Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million, representing a 20% growth year-over-year[4]. - The Group recorded a revenue of approximately HK$6.20 billion for the year ended 31 December 2024, representing a decrease of approximately 3% compared to HK$6.41 billion in 2023[19]. - Profit for the year amounted to approximately HK$209 million, a decrease of approximately 21% from HK$263 million in 2023[19]. - Gross profit decreased by 24% to HK$569 million in 2024 from HK$749 million in 2023[17]. - Basic earnings per share decreased by 23% to 14.6 HK cents in 2024 from 19.0 HK cents in 2023[17]. - Revenue from piped natural gas sales amounted to HK$5,802,391,000, representing a decrease of approximately 1% compared to HK$5,850,142,000 in 2023[52]. - The profit attributable to owners of the company for the year ended December 31, 2024, was approximately HK$200 million, a decrease from HK$257 million for the year ended December 31, 2023, primarily due to a reduction in gross profit[70]. User Engagement and Market Expansion - User data showed a rise in active users to 1.2 million, up from 1 million, indicating a 20% increase in user engagement[4]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2025[4]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[4]. Future Projections - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 15% to $575 million[4]. - The Group aims to deepen its core gas supply business and improve revenue from its main operations in 2025[39]. - China's natural gas demand is projected to reach 448.5 billion cubic meters in 2025, reflecting a year-on-year increase of 6.2%[36]. Operational Efficiency and Cost Management - The company aims to improve operational efficiency, targeting a 5% reduction in costs over the next year[4]. - The Group's procurement strategies are being optimized to enhance cost management efficiency and adapt to market conditions[39]. Customer Satisfaction and Service Improvement - Customer satisfaction ratings improved to 85%, reflecting a 10% increase in positive feedback from users[4]. - A strategic acquisition of a local competitor is anticipated to enhance the company's service offerings and increase market penetration[4]. Research and Development - Research and development expenses increased by 25%, totaling $30 million, to support new technology initiatives[4]. - The Group's subsidiary, Tianjin Bintou Xinzhi Technology Co., Ltd., obtained the qualification certification for National High-tech Enterprise, promoting R&D outcomes and sustainable development in the gas industry[33]. Gas Sales and Market Performance - In 2024, the Group's total gas sales reached a record high of 2.51 billion cubic metres, with piped natural gas sales increasing by 6% year-on-year to 1.71 billion cubic metres[23]. - The gas passing through service business saw a significant increase, with sales reaching 0.80 billion cubic metres, marking a year-on-year growth of 32%[23]. - The proportion of industrial and commercial customers in total gas sales exceeded 85%, indicating a strong customer structure advantage[23]. Financial Health and Liquidity - Current assets decreased by 40% to HK$1.12 billion in 2024 from HK$1.88 billion in 2023[18]. - The current ratio as of December 31, 2024, was approximately 0.37, indicating liquidity challenges[72]. - The Group experienced a net foreign exchange loss of approximately HK$27 million for the year ended December 31, 2024[80]. Corporate Governance and Board Structure - The Board comprises ten directors, including three executive directors and four independent non-executive directors[109]. - The Company is committed to promoting high-quality clean energy services and optimizing the upstream and downstream industrial chain[111]. - The Nomination Committee currently comprises four independent non-executive Directors and one executive Director, with Mr. IP Shing Hing as the Chairman[138]. Risk Management and Internal Control - The Audit Committee has focused on improving the risk management and internal control systems during the year ended December 31, 2024, ensuring compliance with relevant requirements[189]. - The Directors acknowledge their responsibility for the preparation and fair presentation of the consolidated financial statements for the year ended December 31, 2024[182]. - The internal control work in 2024 focused on improving compliance management systems and enhancing risk prevention and control measures[190]. Employee and Training Initiatives - As of December 31, 2024, the total number of male and female employees was 1,226 and 520 respectively, resulting in a male to female ratio of approximately 2:1[144]. - The Company provided comprehensive induction for newly appointed directors to ensure they understand their obligations[126]. - The Company organized four sessions of legal knowledge training and one session of compliance case training to enhance employees' compliance awareness[196].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 1.36 [7] Core Views - The company's performance in 2024 was under pressure, primarily due to a warm winter and connection business impacts, but is expected to stabilize and recover in 2025 as connection impacts diminish and gas sales volume increases [1][4] - The company continues to prioritize shareholder returns through dividends, with a current dividend yield of 7% [3][4] Revenue and Profitability - In 2024, the company reported revenue of HKD 6.198 billion, a decrease of 3% year-on-year, and a gross profit of HKD 569 million, down 24% [1][5] - The company achieved a total gas sales volume of 2.515 billion cubic meters in 2024, reflecting a year-on-year increase of 13%, with pipeline gas sales at 1.714 billion cubic meters, up 6.5% [2] - The expected revenue for 2025 is HKD 6.509 billion, with a projected growth of 5% [5] Earnings Forecast - The report forecasts earnings per share (EPS) for 2025, 2026, and 2027 to be HKD 0.18, HKD 0.20, and HKD 0.21 respectively, with corresponding net profits of HKD 2.37 billion, HKD 2.64 billion, and HKD 2.78 billion [1][4][5] Debt and Financial Health - The company reduced interest-bearing debt by HKD 570 million in 2024, indicating an improved debt structure [3] - The financing cost is expected to decrease by HKD 20 million in 2025, contributing to better financial health [3] Growth Drivers - The connection business is anticipated to stabilize, with an expected addition of 70,000 new connections in 2025, maintaining the previous year's level [3] - The value-added services segment showed a gross profit increase of 9.6% in 2024, with a compound annual growth rate of approximately 42% over the past four years, indicating strong growth potential [3] Market Position - The company's gas sales growth rate is projected to remain above the industry average, supported by a recovery in gross margins and stabilization in connection business [4]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 1.36 [7]. Core Views - The company's performance in 2024 was under pressure, primarily due to a warm winter and connection business impacts, but is expected to stabilize and recover in 2025 as these pressures ease [1][4]. - The company continues to prioritize shareholder returns through dividends, with a current dividend yield of 7% [3][4]. Revenue and Profitability - In 2024, the company reported revenue of HKD 6.198 billion, a decrease of 3% year-on-year, and a gross profit of HKD 569 million, down 24% [1][5]. - The net profit for 2024 was HKD 209 million, reflecting a 22% decline compared to the previous year [1][5]. - The company expects revenue growth in the coming years, projecting revenues of HKD 6.509 billion, HKD 6.878 billion, and HKD 7.268 billion for 2025, 2026, and 2027 respectively, with growth rates of 5% for 2025 and 5.7% for the following years [4][5]. Gas Sales and Margins - The total gas sales volume for 2024 was 2.515 billion cubic meters, representing a year-on-year increase of 13%, with pipeline gas sales at 1.714 billion cubic meters, up 6.5% [2]. - The company anticipates total gas sales of 2.7 billion cubic meters in 2025, a 9% increase year-on-year, with pipeline gas sales expected to reach approximately 1.9 billion cubic meters [2]. - The gross margin for 2024 was HKD 0.41 per cubic meter, down from the previous year, but is expected to recover to HKD 0.52 per cubic meter in 2025 [2][4]. Connection and Value-Added Services - The company added 70,000 new connections in 2024, impacted by a downturn in the real estate market, but expects the number of new connections to stabilize in 2025 [3]. - The value-added services segment achieved a gross profit of HKD 54.7 million in 2024, a 9.6% increase year-on-year, with a compound annual growth rate of approximately 42% over the past four years [3]. Debt and Shareholder Returns - The company reduced interest-bearing debt by HKD 570 million in 2024, optimizing its debt structure [3]. - The company plans to increase dividends by no less than 10% annually from 2025 to 2027, based on a dividend per share of HKD 0.076 [3].

Core Viewpoint - The report maintains a "Buy" rating for Binhai Investment (02886), highlighting an attractive dividend yield and setting a target price of HKD 1.36 based on a 2025 P/E of 7.8x [1] Group 1: Gas Sales and Profit Margins - The company achieved a total gas sales volume of 2.515 billion cubic meters, representing a year-on-year increase of 13%, with pipeline natural gas sales at 1.714 billion cubic meters (yoy +6.5%) and gas transmission at 0.801 billion cubic meters (yoy +32%) [2] - The overall gross margin for 2024 was HKD 0.41 per cubic meter, a decrease of HKD 0.06 per cubic meter, but the gross margin for urban gas significantly recovered in the second half, reaching HKD 0.58 per cubic meter [2] - The company expects total gas sales volume to reach 2.7 billion cubic meters in 2025, a year-on-year increase of 9%, with pipeline sales also projected to grow by 9% [2] Group 2: Connection and Value-Added Services - In 2024, the company added 70,000 new connections, impacted by a downturn in the real estate market, but expects the number of new connections to stabilize in 2025 [3] - The value-added services segment achieved a gross profit of HKD 54.7 million in 2024, a year-on-year increase of 9.6%, with a compound annual growth rate of approximately 42% over the past four years [3] - The company anticipates continued double-digit growth in gross profit from value-added services in 2025, driven by the promotion of its proprietary brand, Taiyuejia [3] Group 3: Debt Management and Shareholder Returns - The company reduced interest-bearing debt by HKD 570 million in 2024, optimizing its debt structure [4] - In 2025, the company plans to further optimize its debt structure, expecting a reduction in financing costs by HKD 20 million [4] - The company is committed to returning value to shareholders, planning to increase dividends by no less than 10% annually from a base of HKD 0.076 per share for the years 2025-2027, with a current dividend yield of 7% [4]

Core Viewpoint - Binhai Investment (02886) is expected to see an increase in total gas sales volume and gross margin by 2025, presenting potential investment opportunities for investors to deploy in stages [1][4]. Financial Performance - For the fiscal year 2024, the company reported revenue of HKD 6.198 billion and a profit of HKD 209 million, with gross margin and annual profit margin at 9.2% and 3.4% respectively [1]. - Total gas sales volume reached 2.52 billion cubic meters, marking a year-on-year growth of 13%, with pipeline gas sales increasing by 6.5% and gas transmission volume soaring by 32% [1]. - The company's debt-to-asset ratio decreased by 3 percentage points to 70%, and total borrowings reduced by 15% to HKD 3.33 billion, leading to an 8.3% decline in financial costs to HKD 206 million [1]. Business Operations - The company has a strong shareholder background, with Tianjin TEDA Investment Holding Co., Ltd. holding 42.08% and Sinopec Great Wall Gas Investment Co., Ltd. holding 29.45% of shares, providing robust support for business operations [2]. - Binhai Investment actively expands gas source channels, achieving interconnectivity with four major LNG receiving stations in the North China region and signing multiple gas purchase contracts to diversify its gas source portfolio [2]. - The company has secured significant projects, including a gas supply agreement with Nanjing Yunhai Aluminum Co., Ltd., which will supply approximately 16 million cubic meters of natural gas annually for three years [2]. Growth Potential - The value-added services segment shows potential, with the proprietary brand "Taiyuejia" offering smart home solutions, and the segment's gross profit rising by approximately 10% year-on-year to HKD 54.67 million, with a compound annual growth rate of 42% over the past four years [3]. - The company is optimistic about total gas sales volume growth for 2025, expecting to maintain high single-digit growth driven by economic recovery and new projects gradually releasing capacity [3]. - The gross margin for urban gas is projected to improve, with a target of RMB 0.52 per unit for the entire year, an increase of 4 fen from 2024, enhancing overall profitability [3]. Investment Appeal - The company is seen as having a solid fundamental performance, with ongoing business development and financial optimization, making it attractive for long-term investors seeking stable returns [4]. - The expected dividend yield at the current price is around 8%, higher than the average of 5.3% over the past five years, and the forecasted price-to-earnings ratio is approximately 5 times, indicating potential for valuation recovery [4].

Core Viewpoint -滨海投资 reported record-high total gas sales volume for 2024, with a significant increase in dividend payout ratio, indicating strong performance despite industry challenges [1][2] Group 1: Financial Performance - For the fiscal year 2024, the company recorded a revenue of 6.2 billion HKD and a profit attributable to shareholders of 200 million HKD [1] - The final dividend declared is 7.6 HKD cents per share, with a payout ratio rising to 52% [1] - Total gas sales volume reached 2.52 billion cubic meters, a year-on-year increase of 13%, surpassing the national gas consumption growth rate [1] Group 2: Sales and Market Dynamics - Pipeline gas sales increased by 6.5% to 1.71 billion cubic meters, while gas transmission sales surged by 32% to 800 million cubic meters [1] - The company has optimized its customer structure, with industrial and commercial users now accounting for 81% of total gas sales volume [1] Group 3: Strategic Initiatives - The company is pursuing a diversified development strategy, enhancing upstream and downstream operations [1] - Strategic partnerships have been established, including a collaboration with Huade Smart for energy management and a cooperation agreement with the government of Deqing County [2] - The company plans to increase its dividend per share by no less than 10% from 2025 to 2027, aiming to share corporate success with shareholders [2] Group 4: Industry Outlook - The central government has set a 5% economic growth target for 2025, which is expected to benefit the natural gas industry [2] - The company's upstream and downstream layout is improving, with anticipated benefits from optimized gas sources and expanded customer base [2] - Current dividend yield is approximately 7%, with future yields expected to be very attractive, suggesting a favorable investment opportunity [2]

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 6,197,801, a decrease of 3% compared to HKD 6,406,681 in 2023[3] - Gross profit decreased by 24% to HKD 569,477 from HKD 748,979, resulting in a gross margin of 9.2%, down from 11.7%[3] - Net profit for the year was HKD 209,261, down 21% from HKD 263,422, with earnings attributable to shareholders decreasing by 22% to HKD 199,775[3] - Basic and diluted earnings per share were both HKD 14.6, representing a decline of 23% from HKD 19.0 and HKD 18.9 respectively[3] - The company reported a total comprehensive income of HKD 124,609, down from HKD 194,171 in the previous year[9] - The group reported a profit before tax of HKD 310.359 million for the year ended December 31, 2024[24] - The total dividend declared for the year was HKD 102,827,000, down from HKD 135,203,000 in 2023, a decrease of 24.0%[42] - Basic earnings per share decreased to HKD 14.6 in 2024 from HKD 19.0 in 2023, a decline of 23.7%[44] - The diluted earnings per share for 2024 is HKD 14.6, down from HKD 18.9 in 2023, reflecting a decrease of approximately 22.3%[46] Assets and Liabilities - Total assets decreased by 10% to HKD 7,749,788 from HKD 8,590,782, while total liabilities decreased by 13% to HKD 5,445,642[5] - Current assets fell by 40% to HKD 1,121,309 from HKD 1,875,411, primarily due to a significant reduction in cash and cash equivalents[5] - As of December 31, 2024, the group's current liabilities exceed current assets by approximately HKD 1.901 billion[16] - The group's current liabilities mainly consist of accounts payable and other payables, contract liabilities, and current borrowings amounting to approximately HKD 1.204 billion, HKD 680 million, and HKD 1.071 billion respectively[16] - Total borrowings decreased to HKD 3.33 billion in 2024 from HKD 3.91 billion in 2023, a decline of approximately 14.7%[54] - The group had a current ratio of approximately 0.37 as of December 31, 2024, indicating that current liabilities exceeded current assets by about HKD 1.90 billion[83] Revenue Sources - Total revenue from external customers for the year ended December 31, 2024, was HKD 6.198 billion, with contributions from pipeline natural gas sales, engineering construction, and natural gas pipeline transportation services[24] - The segment performance for pipeline natural gas sales, engineering construction, and natural gas pipeline transportation services was HKD 315.872 million, HKD 194.697 million, and HKD 58.908 million respectively, totaling HKD 569.477 million[24] - The pipeline natural gas sales revenue for the year was HKD 5,802,391,000, a decrease of approximately 1% compared to HKD 5,850,142,000 in the previous year[69] - Revenue from engineering construction and natural gas pipeline installation services was approximately HKD 327.02 million for the year ending December 31, 2024, a decrease of about 35% from HKD 504.87 million for the previous year[71] - The group transported approximately 800.86 million cubic meters of gas, with revenue from natural gas transportation services increasing by about 32% to approximately HKD 68.39 million compared to HKD 51.67 million in the previous year[73] Cost Management - The total cost of sales, administrative expenses, and R&D expenses amounted to HKD 5,943,835,000 in 2024, down from HKD 6,007,889,000 in 2023, a decrease of 1.1%[34] - Administrative expenses decreased by approximately 7% to about HKD 203 million for the year ending December 31, 2024, compared to HKD 219 million in the previous year[77] - The net financing cost decreased to HKD 120,697,000 in 2024 from HKD 156,400,000 in 2023, a reduction of 22.9%[36] - Research and development expenses were HKD 112,548, a decrease from HKD 131,580, indicating a focus on cost management[8] Market Expansion and Strategy - The company plans to explore market expansion opportunities and enhance product development strategies in the upcoming fiscal year[8] - The company aims to enhance its core gas supply business and improve main business revenue, supported by an integrated supply chain and optimized procurement strategies[92] - The company is committed to optimizing its upstream and downstream supply chain as a key development strategy during the 14th Five-Year Plan period[61] - The company launched a new value-added service brand "Taiyuejia" in August 2024, focusing on providing smart home solutions and enhancing product safety and quality[63] - The company signed multiple major gas supply contracts, including projects with Xintian Steel and Huaneng Power Plant, demonstrating its capability to expand its customer base and increase gas sales volume[62] Operational Efficiency - The company added approximately 70,000 new regular users in gas engineering construction and installation services, bringing the total user count to about 2.44 million[69] - The total gas sales volume for the year 2024 reached a record high of 2.51 billion cubic meters, with pipeline natural gas sales accounting for 1.71 billion cubic meters, representing a year-on-year growth of 6%[69] - The gas transmission service volume increased by 32% year-on-year, reaching 800 million cubic meters, with over 85% of total gas sales coming from industrial and commercial users[69] - The company has been recognized as an "Outstanding" enterprise in the local "Double Hundred Enterprises" assessment for 2023[58] Future Outlook - The OECD forecasts China's economic growth rate to be 4.5% by 2025, with a national growth target of around 5%[90] - CNPC predicts that China's natural gas demand will reach 448.5 billion cubic meters by 2025, representing a year-on-year growth of 6.2%[90] - The company will continue to promote technological innovation and respond to national clean energy development strategies and carbon neutrality goals[92] - The company plans to diversify its product categories and service offerings, expecting this segment to drive significant performance growth in the future[92] Compliance and Governance - The company fully complies with the corporate governance code as per the Hong Kong Stock Exchange listing rules[99] - The group has not early adopted any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[20] Shareholder Actions - The company repurchased a total of 6,522,000 shares for approximately HKD 7,253,460 during the year ending December 31, 2024, to increase net asset value per share and/or earnings per share[104] - The company redeemed and canceled 1,020,000 redeemable preference shares for a total amount of HKD 51 million on July 19, 2024[104] - The board proposed a final dividend of HKD 0.076 per ordinary share for the year ending December 31, 2024, consistent with the final dividend for the year ending December 31, 2023[107] - The final dividend is subject to approval at the annual general meeting scheduled for May 9, 2025, with expected payment around June 10, 2025[107]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 1.42, based on a P/E ratio of 7.2x for 2024 and a DDM valuation method assuming r=7% and g=0% [1][3]. Core Insights - The company, Binhai Investment (2886.HK), is a leading gas distributor in China, primarily operating in Tianjin and expanding to 8 provinces and 2 cities, with a strong focus on commercial clients [1][6]. - The company has a robust shareholder structure, with major stakeholders including Tianjin TEDA Investment Holding and Sinopec Great Wall Gas, providing strong support for its development [4][6]. - The company has seen a steady increase in gas sales volume, achieving 1.55 billion cubic meters in 2023, a year-on-year growth of 9%, and expects further growth in 2024 [1][6]. - The company has diversified its gas sources and reduced procurement costs by signing contracts with multiple suppliers, enhancing its supply chain flexibility [1][10]. - The company has launched value-added services, including the sale of gas appliances and safety products, which are expected to grow rapidly, with a gross profit of HKD 23.76 million in the first half of 2024, up 31.2% year-on-year [1][10]. - The company has maintained a high dividend payout, with a dividend yield of around 7%, making it attractive to investors [1][13]. Financial Performance and Valuation Summary - The company's revenue for 2023 was HKD 6.41 billion, with a projected increase to HKD 6.98 billion in 2024, reflecting a growth rate of 8.9% [2]. - The net profit attributable to shareholders for 2023 was HKD 256.61 million, with a slight increase expected in 2024 [2]. - The earnings per share (EPS) for 2024 is projected to be HKD 0.20, with a P/E ratio of 7.2x corresponding to a target price of HKD 1.42 [1][2].

Financial Performance - Revenue for the six months ended June 30, 2024, was HK$3,495,192, representing a 12% increase from HK$3,119,303 in the same period of 2023[4] - Gross profit decreased by 17% to HK$319,607 from HK$384,415 year-over-year[4] - Profit for the period was HK$171,176, a slight increase of 0% compared to HK$170,481 in the previous year[6] - Basic earnings per share attributable to owners rose by 1% to 12.41 cents from 12.31 cents[6] - Total comprehensive income for the period was HK$111,216, compared to HK$73,223 in the same period of 2023[7] - Profit for the period was HK$167,924,000, contributing to a total comprehensive income of HK$109,640,000 after accounting for other comprehensive loss[11] - Total segment revenue from external customers for the six months ended 30 June 2024 was HK$3,495,192,000, with sales of piped natural gas contributing HK$3,295,229,000[29] - Profit before income tax for the six months ended June 30, 2024, was HK$213,024,000, compared to HK$175,807,000 in the previous year, reflecting a growth of approximately 21.3%[30] - Profit attributable to owners of the Company for the six months ended 30 June 2024 was HK$167,924,000, slightly up from HK$166,436,000 in 2023, indicating a growth of 0.9%[44] Assets and Liabilities - Total assets decreased by 6% to HK$8,056,480 from HK$8,590,782 as of December 31, 2023[4] - Total liabilities decreased by 8% to HK$5,738,372 from HK$6,270,231[4] - Current assets decreased from HK$1,875,411,000 to HK$1,416,759,000, a reduction of about 24.4%[10] - Total equity attributable to owners of the Company increased slightly from HK$2,233,390,000 to HK$2,240,203,000, reflecting a growth of approximately 0.3%[11] - Non-current liabilities increased significantly from HK$2,059,386,000 to HK$3,000,074,000, marking an increase of approximately 45.7%[9] - Current liabilities decreased from HK$4,051,960,000 to HK$2,580,500,000, a decline of about 36.3%[10] - As of June 30, 2024, the Group's current liabilities exceeded its current assets by approximately HK$1,163,741,000[18] Cash Flow and Financing - Cash generated from operating activities decreased significantly to HK$104,913,000 from HK$288,015,000, representing a decline of about 63.5% year-over-year[15] - The net cash inflow from operating activities was HK$66,306,000, down from HK$255,255,000, indicating a decrease of approximately 74%[15] - The company reported a net finance income of HK$15,179, significantly up from HK$2,847 in the previous year[5] - The company experienced a net cash outflow from investing activities of HK$138,207,000, compared to HK$172,110,000 in the prior year, which is a reduction of approximately 19.7%[15] - The Group's total borrowings amounted to HK$3,907,086, showing a slight increase from HK$3,905,630 as of December 31, 2023[56] - Current borrowings decreased to HK$907,012 from HK$1,846,244, reflecting a reduction in short-term liabilities[56] Dividends and Shareholder Information - The company approved dividends totaling HK$102,827,000 for the last year, which included HK$62,725,000 from retained earnings[11] - The total 2023 Final Dividend recommended was approximately HK$102,827,000, down 24% from HK$135,203,000 in 2022[40] - The Company did not declare an interim dividend for the six months ended 30 June 2024[40] - The company’s largest shareholder, TEDA HK, holds a 36.56% ownership interest as of June 30, 2024, up from 36.24% at the end of 2023[82] Operational Highlights - The Group's income from sales of piped natural gas amounted to HK$3,295,229,000, representing an increase of HK$501,479,000 or 18% compared to HK$2,793,750,000 for the same period last year[103] - The total gas sales volume in the first half of 2024 was 1.327 billion cubic meters, a year-on-year increase of 23.2%, with piped natural gas sales reaching 0.947 billion cubic meters, an increase of 23.9%[109] - The Group's strategic focus includes the continuous optimization of upstream and downstream industry chains as part of the "14th Five-Year Plan"[109] - The Group has established a supply chain company in Shenzhen to enhance resource coordination and market expansion efforts[109] Employee and Governance - The Group had a total of 1,741 employees, a slight decrease from 1,752 employees as of December 31, 2023[119] - Employee salaries and wages for the period amounted to HK$121,200,000, representing an increase of approximately 3.5% from HK$117,168,000 for the same period in 2023[119] - The Company has adopted a Code of Conduct for securities transactions by Directors, ensuring compliance with the Model Code for Securities Transactions by Directors of Listed Issuers[140] - The Board comprises three executive Directors and three non-executive Directors as of the report date[146]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 3,495,192 thousand, representing a 12% increase compared to HKD 3,119,303 thousand for the same period in 2023[1] - Gross profit decreased by 17% to HKD 319,607 thousand from HKD 384,415 thousand year-on-year[1] - Net profit for the period was HKD 171,176 thousand, slightly up from HKD 170,481 thousand, reflecting a 0% change[1] - Operating profit for the period was HKD 255,145 thousand, down from HKD 286,428 thousand in the same period last year[3] - Other income decreased to HKD 49,327 thousand from HKD 68,424 thousand year-on-year[3] - The company reported a total comprehensive income of HKD 111,216 thousand, compared to HKD 73,223 thousand in the previous year[5] - The company reported a profit of HKD 167,924 thousand for the six months ended June 30, 2024, compared to HKD 166,436 thousand in the same period of 2023, indicating a slight increase of approximately 0.9%[9] - The company’s total comprehensive income for the six months ended June 30, 2024, was HKD 109,640 thousand, compared to HKD 72,434 thousand in the same period of 2023, representing an increase of approximately 51.4%[10] Assets and Liabilities - Total assets as of June 30, 2024, decreased by 6% to HKD 8,056,480 thousand from HKD 8,590,782 thousand as of December 31, 2023[1] - Total liabilities decreased by 8% to HKD 5,738,372 thousand from HKD 6,270,231 thousand year-on-year[1] - Total equity as of June 30, 2024, was HKD 2,318,108 thousand, a slight decrease from HKD 2,320,551 thousand as of December 31, 2023[7] - The company’s total assets decreased from HKD 8,590,782 thousand in December 2023 to HKD 8,056,480 thousand in June 2024, representing a decline of about 6.2%[8] - The company’s borrowings increased from HKD 2,059,386 thousand in December 2023 to HKD 3,000,074 thousand in June 2024, indicating a significant increase of approximately 45.7%[8] - The total liabilities, including accounts payable and other payables, increased to HKD 1,324,506 from HKD 1,183,124, reflecting a growth of 11.9%[46] Cash Flow and Financing - The net cash inflow from operating activities for the six months ended June 30, 2024, was HKD 66,306 thousand, a significant decrease from HKD 255,255 thousand in the same period of 2023, reflecting a decline of about 74%[12] - The company’s cash generated from operating activities was HKD 104,913 thousand for the six months ended June 30, 2024, compared to HKD 288,015 thousand in the same period of 2023, indicating a decrease of approximately 63.5%[12] - The net cash inflow from financing activities for the six months ended June 30, 2024, was HKD 1,351,267,000, compared to HKD 605,182,000 in the same period of 2023, representing an increase of 123.5%[13] - The net cash outflow from financing activities was HKD 48,378,000 for the six months ended June 30, 2024, a decrease from HKD 162,413,000 in the previous year, indicating improved cash management[13] - The total cash and cash equivalents decreased by HKD 120,279,000, down from a decrease of HKD 79,268,000 in the same period last year, reflecting a more challenging liquidity position[13] Shareholder Information - The company’s largest shareholder, Taida Hong Kong, holds approximately 40.63% of the issued ordinary shares, while Sinopec holds about 29.97%[14] - The total amount of final dividend proposed for the year ended December 31, 2023, is approximately HKD 102,827,000, down from HKD 135,203,000 for the previous year[96] Operational Highlights - The segment performance for pipeline natural gas sales showed a gross profit of HKD 188,923,000 for the six months ended June 30, 2024, compared to HKD 175,807,000 in 2023, indicating an increase of about 7%[28] - The company’s administrative expenses for the six months ended June 30, 2024, were HKD 139,109,000, compared to HKD 143,913,000 in 2023, showing a reduction of approximately 3%[28] - The company recognized a net profit before tax of HKD 203,772,000 for the six months ended June 30, 2024, compared to HKD 213,024,000 in 2023, representing a decrease of approximately 4%[28] - The company’s income tax expense for the six months ended June 30, 2024, was HKD 32,596,000, down from HKD 42,543,000 in 2023, a decrease of 23.4%[35] - In the first half of 2024, the company achieved a total gas sales volume of 1.327 billion cubic meters, representing a year-on-year increase of 23.2%[85] Strategic Initiatives - The company plans to continue optimizing its upstream and downstream industrial chain as part of its strategic development during the 14th Five-Year Plan[84] - The company established a supply chain company in Shenzhen in 2023 to enhance upstream resource integration and reduce procurement costs[84] - The company aims to leverage the "dual carbon" policy opportunities to drive revenue growth while exploring new profit growth points[87] - The company has established a new brand "Taiyuejia" to diversify its product offerings and enhance profitability in its value-added services segment[85] Governance and Compliance - The financial statements are prepared in accordance with Hong Kong Accounting Standards and the relevant listing rules, ensuring compliance and transparency[15] - The group has not utilized any derivative financial instruments to hedge its financial risks as of June 30, 2024, indicating a conservative risk management approach[22] - The company is committed to transparency and compliance with regulatory requirements[104] - The board of directors consists of three executive directors and four independent non-executive directors[104] - The board includes members with diverse backgrounds, including professionals and scholars[104] Employee Information - The group employed 1,741 staff as of June 30, 2024, with total employee compensation amounting to HKD 121,200,000 for the period[100]