Financial Performance - Revenue for the year ended December 31, 2023, was HKD 101,272 million, an increase of 7.35% compared to HKD 94,338 million in 2022[2] - Profit attributable to equity holders for the same period was HKD 5,224 million, reflecting a growth of 10.36% from HKD 4,733 million in the previous year[2] - Basic earnings per share increased to HKD 2.30, up 10.05% from HKD 2.09 in 2022[4] - Total revenue for the year ended December 31, 2023, was HKD 101,271,905,000, with segment profits before tax amounting to HKD 13,079,019,000[12] - The group reported a profit before tax of HKD 8,909,045,000 for the year, after accounting for various expenses and financial costs[12] - The company reported a profit before tax of HKD 8,615,556 for the year ended December 31, 2023, compared to HKD 5,550,569 in 2022, indicating a growth of about 55.5%[15] Cash Flow and Assets - Net operating cash flow surged by 133.41% to HKD 10,157 million, compared to HKD 4,351 million in the prior year[2] - Total assets less current liabilities amounted to HKD 86,762 million, up from HKD 65,983 million in 2022[5] - Total equity attributable to equity holders increased to HKD 40,772 million, compared to HKD 39,307 million in the previous year[6] - Non-current assets totaled HKD 102,417 million, a significant rise from HKD 84,231 million in 2022[5] - The group's total assets as of December 31, 2023, were HKD 137,871,085,000, with total liabilities amounting to HKD 74,487,403,000[13] Dividends - The company declared an interim dividend of HKD 1.1569 per share, up 10.18% from HKD 1.05 in the previous year[2] - The proposed final dividend for the year ending December 31, 2023, is HKD 100.69 per share, totaling HKD 115.69 per share for the year, compared to HKD 105 per share in 2022[41] - The company maintained a dividend payout ratio of 50.3% for the year, with total proposed dividends amounting to HKD 2.38 billion[23] Customer Connections and Sales - Total gas sales reached 38,784 million cubic meters, marking an 8.1% increase from 35,889 million cubic meters in 2022[2] - The total number of new residential customer connections decreased by 18.74% to 3.31 million from 4.08 million in the previous year[2] - Industrial gas sales volume increased by 7.2% to 20.11 billion cubic meters, accounting for 51.9% of total sales[30] - Commercial gas sales volume rose by 9.0% to 8.21 billion cubic meters, representing 21.2% of total sales[30] - Residential gas sales volume grew by 11.1% to 9.44 billion cubic meters, making up 24.3% of total sales[30] Operational Developments - The company developed 41,310 new industrial users and 3.313 million new residential users, with 2.883 million from new housing connections and 384,000 from old housing connections[31] - The average gasification rate of urban gas projects operated by the company increased from 58.2% in the same period last year to 59.3%[31] - The company signed 3 new projects and registered 8 new projects, expanding operational areas by 4,057 square kilometers, further solidifying its position in the urban gas sector[32] - The company signed 30 new distributed energy projects, bringing the total to 173 projects with a capacity of 1.2 GW, and signed 98 new distributed photovoltaic projects totaling 213.7 MW[35] Governance and Compliance - The company has adopted corporate governance codes and has complied with mandatory provisions, with updates made to its governance manual over the years[45] - The group has not adopted any new standards or interpretations that are not yet effective during the accounting period[9] - The group has reviewed its accounting policy disclosures to ensure compliance with the revised HKAS 1, which requires entities to disclose significant accounting policy information[10] Future Outlook - The macroeconomic outlook for 2024 indicates continued steady growth, supported by a downward trend in international natural gas prices, leading to a healthy and stable development trend in the natural gas industry[39] - The company plans to maintain a "1+2+N" business strategy in 2024, focusing on stable development of its main business and enhancing its control over the industry[40] - The company aims to enrich its natural gas resource pool and promote quality external project investments to enhance comprehensive service business penetration and expand integrated energy scale[40] Employee and Operational Costs - The company reported a total employee cost of HKD 6.34 billion, an increase from HKD 5.80 billion in the previous year[21] - The company’s deferred tax expense for the year was HKD 1.89 billion, compared to a deferred tax benefit of HKD 44.79 million in the previous year[22] Miscellaneous - The company has not repurchased, sold, or redeemed any of its listed securities during the year ending December 31, 2023[45] - There have been no significant events after the reporting date that could impact the group's operations, performance, or condition[47] - The annual report will be sent to shareholders and published on the Hong Kong Stock Exchange website and the company's website at an appropriate time[47] - The company expresses sincere gratitude to business partners, customers, and shareholders for their support and acknowledges the hard work of all employees[48]

港股公司报告 | 首次覆盖报告 华润燃气（01193） 证券研究报告 2024年03月16日 投资评级 行业有望迎来量价修复，α+β共振助力公司业绩提升 行业 公用事业/公用事业 6个月评级 买入（首次评级） 城市燃气龙头企业，燃气销售业务持续发力 当前价格 25.95港元 目标价格 30.8港元 公司前身华润石化集团在 2004 年正式转型城市燃气领域，2007 年华润燃气集团 正式成立，并于2008年11月在香港联交所主板上市。2004-2021年，公司营业收 基本数据 入/净利润 CAGR 分别为 20.2%/19.3%。分业务看，燃气销售业务为基本盘，2023 港股总股本(百万股) 2,314.01 年H1营收达412.37亿港元，营收占比达到 85.3%。 港股总市值(百万港元) 60,048.63 行业需求逐步修复，发展潜力重燃 每股净资产(港元) 17.19 需求总量：我国天然气消费量仍存较大提升空间。2023 年国内天然气消费量出现 资产负债率(%) 57.46 恢复性增长，全年国内天然气消费量为3945.3亿立方米，同比增长7.6%。但国内 一 年内最高/最低(港元) 30.80/20.40 ...

Sales and Revenue Performance - In the first half of 2023, China Resources Gas achieved a gas sales volume of approximately 19.842 billion cubic meters and served 55.85 million customers[18]. - Total natural gas sales volume increased by 6.9% year-on-year to 19.84 billion cubic meters[24]. - Revenue for the period rose by 0.6% year-on-year to HK$48.37 billion[24]. - The comprehensive service turnover increased by 7.7% from HK$1.37 billion to HK$1.47 billion, while segment profit rose by 11.4% from HK$0.56 billion to HK$0.62 billion, excluding exchange rate fluctuations[27]. - The Group achieved a revenue of HK$48.37 billion in the first half of 2023, representing a year-on-year increase of 0.6%[33]. - For the six months ended June 30, 2023, the total external sales reached HK$48,369,601, an increase from HK$48,100,627 in the same period of 2022, reflecting a growth of approximately 0.56%[124]. Profitability and Financial Metrics - Profit attributable to owners of the Company increased by 16.4% year-on-year to HK$3.55 billion[24]. - The profit for the period rose to HK$4,557,546, compared to HK$3,929,277 in 2022, reflecting an increase of 15.9%[93]. - Basic earnings per share increased to 156 HK cents, a rise of 16.4% from 134 HK cents[78]. - The net profit margin for the period was 9.4%, up from 8.2% in the previous year[81]. - The return on equity (annualised) improved to 17.8%, compared to 15.5% in the previous year[81]. Customer and Market Expansion - The company operates 275 city gas projects across 25 provincial administrative regions in China, including 15 provincial capitals and 3 direct administrative municipalities[18]. - The Group developed 22,735 new industrial and commercial users and 1,341,941 new residential users during the period[26]. - The average gas penetration rate of city gas projects operated by the Group in China increased from 56.1% in the same period of 2022 to 58.4%[26]. - The connectable householders reached 95.32 million, an increase of 9.8% compared to 86.78 million in the previous year[83]. - The connectable population grew to 324.09 million, reflecting a 13.2% increase from 286.37 million[83]. Investments and Acquisitions - China Resources Gas plans to continue expanding through both organic growth and acquisitions in 2023[18]. - The Group signed 42 new comprehensive energy projects with an estimated total investment of approximately HK$460 million, bringing the cumulative number of projects to 244[30]. - The Group acquired 51% of Suzhou Zhongyou Natural Gas Co., Ltd. for a total cash consideration of RMB21,708,000 (equivalent to HK$23,545,000)[170]. - The acquisition of Qianyang Gas involved a cash payment of RMB27,396,000 (equivalent to HK$31,740,000) on 4 January 2023[185]. - The acquisition of Kunming Gas involved a cash payment of RMB756,516,100 (equivalent to HK$873,466,000) on 20 February 2023[185]. Environmental and Sustainability Initiatives - The Chinese government emphasizes the importance of natural gas as a clean and low-carbon energy source in its energy strategy, supporting its steady growth in the long term[22]. - The natural gas industry is positioned to play a significant role in achieving carbon peak and carbon neutrality goals in China[22]. - In the first half of 2023, carbon dioxide emissions per RMB10,000 production value reduced by 30.3%, and comprehensive energy consumption per RMB10,000 revenue decreased by 2.4%[33]. - The Group's ESG rating was maintained at A by MSCI, reflecting its commitment to sustainable development and environmental governance[33]. Financial Position and Liquidity - Operating cash flow reached HK$4.76 billion, reflecting a year-on-year increase of HK$4.77 billion, indicating continuous improvement in operational quality[34]. - As of June 30, 2023, the Group's cash balance was HK$18,600 million, a substantial increase from HK$6,440 million at the end of 2022[35]. - Total borrowings as of the end of the Period were HK$35,350 million, up from HK$22,460 million in 2022, with 38.6% classified as current liabilities[35]. - The Group has unutilized banking facilities of HK$24,967,746,000 and internally generated funds, indicating sufficient working capital for the next twelve months[117]. Corporate Governance and Management - The Group is committed to maintaining a credible corporate governance framework to ensure transparency and accountability to shareholders[65]. - The Audit and Risk Management Committee has reviewed the Group's accounting principles and practices, as well as internal control and risk management matters, including the unaudited interim results for the period[65]. - The Remuneration Committee is responsible for making recommendations on the remuneration policy and structure for Directors and senior management, ensuring alignment with corporate goals[65]. - The Group plans to continue strengthening its corporate governance policies to align with prevailing practices and standards expected by shareholders[65]. Employee and Human Resource Management - The Group recognizes the importance of attracting, training, and retaining quality staff for its continual success[49]. - Bonuses and incentive awards are granted to employees based on merit and performance[49]. - The Group values human resources and compensates employees based on performance, work experience, and market wage levels[49].

Financial Performance - Revenue for the first half of 2023 reached HKD 48,370 million, a slight increase of 0.6% compared to HKD 48,101 million in the same period of 2022[2] - Profit attributable to owners of the company increased by 16.4% to HKD 3,545 million, up from HKD 3,045 million year-on-year[2] - The total comprehensive income for the period was HKD 3,329 million, significantly higher than HKD 1,158 million in the same period last year[3] - The company reported a basic earnings per share of HKD 1.56, up from HKD 1.34 in the previous year[2] - The group reported a total profit before tax of HKD 5,592,066,000 for the six months ended June 30, 2023, compared to HKD 5,146,896,000 for the same period in 2022, reflecting an increase of about 8.7%[12][13] - The net profit for the six months ended June 30, 2023, was HKD 3,545,256,000, an increase from HKD 3,045,380,000 for the same period in 2022, showing a growth of 16.4%[20] - Basic earnings per share for the period was HKD 1.56, compared to HKD 1.34 for the same period last year, representing a year-over-year increase of 16.4%[20] Sales and Customer Growth - Total gas sales volume rose by 6.9% to 19,842 million cubic meters, compared to 18,562 million cubic meters in the previous year[2] - The total number of connected customers increased by 14.4% to 55.85 million, up from 48.83 million[2] - New industrial users developed amounted to 22,735, while new residential users reached 1,341,941, including 1,129,914 new home connections[36] - The average gasification rate of urban gas projects operated by the company increased from 56.1% to 58.4% year-on-year[36] Assets and Liabilities - Non-current assets increased to HKD 91,784 million from HKD 84,231 million as of December 31, 2022[5] - Total liabilities increased to HKD 26,027 million from HKD 13,438 million year-on-year[6] - Total equity attributable to owners of the company rose to HKD 39,784 million, compared to HKD 39,307 million at the end of 2022[7] - As of June 30, 2023, the group's current liabilities exceeded current assets by approximately HKD 7,977,826,000, raising concerns about liquidity[9] - The group’s bank and other borrowings totaled approximately HKD 35,364,257,000, with HKD 13,660,062,000 classified as current liabilities[9] - The total liabilities as of June 30, 2023, were HKD 78,051,442, compared to HKD 59,758,162 as of December 31, 2022, reflecting a rise of 30.5%[14] Investments and Capital Expenditure - The group has capital commitments of approximately HKD 1,073,340,000 as of June 30, 2023, indicating ongoing investment in future projects[9] - The company invested HKD 1,965,553,000 in construction projects during the six months ended June 30, 2023, down from HKD 2,017,471,000 in the same period last year, a decrease of 2.6%[21] Operational Highlights - The company continues to focus on expanding its gas distribution and related services in China, enhancing its market position[8] - The segment profit for gas fuel sales and related products was HKD 3,509,041,000, compared to HKD 2,778,688,000 in the previous year, indicating a significant increase of approximately 26.3%[12][13] - The segment performance for gas connection services generated a profit of HKD 1,592,332,000, up from HKD 2,160,573,000 in the previous year, showing a decrease of approximately 26.3%[12][13] - The group achieved a revenue of HKD 48.37 billion in the first half of 2023, representing a year-on-year growth of 0.6%[43] - The comprehensive service revenue increased from HKD 1.37 billion to HKD 1.47 billion, a growth of 7.7%, with segment profit rising from HKD 560 million to HKD 620 million, an increase of 11.4%[39] Dividend and Shareholder Information - The company declared an interim dividend of HKD 0.15 per share, totaling HKD 340,232,000, consistent with the previous year's interim dividend[19] - The interim dividend declared is HKD 0.15 per share, consistent with the previous year, to be paid on October 27, 2023[45] - The company will distribute the 2023 interim dividend in Hong Kong dollars (HKD) unless shareholders choose to receive it in Renminbi (RMB) at a conversion rate of HKD 1.0 to RMB 0.91789[47] - Shareholders opting for RMB will receive a dividend of RMB 0.1376835 per share, with the dividend checks expected to be mailed by October 27, 2023[47] Governance and Compliance - The company has adopted the mandatory provisions of the Corporate Governance Code and has updated its governance manual multiple times since its initial adoption in December 2005[49] - The company has complied with the Corporate Governance Code, except for deviations in provisions C.3.3 and F.2.2, which relate to formal appointment letters for directors and the attendance of the chairman at the annual general meeting, respectively[49] - All directors have confirmed compliance with the standards set forth in the Securities Trading Code during the reporting period[50] Environmental and Social Responsibility - The group successfully reduced carbon emissions per unit of output by 30.3% and energy consumption per unit of revenue by 2.4% in the first half of 2023[41] - The company anticipates steady growth in natural gas demand as it continues to support local government pollution prevention efforts[36] Future Outlook - The group aims to enhance the penetration rate of comprehensive services and expand the scale of comprehensive energy in the second half of 2023, contributing to steady revenue growth and improved shareholder returns[44]

Financial Performance - In 2022, the company recorded a gas sales volume of 35.89 billion cubic meters, representing a year-on-year increase of 5.3%[21]. - The turnover for the year was HK$94.34 billion, reflecting a year-on-year increase of 18.5%[22]. - Profit after tax decreased by 25.3% to HK$6.31 billion, while profit attributable to owners fell by 26.0% to HK$4.73 billion[22]. - The overall gross profit margin decreased to 19.2%, down 4.9 percentage points from the previous year, primarily due to lower margins in gas fuel sales and related products[42]. - The Group's operating cash flow was HK$4.351 billion, representing a year-on-year decrease of 48.14%[42]. - The Group's operating profit decreased by 17.3% to HK$8.66 billion in 2022[48]. - The revenue from gas sales and distribution accounted for 79.6% of total revenue in 2022, compared to 77.0% in 2021[48]. - The Group's annual turnover in 2022 amounted to HK$94.34 billion, an increase of 18.5% from HK$79.64 billion in 2021[76]. - The city gas distribution operation generated a net operating cash flow after tax of HK$4.35 billion, with bank balances and cash totaling HK$6.44 billion at the end of 2022[77]. - The total bank loans and borrowings amounted to HK$22.46 billion, with a gross debt to total asset ratio of 53.1%, up from 49.1% in 2021[77]. Customer and Market Development - The company operates 273 city gas projects across 25 provinces in China, including 15 provincial capitals and 3 municipalities[5]. - The total number of customers reached 54.37 million, with a connectable population of 307 million[10]. - The Group developed 43,286 new industrial and commercial users and 4,076,574 new residential users during the year, including 3,559,000 new house connections[27]. - The average gas penetration rate of city gas projects operated by the Group in China increased from 55.0% at the end of 2021 to 58.2% by the end of 2022[27]. - The Group's focus on urban natural gas user development aligns with the national strategy for urbanization, which saw the urbanization rate increase from 64.7% to 65.2% in 2022[27]. - The natural gas market in China is still in a significant development phase, presenting growth opportunities for the company[7]. Operational Efficiency and Strategy - The company aims to enhance operational efficiency and expand its market presence in large cities and developed regions[21]. - The Group aims to enhance gas source coordination and optimize price management while focusing on low-carbon energy transformation in 2023[45]. - The Group has 84 regional centers to manage daily operations of city gas projects across China, enhancing operational efficiency and service responsiveness[51]. - Centralized procurement accounted for 90% of total material procurement expenditure by the end of 2022, leading to reduced procurement costs while maintaining product quality[53]. - The Group's systematic review of business processes is expected to continuously enhance overall operational efficiency of city gas projects[53]. - The Group has successfully promoted a value-oriented management system, significantly reducing costs and enhancing cash management, which increased the cash pool size[54]. Environmental and Safety Management - The Group's carbon dioxide emissions per RMB10,000 production value decreased by 32.2% in 2022[41]. - The Group's comprehensive energy consumption per RMB10,000 revenue reduced by 23.6% in 2022[41]. - Safety management policies and procedures have been established to prevent potential accidents in natural gas facilities, ensuring compliance with environmental regulations[55]. - The Group completed safety audits for 39 regional companies, identifying over 3,121 safety hazards and promoting rectification efforts[57]. - The Group invested HK$0.409 billion to transform 387.1 km of cast iron pipeline[57]. Governance and Management Structure - The Company has adopted the mandatory provisions of the Corporate Governance Code and updated its Corporate Governance Handbook multiple times since 2005[109]. - The Company has maintained a credible framework of corporate governance to ensure transparency and accountability to its shareholders[108]. - The Board consists of two Executive Directors, five Non-executive Directors, and four Independent Non-executive Directors, with Mr. YU Hon To having the required professional accounting experience as per Listing Rules[112]. - The Company emphasizes the importance of human resources and legal affairs in its operational strategy, with dedicated Vice Presidents for these areas[103][104]. - The Company has established written policies and procedures for handling inside information to ensure compliance with disclosure requirements[150]. Shareholder Engagement and Communication - The Company emphasizes the importance of effective communication with shareholders and investors to enhance understanding of its business performance and strategies[161]. - The Company has established various communication channels, including printed corporate communications and timely updates on the company website[160]. - The Company adopted a Shareholder's Communication Policy on December 30, 2022, to maintain effective ongoing dialogue with shareholders[160]. - The Company recognizes the significance of investor relations activities in helping investors understand its business[161]. - The Company welcomes suggestions and participation from shareholders and investors through various communication methods[161]. Financial Reserves and Dividends - The company's reserves available for distribution to shareholders as of December 31, 2022, amounted to HK$5,454,045,000[168]. - The total distribution for 2022 is proposed to be 105 HK cents per share, down from 127 HK cents per share in 2021[170]. - The proposed final dividend will be payable to shareholders whose names appear on the register after June 2, 2023, with the register closing from June 1 to June 2, 2023[177]. Leadership and Human Resources - The management team includes experienced professionals with degrees from notable universities, enhancing the company's strategic capabilities[104]. - The company has improved employee recruitment and retention policies to enhance human resources management and attract top talent[53]. - As of the end of 2022, the company has a total of 56,114 employees, comprising approximately 19,864 females and 36,250 males, resulting in a female-to-male ratio of 1.8:1[120]. - The company aims to appoint at least one female director by the end of December 2024 to comply with listing rules regarding gender diversity on the board[120].

Financial Performance - Revenue for the year ended December 31, 2022, was HKD 94,338 million, an increase of 18.45% compared to HKD 79,642 million in 2021[2] - Profit attributable to equity holders for the same period was HKD 4,733 million, a decrease of 25.99% from HKD 6,395 million in 2021[2] - Basic earnings per share decreased by 25.89% to HKD 2.09 from HKD 2.82 in the previous year[2] - The group reported a pre-tax profit of HKD 8,615,556 for the year, after accounting for financial costs and unallocated expenses[14] - The company reported a profit before tax of HKD 11,183,717 for the year ended December 31, 2022, reflecting strong operational performance[17] - The total tax expense for 2022 was HKD 2,307,037,000, down from HKD 2,743,885,000 in 2021, representing a decrease of approximately 16.0%[24] - Basic earnings per share for 2022 were HKD 4,733,455,000, down from HKD 6,395,368,000 in 2021, reflecting a decrease of approximately 26.0%[27] Cash Flow and Assets - Net operating cash flow for the year was HKD 4,351 million, down 48.14% from HKD 8,390 million in 2021[2] - Non-current assets as of December 31, 2022, totaled HKD 83,979 million, an increase from HKD 75,570 million in 2021[6] - Total assets as of December 31, 2022, amounted to HKD 112,051,660, with major assets in gas fuel and related products at HKD 60,794,075, accounting for about 54% of total assets[15] - The company invested HKD 6,931,139 in non-current assets during the year, indicating a focus on long-term growth[16] - Trade receivables at the end of 2022 amounted to HKD 10,499,973,000, an increase from HKD 7,656,235,000 in 2021, representing a growth of about 37.9%[29] - Trade payables at the end of 2022 were HKD 10,277,590,000, up from HKD 8,452,224,000 in 2021, indicating an increase of approximately 21.6%[30] Revenue Segmentation - Total revenue for the year ended December 31, 2022, was HKD 94,338,329, with gas fuel and related products contributing HKD 75,137,134[14] - The segment profit for gas fuel and related products was HKD 5,550,569, while the gas connection segment achieved a profit of HKD 4,284,201[14] - Revenue from gas connection contracts amounted to HKD 12,207,857, contributing significantly to the overall performance[14] - The design and construction services segment generated revenue of HKD 471,289, reflecting the company's diversified service offerings[14] - The company achieved a revenue of HKD 31.85 billion in its integrated services business in 2022, representing a year-on-year growth of 42.5%[36] Customer Growth and Market Expansion - Total gas sales increased by 5.30% to 35,889 million cubic meters from 34,082 million cubic meters in 2021[2] - The total number of new residential customer connections rose by 15.68% to 4.08 million from 3.52 million in the previous year[2] - The company sold 35.889 billion cubic meters of natural gas in 2022, with industrial sales increasing by 3.0% to 18.762 billion cubic meters, accounting for 52.3% of total sales[33] - The company developed 433,000 industrial users and 4.077 million residential users in 2022, including 3.559 million new connections for new homes and 43,300 for old homes[34] - The company signed 3 new projects and registered 18 projects in 2022, expanding its franchise area by 13,000 square kilometers with a potential gas sales volume of 6.14 billion cubic meters[35] Strategic Initiatives and Future Outlook - The company plans to continue expanding its market presence, particularly in the gas fuel sector, to leverage growth opportunities[17] - The company aims to enhance gas source coordination, optimize pricing management, and stabilize core business development in 2023[42] - The company plans to accelerate business transformation towards low-carbon energy goals and improve comprehensive service business penetration[42] - The company is focused on cost reduction and efficiency improvement to ensure steady growth and enhance shareholder returns[42] - The company is actively pushing for the conversion from bottled gas to piped gas, contributing to the growth in gas sales volume[33] Corporate Governance and Compliance - The company has adopted the corporate governance code and has complied with its mandatory provisions throughout the year, except for a deviation regarding formal appointment letters for directors[48] - No significant events have occurred after the reporting date that could impact the company's operations, performance, or condition[49] - The annual report will be distributed to shareholders and published on the Hong Kong Stock Exchange website and the company's website[49] Dividends and Shareholder Information - The company declared a total dividend of HKD 2,880,633,000 for 2022, compared to HKD 2,109,440,000 in 2021, marking an increase of about 36.5%[26] - The proposed final dividend for the year 2022 is HKD 0.90 per share, totaling HKD 1.05 per share for the year, compared to HKD 1.27 per share in 2021[43] - Shareholders can choose to receive the final dividend in RMB at an exchange rate of HKD 1.0 to RMB 0.876058, with the RMB dividend amounting to RMB 0.7884522 per share[46] - The company will suspend share transfer registration from May 22, 2023, to May 25, 2023, to determine the identity of shareholders entitled to vote at the annual general meeting[44] Accounting Standards and Financial Reporting - The financial impact of the revised Hong Kong Financial Reporting Standards on the group's financial position and performance was negligible, as no contingent assets or liabilities were identified during the year[12] - The company has applied the revised accounting standards prospectively from January 1, 2022, with no significant changes affecting financial liabilities during the year[11] - The group has implemented changes in accounting policies without significant impact on the financial results, ensuring compliance with updated standards[10] - The company has not identified any loss contracts under the revised accounting standards, indicating stable contract performance[11]

Sales and Revenue Performance - In the first half of 2022, CR Gas's total gas sales volume reached approximately 18.562 billion cubic meters, serving around 48.83 million customers across 268 city gas projects in 22 provincial regions of China [15]. - The Group's total natural gas sales volume increased by 8.2% year-on-year to 18.562 billion cubic meters, with turnover rising by 38.0% to HK$48.101 billion [22]. - Revenue from comprehensive services reached HK$1.37 billion, a year-on-year increase of 81.5%, with gas appliances turnover at HK$320 million (up 24.3%) and relocation business at HK$820 million (up 132.4%) [30]. - The Group achieved a total turnover of HK$48.10 billion in the first half of 2022, representing an increase of 38.0% compared to the same period last year [37]. - For the period ended 30th June 2022, the turnover increased by 38.0% to HK$48,100,627,000 compared to HK$34,865,313,000 in 2021 [94]. - The number of connected customers increased to 48,827,701, up from 43,184,929 in 2021, reflecting a growth of 13.5% [100]. Financial Performance and Profitability - The overall gross profit margin decreased to 18.4%, down 7.6 percentage points year-on-year, with gross profit amounting to HK$8.83 billion, a decrease of 2.5% [37]. - Basic earnings per share were HK$1.34, representing a decrease of 6.3% compared to the same period last year [37]. - Profit attributable to the Company's equity holders for the period was HK$3,045 million, compared to HK$3,250 million in 2021 [46]. - The profit for the period attributable to owners of the parent was HK$3,045,380,000, a decrease of 6.3% compared to HK$3,250,312,000 for the same period in 2021 [145]. - The profit before taxation for the period was HK$5,146,896, down from HK$5,671,510 in 2021, a decrease of 9.2% [104]. - The total comprehensive income for the period was HK$1,158,983, significantly lower than HK$4,896,151 in the same period last year, a decline of 76.4% [104]. Cost and Expenses Management - The total cost-to-revenue ratio decreased from 12.6% in the previous corresponding period to 9.7%, a reduction of 2.9 percentage points [41]. - Selling and distribution expenses as a percentage of revenue decreased from 7.8% to 6.0%, a decrease of 1.8 percentage points [41]. - Interest expenses for the six months ended June 30, 2022, were HK$63,659,000, down from HK$130,828,000 for the same period in 2021 [175]. Investments and Acquisitions - The Group made new investments of approximately HK$648 million in 12 city gas projects across Jiangsu, Zhejiang, Guangdong, and Qinghai [51]. - The Group acquired 51% of 宜宾市南溪区天然气有限公司 for a total cash consideration of HK$130,992,000 [179]. - The acquisition of 梅州華潤 involved a cash payment of RMB53,193,000 (equivalent to HK$65,060,000) before 31 March 2022 [186]. - The Group acquired 80.2% interests in Taizhou Gas from 15 individuals for a total cash consideration of RMB69,864,225 (equivalent to HK$81,694,000) [198]. Environmental and Sustainability Initiatives - The company is committed to contributing to environmental protection and improvement while delivering sustainable performance to shareholders [17]. - The Group set a goal to reduce total greenhouse gas emissions for the year, achieving a 16.7% decrease in comprehensive energy consumption per RMB10,000 of revenue [36]. - The carbon dioxide emission per RMB10,000 production value decreased by 18.9% [36]. - The National Energy Administration's 2022 guidelines emphasize the importance of developing clean energy industries, aligning with CR Gas's operational goals [20]. Corporate Governance and Risk Management - The Audit and Risk Management Committee has reviewed the accounting principles and practices adopted by the Group and discussed internal control and risk management matters [81]. - The Remuneration Committee is responsible for making recommendations on the remuneration policy and structure for Directors and senior management, ensuring alignment with corporate goals [81]. - The Group's financial risk management focuses on managing exposure to interest rate and foreign currency fluctuations, with most assets and liabilities denominated in HKD, USD, and RMB [49]. - The Group's strategy includes maintaining transparency in shareholder interests and compliance with regulatory requirements [78]. Employee and Human Resources - As of June 30, 2022, the Group employed approximately 52,780 employees in Hong Kong and mainland China, emphasizing the importance of attracting and retaining quality staff [62][64]. - The Group's remuneration strategy includes performance-based bonuses and incentives to encourage employee performance and retention [64]. - A total of 3,631 management personnel participated in safety training during the period [36]. Cash Flow and Liquidity - The net cash inflow from operations during the period was negative HK$9.9 million, a significant decline from HK$4,669 million in 2021 [47]. - The total cash and cash equivalents at the end of the period were HK$6,996,410,000, down from HK$15,688,104,000 at the end of June 2021 [119]. - The Group has sufficient working capital of HK$40,907,727,000 and internally generated funds to meet its operational needs for the next twelve months [124]. Market and Economic Conditions - The macroeconomic environment remains challenging due to geopolitical tensions, COVID-19 resurgence, and high inflation, but the domestic economy showed positive growth in the second quarter of 2022 [20]. - The optimization of energy structure and environmental pollution control is expected to drive sustainable growth in natural gas consumption in China [16].

Financial Performance - In 2021, the total gas sales volume reached approximately 34.1 billion cubic meters, representing a year-on-year increase of 17.4%[24]. - The turnover for the year was HK$78.175 billion, reflecting a year-on-year growth of 39.9%[24]. - Profit attributable to owners of the Group was HK$6.395 billion, marking a year-on-year increase of 24.2%[24]. - The proposed final dividend is 112 HK cents, with a total dividend of 127 HK cents for the year, an increase of 36.6% from 93 HK cents in 2020[24]. - The overall gross profit margin decreased to 23.4%, down 3.5 percentage points from the previous year, primarily due to an increase in revenue share from gas fuel sales and distribution[48]. - The Group's operating cash flow for 2021 was HK$8.390 billion, representing a year-on-year decrease of 2.62%[48]. - The Group's turnover surged by 39.9% to HK$78.18 billion for the year ended December 31, 2021, with profit attributable to equity holders increasing by 24.2% to HK$6.40 billion[58]. - The profit for the year rose by 22.9% to HK$10,475,175, up from HK$8,439,832 in 2020, while profit attributable to the Company's equity holders increased by 24.2% to HK$6,395,368[80]. - The Group's total assets grew by 13.1% to HK$106,136,308 from HK$93,870,809 in 2020[82]. - Basic earnings per share increased by 22.1% to HK$2.82, compared to HK$2.31 in the previous year[80]. Market Expansion and Development - The total number of city gas projects reached 266, distributed across 22 provinces, including 14 provincial capitals and 3 direct municipalities[6]. - The natural gas market in China is still in a significant development phase, providing opportunities for the Group's expansion[8]. - The Group aims to consolidate its core advantages in the city gas market of large and developed regions[26]. - The Group signed 11 new projects and registered 23 projects, expanding its concession area by 24,000 square kilometers[34]. - The Group's gas sales volume potential in newly added areas is estimated at 6.7 billion cubic meters[34]. - The Group developed 39,000 new industrial and commercial users and 3.524 million new residential users during the year, including 2.9572 million new house connections[33]. - The proportion of permanent urban residents in China increased to 64.7% by the end of 2021, providing a stable market development opportunity for the Group[31]. - The Group's focus on "coal-to-gas conversion" led to the development of 122,500 rural users during the year[33]. Operational Efficiency and Strategic Focus - The Group's strategic focus includes both organic growth and quality external acquisitions to enhance operational efficiency[24]. - The implementation of benchmarking initiatives across all business sectors aims to enhance operational efficiency and achieve sustainable organic growth[60]. - The management team is dedicated to improving operational efficiency to achieve sustainable growth and better respond to local demands[61]. - The Group's systematic review of business processes is expected to continuously enhance operational efficiency across city gas projects[63]. - The Group's supply chain management was further streamlined with a rigorous tender system covering construction projects[63]. - The Group aims to enhance its integrated service business, which is expected to enter a rapid development phase in the future[40]. Corporate Governance and Management - The Company has adopted the mandatory provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules[121]. - The Board consists of two Executive Directors, four Non-executive Directors, and four Independent Non-executive Directors, with one member possessing the required professional accounting experience[126]. - The Company complied with the mandatory provisions of the Code throughout the year, except for deviations from provisions D.1.4 and E.1.2[125]. - The Company has maintained a credible framework of corporate governance to ensure transparency and accountability to shareholders[120]. - The Company emphasizes the importance of independent reviews in its governance structure, with all committees comprising independent non-executive directors[147]. - The Company Secretary, Mr. Lo Chi Lik Peter, has been in continuous practice as a solicitor since 1976 and was appointed on September 1, 2017[180]. - The Company has a commitment to effective communication with shareholders and investors to enhance understanding of its business performance and strategies[186]. Environmental and Social Responsibility - The Chinese government's policies are expected to boost the share of clean energy in the energy consumption mix, supporting the Group's long-term development[23]. - The Group's carbon dioxide emissions per RMB10,000 production value decreased by 3.7% in 2021, while comprehensive energy consumption per RMB10,000 revenue reduced by 6.8%[77]. - Charitable donations by the Group totaled HK$6.158 million in 2021, with cumulative volunteer services amounting to 98,000 persons/times[78]. - The Group's environmental policies and performance are outlined in the CEO's Report[191]. Financial Risk Management - The financial risk management is primarily focused on managing exposure to fluctuations in interest rates and foreign currency exchange rates[95]. - The Group has obtained sufficient uncommitted short-term facilities from banks for liquidity management[89]. - The Group's treasury policies do not engage in speculative activities[95]. - The Group's credit rating was raised to A2 by Moody's, while Standard & Poor's and Fitch maintained a rating of A-, reflecting strong market recognition of the Group's financial performance[52].

Financial Performance - In the first half of 2021, CR Gas's total gas sales volume reached approximately 17.159 billion cubic meters, serving 43.19 million customers across 258 city gas projects in 22 provincial regions of China [18]. - The Group's total natural gas sales volume increased by 29.5% year-on-year to 17.159 billion cubic meters, with turnover rising by 52.5% to HK$34.416 billion [24][25]. - Profit attributable to owners of the Company increased by 35.6% year-on-year to HK$3.250 billion [24]. - The Group achieved a total turnover of HK$34.416 billion in the first half of 2021, representing a 52.5% increase compared to the same period last year [37]. - Gross profit for the same period was HK$8,785,042, up 44.4% from HK$6,083,142 in 2020 [118]. - Profit before taxation increased to HK$5,671,510, up from HK$3,988,043, marking a growth of approximately 42.2% [131]. - Profit for the period attributable to owners of the parent was HK$3,250,312, compared to HK$2,396,479 in 2020, indicating an increase of around 35.7% [131]. - Total comprehensive income for the period was HK$4,896,151, significantly higher than HK$2,158,147 in the previous year, representing an increase of approximately 126.5% [131]. - Basic earnings per share rose to HK$1.43 from HK$1.09, reflecting an increase of about 31.1% [131]. Market and Economic Context - The Chinese economy showed a strong recovery with a GDP growth of 12.7% year-on-year in the first half of 2021, and industrial value-added increased by 15.9% [22]. - The national apparent natural gas consumption reached 182.7 billion cubic meters, representing a year-on-year growth of 17.4% [22]. - The optimization of energy structure and environmental pollution control is expected to drive sustainable growth in natural gas consumption in China [19]. - The PRC government aims to reduce coal consumption to below 56% and increase domestic natural gas production to 202.5 billion cubic meters by 2025, promoting natural gas as a key low-carbon energy source [22]. Operational Expansion and Strategy - CR Gas continues to expand through both organic growth and acquisitions, leveraging its strong industry fundamentals and execution capabilities [18]. - The company operates in economically developed and densely populated areas, strategically positioning itself in regions with rich natural gas reserves [17]. - The Group signed 25 new projects and incorporated 12 projects, expanding operational areas by 10,000 square kilometers, expected to add 1.15 million users and 1.87 billion cubic meters in gas sales annually [29][31]. - The Group added 1.296 million new connection users, including 1.101 million new residential connections, 180,000 old residential connections, and 15,000 rural "coal-to-gas conversion" connections [28][30]. Sustainability and Corporate Governance - The Group received a BB ESG rating from MSCI, reflecting its commitment to sustainable practices and governance [36]. - The Group aims to incorporate national carbon peak and carbon neutrality goals into its daily operations and business development [36]. - The Group is committed to maintaining a credible corporate governance framework to ensure transparency and accountability to shareholders [101]. - The Company has complied with the mandatory provisions of the Corporate Governance Code, with updates made to the Corporate Governance Handbook in 2018 [107]. Financial Position and Liquidity - As of the end of the period, the Group's cash balance was HK$15.688 billion, an increase from HK$13.442 billion at the end of the previous year [47]. - The Group's credit ratings were affirmed at A-, A3, and A- by major international rating agencies, reflecting strong market recognition of its financial performance [37]. - The Group's gearing ratio increased to 12.3% from 11.6% in 2020, reflecting a stable financial position [49]. - The Group's current liabilities exceeded its current assets by approximately HK$12,844,514,000 as of June 30, 2021 [154]. Employee and Shareholder Engagement - The Group recognizes the importance of performance-based remuneration and grants bonuses to certain employees to encourage optimal performance [70]. - The Incentive Award Scheme allows for a maximum of 5% of the issued share capital to be awarded as incentive shares, with a limit of 0.5% for any selected employee [63]. - An interim dividend of 15 HK cents per share was declared for the six months ended 30th June 2021, consistent with the previous year [60]. - The Group's strategy includes retaining existing employees and recruiting additional talent to achieve long-term business objectives [63].

Business Operations and Growth - CR Gas's total city gas projects reached 257, distributed across 22 provinces in China, including 14 provincial capitals and 3 municipalities[3]. - The annual gross gas sales volume was approximately 29.0 billion cubic meters, serving 41.84 million customers[3]. - The Group developed 41,900 new industrial and commercial users and 3.0526 million new residential users during the year[26]. - The annual natural gas sales volume reached 29.024 billion cubic meters, representing a year-on-year increase of 3.62%[18]. - The Group's industrial gas sales volume was 14.866 billion cubic meters, an increase of 6.41%, accounting for 51.22% of total gas sales[22]. - Commercial gas sales volume was 5.800 billion cubic meters, a decrease of 5.38%, accounting for 19.98% of total gas sales[22]. - Residential gas sales increased by 10.66% to 6.988 billion cubic meters, accounting for 24.08% of total gas sales[22]. - The Group successfully registered 28 projects and signed 32 new projects, expected to bring an annual gas sales volume of 883 million cubic meters and 663,100 new users[25]. - The Group signed 14 new distributed energy projects with a total estimated investment of approximately HK$295 million, bringing the cumulative total to 46 projects[38]. - The Group put into operation 2 new hydrogen refueling stations, totaling 9 approved stations across various cities[39]. Financial Performance - Profit attributable to the owners of the Group was HK$5.151 billion, reflecting a year-on-year increase of 2.14%[18]. - Proposed final dividend of 78 HK cents per share, totaling 93 HK cents for the year, an increase of 6.90% from 87 HK cents in 2019, with a dividend payout ratio of 40.26%[18]. - The Group's turnover for the year ended December 31, 2020, slightly decreased by 2.0% to HK$55.86 billion, while profit attributable to equity holders increased by 2.1% to HK$5.15 billion[66][67]. - The overall gross profit margin increased by 2 percentage points to 26.90%, with gross profit rising by 5.73% to HK$15.027 billion[50][53]. - The Group's operating cash flow reached HK$8.616 billion, representing a year-on-year increase of 0.17%[54]. - The basic earnings per share for the year was HK$2.31, down by 0.43%[50][53]. - The total assets of the Group rose by 14.7% to HK$93.871 billion from HK$81.824 billion in 2019[93]. - The total equity attributable to the Company's equity holders increased by 35.4% to HK$36.274 billion from HK$26.795 billion in 2019[93]. - The Group's liquidity position remained strong with bank balances and cash totaling HK$13.4 billion at the end of 2020[107]. Environmental and Social Responsibility - The Chinese government's policies are driving the growth of clean energy consumption, providing long-term growth momentum for CR Gas's clean energy sales and integrated services[15]. - The Group distributed approximately 29.0 billion cubic meters of natural gas annually, helping to replace around 350,928,984 tons of coal usage and reduce approximately 87,487,522 tons of carbon dioxide emissions[86]. - The Group's greenhouse gas emissions decreased by 20.2% year-on-year, and energy consumption per unit of revenue fell by 1%[46]. - The Group has actively supported the PRC government's environmental policies by expanding its cleaner natural gas business[88]. - The Group's charitable donations totaled HKD 7.748 million in 2020, with 107,000 volunteer service hours contributed, particularly in response to the COVID-19 pandemic[86]. Corporate Governance and Management - The company has a strong governance structure with various committees including Audit and Risk Management, Remuneration, and Nomination Committees[135]. - The management team comprises individuals with diverse backgrounds in finance, law, and corporate governance, enhancing the company's strategic decision-making capabilities[137]. - The company emphasizes leadership development and talent management as part of its human resources strategy[134]. - The Board consists of 2 Executive Directors, 5 Non-executive Directors, and 4 Independent Non-executive Directors, with Mr. Yu Hon To having the required professional accounting experience as per Listing Rules[160]. - The Company has maintained a credible corporate governance framework to ensure transparency and accountability to shareholders[154]. Operational Efficiency and Cost Management - CR Gas aims to enhance operational efficiency while expanding through both organic and acquisition growth strategies[3]. - The Group has 84 regional centers to enhance operational efficiency and respond quickly to local demands, with a focus on minimizing resource use while maximizing results[73]. - Centralized procurement accounted for 92.0% of total material procurement expenditure by the end of 2020, leading to reduced costs while maintaining product quality[75]. - The implementation of a value-oriented management system has effectively reduced costs and expenses across member companies, significantly lowering overall borrowing costs[76]. - The Group aims to transform its growth model from resource-driven to efficiency-driven through benchmarking and operational enhancements[72]. Safety and Risk Management - Safety management policies and qualified personnel have been established to prevent potential environmental incidents related to natural gas facilities[77]. - The Group completed safety audits for 69 regional companies, discovering a total of 3,740 hidden safety hazards throughout the year[79]. - The Group has implemented various safety management policies and procedures to prevent potential accidents in natural gas facilities[78]. - The Group has been recognized as an A-level unit for legal risk management for three consecutive years, reflecting its commitment to risk control[84]. Market and Industry Trends - The optimization of energy structure and environmental pollution control is expected to sustain the growth of natural gas consumption in China[3]. - The promotion and application of natural gas are emphasized in China's "14th Five-Year Plan" and the draft of "Long-Range Objectives through the Year 2035"[3]. - The Chinese government set a carbon neutrality goal for 2060, which is expected to drive the natural gas industry's development in the short to medium term[58][61].