Group 1 - The core viewpoint of the article highlights the significant rise in stock prices of low-priced oil and gas companies in the Hong Kong market, indicating a bullish trend in this sector [1] Group 2 - China National Oil and Gas Clean Energy Holdings (01759.HK) experienced a remarkable increase of over 125% [1] - Jixing New Energy (03395.HK) saw its stock price surge by more than 80% [1] - Baikin Oil Services (02178.HK) recorded a rise of 16.7% [1]

Financial Performance - In 2024, the company's liquefied petroleum gas (LPG) sales volume reached approximately 313,000 tons, representing a year-on-year increase of 24.8%[8] - The sales revenue from LPG was approximately 1.45 billion yuan, reflecting a year-on-year growth of 26.0%[8] - The company's liquefied petroleum gas (LPG) sales revenue for the year ending December 31, 2024, is approximately RMB 1,445.7 million, an increase of about RMB 298.6 million compared to RMB 1,147.1 million in 2023[18] - The revenue from compressed natural gas (CNG) sales for the year ending December 31, 2024, is approximately RMB 159.2 million, a decrease of about RMB 84.8 million from RMB 244.0 million in 2023[19] - The liquefied natural gas (LNG) sales revenue for the year ending December 31, 2024, is approximately RMB 15.1 million, an increase of about RMB 10.8 million compared to RMB 4.3 million in 2023[21] - Total revenue for the company for the year ending December 31, 2024, is approximately RMB 1,634.1 million, an increase of about RMB 228.0 million from RMB 1,406.1 million in 2023[22] - The sales volume of compressed natural gas (CNG) was 28.4 million cubic meters, generating revenue of RMB 111.4 million, which accounted for 6.8% of total revenue in 2024, down from 53.1 million cubic meters and RMB 214.3 million (15.2%) in 2023[29] - The company’s gross profit for the fiscal year was approximately RMB 53.2 million, a decrease of about RMB 31.4 million from RMB 84.6 million in 2023, attributed to a decline in sales volume of higher-margin CNG[36] - The company’s total sales cost increased to approximately RMB 1,580.9 million in 2024, up by about RMB 259.4 million from RMB 1,321.5 million in 2023, mainly due to increased procurement volumes of LPG and LNG[36] - Other income for the fiscal year was approximately RMB 18.4 million, a decrease of about RMB 5.4 million from RMB 23.8 million in 2023, primarily due to a reduction in interest income[37] - The company recorded a net loss of approximately RMB 17.8 million for the fiscal year, a decrease of about RMB 24.5 million compared to a net profit of RMB 6.7 million in 2023[46] - As of December 31, 2024, the company’s total assets were approximately RMB 1,139.6 million, an increase of about RMB 183.7 million from RMB 955.9 million in 2023[48] Business Strategy and Development - The company's overall strategy focused on "seeking progress while maintaining stability," emphasizing high-quality development and transformation[8] - The company aims to strengthen its LPG and natural gas businesses while exploring new business developments in 2025[9] - The company plans to implement a digital management platform to enhance internal and external risk control[9] - The company aims to enhance natural gas utilization and expand its business areas in response to structural adjustments in transportation energy policies[15] - The company is committed to providing high-quality gas sources and exploring customer value in the natural gas sector[15] - The company plans to continue enhancing its logistics and supply capabilities while expanding procurement and sales channels to drive new growth points and business diversification[31] - The company aims to optimize its natural gas supply chain and enhance safety management in response to industry regulations and to improve operational efficiency[32] Market Trends and Consumption - The domestic GDP grew by 5% compared to the previous year, indicating a recovering economic environment[7] - The LPG supply in China is expected to increase by over 7% year-on-year in 2024, driven by new refining capacity and increased imports[14] - The apparent consumption of LPG in China is projected to increase by over 6% year-on-year in 2024, with chemical usage dominating over 60% of consumption[14] - In 2024, the company's natural gas production is projected to reach approximately 246.37 billion cubic meters, representing a year-on-year increase of 6.2%[15] - The apparent consumption of natural gas in China for 2024 is expected to be around 426.05 billion cubic meters, reflecting a year-on-year growth of 8%[15] Environmental, Social, and Governance (ESG) - The company is committed to enhancing its ESG performance to reduce environmental risks and improve governance standards[9] - The company is committed to environmental sustainability and aims to become an environmentally friendly enterprise, with detailed policies and performance disclosed in the annual report[94] - The group’s environmental, social, and governance policies and performance details are disclosed in the annual report[94] - The group emphasizes long-term operations while balancing the interests of stakeholders, including customers, suppliers, and employees[91] - The group has enhanced cooperation with suppliers and provided quality products and services to customers to ensure sustainable development[91] Risk Management - The company has implemented multiple policies and procedures to ensure effective risk management across operations, including daily operational management and financial reporting[67] - Major risks identified include reliance on key suppliers for liquefied petroleum gas and liquefied natural gas, which could significantly impact business if supply is unstable[69] - The company's gross margin and profit growth may fluctuate due to sensitivity to external factors affecting the purchase and sale prices of gas products[69] - Increased competition from alternative fuels, particularly electric vehicles, may reduce demand for the company's gas refueling services[69] - The company conducts at least one annual assessment of its risk management framework's effectiveness, with regular management meetings held by the audit committee and board[67] Corporate Governance - The board of directors resolved not to declare a final dividend for the year ended December 31, 2024, consistent with 2023[53] - The company has maintained a prudent financial management strategy, ensuring a sound liquidity position as of December 31, 2024[58] - The company has established a governance framework based on the corporate governance code, enhancing oversight of business conduct[155] - The board of directors includes 7 members, with 3 independent non-executive directors, ensuring compliance with listing rules[169] - The independent non-executive directors have been reappointed for a three-year term starting from December 1, 2024[172] - The board has established an independence assessment mechanism, with satisfactory results reported for the year ending December 31, 2024[170] - The company organized internal training sessions for all directors covering duties, corporate governance, and regulatory updates during the year ending December 31, 2024[177] - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with clear written terms of reference[180] Employee and Shareholder Information - The group employed a total of 429 employees as of December 31, 2024, compared to 427 in 2023[105] - The total compensation cost for the group for the year ended December 31, 2024, was approximately RMB 300 million[105] - The overall employee gender ratio was 47.1% female and 52.9% male, indicating a commitment to gender diversity across all levels[193] - The company aims to maintain a diverse board composition, considering skills, experience, and gender diversity in its appointments[189] - As of December 31, 2024, Mr. Ji holds 162,000,000 shares, representing 75% of the company's equity[132] - The beneficial owner, Yang Ling, holds 162,000,000 shares, which is 75% of the total shares[137] - The company has not entered into any significant contracts with its controlling shareholders or their subsidiaries during the fiscal year ending December 31, 2024[126] Share Option Plan - The stock option plan was conditionally adopted on November 22, 2018[141] - The stock option plan aims to reward selected participants for their contributions to the group[142] - Participants can accept stock options within 21 days from the offer date[143] - The stock options can be exercised at any time within a period determined by the board, not exceeding ten years from the offer date[143] - The plan allows for a wide range of eligible participants, including employees, directors, suppliers, and customers[142] - The company has a maximum limit of 21,600,000 shares available for subscription under the share option plan, which represents 10% of the issued shares as of the listing date[146] - As of December 31, 2024, there are no unexercised share options or warrants outstanding, indicating no current liabilities related to share options[146]

Sales Performance - Liquefied petroleum gas sales increased by approximately 24.8% to about 313.0 thousand tons (2023: approximately 250.9 thousand tons) [2] - Compressed natural gas sales decreased by approximately 25.8% to about 46.3 million cubic meters (2023: approximately 62.4 million cubic meters) [2] - Liquefied natural gas sales increased by approximately 233.3% to about 3.0 thousand tons (2023: approximately 0.9 thousand tons) [2] - The revenue from liquefied petroleum gas for 2024 was RMB 1,445,692,000, compared to RMB 1,147,077,000 in 2023, indicating an increase of about 26% [41] - The revenue from compressed natural gas for 2024 was RMB 159,217,000, compared to RMB 244,002,000 in 2023, showing a decrease of approximately 34.7% [41] - The liquefied natural gas business generated sales revenue of approximately RMB 15.1 million for the year ending December 31, 2024, an increase of approximately RMB 10.8 million compared to RMB 4.3 million in 2023 [72] Financial Performance - Revenue increased by approximately 16.2% to about RMB 1,634.1 million (2023: approximately RMB 1,406.1 million) [2] - Gross profit decreased by approximately 37.1% to about RMB 53.2 million (2023: approximately RMB 84.6 million) [3] - Net loss recorded was approximately RMB 17.8 million (2023: profit of approximately RMB 6.7 million) [3] - Net loss attributable to equity holders was approximately RMB 12.4 million (2023: profit of approximately RMB 8.8 million) [3] - The total comprehensive loss for the year ended December 31, 2024, amounted to RMB (18,755) thousand, compared to a gain of RMB 8,262 thousand in 2023 [5] - The basic and diluted loss per share for the year was RMB (5.72), a decrease from RMB 4.07 in the previous year [5] Assets and Liabilities - Non-current assets totaled RMB 162,982 thousand in 2024, down from RMB 186,791 thousand in 2023 [6] - Current assets increased to RMB 976,629 thousand in 2024, compared to RMB 769,101 thousand in 2023 [6] - The total liabilities increased to RMB 748,258 thousand in 2024, compared to RMB 544,728 thousand in 2023 [6] - The company's equity attributable to owners decreased to RMB (13,334) thousand in 2024 from RMB 10,345 thousand in 2023 [5] - The company's retained earnings were reported at 370,982,000 RMB, down from 384,316,000 RMB in 2023, which is a decrease of about 3.4% [7] Operational Overview - The company is primarily engaged in the retail and wholesale of liquefied petroleum gas, compressed natural gas, and liquefied natural gas in China [9] - The company operates through two reportable segments: Retail and Wholesale, focusing on the sale of liquefied petroleum gas, compressed natural gas, and liquefied natural gas [33][34] - The company operates a total of 19 gas stations and 3 fuel stations as of December 31, 2024, maintaining the same number as in 2023 [74] - The company has significant operational assets primarily located in China, with no segment analysis provided based on customer and asset location [39] Government and Regulatory Compliance - The company has been applying revised International Financial Reporting Standards, which did not have a significant impact on the consolidated financial statements [12] - The company’s financial statements are prepared in accordance with International Financial Reporting Standards and relevant local regulations [10] - The company adheres to corporate governance principles as outlined in the listing rules, ensuring transparency and accountability to shareholders [119] Risk Management - Major risks identified include reliance on government policies, supply chain stability, and competition from alternative fuels, particularly electric vehicles [115] - The group has implemented various policies and procedures to ensure effective risk management across its operations, including financial reporting and compliance with environmental laws [114] Future Outlook - The company anticipates continued growth in domestic demand for liquefied petroleum gas and natural gas, with GDP growth expected to maintain around 5% in 2025 [80] - The company plans to enhance its logistics and supply chain capabilities while expanding procurement and sales channels to drive new growth points and business diversification [81] - The domestic production and import of liquefied petroleum gas are expected to maintain slow growth in 2025, supported by government policies aimed at stabilizing economic growth [81] Employee and Operational Costs - The total employee costs, including salaries and other benefits, amounted to RMB 31,123,000 in 2023, a decrease from RMB 29,954,000 in 2024 [6] - Employee costs decreased to approximately RMB 30.0 million in 2024 from RMB 31.1 million in 2023, attributed to lower performance-related compensation due to declining operational performance in compressed natural gas stations [87] Legal and Compliance Matters - The group faced a maximum potential liability of approximately RMB 69,350,000 in a legal claim, which was ultimately resolved in its favor by June 2023 [109] - A new legal claim with a maximum potential liability of approximately RMB 14,053,937 was filed in 2023, but the group was ruled not liable in July 2024 [110] Shareholder Information - The annual general meeting of shareholders is scheduled for June 25, 2025, with relevant documents to be published in due course [116] - The board of directors has resolved not to declare a final dividend for the year ending December 31, 2024, compared to zero in 2023 [100]

Economic Performance - For the first half of 2024, China's GDP reached RMB 61,683.6 billion, reflecting a year-on-year growth of 5.0%[3]. - Domestic liquefied petroleum gas (LPG) demand is estimated at 3,685.58 million tons for the first half of 2024, an increase of 3.68 million tons or 11.09% year-on-year[3]. - The domestic natural gas consumption reached 2,137.5 billion cubic meters for the first half of 2024, showing a year-on-year growth of 10.1%[3]. Company Performance - The company's LPG sales volume increased by 3.4% year-on-year, with sales revenue rising by 4.2%[3]. - The company's LPG sales revenue for the first half of 2024 was approximately RMB 582.2 million, up from RMB 559.0 million in the same period of 2023, an increase of approximately RMB 23.2 million[6]. - The compressed natural gas (CNG) sales volume experienced a decline due to policy-driven factors[4]. - Total revenue for the six months ended June 30, 2024, was approximately RMB 677.6 million, a decrease of about RMB 18.6 million from RMB 696.2 million for the same period in 2023, attributed to lower sales volume and price of compressed natural gas[11]. - The group's gross profit for the same period was approximately RMB 27.7 million, down from RMB 36.6 million in 2023, primarily due to a decline in sales volume of higher-margin compressed natural gas[20]. - The group reported a pre-tax loss of approximately RMB 3.5 million for the six months ended June 30, 2024, compared to a pre-tax profit of RMB 3.6 million in the same period of 2023[27]. Financial Position - As of June 30, 2024, total assets amounted to approximately RMB 1,232.6 million, an increase of about RMB 276.7 million from RMB 955.9 million as of December 31, 2023[30]. - The debt-to-equity ratio as of June 30, 2024, was approximately 67.2%, up from 57.4% as of December 31, 2023, primarily due to an increase in bank loans[35]. - The company's equity attributable to shareholders decreased to RMB 383,508 thousand as of June 30, 2024, from RMB 386,208 thousand as of December 31, 2023[76]. - The total cash and cash equivalents, including restricted bank deposits, increased to RMB 848.323 million as of June 30, 2024, from RMB 545.372 million as of December 31, 2023, marking a growth of approximately 55.5%[158]. Operational Highlights - The company operates in Guangdong, Henan, and Hebei provinces, with over 18 years of industry experience[5]. - The company operates a total of 19 gas stations and 3 petrol stations as of June 30, 2024, maintaining the same number of operational sites as in December 31, 2023[11]. - The company has a comprehensive business model for LPG, including upstream procurement from both domestic and overseas suppliers[6]. - The company has a strong upstream supply chain supported by major suppliers, including China National Petroleum Corporation, ensuring reliable logistics for compressed natural gas distribution[7]. Employee and Management - The company is committed to optimizing its performance evaluation system to improve efficiency and employee engagement[4]. - Employee costs decreased to approximately RMB 14.7 million from RMB 15.7 million in 2023, attributed to a decline in performance bonuses due to reduced sales volume of compressed natural gas[22]. - As of June 30, 2024, the group had a total of 420 employees, a decrease from 426 employees as of June 30, 2023[36]. Shareholding Structure - Major shareholder UBS Trustees (BVI) Limited holds 121,500,000 shares, representing 56.25% of total shares[57]. - The ownership structure indicates a high concentration of shares among a few major stakeholders[58]. - The company has significant ownership by related entities, including VISTA Company and 中油潔能控股, each holding 121,500,000 shares or 56.25%[57]. Corporate Governance - The board emphasizes the importance of good corporate governance for financial management and risk control, adhering to the corporate governance code[62]. - The company has established a code of conduct for directors regarding securities trading, which complies with the listing rules[63]. Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 29,573,000, a decrease of 2.2% from RMB 30,235,000 in the same period of 2023[82]. - The net cash generated from investing activities decreased significantly to RMB 6,018,000 from RMB 11,039,000, reflecting a decline of 45.5% year-over-year[82]. - The total increase in cash and cash equivalents for the period was RMB 29,867,000, compared to RMB 11,441,000 in the same period last year, representing a growth of 161.5%[82]. Future Outlook - The group anticipates continued economic recovery in the second half of 2024, supported by improved domestic demand and a favorable international oil price outlook[doc id='17']. - The company is currently evaluating the potential impact of new accounting standards on its future performance and financial position[87].

Financial Performance - For the six months ended June 30, 2024, liquefied petroleum gas sales volume increased by approximately 4.2 thousand tons to about 126.2 thousand tons, compared to approximately 122.0 thousand tons for the same period in 2023[1]. - For the same period, revenue decreased by approximately RMB 18.6 million to RMB 677.6 million, compared to RMB 696.2 million for the same period in 2023[2]. - Gross profit for the six months ended June 30, 2024, decreased by approximately RMB 8.9 million to approximately RMB 27.7 million, compared to RMB 36.6 million for the same period in 2023[2]. - The company reported a net loss of approximately RMB 3.8 million for the six months ended June 30, 2024, compared to a profit of RMB 1.0 million for the same period in 2023[2]. - The attributable loss to equity shareholders for the six months ended June 30, 2024, was approximately RMB 3.3 million, compared to a profit of RMB 5.3 million for the same period in 2023[2]. - The company reported a basic and diluted loss per share of RMB (0.02) for the six months ended June 30, 2024, compared to a profit of RMB 0.01 for the same period in 2023[3]. - The total comprehensive loss for the six months ended June 30, 2024, was RMB (3.26 million), compared to a total comprehensive income of RMB 4.45 million for the same period in 2023[3]. - The group reported a total pre-tax consolidated loss of RMB 3,467,000 for the period[9]. - The group reported a pre-tax loss of approximately RMB 3,284,000 for the six months ended June 30, 2024, compared to a profit of RMB 1,985,000 for the same period in 2023[22]. - The group’s total pre-tax consolidated profit for the period was RMB 3,571,000[12]. Revenue Breakdown - The retail segment generated revenue of RMB 72,954,000 for the six months ended June 30, 2024, while the wholesale segment generated RMB 1,335,572,000[10]. - The total revenue recognized before inter-segment sales was RMB 677,584,000, with a gross profit of RMB 27,729,000[10]. - For the six months ended June 30, 2024, total revenue reached RMB 677,584,000, compared to RMB 696,197,000 for the same period in 2023, representing a decrease of approximately 2.3%[14]. - The revenue from liquefied petroleum gas was RMB 582,195,000 for the six months ended June 30, 2024, while the revenue from compressed natural gas was RMB 82,534,000, showing a significant contribution to total revenue[14]. - The revenue from compressed natural gas (CNG) sales for the six months ended June 30, 2024, was approximately RMB 82.5 million, a decrease of about RMB 49.3 million compared to RMB 131.8 million in the same period of 2023, primarily due to a decline in sales volume caused by structural adjustments in energy policies[36]. - The revenue from liquefied natural gas (LNG) sales for the six months ended June 30, 2024, was approximately RMB 4.9 million, an increase of about RMB 3.2 million compared to RMB 1.7 million in the same period of 2023, driven by an increase in sales volume[37]. Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 1,053,632 thousand, an increase from RMB 769,101 thousand as of December 31, 2023[4]. - Current liabilities increased to RMB 824,992 thousand from RMB 544,728 thousand, reflecting a significant rise in interest-bearing loans from RMB 507,500 thousand to RMB 785,000 thousand[4]. - The company's equity attributable to shareholders decreased to RMB 383,508 thousand from RMB 386,208 thousand year-over-year[5]. - The total non-current liabilities decreased from RMB 4,132 thousand to RMB 3,859 thousand, reflecting a reduction in lease liabilities[5]. - The capital debt ratio as of June 30, 2024, was approximately 67.2%, up from 57.4% as of December 31, 2023, mainly due to an increase in bank loans[56]. - The group had approximately RMB 785 million in secured bank loans as of June 30, 2024, compared to RMB 507.5 million as of December 31, 2023[55]. Operational Metrics - The company experienced a decrease in sales volume of compressed natural gas by approximately 12.1 million cubic meters to about 22.6 million cubic meters, compared to 34.7 million cubic meters for the same period in 2023[1]. - The sales volume of compressed natural gas was 16.60 million cubic meters, generating revenue of RMB 65.18 million, accounting for 9.6% of total revenue for the six months ended June 30, 2024[41]. - The sales volume of liquefied petroleum gas was 126,226 tons, generating revenue of RMB 582.20 million, accounting for 85.9% of total revenue for the same period[41]. - The group reported a total demand for liquefied petroleum gas (LPG) of 36.8558 million tons for the first half of 2024, an increase of 3.6804 million tons or 11.09% year-on-year[31]. - The group’s LPG sales volume increased by 3.4% year-on-year, with sales revenue rising by 4.2%[31]. Cost Management - The company’s operating expenses decreased, with employee costs at RMB (14.7 million) compared to RMB (15.67 million) for the same period in 2023[2]. - Employee costs for the six months ended June 30, 2024, totaled RMB 14,702,000, a decrease from RMB 15,670,000 in the same period of 2023, reflecting a reduction of about 6.2%[17]. - The company incurred operating expenses of RMB 10,750,000 for the six months ended June 30, 2024, down from RMB 12,105,000 in the same period of 2023, representing a reduction of about 11.2%[19]. - The depreciation expense for property, plant, and equipment was RMB 5,178,000 for the six months ended June 30, 2024, compared to RMB 6,201,000 in the same period of 2023, indicating a decrease of approximately 16.5%[18]. - The company reported a tax expense of RMB 374,000 for the six months ended June 30, 2024, compared to RMB 2,567,000 for the same period in 2023, indicating a significant decrease of approximately 85.4%[20]. Strategic Initiatives - The company is currently evaluating the potential impact of new accounting standards that will be effective from January 1, 2024, but has not yet estimated their effects on performance[7]. - The company is exploring new growth opportunities while executing its medium to long-term strategic development goals[33]. - The company plans to strengthen risk management strategies in response to global energy market uncertainties, focusing on stable growth and business model transformation[44]. - The company has a comprehensive business model for LPG, including upstream procurement from large suppliers and domestic refineries, which supports its sales operations[35]. - The company has a strong upstream procurement network for LNG, supported by major LNG terminal companies[37]. Corporate Governance - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[69]. - The company has adhered to corporate governance standards as outlined in the listing rules as of June 30, 2024[67]. - The company has established a code of conduct for directors regarding securities trading, which complies with listing rules[68]. - The board believes that good corporate governance enhances financial management and risk control, benefiting long-term interests[67]. Risk Management - The company is exposed to currency risk primarily due to operations in China, with measures in place to mitigate foreign currency exposure[60]. - The company is focused on risk control mechanisms to identify and mitigate potential internal and external risks[33].

Economic Overview - As of December 31, 2023, China's GDP reached RMB 126,058.2 billion, growing by 5.2% compared to the previous year, an acceleration of 2.2 percentage points from 2022[6]. - The domestic liquefied petroleum gas (LPG) market trends aligned with international crude oil prices, with significant price fluctuations observed throughout 2023[7]. - The consumption of natural gas in four major sectors (urban gas, industrial fuel, power generation, and chemical use) increased, with urban gas accounting for 38.5% of total natural gas consumption, up 0.4% from 2022[7]. Company Performance - The revenue from LPG sales for the company in the fiscal year ending December 31, 2023, was approximately RMB 1,147.1 million, a decrease of about RMB 512.5 million compared to RMB 1,659.6 million in 2022[21]. - The revenue from compressed natural gas (CNG) sales for the company in the fiscal year ending December 31, 2023, was approximately RMB 244.0 million, down by about RMB 24.7 million from RMB 268.7 million in 2022[22]. - The revenue from liquefied natural gas (LNG) sales for the company in the fiscal year ending December 31, 2023, was approximately RMB 4.3 million, a decrease of about RMB 6.3 million from RMB 10.6 million in 2022[26]. - The total revenue for the company for the fiscal year ending December 31, 2023, was approximately RMB 1,406.1 million, a decline of about RMB 541.8 million from RMB 1,947.9 million in 2022[27]. - The gross profit for the year ended December 31, 2023, was approximately RMB 84.6 million, down from RMB 87.3 million in 2022, primarily due to a decrease in liquefied petroleum gas sales[45]. - The sales cost decreased to approximately RMB 1,321.5 million in 2023 from about RMB 1,860.7 million in 2022, mainly due to a decline in the quantity and purchase price of liquefied petroleum gas and compressed natural gas[45]. - The company's revenue for the year ended December 31, 2023, was approximately RMB 1,406.1 million, a decrease of about RMB 541.8 million compared to RMB 1,947.9 million in 2022[43]. Strategic Initiatives - The company aims to deepen cost reduction and efficiency enhancement efforts to achieve stable growth targets[8]. - The company is focused on enhancing procurement capabilities and stabilizing gas prices to mitigate external business disruptions[8]. - The company aims to expand its market presence in South China while enhancing its procurement channels to stabilize gas prices and improve infrastructure[16]. - The company plans to strengthen its logistics and storage capabilities to support market share growth and ensure stable gas supply for residential use[16]. - The company plans to continue integrating upstream and downstream resources and optimize logistics and transportation in 2024[38]. - The company is actively developing a self-management platform to achieve standardized and refined enterprise management, enhancing safety management standards[16]. - The company aims to explore digital management platforms to enhance operational efficiency and safety management in the coming year[38]. Market Outlook - The 2024 energy market is expected to gradually recover, with structural supply-demand imbalances likely to be effectively alleviated[10]. - The domestic supply of natural gas is expected to maintain growth levels in 2024, driven by strong demand in urban gas, industrial fuel, and power generation sectors[39]. Risk Management - The company has identified several major risks, including reliance on government policies and potential supply instability from key suppliers[88]. - The company has implemented various policies and procedures to ensure effective risk management across operations[82]. - The company faces a maximum risk of approximately RMB 69,350,000 related to a legal claim, but the board believes there is no liability[78]. Corporate Governance - The company has established an audit committee to oversee financial reporting and internal control systems[82]. - The board emphasizes the importance of high ethical standards in business operations to achieve long-term goals[200]. - The company has adopted the principles outlined in the corporate governance code as per the listing rules[200]. - The board believes that good corporate governance standards are essential for protecting shareholder interests and enhancing corporate value[200]. - A corporate governance framework has been established, along with policies and procedures based on the corporate governance code[200]. - The board is committed to maintaining a balanced composition of executive and independent non-executive directors for effective independent judgment[200]. Employee and Operational Metrics - The group had a total of 427 employees as of December 31, 2023, a decrease from 434 in 2022, including 86 employees from the joint venture Jiangmen Xinjing Gas, up from 70 in 2022[137]. - Employee costs decreased to approximately RMB 31.1 million in 2023 from RMB 33.1 million in 2022, attributed to a reduction in the number of employees[47]. - The total salary cost incurred by the group for the year ended December 31, 2023, was approximately RMB 31.1 million[137]. Financial Position - As of December 31, 2023, the total assets of the group were approximately RMB 955.9 million, an increase of about RMB 8.0 million from RMB 947.9 million in 2022[60]. - The capital expenditure for the year ended December 31, 2023, was approximately RMB 1.8 million, primarily related to the acquisition of properties, plants, and equipment[62]. - The capital-to-debt ratio as of December 31, 2023, was approximately 57.4%, a decrease from 57.9% as of December 31, 2022[64]. - The group had approximately RMB 157.9 million in cash and bank balances as of December 31, 2023[61]. Shareholder Information - The company’s total issued shares as of December 31, 2023, amounted to 216,000,000 shares[172]. - Mr. Ji holds 162,000,000 shares, representing a 75% ownership stake in the company[169]. - UBS Trustees holds 121,500,000 shares, accounting for 56.25% of the company’s shares[175]. - The board did not recommend the payment of a final dividend for the fiscal year ending December 31, 2023[131]. - The group’s distributable reserves were approximately RMB 155.1 million, which includes a share premium of approximately RMB 173.4 million and accumulated losses of approximately RMB 18.3 million[132]. Compliance and Legal Matters - The group has complied with all relevant laws and regulations without any significant violations as of December 31, 2023[125]. - The group confirmed compliance with the Hong Kong Listing Rules regarding all related party transactions for the year ended December 31, 2023[140]. - There are no significant litigations or arbitrations involving the group as of December 31, 2023[190].

Financial Performance - Revenue decreased by approximately 27.8% to about RMB 1,406.1 million (2022: approximately RMB 1,947.9 million) [2] - Gross profit decreased by approximately 3.1% to about RMB 84.6 million (2022: approximately RMB 87.3 million) [2] - Net profit increased by approximately 9.8% to about RMB 6.7 million (2022: approximately RMB 6.1 million) [3] - Profit attributable to equity holders decreased by approximately 20.7% to about RMB 8.8 million (2022: approximately RMB 11.1 million) [3] - Total revenue for 2023 reached RMB 1,406,112 thousand, a decrease from RMB 1,947,946 thousand in 2022, representing a decline of approximately 28% [45] - The total pre-tax consolidated profit for the year was CNY 10,043,000, showing a slight increase compared to the previous year [40] - The group's gross profit for the year ended December 31, 2023, was approximately RMB 84.6 million, down from about RMB 87.3 million in 2022, a decrease of approximately RMB 2.7 million attributed to lower sales volume of liquefied petroleum gas [90] Sales and Revenue Breakdown - Liquefied petroleum gas sales decreased by approximately 18.7% to about 250.9 thousand tons (2022: approximately 308.5 thousand tons) [2] - Natural gas sales decreased by approximately 0.8% to about 62.4 million cubic meters (2022: approximately 62.9 million cubic meters) [2] - Revenue from liquefied petroleum gas (LPG) was RMB 1,147,077 thousand in 2023, down from RMB 1,652,837 thousand in 2022, indicating a decrease of about 31% [45] - For the year ended December 31, 2023, the company recorded compressed natural gas sales revenue of approximately RMB 244.0 million, a decrease of approximately RMB 24.7 million compared to RMB 268.7 million in 2022 [71] - The liquefied natural gas sales revenue for the year ended December 31, 2023, was approximately RMB 4.3 million, down by approximately RMB 6.3 million from RMB 10.6 million in 2022, primarily due to a decrease in sales volume [73] Assets and Liabilities - Total assets decreased from CNY 737,646,000 to CNY 769,101,000, reflecting a growth of 4.3% [9] - Current liabilities increased from CNY 544,424,000 to CNY 544,728,000, a slight increase of 0.6% [9] - Cash and cash equivalents increased significantly from CNY 91,833,000 to CNY 157,872,000, a growth of 71.8% [9] - The company’s total liabilities remained stable at CNY 544,728,000 compared to CNY 544,424,000, indicating effective management of debt levels [9] - The company's total liabilities for trade payables were RMB 36,178,000 in 2023, slightly up from RMB 35,749,000 in 2022 [56] Operational Efficiency - Total operating expenses decreased, with employee costs at RMB 31.1 million (2022: RMB 33.1 million) [5] - The company reported a pre-tax profit of RMB 10.0 million (2022: RMB 9.8 million) [5] - The company’s operating income showed a significant increase, reflecting strong market demand and operational efficiency [7] - The group has made provisions for trade and other receivables amounting to CNY 6,587,000, reflecting a cautious approach to credit risk management [40] Market and Strategic Initiatives - The company plans to explore new market opportunities and enhance product offerings in the upcoming fiscal year [5] - The group aims to enhance its market presence in South China by leveraging its established business foundation and brand reputation [63] - The group is committed to expanding its gas source procurement channels to stabilize gas prices and strengthen the infrastructure at its terminals [63] - The company plans to explore digital management platforms to improve operational efficiency and safety management standards [84] Risk Management - The group identifies key risks including reliance on major suppliers for liquefied petroleum gas and natural gas, which could significantly impact business operations if supply becomes unstable [125] - The group faces potential volatility in gross margin and profit growth due to external factors affecting the purchase and sale prices of fuel products [125] - The group has implemented various policies and procedures to ensure effective risk management across all operational aspects, including financial reporting and compliance with applicable environmental laws [123] Corporate Governance - The board believes that the company has adhered to the corporate governance code as outlined in the listing rules throughout the year ending December 31, 2023 [130] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting policies and the consolidated financial statements for the year ending December 31, 2023, with no objections raised [133] Future Outlook - The company anticipates stable growth in domestic supply and continued increase in import volumes for 2024, driven by the integration of upstream and downstream resources and optimization of logistics [84] - The new natural gas utilization policy introduced in 2023 is expected to promote high-quality development in the natural gas sector, enhancing demand in urban gas, industrial fuel, and power generation sectors [86] - The geopolitical environment remains complex, impacting the liquefied petroleum gas market, with OPEC's production control expected to influence oil price trends in 2024 [84]

Financial Performance - For the first half of 2023, the company recorded revenue of approximately RMB 696.2 million, a decrease of about RMB 420.3 million compared to RMB 1,116.5 million in the same period of 2022, primarily due to a decline in liquefied petroleum gas sales volume and lower sales prices for liquefied petroleum gas and compressed natural gas [9]. - The company's liquefied petroleum gas sales business generated revenue of approximately RMB 559.0 million in the first half of 2023, down from RMB 972.3 million in the same period of 2022, a decrease of about RMB 413.3 million [10]. - The revenue from the compressed natural gas sales business was approximately RMB 131.8 million for the first half of 2023, slightly down from RMB 134.0 million in the same period of 2022, a decrease of about RMB 2.2 million [11]. - The company's total revenue for the six months ended June 30, 2023, was approximately RMB 696.2 million, down from RMB 1,116.5 million in the same period of 2022, representing a decrease of approximately RMB 420.3 million [29]. - Gross profit for the six months ended June 30, 2023, was approximately RMB 36.6 million, down from RMB 48.3 million in the same period of 2022, a decrease of approximately RMB 11.7 million [30]. - The net profit for the six months ended June 30, 2023, was RMB 1,004 thousand, a decline of 44.2% compared to RMB 1,799 thousand in 2022 [94]. - Total revenue for the group decreased to RMB 696,197,000 for the six months ended June 30, 2023, down 37.8% from RMB 1,116,492,000 in 2022 [113]. - The gross profit for the reportable segments was RMB 36,583,000 for the six months ended June 30, 2023, a decline of 24.2% from RMB 48,330,000 in the same period of 2022 [118]. Consumption Trends - The apparent consumption of liquefied petroleum gas in China reached 40.73 million tons for the first half of 2023, representing a year-on-year increase of 10.24% and a quarter-on-quarter increase of 7.84% [5]. - The apparent consumption of natural gas in China was 194.1 billion cubic meters from January to June 2023, reflecting a year-on-year growth of 5.6% [6]. - The forecast for China's natural gas consumption in 2023 is approximately 444.06 billion cubic meters, an increase of 21.23% year-on-year [26]. Operational Strategy - The company aims to optimize gas source procurement and explore new distribution channels for liquefied petroleum gas, expanding into southwestern provinces such as Jiangxi, Hunan, and Guizhou [5]. - The company is focusing on enhancing customer satisfaction through differentiated marketing activities and optimizing procurement channels to stabilize end sales [6]. - The company plans to enhance its online sales management platform to improve operational management capabilities [27]. - The company aims to optimize communication with upstream and downstream customers and strengthen supply and storage systems to ensure stable supply and pricing [27]. Financial Position - Total assets as of June 30, 2023, were approximately RMB 1,383.0 million, an increase of about RMB 435.1 million from RMB 947.9 million as of December 31, 2022 [44]. - The debt-to-equity ratio as of June 30, 2023, was approximately 70.8%, up from 57.9% as of December 31, 2022, attributed to an increase in bank loans [47]. - As of June 30, 2023, the company had approximately RMB 940.0 million in secured short-term borrowings, an increase from RMB 507.5 million as of December 31, 2022 [46]. - The group maintained a healthy liquidity position with prudent financial management strategies as of June 30, 2023 [55]. - The group held approximately RMB 24.4 million in unlisted equity securities as of June 30, 2023, to enhance capital utilization [56]. Cost Management - Sales cost decreased to approximately RMB 659.6 million in 2023 from approximately RMB 1,068.2 million in 2022, a reduction of about RMB 408.6 million [30]. - Employee costs for the six months ended June 30, 2023, were approximately RMB 15.7 million, a decrease of about RMB 1.0 million compared to RMB 16.7 million for the same period in 2022 [32]. - Depreciation for the same period was approximately RMB 7.1 million, down RMB 2.8 million from RMB 9.9 million in 2022, primarily due to the closure of two gas stations [35]. - Operating lease expenses decreased to approximately RMB 0.2 million from RMB 2.2 million, a reduction of about RMB 2.0 million, due to the reduction in operating lease expenses from the two closed gas stations [36]. - Financing costs were approximately RMB 5.6 million, a decrease of RMB 2.3 million from RMB 7.9 million in 2022, mainly due to a decline in bank loan interest rates [38]. Shareholder Information - The major shareholder, Mr. Ji, held 162,000,000 shares, representing 75% of the company [63]. - UBS Trustees held 121,500,000 shares, representing 56.25% of the company [67]. - The total number of issued shares as of June 30, 2023, is 216,000,000 shares [70]. - The company has not granted or agreed to grant any options under the share option scheme since its adoption [77]. - The maximum number of shares available for issuance under the share option scheme is capped at 30% of the company's issued share capital [74]. - The board does not recommend the payment of an interim dividend for the six months ending June 30, 2023 [84]. Legal and Compliance - The maximum risk related to contingent liabilities could reach approximately RMB 68,469,000 for Claim One, but the group was ruled not liable [59]. - The group did not recognize any provisions as of June 30, 2023, related to the aforementioned claims [60]. - The group’s subsidiary was previously ruled not liable for a claim in 2022, and this ruling was upheld again in June 2023 [148]. - The company has established a corporate governance framework to ensure shareholder interests and business ethics are upheld [80]. - The company has complied with the corporate governance code as outlined in the listing rules for the six months ending June 30, 2023 [80]. Investment and Future Plans - The company is actively seeking suitable acquisition targets but has not yet identified any as of the report date [52]. - There were no specific future plans for significant investments or capital assets as of June 30, 2023 [57]. - The company is considering the potential sale of its entire stake in Henan Lantian and leasing operations of certain gas stations, with preliminary disclosures made on August 10, 2023 [89].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 SINO GAS HOLDINGS GROUP LIMITED 中 油 潔 能 控 股 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1759） 截 至2023年6月30日 止 六 個 月 的 未 經 審 核 中 期 業 績 公 告 業績摘要 截至2023年6月30日止六個月，液化石油氣銷售量減少約29.0%至約122.0 千噸（截至2022年6月30日止六個月：約171.8千噸）；液化天然氣銷售量減 少 約57.1%至 約0.3千 噸（截 至2022年6月30日 止 六 個 月：約0.7千 噸）；壓 縮 天 然 氣 銷 售 量 減 少 約0.9%至 約34.7百 萬 立 方 米（截 至2022年6月30日 止 六 個月：約35.0百萬立方米）。 截至2023年6月30日止六個月，收益減少約37.6%至約人民幣696.2百萬元（截 至2022年6月30日止六個月：約人民幣1,1 ...

Financial Performance - The group's revenue for the year ended December 31, 2022, was approximately RMB 1,947.9 million, an increase of about 2.1% compared to the previous year[7]. - Liquefied petroleum gas (LPG) sales revenue reached RMB 1,659.6 million, representing a growth of 3.5% year-on-year[7]. - Compressed natural gas (CNG) sales revenue increased to RMB 268.7 million, up approximately 11.1% from 2021[7]. - The liquefied natural gas (LNG) segment saw a revenue decrease of about 79.8% due to the closure of two loss-making refueling stations[7]. - For the year ended December 31, 2022, the company recorded revenue of approximately RMB 1,947.9 million, an increase of about RMB 40.1 million compared to RMB 1,907.8 million in 2021[18]. - The revenue growth was primarily driven by an increase in the sales price of liquefied petroleum gas (LPG) and compressed natural gas (CNG)[18]. - The company's LPG sales revenue was approximately RMB 1,659.6 million, up by about RMB 56.7 million from RMB 1,602.9 million in 2021[20]. - The CNG sales revenue reached approximately RMB 268.7 million, an increase of about RMB 26.9 million compared to RMB 241.8 million in 2021[21]. - The LNG sales revenue was approximately RMB 10.6 million, a decrease of about RMB 41.8 million from RMB 52.4 million in 2021, primarily due to reduced sales volume[24]. - The group recorded a pre-tax profit of approximately RMB 9.8 million in 2022, down from RMB 14.0 million in 2021, a decrease of about 30%[54]. - Net profit for the year was approximately RMB 6.1 million, compared to RMB 8.4 million in 2021, representing a decline of about 27.4%[56]. - Gross profit for the year was approximately RMB 87.3 million, down from RMB 92.8 million in 2021, reflecting a decrease of about 5.9%[45]. - Other income decreased to approximately RMB 22.2 million in 2022 from RMB 41.9 million in 2021, a decline of about 47%[46]. Operational Developments - The company aims to enhance operational management standards and improve employee performance assessment mechanisms[11]. - The company plans to optimize the industrial chain and enhance the market competitiveness of gas supply[11]. - The company aims to enhance logistics service capabilities and expand into the civil LPG sector in response to market conditions[18]. - The company has ceased operations of one LPG vehicle refueling station in Guangzhou, fully exiting the LPG vehicle market[19]. - The company opened one new LPG civil station during the year, expanding its civil terminal points[19]. - The company has ceased operations of 2 liquefied natural gas gas stations due to low business volume and high procurement costs, which led to operational losses[29]. - The company has contracted one compressed natural gas gas station in Henan Province to a third party, which plans to convert it into a fuel station[30]. - The company aims to enhance its service quality and strengthen production safety management as part of its strategy to improve communication and cooperation across the entire industry chain[39]. Market Conditions - The energy sector is expected to face uncertainties in 2023 due to geopolitical conflicts and energy shortages[10]. - The outlook for 2023 indicates a potential recovery in natural gas consumption in China, driven by improving economic conditions and a gradual stabilization of international gas prices[40]. - The apparent consumption of natural gas in China was 366.3 billion cubic meters, a year-on-year decrease of 1.7%, marking the first instance of negative growth since 2017[15]. Risk Management - The group identified several major risks, including reliance on government policies, supply chain stability, and competition from alternative fuels[85]. - The group has implemented various policies and procedures to ensure effective risk management across operations, including financial reporting and compliance with environmental laws[80]. - The group has maintained a prudent financial management strategy, ensuring a healthy liquidity position as of December 31, 2022[71]. Corporate Governance - The company aims to provide satisfactory and sustainable returns to shareholders while maintaining high ethical standards in business operations[191]. - The board is committed to maintaining good corporate governance standards to protect shareholder interests and enhance corporate value[191]. - The company has established a corporate governance framework based on the corporate governance code, enhancing the board's ability to oversee business conduct[189]. - The company has implemented a securities trading code for directors, ensuring compliance with the standards set out in the listing rules[193]. - The board regularly reviews the contributions of directors to ensure they dedicate sufficient time to their responsibilities[196]. - The company has confirmed that all directors complied with the securities trading code throughout the year ending December 31, 2022[194]. Employee and Shareholder Information - The total employee count as of December 31, 2022, was 434, a decrease from 448 in 2021, including 70 employees from the joint venture Jiangmen Xinjing Gas[129]. - The total salary cost incurred by the company for the year ended December 31, 2022, was approximately RMB 33.1 million[129]. - The board has resolved not to declare a final dividend for the year ended December 31, 2022, consistent with the previous year[64]. - The group has not proposed any final dividend for the fiscal year ending December 31, 2022[125]. Future Plans - The company plans to continue expanding its liquefied petroleum gas business in South China, focusing on residential, chemical, and commercial sectors, leveraging regional advantages and industry experience[39]. - Strategic acquisitions are planned to enhance operational capabilities and market share, with an estimated investment of E million[91]. - The company is investing in R&D, allocating F% of its revenue to develop new technologies and improve existing products[91].