Share Incentive Plan - The total number of shares allocated under the share incentive plan is 37,683,855 shares, accounting for approximately 3.73% of the company's issued share capital as of the annual report date [4]. - As of the announcement date, 12,817,500 shares have been acquired by an independent trustee under the share incentive plan [4]. - No share incentives have been granted under the share incentive plan from December 31, 2022, to the announcement date [4]. - The maximum number of shares that can be granted to selected participants under the share incentive plan cannot exceed 1% of the company's issued share capital in any 12-month period [4]. - The share incentive plan will remain valid and effective until the tenth anniversary of the adoption date, which is approximately eight years remaining [4].

Financial Performance - Tian Lun Gas Holdings Limited reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion for the fiscal year 2022[8]. - The company achieved a net profit of HKD 300 million, representing a 10% increase compared to the previous year[8]. - Total revenue for 2022 was RMB 7,542,859, a slight decrease from RMB 7,650,345 in 2021[31]. - Profit before income tax for 2022 was RMB 670,124, down from RMB 1,362,804 in 2021, with net profit for the year at RMB 469,272 compared to RMB 1,028,114 in 2021[31]. - The gross profit margin for 2022 was 18.5%, a decrease from 23.3% in 2021, while the net profit margin was 6.2% compared to 13.4% in 2021[34]. - For the year ended December 31, 2022, the Group recorded operating revenue of RMB 7,543 million, which was basically equal to the same period of last year[51]. - Revenue from gas retail business increased by 18.3% to RMB4,905 million, up from RMB4,146 million in the previous year[68]. - Revenue from engineering construction services decreased by 36.6% to RMB1,409 million, down from RMB2,222 million in the previous year[69]. - Revenue from gas wholesale business decreased by 14.9% to RMB826 million, down from RMB971 million in the previous year[69]. - The Group's revenue from other businesses, primarily from value-added services, increased by 29.2% to RMB403 million[74]. - The total dividend for the year ended 31 December 2022 amounts to RMB18.35 cents per share, which includes an interim dividend of RMB7.35 cents per share[147]. Market Expansion and Strategy - The company plans to expand its market presence in the Greater Bay Area, targeting a 25% increase in market share by 2025[8]. - The company plans to expand its market presence and enhance its service offerings in the coming years[35]. - The company is exploring potential acquisitions in the renewable energy sector to diversify its portfolio[8]. - The Group aims to achieve business growth through internal growth, strategic investments, and acquisitions, with potential adjustments to strategies based on market conditions[134]. - The Group plans to enhance cooperation with government platforms and large state-owned enterprises to expand clean energy operations in rural areas[58]. - The Group aims to focus on low-carbon energy business as a strategic direction in response to national energy transformation trends[58]. Customer and User Growth - User data showed a growth in customer base by 20%, with total users reaching 1.5 million[8]. - The Group added 350,737 residential users for the year ended 31 December 2022, bringing the cumulative number of residential users to 5,252,003 households[54]. - The total number of pipeline gas users increased to 5,294,315, representing a 7.2% growth compared to the previous year[61]. - The number of township residential users reached 1,942,692, showing a 3.6% increase year-on-year[61]. Environmental and Safety Initiatives - The company has outlined a strategic goal to achieve a 30% reduction in carbon emissions by 2030[8]. - The company established an ESG Committee in 2022 to improve governance structure and integrate ESG concepts into operational strategies[40]. - The Group has been actively promoting green measures and improving employees' awareness of environmental protection[138]. - The Group has adopted relevant environmental protection standards and measures to comply with laws and regulations related to environmental protection[137]. - The Group's urban gas operation and transmission business distributed a total of 2,671 million m³ of natural gas in 2022, helping to reduce emissions from approximately 4.452 million tons of coal[137]. Financial Health and Assets - Total assets increased to RMB 9,976,642 in 2022 from RMB 9,889,619 in 2021, with current assets rising to RMB 5,982,092[31]. - The current ratio improved to 117.7% in 2022 from 114.5% in 2021, indicating better short-term financial health[34]. - The company’s equity attributable to owners increased to RMB 5,507,945 in 2022 from RMB 5,218,179 in 2021[31]. - The Group's total borrowings as of 31 December 2022 amounted to RMB7,203 million, with a gearing ratio of 63.5%[80]. Governance and Management - The Company has adopted and complied with all code provisions of the Corporate Governance Code for the period from 1 January 2022 to 31 December 2022[98]. - The audit committee reviewed and discussed the annual consolidated results and financial statements for the year ended 31 December 2022[99]. - The external auditor, PricewaterhouseCoopers, issued an unqualified opinion on the consolidated financial statements[100]. - The Group's strategic planning is led by Mr. Zhang Yingcen, who has over 26 years of management experience in the gas industry[102]. - The Group aims to enhance its organizational structure and promote refined management to improve leadership capabilities[44]. Shareholder Information - The final dividend for the year ended 31 December 2022 is recommended at RMB11.00 cents per share, down from RMB14.57 cents per share in 2021, with a total dividend of RMB18.35 cents per share including the interim dividend[89]. - The controlling shareholder agreed to withhold the undistributed final dividend of RMB18,829 thousand to support the Company's development[149]. - The Company has maintained a public float of not less than 25% as required by the Listing Rules[195]. - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2022[197]. Risks and Challenges - The Group is exposed to financial risks including foreign currency risk, interest rate risk, and liquidity risk, which are monitored by management[129]. - The Group's performance is influenced by various factors, including overall market and economic conditions, and will adjust development plans accordingly[133]. - The Group's management will consider delaying, revising, or abandoning growth strategies if market conditions change or insufficient funds are generated[134].

Dividends - The proposed final dividend for the year 2022 is RMB 0.11 per share, with total dividends for 2022 amounting to RMB 0.1835 per share[3] - The announcement clarifies a correction regarding the cumulative dividend per share for 2022, which was previously misstated[3]

Financial Data and Key Metrics Changes - The company reported its annual performance for 2022 during the earnings call, indicating a focus on financial results and key metrics [1] Business Line Data and Key Metrics Changes - Specific details regarding changes in various business lines were not provided in the document [1] Market Data and Key Metrics Changes - The document did not include information on market data or key metrics changes [1] Company Strategy and Development Direction and Industry Competition - The management team, including the Executive Director and CEO, participated in the earnings call, suggesting a commitment to discussing the company's strategic direction and competitive landscape [1] Management's Comments on Operating Environment and Future Outlook - Management's insights on the operating environment and future prospects were not detailed in the document [1] Other Important Information - The earnings call was conducted online, emphasizing the company's adaptability in communication with investors and analysts [1] Q&A Session All Questions and Answers - The document does not contain any specific questions or answers from the Q&A session [1]

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 7.543 billion, approximately flat compared to RMB 7.650 billion in the previous year[3] - The company's operating profit for the year was RMB 937 million, down from RMB 1.601 billion in the previous year[13] - The net profit attributable to the company's owners for the year was RMB 469 million, a decrease from RMB 1.028 billion in the previous year[15] - The company reported a net profit of RMB 469,272 thousand for the year ended December 31, 2022, compared to RMB 1,028,114 thousand in 2021, indicating a significant decrease of approximately 54.4%[27] - Basic earnings per share for the year ended December 31, 2022, was RMB 0.45, down 55% from RMB 1.00 in 2021[33] - The gross profit for the year was RMB 1.393 billion, a decrease of 21.7%, with an overall gross margin of 18.5%, down 4.8 percentage points[48] Revenue Breakdown - Gas sales revenue increased by 12.0% to RMB 5.731 billion, while value-added business revenue grew by 24.1% to RMB 333 million[3] - Retail gas sales volume reached 1.666 billion cubic meters, up 4.8% from 1.590 billion cubic meters in the same period last year[3] - Value-added business revenue reached RMB 333 million, a growth of 24.1% compared to RMB 268 million in the previous year[11] - Gas retail business revenue reached RMB 4.905 billion, an increase of 18.3% from RMB 4.146 billion in the previous year[45] - The revenue from other businesses, primarily value-added services, increased by 29.2% to RMB 403 million[47] User Growth and Engagement - The company added over 350,000 residential management users, bringing the total to over 5.25 million[3] - The total number of residential users increased by 350,737, bringing the cumulative number to 5,252,003 users[10] - The cumulative number of pipeline gas users increased by 7.2% to 5,294,315, with urban residential users growing by 9.3%[42] - The number of new pipeline gas users decreased by 44.7% to 355,673, with a significant drop in rural residential users by 80.4%[42] Strategic Initiatives - The company aims to enhance gas supply security through optimized gas network layout and interconnection with nearby gas companies[4] - In 2023, the company plans to focus on expanding green energy business and enhancing value-added services while ensuring stable gas supply[6] - The company aims to expand its low-carbon energy business as a key strategic direction, responding to national low-carbon development strategies[12] - The company plans to leverage government cooperation and enhance its clean energy operations in rural areas to support rural revitalization[12] - The company plans to upgrade its rural coal-to-gas projects to rural energy projects, focusing on low-carbon energy construction in rural areas[43] Financial Position - Total assets increased to RMB 15,958,734 thousand in 2022, up from RMB 15,104,836 thousand in 2021, representing a growth of 5.65%[17] - Total liabilities increased to RMB 10,136,064 thousand in 2022, up from RMB 9,576,462 thousand in 2021, which is an increase of 5.85%[19] - Total equity attributable to owners increased to RMB 5,507,945 thousand in 2022, from RMB 5,218,179 thousand in 2021, marking a rise of 5.56%[18] - Cash and cash equivalents reached RMB 1,340,135 thousand in 2022, compared to RMB 1,014,978 thousand in 2021, showing a significant increase of 32.06%[17] - The company’s borrowings increased to RMB 4,287,778 thousand in 2022, compared to RMB 4,247,647 thousand in 2021, reflecting a growth of 0.94%[19] - The group maintained a debt-to-asset ratio of 63.5% as of December 31, 2022[52] Expenses and Costs - The cost of materials and consumables used increased to RMB 5,278,145 thousand in 2022 from RMB 4,668,463 thousand in 2021, reflecting an increase of about 13%[28] - The company incurred financial expenses of RMB 313,414 thousand in 2022, compared to RMB 228,053 thousand in 2021, representing an increase of about 37.5%[29] - The company’s total expenses for sales, distribution, and administrative costs amounted to RMB 6,460,776 thousand in 2022, compared to RMB 6,146,099 thousand in 2021, reflecting an increase of approximately 5.1%[28] Corporate Governance and ESG - The company established an ESG committee in 2022 to integrate ESG principles into operational strategies[5] - The board of directors has adopted all provisions of the corporate governance code during the reporting period[61] Dividend and Shareholder Returns - Proposed final dividend for 2022 is RMB 0.11 per share, with total dividends for the year amounting to RMB 0.1856 per share[3] - The proposed final dividend for the year ended December 31, 2022, is RMB 0.11 per share, down from RMB 0.1457 per share in the previous year[58]

Financial Performance - Revenue for the first half of 2022 was RMB 3,744.71 million, a 4.0% increase from RMB 3,599.40 million in 2021, while gross profit decreased by 30.3% to RMB 605.71 million[16]. - Profit attributable to owners of the Company fell by 66.8% to RMB 171.11 million compared to RMB 515.36 million in the previous year[16]. - Gross profit for the same period was RMB 606 million, reflecting a decrease of 30.3% from RMB 869 million in the previous year, with an overall gross profit margin of 16.2%[27]. - Revenue from engineering construction services decreased by 37.4% to RMB 734 million, down from RMB 1,172 million in the previous year[29]. - Revenue from the retail business increased by 25.7% to RMB 2,420 million, compared to RMB 1,926 million for the same period last year[30]. - The profit for the period attributable to owners of the Company was RMB 171,111, a significant drop from RMB 515,355, representing a decline of around 66.9%[85]. - The company reported a profit for the period of RMB 186,279,000 for the six months ended June 30, 2022, compared to RMB 531,302,000 for the same period in 2021[101][105]. Customer and Sales Growth - The total number of pipeline gas customers increased by 12.0% to 5,130,628, with residential customers growing by 9.7% to 3,158,950[16]. - Natural gas sales volume reached 968 million m³, up 4.2% year-on-year, with retail sales volume increasing by 9.7% to 835 million m³[20]. - The sales volume to industrial and commercial customers increased by 8.1%, while sales to residential customers surged by 18.4%[20]. - The Group connected 190,417 new residential customers, bringing the total to 5,091,683, representing a 12.0% increase[19]. Strategic Initiatives and Industry Trends - The natural gas industry is experiencing transformation opportunities due to national oil and gas system reforms and dual-carbon target strategies[10]. - The integrated development of natural gas and new energy is recognized as a trend, with several provinces issuing relevant policies[13]. - The Henan Province's "14th Five-Year Plan" promotes the integration of gas, electricity, and new energy power generation[13]. - The Group aims to become a top-tier green and low-carbon energy supply and service provider in China, focusing on clean energy and low-carbon business development[37]. - The Group is transitioning to an integrated energy business focusing on rooftop photovoltaics, moving away from a single gas development model[46]. Financial Position and Capital Management - As at 30 June 2022, the Group held cash and cash equivalents totaling RMB 1,170 million, with 93.9% in RMB, 2.1% in HKD, and 4.0% in USD[32]. - The Group's total borrowings as of 30 June 2022 amounted to RMB 7,210 million, with 73.9% classified as non-current liabilities and a gearing ratio of 63.8%[32]. - The interest expense on borrowings for the six months ended 30 June 2022 was RMB 149 million, representing a 23.8% increase compared to the same period last year[32]. - The company reported a net finance expense of RMB 137,210 for the period, compared to RMB 110,833 in the previous year, reflecting an increase of about 23.8%[85]. - The company's total liabilities increased to RMB 10,048,348 as of June 30, 2022, compared to RMB 9,576,462 as of December 31, 2021, reflecting a rise of 4.93%[88]. Governance and Sustainability - The Group established an ESG Committee in May 2022 to enhance governance structure and support sustainable development goals[34]. - The Group is committed to green, low-carbon, and sustainable development while focusing on both gas and photovoltaic business[40]. - The company has adopted and complied with the Corporate Governance Code during the Reporting Period[81]. Shareholder and Capital Structure - A total of 24,916,000 shares were repurchased in January 2022 at prices ranging from HK$8.15 to HK$9.15, totaling HK$213,911,210.34[45]. - The net proceeds from the Subscription amounted to approximately HK$414 million, with the number of issued shares increasing to 1,010,027,108[55]. - The total number of shares issued and to be issued upon exercise of options granted under the New Scheme must not exceed 1% of the shares in issue within any 12-month period[77]. - The Company has established a long-term steady dividend policy, recommending an interim dividend of RMB 7.35 cents per share for the six months ended June 30, 2022, subject to shareholder approval[77]. Operational Efficiency and Safety - The Group emphasizes safety in operations, aiming for zero major safety incidents throughout the year[44]. - The Group has established a sound trio-management structure for safety production, enhancing emergency response capabilities and ensuring operational efficiency[38]. - In 2021, Tian Lun Gas carried out 356 safety emergency drills, with no major safety accidents occurring during the year, and the annual investment in safety production reached RMB29.75 million[38].

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching approximately $1.2 billion for the fiscal year 2021[3]. - Profit for the year decreased slightly to 1,028,114 thousand RMB in 2021 from 1,063,673 thousand RMB in 2020, reflecting a decline of approximately 3.3%[39]. - The basic earnings per share for 2021 was 1.00 RMB, a slight decrease from 1.04 RMB in 2020[39]. - Annual core profit amounted to RMB 915 million, reflecting a growth of approximately 2.2% compared to 2020[45]. - Net profit for the year was RMB 1,028 million, a decrease of 3.3% compared to the previous year[130]. - The Group's core profit for the year was RMB 915,343, reflecting a year-on-year growth of 2.2% from RMB 895,213 in 2020[85]. - Revenue from gas retail business reached RMB4,090 million, a year-on-year increase of 33.6% from RMB3,061 million[114][118]. - Revenue from gas wholesale business amounted to RMB1,027 million, reflecting a significant increase of 52.4% compared to RMB674 million in the previous year[115][119]. - Revenue from value-added business achieved RMB268 million, representing a substantial increase of 94.6% compared to RMB138 million for the corresponding period of last year[110][130]. User Growth and Market Expansion - User data showed a growth in active users by 20%, totaling 5 million users by the end of the fiscal year[3]. - The total number of connection users increased to 4,938,642 in 2021, up from 4,204,256 in 2020, indicating a growth of about 17.4%[28]. - The total number of pipeline gas users increased to 4,938,642, a growth of 17.5% from 4,204,256 in 2020[85]. - The total number of industrial and commercial users served by the Group increased to 37,376, reflecting a growth of 32.0% year-over-year[94]. - The company is expanding its market presence in the Guangdong and Shandong regions, targeting a 25% increase in market share[3]. Revenue Sources - Revenue from gas sales accounted for approximately 66.9% of total revenue, while engineering construction services contributed 29.0%[41]. - The revenue from residential users accounted for 19.8% of total gas sales revenue, while industrial and commercial users contributed 53.6%[31]. - The Group's natural gas sales volume reached 1,942 million m³, an increase of 28.2% compared to the previous year, with retail sales accounting for 1,566 million m³, up 28.6%[95]. Investment and Development - Investment in new technology development increased by 30%, totaling $50 million for the year[3]. - The company plans to enhance its customer service infrastructure, with an investment of $20 million allocated for this initiative[3]. - The company completed a strategic acquisition of a local competitor, enhancing its service capabilities and expected to generate $30 million in synergies[3]. - The company raised a net startup capital of HK$414 million by issuing 50 million shares at HK$8.40 per share, with 70% allocated for low-carbon energy development projects[169][171]. Sustainability and ESG Initiatives - The management emphasized a focus on sustainable practices, aiming for a 40% reduction in carbon emissions by 2025[3]. - The Group has established a comprehensive ESG governance structure to integrate sustainable development into corporate culture and operations[150]. - The company is committed to aligning with China's carbon peak and carbon neutrality goals, contributing to the modern energy system[186]. - Tian Lun Gas maintained a record of zero safety incidents and zero occupational disease cases in 2021, emphasizing its commitment to safety production and occupational health[161]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10-12%[3]. - By 2024, the proportion of innovative business revenue is expected to reach 10% of overall revenue[58]. - The company aims for a compound annual growth rate of not less than 25% in overall gas retail sales volume by 2024, with innovative business revenue targeting 10% of total revenue[189]. - The company is committed to transforming into a comprehensive energy service provider, integrating natural gas with renewable energy sources[183]. Operational Efficiency - The Group has implemented a bidding and procurement system for online management of various procurement models, enhancing operational efficiency[149]. - The Group optimized its gas source structure and procurement strategy in response to fluctuating energy prices, enhancing supply security and resource control capabilities[104]. - The company launched a new customer service system and after-sale service platform, enhancing customer satisfaction and service efficiency[165].

Natural Gas Production and Consumption - In the first half of 2021, natural gas production in China reached 104.5 billion m³, a year-on-year increase of 10.9%[9] - Total natural gas imports amounted to 59.82 million tons, representing a year-on-year increase of 23.8%[9] - Apparent consumption of natural gas was 182.7 billion m³, with a growth rate of 17.4%[9] Company Strategy and Development - The Group's development strategy focuses on expanding its scale while leveraging the gas industry, exploring market potential, and new energy applications[13] - The Group is actively exploring industrial cooperation opportunities in various new energy sectors to support long-term sustainable development[13] - The Group aims to optimize its energy structure by coordinating the development of wind power, photovoltaics, hydrogen energy, and energy storage[11] Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 3,599,400,000, representing a 20.2% increase from RMB 2,995,535,000 in the same period of 2020[15] - Gross profit for the same period was RMB 868,728,000, a 3.9% increase from RMB 836,494,000 year-over-year[15] - Profit attributable to owners of the Company was RMB 515 million, up 37.4% from RMB 375 million year-on-year[35] Customer Growth and Sales Volume - The total number of pipeline gas customers reached 4,581,971, marking a 22.6% increase from 3,736,418 customers in the previous year[15] - Natural gas sales volume increased to 929 million m³, a 30.0% rise compared to 715 million m³ in the same period last year[20] - The number of industrial and commercial customers grew to 34,207, reflecting a significant increase of 36.3% compared to the previous year[19] Infrastructure Development - The total length of medium and high-pressure pipelines reached 8,295 kilometers, with four long-haul pipelines operational[24] - The company added 145,130 new city gas residential customers, bringing the total to 2,880,326[18] - As of June 30, 2021, the Group has a total of 69 urban gas projects across 16 provinces in China[25] Investment and Acquisitions - The Group completed the acquisition of urban gas projects in Mianzhu City, Sichuan Province, and Wangqing County, Jilin Province, enhancing its market presence[28][29] - The Mianzhu project includes 80.6 kilometers of high-pressure pipelines and 262.3 kilometers of medium-pressure pipelines, indicating strong infrastructure development[27] Environmental and Social Responsibility - The Central Committee of the Communist Party of China emphasized the importance of achieving carbon neutrality and enhancing energy supply capacity through diversified energy sources[11] - The Group aims to enhance ESG management while pursuing economic growth, integrating sustainable development into its operations and management[67] - The Group donated RMB 10 million to support frontline efforts against the pandemic in 2020[61] Shareholder Information - As of June 30, 2021, Mr. Zhang Yingcen holds 181,689,608 shares, representing approximately 18.10% of the total issued share capital of the company[82] - The board of directors now consists of ten members, with 50% being independent non-executive directors and 40% being female directors[79] - The company has established a long-term steady dividend policy, reaffirming its commitment to shareholder returns[111] Cash Flow and Financial Position - Total assets increased to RMB 14,555,302, up from RMB 12,918,138 as of December 31, 2020, representing a growth of approximately 12.7%[121] - Total liabilities rose to RMB 9,197,888, compared to RMB 7,937,851 at the end of 2020, indicating an increase of approximately 15.9%[123] - The company reported a profit for the period of RMB 515,355 for the six months ended June 30, 2021[125] Future Outlook and Strategic Focus - The Group plans to focus on green low-carbon development and strengthen investments in clean energy, aligning with China's long-term goals[66] - The Group will continue to focus on urban gas projects, targeting key gas sales projects and large-scale users to expand business scale[70] - The "selective mergers and acquisitions" strategy will be employed to strengthen synergy among existing projects and resources in urban gas terminals[70]

Corporate Overview - Tian Lun Gas was successfully listed on the Main Board of Hong Kong Stock Exchange in 2010, marking the beginning of a new journey for the company[23]. - The company’s headquarters is located in Zhengzhou City, Henan Province, China, with a principal place of business in Hong Kong[10]. - The company has a robust governance structure with various committees overseeing audit, remuneration, and nominations[5]. - The Group's consolidated financial statements were audited by PricewaterhouseCoopers, which issued an unqualified opinion[157]. Financial Performance - Total revenue for the year was RMB 6,439,777,000, a decrease from RMB 6,548,618,000 in 2019[39]. - Profit for the year increased to RMB 1,063,673,000 from RMB 813,465,000 in 2019, representing a growth of 30.7%[39]. - Gross profit margin improved to 27.7% in 2020 from 26.0% in 2019[40]. - Net profit margin increased to 16.5% in 2020 compared to 12.4% in 2019[40]. - Annual core profit recorded RMB895 million, an increase of approximately 10.3% compared to the previous year[42]. - The Group's core profit for the year was RMB 895,213,000, representing an increase of 10.3% from RMB 811,376,000 in the previous year[64]. - The Group's gross profit for the year was RMB1,786 million, representing a 4.8% increase year-on-year[106]. - Net profit attributable to owners of the Company was RMB1,044 million, an increase of 32.2% compared to the previous year[113]. Operational Metrics - The volume of gas sold to residential users accounted for 24.8% of total gas sales volume[35]. - Revenue from industrial and commercial users represented 52.5% of total revenue from gas sales[31]. - The gas sales volume for 2020 was approximately 1,515 million cubic meters, with a total of 4,204,256 gas users[43]. - The total length of medium and high-pressure pipelines increased to 7,063 kilometers, representing a growth of 39.9% from 5,048 kilometers in 2019[64]. - The designed daily gas supply capacity to industrial and commercial users reached 28,307,000 m³, an increase of 21.4% from 23,320,000 m³ in 2019[64][68]. Strategic Initiatives - In 2020, the company accelerated the merger and acquisition of urban gas businesses[25]. - The company has expanded its strategic layout for nationwide mergers and acquisitions since 2011[23]. - The company aims to enhance self-supplying capacity and profitability of gas sales through strengthened cooperation and optimized gas sources[53]. - The company plans to adhere to a strategy of "selective mergers and acquisitions" and "gas penetration in urban and rural areas" to rapidly expand its business scale[53]. - The company is focusing on expanding its urban gas projects across various regions in China[27]. Market and Industry Trends - In 2020, China's natural gas apparent consumption reached 324.0 billion m³, representing a year-on-year growth of 5.6%[51]. - The compound annual growth rate of natural gas consumption is forecasted to be 8.4% from 2020 to 2025[52]. - The total natural gas production in China was 188.8 billion m³ in 2020, showing a year-on-year increase of 9.8%[57]. - The total natural gas imports for the year amounted to 102 million tons, which is a year-on-year increase of 5.3%[57]. Governance and Compliance - The company has adopted and complied with all provisions of the Corporate Governance Code for the period from 1 January 2020 to 31 December 2020[154]. - The Group has implemented a four-level ESG governance structure to integrate sustainable development into corporate governance[126]. - The Group conducted training on ESG concepts in January 2020 to strengthen employee understanding and promote ESG-related work[126]. Human Resources and Development - The company emphasizes talent development and customer-centric service innovation to enhance user experience[48]. - The Group has developed a talent training system with targeted online and offline training programs for various employee levels[138]. - The Group promotes competitive remuneration packages and career development plans to attract and retain skilled personnel[194]. Environmental and Social Responsibility - The Group is committed to environmental protection and improving air quality, aligning with national environmental standards and regulations[196]. - The Group emphasizes employee safety and development, implementing health and safety measures and regular training programs[197]. - The Company continues to support rural residents by exempting gas connection fees, promoting clean energy alternatives[130]. Acquisitions and Expansion - The Group completed the acquisition and management takeover of the urban gas project in Shenqiu County, Zhoukou City, Henan Province, contributing to its performance starting January 31, 2020[71]. - The Group acquired four new urban gas projects in Shaanxi, Gansu, and Qinghai provinces, expanding its portfolio to a total of 67 urban gas projects across 16 provinces by the end of 2020[70]. - The company acquired the entire equity interest in Zizhou County Shunxiang Natural Gas Company Limited for a total consideration of RMB 108,000,000 on August 25, 2020[74]. Risk Management - The Group may face financial risks including foreign currency risk, interest rate risk, and liquidity risk, which management will monitor and mitigate as appropriate[187]. - The Group has established policies to ensure continuous identification and management of risks and uncertainties affecting its financial position and business outlook[186].