute an annual gas volume of 24.5 million cubic meters in five years[66] Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code as per the listing rules throughout the year ended December 31, 2021[167] - The board consists of 10 members, including 3 independent non-executive directors, ensuring compliance with listing rules[170] - The company emphasizes internal control mechanisms and risk management functions, with the board playing a crucial role in their implementation and oversight[171] - The company has implemented a code of conduct and compliance manual applicable to employees and directors[174] - The company’s internal control procedures were deemed sufficient and effective regarding the related transactions[150] Community Engagement and Social Responsibility - The group’s volunteer team grew to over 7,000 members, contributing over 300,000 hours of community service in 2021[72] - The group donated over 300 boxes of essential supplies to frontline workers during the COVID-19 pandemic, demonstrating its commitment to community support[73] - The "Zijinhangdong" initiative provided free gas appliance installations and safety checks to impoverished families in over 30 cities, receiving high praise from consumers and the government[73] - The group organized a large-scale environmental event with the theme "Environmental Natural Style," involving over 90 project companies and planting approximately 9,600 trees[74] - The group participated in the "Marine Environmental Public Welfare Action," where volunteers collected marine and beach waste, creating art from discarded items to raise public awareness[74] Risk Management and Internal Controls - The company emphasizes risk governance as a priority to ensure sustainable growth and long-term stakeholder value[198] - A robust risk management framework is in place to identify, assess, mitigate, report, and monitor key business risks across all units[198] - The internal control system's overall effectiveness is reviewed biannually, covering financial, operational, and compliance monitoring[197] - The audit and risk committee reviews and approves the annual audit plan, which includes financial and operational reviews[196] Shareholder Information and Capital Management - The company reported a total reserve available for distribution to shareholders of HKD 6,484,000,000 as of December 31, 2021, compared to HKD 4,814,000,000 in 2020, reflecting a 34.8% increase[116] - The board proposed a final dividend of HKD 0.15 per share, consistent with the previous year's dividend[110] - The company has adopted a share incentive plan on August 17, 2021, to reward directors and eligible participants[163] - The company issued convertible bonds totaling RMB 1,835,603,119.35 (approximately HKD 2,217,715,500) on November 18, 2021, with a conversion price of HKD 6.33 per share, allowing for the issuance of up to 350,350,000 shares[131] Operational Highlights - The company has established new agreements for gas procurement and pipeline material procurement, effective from January 1, 2022, to December 31, 2024[144] - The company entered into a liquefied natural gas storage lease agreement with China Gas on August 27, 2021, with a maximum annual cap of RMB 75,000,000 (approximately HKD 90,460,000) for the year ending December 31, 2021[150] - The company completed a capital injection of RMB 15,000,000 (approximately HKD 18,092,000) into Chengdu Comfort Home Technology Service Co., Ltd., reducing its stake from 100% to 40%[152] - The company established a joint venture, Hangzhou Home Technology Co., Ltd., with a focus on health services and products, involving multiple subsidiaries and a 51% stake held by Mingqi Home (Shenzhen)[152]