FOR THE INTERIM DIVIDEND FOR THE SIX MONTHS ENDED 30 JUNE 2025 THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION 此乃要件 請即處理 If you are in any doubt as to any aspect of this document or as to the action to be taken, you should consult your stockbroker or other registered dealer in securities, bank manager, solicitor, professional accountant or other professional adviser. 閣下如對本文件任何內容或應採取之行動有任何疑問，應諮詢 閣下之股票經紀或其他註冊證券交易商、銀行經理、律師、專業會計師或其他專業顧問。 (Incorporated in the Bermuda with limited liability) （於百慕 ...

Investment Rating - The report maintains a positive outlook on the power and gas sectors, recommending various companies within these industries for investment [5][14]. Core Insights - The report highlights the competitive results of the electricity pricing mechanism in Shandong, indicating that wind power is favored over solar power, with wind power pricing at 0.319 CNY/kWh and solar at 0.225 CNY/kWh [9][10]. - A new pricing mechanism for nearby consumption of renewable energy has been established, clarifying economic responsibilities and allowing renewable projects to pay for supply reliability [12][13]. - Global gas prices are showing mixed trends, with European and Asian prices rising while U.S. prices are declining, reflecting varying supply and demand dynamics [15][20]. Summary by Sections 1. Electricity: Shandong Pricing Mechanism and New Renewable Energy Policies - Shandong's first competitive pricing results show wind power projects with a total capacity of 3.5911 GW and a mechanism electricity price of 0.319 CNY/kWh, while solar projects have a capacity of 1.265 GW and a price of 0.225 CNY/kWh [9][11]. - The new pricing mechanism for nearby consumption aims to enhance the utilization of renewable energy and reduce the pressure on the power system [12][13]. 2. Gas: Global Price Variations - As of September 12, U.S. Henry Hub spot prices are at $2.94/mmBtu, down 3.61% week-on-week, while European TTF prices are at €32.00/MWh, up 1.27% [15][16]. - The report notes that U.S. gas production remains high despite a slight decline, while European prices are influenced by supply constraints and increased heating demand due to cooler temperatures [15][20]. 3. Weekly Market Review - The gas sector outperformed the Shanghai and Shenzhen 300 index, while the public utilities, power, and environmental sectors underperformed [36]. 4. Company and Industry Dynamics - Recent announcements include the implementation of market-oriented pricing reforms for renewable energy in Jiangxi province, effective from October 2025 [40]. - The report also discusses various company announcements, including operational updates and financial instruments [43]. 5. Key Company Valuation Tables - The report provides valuation metrics for key companies in the public utility sector, highlighting buy and hold recommendations for several firms based on their earnings and price-to-earnings ratios [45][46].

Core Viewpoint - Morgan Stanley's research report indicates that China Resources Gas has significantly underperformed the market in the past year, with expectations that the stock price may stabilize, but no key operational indicators have been observed to drive price increases [1] Summary by Category Financial Performance - The company's urban gas business profitability is likely to remain under pressure due to limited sales growth and gross margin expansion potential, alongside a continued decline in new connection volumes [1] - Overall profitability may record a year-on-year decline in single digits, with low visibility for growth projected until 2026 [1] Business Segments - The comprehensive service business is expected to recover to positive growth in the second half of the year due to a low base effect, but this may not significantly impact overall profitability [1] Forecast Adjustments - Earnings forecasts for 2025 to 2027 have been revised down by 3% to 4%, with the target price slightly increased from HKD 18.5 to HKD 19, while maintaining a "neutral" rating [1]

Core Viewpoint - The performance of the four major city gas companies in China faced pressure in the first half of the year, with only Honghua Smart Energy achieving a net profit growth of 2%, while the others experienced declines in net profit [1][3]. Financial Performance Summary - **Honghua Smart Energy**: Revenue of 10.437 billion HKD (approximately 9.555 billion RMB), a decrease of 0.6% year-on-year; net profit increased by 2% to 758 million HKD (approximately 694 million RMB) [2][3]. - **Kunlun Energy**: Revenue of 97.543 billion RMB, an increase of 4.97% year-on-year; net profit decreased by 4.36% to 3.161 billion RMB [2][3]. - **Xinao Energy**: Revenue of 55.673 billion RMB, an increase of 2% year-on-year; net profit decreased by 5.6% to 2.429 billion RMB [2][3]. - **China Resources Gas**: Revenue of 49.785 billion HKD (approximately 45.579 billion RMB), a decrease of 4.4% year-on-year; net profit decreased by 30.5% to 240.3 million HKD (approximately 220 million RMB), the largest decline among the four companies [2][3]. Market Conditions - The domestic natural gas market was affected by multiple factors, including high temperatures, slow recovery of manufacturing PMI, rising natural gas prices in Europe and the US, and US tariff issues, leading to overall weak performance [3]. - China's apparent natural gas consumption was 211.97 billion cubic meters, a decrease of 0.9% year-on-year, which directly impacted the gas sales revenue growth of city gas companies [3]. Business Segment Performance - **China Resources Gas**: All five business segments saw revenue declines, with the core gas sales and distribution segment generating revenue of 44.298 billion HKD, a decrease of 3.5% year-on-year [6]. - **Kunlun Energy**: Revenue from the natural gas sales segment increased by 6% to 80.078 billion RMB, while the exploration and production segment saw a significant decline of 15.9% to 0.74 billion RMB due to falling international oil prices [8]. - **Xinao Energy**: The company reported a 1.9% increase in natural gas retail sales volume to 12.953 billion cubic meters, but the wholesale business faced pressure with a 17.2% increase in revenue to 14.467 billion RMB, resulting in a loss in gross profit [9]. Strategic Developments - **Honghua Smart Energy**: The company attributed its profit growth to the continuous expansion of renewable energy business and stable gas business profits, with a 5% increase in net profit from renewable energy [10]. - **China Resources Gas**: The company signed 71 new distributed photovoltaic projects and 35 distributed energy projects, indicating a strategic shift towards renewable energy [7]. - **Xinao Energy**: The company advanced its electricity market business, adding significant capacity in solar and energy storage projects [9].

Core Viewpoint - Morgan Stanley reports that China Resources Gas (01193) significantly underperformed the market in the past year, indicating that while the stock price may stabilize, there are no observed key operational indicators that could drive the stock price upward [1] Summary by Category Financial Performance - The company's urban gas business profitability is likely to remain under pressure due to limited sales growth and gross margin expansion potential, alongside a continued decline in new connection volumes [1] - Overall profitability is expected to record a year-on-year decline in single digits, with low visibility for growth in 2026 [1] Forecast Adjustments - The firm has lowered its earnings forecasts for 2025 to 2027 by 3% to 4% [1] - The target price has been slightly increased from HKD 18.5 to HKD 19, while maintaining a "Neutral" rating [1] Business Segments - The comprehensive service business is anticipated to recover to positive growth in the second half of the year due to a low base effect [1]

Group 1 - The core viewpoint of the article indicates that China Resources Gas (01193) significantly underperformed the market in the past year, and while the stock price may stabilize, there are no observed key operational indicators that could drive the stock price upward [1] - The urban gas business is expected to face continued profit pressure due to limited sales growth and gross margin expansion potential, along with a decline in new connection volumes [1] - Although the comprehensive service business may see a recovery in positive growth in the second half of the year due to a low base, the overall profitability of the company is likely to record a year-on-year decline in single digits [1] Group 2 - The earnings visibility for 2026 remains low, prompting a downward revision of the profit forecast for 2025 to 2027 by 3% to 4% [1] - The target price for the stock has been slightly raised from HKD 18.5 to HKD 19, while maintaining a "neutral" rating [1]

Core Points - The article discusses a legal awareness event held in Zhenjiang, focusing on property management and gas safety regulations, aimed at educating property service companies about legal compliance and responsibilities [1][2] - The event was organized by multiple local authorities, including the Municipal Housing and Urban-Rural Development Bureau, and involved nearly 60 property service companies and over 90 project managers [1][2] Summary by Sections Legal Awareness and Compliance - The event highlighted recent cases of illegal activities in property management, emphasizing the importance of understanding legal obligations and the consequences of violations [2] - Specific penalties for common violations in the property sector were outlined, such as fines ranging from 50,000 to 200,000 RMB for refusing to exit service areas and double penalties for misappropriating public funds [1] Gas Safety Management - Zhenjiang Huaren Gas Company provided specialized training on the protection of gas facilities and safety management responsibilities, aiming to enhance safety awareness and emergency response capabilities among participants [2] - The initiative aligns with broader efforts to address corruption and misconduct in local communities, reinforcing the need for property companies to learn, understand, and apply relevant laws [2]

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company's performance is under short-term pressure, but dividend and share buyback plans demonstrate confidence [6] - The company reported a decrease in retail gas volume and net profit in H1 2025, influenced by various external factors [8] - The company is optimizing its gas supply system and diversifying its resource procurement to improve cost efficiency [8] - The gas connection business is under pressure due to the real estate sector's downturn, but the overall business structure is improving [8] - The comprehensive service business is facing short-term challenges, while the comprehensive energy segment continues to grow [8] - Financial costs have improved significantly, and the company is committed to maintaining dividends [8] Financial Performance Summary - For H1 2025, the company achieved revenue of 49.785 billion HKD, a decrease of 4.4% year-on-year, and a net profit of 2.403 billion HKD, down 30.5% year-on-year [8] - The company plans to distribute a mid-year dividend of 0.30 HKD per share, a 20% increase year-on-year [8] - The company's revenue and profit from gas sales accounted for 90.80% and 73.69% of total revenue and profit, respectively [8] - The company expects net profits for 2025-2027 to be 4.201 billion, 4.807 billion, and 5.273 billion HKD, with corresponding growth rates of 2.76%, 14.43%, and 9.70% [8][9]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01193 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.1 | HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.1 | HKD | | 1,000,000,000 | 本月底法定/註冊股本總額： HKD 1,000,000,000 FF301 第 1 頁 共 10 頁 v 1.1.1 致：香港交易 ...

Investment Rating - The investment rating for China Resources Gas (01193.HK) is "Buy" (maintained) [1] Core Views - The company's H1 2025 operating data fell short of expectations, with a revenue of HKD 49.79 billion, down 4.4% year-on-year, and a net profit of HKD 2.40 billion, down 30.5% year-on-year. The proposed interim dividend is HKD 0.30 per share, an increase of 20% year-on-year, with a payout ratio of 29% [7] - The decline in performance is attributed to a decrease in retail gas volume and a drop in income from comprehensive services and connections. The company anticipates low single-digit growth in retail gas volume for the full year 2025, with a slight increase in gross margin [7] - The company is managing capital expenditures and enhancing shareholder returns, with operating cash flow of HKD 3.01 billion in H1 2025 and a commitment to maintain or increase dividend payouts [7] Financial Summary - Revenue projections for 2023A, 2024A, 2025E, 2026E, and 2027E are HKD 101.27 billion, HKD 102.68 billion, HKD 92.87 billion, HKD 95.67 billion, and HKD 99.04 billion respectively, with a year-on-year change of 7.35%, 1.39%, -9.55%, 3.01%, and 3.53% [1] - The net profit forecasts for the same years are HKD 5.22 billion, HKD 4.09 billion, HKD 3.73 billion, HKD 3.97 billion, and HKD 4.29 billion, reflecting year-on-year changes of 10.36%, -21.74%, -8.82%, 6.59%, and 7.91% [1] - The latest diluted EPS for 2025E is projected at HKD 1.61, with corresponding P/E ratios of 12.35, 11.59, and 10.74 for 2025E, 2026E, and 2027E respectively [1][8]