股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 致：香港交易及結算所有限公司 公司名稱: 濱海投資有限公司 (於百慕達註冊成立之有限公司) 呈交日期: 2025年10月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02886 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,280,000,000 | HKD | | 0.1 | HKD | | 228,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,280,000,000 | HKD | | 0.1 | HKD | | 228,000,000 | | 2. 股份分類 | 優先股 | 股份 ...

国证国际主要观点如下： 气量同比有所下降，毛差同比有较大提升 上半年公司实现总销气量11.4亿方(yoy-14%)，其中管销气8.3亿方(yoy-13%)，管输气3.1亿方(yoy- 18%)。主要由于暖冬所带来的市场需求变化以及部分客户年内停工检修等原因。Q2管销气量同比上涨 +17%，恢复强劲。公司指引全年总销气量约25.68亿方，同比+2%；管销气量约18.68亿方，同比+9%。 毛差同比较大增长，上半年综合毛差0.44元/方，同比+0.07元/方，其中城镇燃气平均毛差为0.50元/方， 同比+0.07元/方。主要是公司积极开拓上游渠道资源，气体采购成本持续下降以及居民气顺价的不断推 进。公司指引全年城镇毛差约0.52元/方，同比+0.04元/方。 接驳业务影响减小，增值业务有望较好增长 国证国际发布研究报告称，公司的股息率较为吸引，给予滨海投资(02886)2025年P/E为7.9x，对应目标 价1.36港元，维持"买入"评级。公司今年持续的降本增效，大幅减少财务费用，毛差同比恢复较好，但 鉴于行业需求有待提升，略微下调公司的盈利预测。预计公司2025E/2026E/2027E收入分别为 61.46/ ...

Core Viewpoint - The report from Guozheng International highlights the attractive dividend yield of Binhai Investment (02886), maintaining a "Buy" rating with a target price of HKD 1.36, based on a 2025 P/E of 7.9x. The company's cost reduction and efficiency improvements have significantly lowered financial expenses, and while gross margin has shown recovery, the earnings forecast has been slightly adjusted due to industry demand concerns [1]. Group 1: Financial Performance - In the first half of the year, the company reported revenue of HKD 2.931 billion, a decrease of 17% year-on-year, with gross profit of HKD 310 million, down 10% year-on-year, and a net profit attributable to shareholders of HKD 173 million, an increase of 3% year-on-year. The decline in revenue and gross profit was primarily due to a warm winter in Q1, which led to reduced gas sales and weak connections [1]. - The total gas sales volume for the first half was 1.14 billion cubic meters, down 14% year-on-year, with pipeline gas sales of 830 million cubic meters (down 13%) and transmission gas of 310 million cubic meters (down 18%). However, Q2 saw a strong recovery in pipeline gas sales, which increased by 17% year-on-year [2]. Group 2: Business Segments - The impact of connection business has diminished, with the company adding 28,600 new connections in the first half, primarily affected by the downturn in the real estate market. The proportion of connection business in the overall structure is decreasing [3]. - The value-added services segment achieved revenue of HKD 37.67 million, up 6.9% year-on-year, with a gross profit of HKD 25.40 million, also up 6.9% year-on-year, indicating the company's focus and optimism towards this segment [3]. Group 3: Financing and Dividend Policy - The company's financing costs significantly decreased by 39% year-on-year to HKD 45.49 million, attributed to proactive repayment of high-interest debt and rational adjustment of the debt structure [4]. - The company plans to increase dividends by no less than 10% annually over the next three years, starting from a base of HKD 0.076 per share for 2025-2027. This strategy aims to ensure a stable absolute value of dividends for shareholders, with a projected dividend per share of HKD 0.0836 this year, resulting in an attractive dividend yield of 7.4% [4].

Core Viewpoint - The company, Binhai Investment, reported a 17% year-on-year decrease in revenue to 2.93 billion RMB for the first half of the year, while net profit attributable to shareholders increased by 3% to 170 million RMB, indicating improved business quality and cost management despite challenging macroeconomic conditions [1][2]. Group 1: Financial Performance - Revenue decreased by 17% year-on-year to 2.93 billion RMB due to weak natural gas consumption and macroeconomic challenges [1]. - Net profit attributable to shareholders increased by 3% year-on-year to 170 million RMB, driven by improved business quality and cost management [1]. - Total gas sales volume decreased by 14% year-on-year to 1.14 billion cubic meters, with pipeline sales and transportation volumes down by 12% and 18% respectively [1]. Group 2: Business Quality Improvement - In the second quarter, total gas sales volume showed a recovery with a year-on-year increase of 17% in pipeline sales, indicating a positive trend [1]. - The company expects a 9% growth in total pipeline gas sales volume for the year, outperforming peers [1]. Group 3: Cost Management and Pricing Strategy - The company has reduced gas extraction costs by over 9 million RMB through enhanced collaboration with upstream suppliers, contributing to an increase in average gross margin for urban gas sales by 0.07 RMB to 0.5 RMB per cubic meter [2]. - The financing cost decreased significantly by 39% year-on-year to 45.49 million RMB, with the average loan interest rate dropping by 82 basis points to 4.67% [3]. Group 4: Value-Added Services - Revenue and gross profit from value-added services increased by 7% year-on-year, reaching 37.67 million RMB and 25.4 million RMB respectively, with a gross margin of 67.4% [3]. - The sales of gas appliances, particularly the self-branded "Taiyuejia" products, saw a significant gross margin increase of 13 percentage points to 49.2% [3]. - The company plans to enhance its sales channels for gas appliances and has initiated a kitchen beautification business to create new revenue streams and cross-selling opportunities [3].

Core Viewpoint - The company,滨海投资, reported a 17% year-on-year decrease in revenue to 2.93 billion RMB for the first half of the year, while net profit attributable to shareholders increased by 3% to 170 million RMB, indicating improved business quality and cost management despite challenging macroeconomic conditions [1][2]. Group 1: Financial Performance - Revenue decreased by 17% year-on-year to 2.93 billion RMB due to weak natural gas consumption and macroeconomic threats [1]. - Net profit attributable to shareholders increased by 3% year-on-year to 170 million RMB, driven by improved business quality and cost management [1]. - Total gas sales volume decreased by 14% year-on-year to 1.14 billion cubic meters, with pipeline sales and transportation volumes down by 12% and 18% respectively [1]. Group 2: Business Quality Improvement - In the second quarter, total gas sales volume showed a recovery with a year-on-year increase of 17% in pipeline sales volume, indicating a positive trend [1]. - The company expects a 9% growth in total pipeline gas sales volume for the year, outperforming peers [1]. Group 3: Cost Management and Pricing Strategy - The company has optimized its upstream gas source structure, reducing gas extraction costs by over 9 million RMB, leading to an increase in average gross margin for urban gas by 0.07 RMB to 0.5 RMB per cubic meter [2]. - The new gas source structure is expected to continue to provide upward pressure on gross margins in the second half of the year [2]. Group 4: Value-Added Services - Revenue and gross profit from value-added services increased by 7% year-on-year, reaching 37.67 million RMB and 25.4 million RMB respectively, with a gross margin of 67.4% [3]. - The sales of gas appliances, particularly the self-branded "泰悦佳" products, saw significant growth, with gross margin rising by 13 percentage points to 49.2% [3]. - The company plans to enhance its sales channels for gas appliances and has initiated a kitchen beautification business to create new revenue streams and cross-selling opportunities [3]. Group 5: Financial Management - The company reduced financing costs significantly by 39% year-on-year to 45.49 million RMB, with the average loan interest rate dropping by 82 basis points to 4.67% [3]. - The company aims to maintain financial flexibility to support long-term business development [3].

Core Viewpoint - The company primarily engages in the sale of pipeline gas, operating through three business segments: pipeline gas sales, engineering construction and natural gas pipeline installation services, and natural gas transmission services [10]. Revenue and Profit Growth - The company's revenue and net profit growth rates have shown fluctuations over the years, with a notable increase in 2022 and projected growth for 2023 and 2024 [12][14]. - In the first half of 2025, the company reported a revenue of 58.024 billion HKD from pipeline gas sales, contributing significantly to its overall revenue [15][16]. Financial Performance - For the first half of 2025, the company achieved a net asset return rate of 7.59%, an increase of 0.08 percentage points compared to the same period last year [18]. - The net cash flow from operating activities was 37.619 million HKD, while financing activities generated a net cash flow of 89.906 million HKD, and investment activities resulted in a net cash outflow of 205 million HKD [22]. Asset and Liability Changes - As of the first half of 2025, the company's fixed assets increased by 5.33%, while prepayments decreased by 34.91% [32]. - Short-term borrowings rose by 73.33%, while long-term borrowings decreased by 18.1% [35]. - The company's liquidity ratios were reported as a current ratio of 0.29 and a quick ratio of 0.26 [38]. Operational Efficiency - The company’s total asset turnover ratio has been compared with the A-share industry average and median, indicating its operational efficiency [27]. - The accounts receivable turnover ratio has also been analyzed in relation to industry benchmarks [28].

[Financial Highlights](index=2&type=section&id=Financial%20Highlights) Binhai Investment Company Limited announced its unaudited consolidated results for the six months ended June 30, 2025, with revenue decreasing by 17% and gross profit by 10%, while profit for the period increased by 3% and basic earnings per share by 1%, alongside growth in total assets, equity, and liabilities Key Financial Data for H1 2025 (Unaudited) | Metric | June 30, 2025 (HK$ Thousand) | June 30, 2024 (HK$ Thousand) | Change % | | :--- | :--- | :--- | :--- | | **Profit or Loss Statement:** | | | | | Revenue | 2,931,118 | 3,530,446 | -17% | | Gross profit | 310,051 | 343,366 | -10% | | Profit for the period | 176,506 | 171,176 | 3% | | Basic Earnings Per Share | 12.54 HK cents | 12.41 HK cents | 1% | | **Balance Sheet:** | | | | | Total assets | 7,997,546 | 7,749,788 | 3% | | Total equity | 2,400,459 | 2,304,146 | 4% | | Total liabilities | 5,597,087 | 5,445,642 | 3% | [Interim Condensed Consolidated Financial Statements](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the interim condensed consolidated financial statements for the six months ended June 30, 2025, including statements of profit or loss, comprehensive income, financial position, changes in equity, and cash flows, detailing the Group's financial performance, asset and liability status, equity structure, and cash flow [Interim Condensed Consolidated Statement of Profit or Loss](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's revenue decreased by 17% to HK$2,931,118 thousand, yet profit for the period increased by 3% to HK$176,506 thousand due to a significant rise in other net gains and a reduction in net finance costs Interim Condensed Consolidated Statement of Profit or Loss for H1 2025 (Summary) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 2,931,118 | 3,530,446 | -17% | | Cost of sales and services | (2,621,067) | (3,187,080) | -18% | | Gross profit | 310,051 | 343,366 | -10% | | Other income | 13,016 | 25,568 | -49% | | Administrative expenses | (90,086) | (81,603) | +10% | | Research and development expenses | (50,447) | (57,506) | -12% | | Net reversal of impairment losses on financial and contract assets | 11,153 | 21,296 | -48% | | Other gains – net | 64,072 | 4,024 | +1492% | | Operating profit | 257,759 | 255,145 | +1% | | Net finance costs | (43,419) | (59,450) | -27% | | Profit before income tax | 221,785 | 203,772 | +9% | | Income tax expense | (45,279) | (32,596) | +39% | | Profit for the period | 176,506 | 171,176 | +3% | | Profit attributable to owners of the Company | 172,815 | 167,924 | +3% | | Basic earnings per share (HK cents) | 12.54 | 12.41 | +1% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's total comprehensive income significantly increased by 120% to HK$244,612 thousand from HK$111,216 thousand in the prior year, primarily driven by other comprehensive income turning from loss to profit Interim Condensed Consolidated Statement of Comprehensive Income for H1 2025 (Summary) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Profit for the period | 176,506 | 171,176 | +3% | | Other comprehensive income/(loss) | 68,106 | (59,960) | from loss to profit | | Total comprehensive income for the period | 244,612 | 111,216 | +120% | | Total comprehensive income attributable to owners of the Company | 239,096 | 109,640 | +118% | | Total comprehensive income attributable to non-controlling interests | 5,516 | 1,576 | +250% | [Interim Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased by 3% to HK$7,997,546 thousand, with significant growth in property, plant and equipment within non-current assets, while current borrowings substantially increased, resulting in current liabilities exceeding current assets by approximately HK$2,536,894 thousand Interim Condensed Consolidated Statement of Financial Position as of June 30, 2025 (Summary) | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | **Assets:** | | | | | Non-current assets | 6,941,308 | 6,628,479 | +5% | | Property, plant and equipment | 6,304,670 | 5,985,500 | +5% | | Current assets | 1,056,238 | 1,121,309 | -6% | | Cash and cash equivalents | 325,767 | 384,045 | -15% | | Total assets | 7,997,546 | 7,749,788 | +3% | | **Equity and Liabilities:** | | | | | Share capital | 258,292 | 282,325 | -8.5% | | Retained earnings | 2,088,511 | 2,020,124 | +3.4% | | Total equity | 2,400,459 | 2,304,146 | +4% | | Non-current liabilities | 2,003,955 | 2,422,971 | -17% | | Current liabilities | 3,593,132 | 3,022,671 | +19% | | Current borrowings | 1,856,964 | 1,071,352 | +73% | | Total liabilities | 5,597,087 | 5,445,642 | +3% | | Total equity and liabilities | 7,997,546 | 7,749,788 | +3% | [Interim Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the Group's total equity increased to HK$2,400,459 thousand, driven by profit for the period and significantly increased other comprehensive income, alongside share repurchases, preference share redemptions, and dividends paid to non-controlling interests Interim Condensed Consolidated Statement of Changes in Equity for H1 2025 (Summary) | Metric | June 30, 2025 (HK$ Thousand) | January 1, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Total equity at beginning of period | 2,304,146 | 2,320,551 | -0.7% | | Profit for the period | 176,506 | 171,176 | +3% | | Other comprehensive income/(loss) for the period | 68,106 | (59,960) | from loss to profit | | Total comprehensive income for the period | 244,612 | 111,216 | +120% | | Dividends approved for prior year | (104,428) | (102,827) | +1.6% | | Repurchase of treasury shares | (3,424) | — | N/A | | Redemption of preference shares approved | (24,033) | — | N/A | | Total equity at end of period | 2,400,459 | 2,318,108 | +3.6% | [Interim Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash inflow from operating activities decreased by 43% to HK$37,619 thousand, while net cash outflow from investing activities increased, and financing activities shifted from net outflow to net inflow, primarily due to increased borrowings, partially offset by share repurchases and dividend payments Interim Condensed Consolidated Statement of Cash Flows for H1 2025 (Summary) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Net cash inflow from operating activities | 37,619 | 66,306 | -43% | | Net cash outflow from investing activities | (205,469) | (138,207) | +49% | | Net cash inflow/(outflow) from financing activities | 89,906 | (48,378) | from outflow to inflow | | Net decrease in cash and cash equivalents | (77,944) | (120,279) | -35% | | Cash and cash equivalents at end of period | 325,767 | 662,189 | -51% | [Notes to the Condensed Consolidated Interim Financial Statements](index=13&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the condensed consolidated interim financial statements, covering general information, accounting policies, financial risk management, segment information, revenue and expense breakdowns, taxation, dividends, earnings per share, balance sheet items, and related party transactions, offering supplementary explanations for understanding the financial statements [1. GENERAL INFORMATION](index=13&type=section&id=1.%20GENERAL%20INFORMATION) The Company was incorporated in Bermuda with its principal place of business in Hong Kong, and its ordinary shares are listed on the Hong Kong Stock Exchange; it is an investment holding company with major shareholders TEDA (42.18% stake) and Sinopec (29.52% stake), and its financial statements are presented in HKD while its functional currency is RMB - Company incorporated in Bermuda on October 8, 1999, with ordinary shares listed on the Hong Kong Stock Exchange[17](index=17&type=chunk) - TEDA Hong Kong (an indirect subsidiary of TEDA) holds approximately **42.18%** of the Company's total issued ordinary shares, making it the largest ultimate shareholder[19](index=19&type=chunk) - Great Wall Gas Investment (Hong Kong) Co., Ltd. (a wholly-owned subsidiary of Sinopec) holds approximately **29.52%** of the Company's total issued ordinary shares, making it the second largest ultimate shareholder[19](index=19&type=chunk) - The Group's condensed consolidated interim financial statements are presented in HKD, while the functional currency of the Company and its subsidiaries is RMB[20](index=20&type=chunk) [2. BASIS OF PREPARATION](index=14&type=section&id=2.%20BASIS%20OF%20PREPARATION) These condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, using the historical cost convention; despite current liabilities exceeding current assets by approximately HK$2.537 billion as of June 30, 2025, management believes the Group has the ability to continue as a going concern based on profitability and secured loans - Financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Hong Kong Stock Exchange Listing Rules[22](index=22&type=chunk) - Financial statements are prepared on the historical cost basis, with certain financial assets measured at fair value[23](index=23&type=chunk) - As of June 30, 2025, the Group's current liabilities exceeded current assets by approximately **HK$2,536,894 thousand**[24](index=24&type=chunk) - Management and the Board believe the Group will maintain profitability and secure sufficient financing to continue as a going concern[28](index=28&type=chunk)[29](index=29&type=chunk) [3. ACCOUNTING POLICIES](index=15&type=section&id=3.%20ACCOUNTING%20POLICIES) The accounting policies adopted in these condensed consolidated interim financial statements are consistent with those of the annual consolidated financial statements for the year ended December 31, 2024, and the amendments to HKAS 21 have been adopted without significant impact on the Group - Accounting policies are consistent with the annual consolidated financial statements for the year ended December 31, 2024[30](index=30&type=chunk) - The Group has adopted amendments to HKAS 21, which did not have a significant impact on the Group[31](index=31&type=chunk)[34](index=34&type=chunk) - Certain new and amended standards and interpretations not yet adopted are not expected to have a significant impact on the Group[35](index=35&type=chunk) [4. ESTIMATES](index=16&type=section&id=4.%20ESTIMATES) The preparation of interim financial information involves management making judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses; the key sources of estimation uncertainty made in the current period are the same as those in the 2024 annual consolidated financial statements - Preparation of interim financial information requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[36](index=36&type=chunk) - Key sources of significant judgments and estimation uncertainty made by management in applying accounting policies during the period are the same as those in the consolidated financial statements for the year ended December 31, 2024[37](index=37&type=chunk) [5. FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS](index=17&type=section&id=5.%20FINANCIAL%20RISK%20MANAGEMENT%20AND%20FINANCIAL%20INSTRUMENTS) The Group faces market risks (including foreign exchange, interest rates), credit risk, and liquidity risk, focusing on minimizing potential adverse effects; no derivative financial instruments were used for hedging during the period, liquidity risk showed no significant changes, and financial instruments are analyzed by fair value measurement hierarchy (Level 1, 2, 3) - The Group's operations are exposed to market risks (foreign exchange risk, cash flow and fair value interest rate risk), credit risk, and liquidity risk[40](index=40&type=chunk) - As of June 30, 2025, the Group did not use any derivative financial instruments to hedge financial risks[40](index=40&type=chunk) - There were no significant changes in the contractual undiscounted cash outflows of financial liabilities compared to the end of 2024[42](index=42&type=chunk) - Financial instruments are analyzed by fair value measurement hierarchy (Level 1, Level 2, Level 3), with no transfers between levels during the period[46](index=46&type=chunk)[47](index=47&type=chunk) [6. SEGMENT INFORMATION](index=19&type=section&id=6.%20SEGMENT%20INFORMATION) The Group's chief operating decision maker (executive directors) assesses operating segment performance based on internal reports; a new "Value-added Services" segment has been added, covering gas appliance sales, minor installations, maintenance, and insurance agency services, with other main operating segments including piped natural gas sales, construction and gas pipeline installation services, and gas transmission services - The chief operating decision maker has been identified as the Company's executive directors who make strategic decisions[49](index=49&type=chunk) - A new "Value-added Services" segment has been added, covering gas appliance sales, minor installation services, maintenance services, and insurance agency services[54](index=54&type=chunk) - The Group's operating and reportable segments are sales of piped natural gas, construction and gas pipeline installation services, gas transmission services, and value-added services[54](index=54&type=chunk) Segment Revenue and Results for H1 2025 (Summary) | Segment | 2025 Revenue (HK$ Thousand) | 2024 Revenue (HK$ Thousand) | Revenue Change | 2025 Results (HK$ Thousand) | 2024 Results (HK$ Thousand) | Results Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sales of Piped Natural Gas | 2,741,373 | 3,295,229 | -17% | 189,140 | 188,923 | +0.1% | | Construction and Gas Pipeline Installation Services | 124,976 | 167,572 | -25% | 71,909 | 102,248 | -30% | | Gas Transmission Services | 27,099 | 32,391 | -16% | 23,603 | 28,436 | -17% | | Value-added Services | 37,670 | 35,254 | +7% | 25,399 | 23,759 | +7% | | **Total** | **2,931,118** | **3,530,446** | **-17%** | **310,051** | **343,366** | **-10%** | [7. OTHER INCOME](index=23&type=section&id=7.%20OTHER%20INCOME) For the six months ended June 30, 2025, the Group's total other income amounted to HK$13,016 thousand, a 49% decrease from the prior year, primarily due to a significant reduction in government grants Other Income Details for H1 2025 | Income Source | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Government grants | 9,665 | 22,644 | -57% | | Repair and renovation service income | 2,924 | 2,638 | +11% | | Rental income | 427 | 286 | +49% | | **Total** | **13,016** | **25,568** | **-49%** | [8. OTHER GAINS – NET](index=23&type=section&id=8.%20OTHER%20GAINS%20%E2%80%93%20NET) For the six months ended June 30, 2025, the Group's other net gains significantly increased by 1492% to HK$64,072 thousand, primarily due to a substantial rise in net compensation gains from natural gas pipeline relocation and net exchange gains turning from loss to profit Other Net Gains Details for H1 2025 | Source | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Net compensation gains from natural gas pipeline relocation | 54,538 | 19,031 | +187% | | Net loss on disposal of property, plant and equipment | (69) | (327) | -79% | | Net exchange gains/(losses) | 11,444 | (23,696) | from loss to profit | | Net gain on disposal of subsidiaries | 487 | 2,853 | -83% | | Others | (2,328) | 6,163 | from profit to loss | | **Total** | **64,072** | **4,024** | **+1492%** | [9. EXPENSES BY NATURE](index=24&type=section&id=9.%20EXPENSES%20BY%20NATURE) For the six months ended June 30, 2025, the Group's total cost of sales and services, administrative expenses, and research and development expenses amounted to HK$2,761,600 thousand, a 17% decrease from the prior year, primarily due to a significant reduction in natural gas purchase costs Expenses by Nature Details for H1 2025 | Expense Type | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Natural gas purchase costs | 2,385,024 | 2,942,825 | -19% | | Employee benefit expenses | 139,370 | 121,200 | +15% | | Depreciation | 104,347 | 103,993 | +0.3% | | Subcontracting and other costs | 28,521 | 27,907 | +2% | | Safety production expenses | 21,931 | 21,787 | +0.7% | | Changes in inventories of pipelines and other materials | 8,243 | 8,898 | -7% | | Purchase costs of pipelines and other materials | 14,692 | 27,677 | -47% | | Repair and maintenance expenses | 7,507 | 11,824 | -37% | | Other professional fees | 4,395 | 7,011 | -37% | | Expenses relating to short-term leases | 1,882 | 2,191 | -14% | | Amortisation | 2,203 | 2,410 | -9% | | Others | 43,485 | 48,466 | -10% | | **Total** | **2,761,600** | **3,326,189** | **-17%** | [10. FINANCE INCOME AND COSTS](index=25&type=section&id=10.%20FINANCE%20INCOME%20AND%20COSTS) For the six months ended June 30, 2025, the Group's net finance costs decreased by 27% to HK$43,419 thousand, primarily due to reduced interest expenses, partially offset by lower interest income from bank deposits Finance Income and Costs Details for H1 2025 | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Finance income: | | | | | - Interest income from bank deposits | 2,071 | 15,179 | -86% | | Finance costs: | | | | | - Interest expenses | (83,544) | (110,409) | -24% | | Less: Amount capitalised into construction in progress | 38,054 | 35,780 | +6% | | **Net finance costs** | **(43,419)** | **(59,450)** | **-27%** | [11. INCOME TAX EXPENSE](index=25&type=section&id=11.%20INCOME%20TAX%20EXPENSE) For the six months ended June 30, 2025, the Group's income tax expense increased by 39% to HK$45,279 thousand, primarily due to higher current income tax and deferred income tax expense shifting from positive to negative; some of the Group's subsidiaries enjoy a preferential tax rate of 15% as high-tech enterprises Income Tax Expense Details for H1 2025 | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Current income tax | 45,524 | 30,980 | +47% | | Deferred income tax expense | (245) | 1,616 | from positive to negative | | **Total** | **45,279** | **32,596** | **+39%** | - Eligible Group entities are taxed at **8.25%** for the first HK$2 million of profits and **16.5%** for the remainder[72](index=72&type=chunk) - Dividends declared by PRC-incorporated subsidiaries to overseas holding companies are subject to a **10%** withholding income tax rate, with Binhai Hong Kong potentially enjoying a reduced rate due to its resident status certificate[74](index=74&type=chunk)[75](index=75&type=chunk) - Tianjin Clean Energy and Tianjin Bintou Xinzhi Technology Co., Ltd. enjoy a preferential income tax rate of **15%** as high-tech enterprises[77](index=77&type=chunk) [12. DIVIDEND](index=27&type=section&id=12.%20DIVIDEND) The Board recommended a final dividend of HK$0.076 per ordinary share for the year ended December 31, 2024, totaling approximately HK$104,428 thousand, which was paid on June 10, 2025; the Board decided not to declare an interim dividend for the six months ended June 30, 2025 - The Board recommended a final dividend of **HK$0.076 per ordinary share** for the year ended December 31, 2024, totaling approximately **HK$104,428 thousand**[79](index=79&type=chunk) - Approximately **HK$104,426 thousand** of the 2024 final dividend was paid on June 10, 2025[79](index=79&type=chunk) - The Board decided not to declare an interim dividend for the six months ended June 30, 2025[80](index=80&type=chunk) [13. EARNINGS PER SHARE](index=28&type=section&id=13.%20EARNINGS%20PER%20SHARE) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company were **12.54 HK cents**, and diluted earnings per share were **12.54 HK cents**, both showing a slight increase from the prior year Earnings Per Share for H1 2025 | Metric | 2025 (HK cents) | 2024 (HK cents) | Change | | :--- | :--- | :--- | :--- | | Basic earnings per share | 12.54 | 12.41 | +1% | | Diluted earnings per share | 12.54 | 12.41 | +1% | - Basic earnings per share are calculated by dividing the profit attributable to owners of the Company by the weighted average number of ordinary shares outstanding during the period[84](index=84&type=chunk) - Diluted earnings per share adjust the amounts used to determine basic earnings per share to account for the conversion of all dilutive potential ordinary shares[86](index=86&type=chunk) [14. PROPERTY, PLANT AND EQUIPMENT](index=29&type=section&id=14.%20PROPERTY,%20PLANT%20AND%20EQUIPMENT) As of June 30, 2025, the Group's net book value of property, plant and equipment increased by 6% to HK$6,304,670 thousand from the prior year, with additions of HK$224,477 thousand during the period and an impact from exchange differences Changes in Property, Plant and Equipment for H1 2025 | Metric | June 30, 2025 (HK$ Thousand) | June 30, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Net book value at beginning of period | 5,985,500 | 6,007,569 | -0.4% | | Additions | 224,477 | 163,149 | +38% | | Disposals | (2,760) | (281) | +882% | | Depreciation expense | (95,745) | (95,578) | +0.2% | | Exchange differences | 193,198 | (123,319) | from negative to positive | | **Net book value at end of period** | **6,304,670** | **5,951,540** | **+6%** | [15. TRADE AND OTHER RECEIVABLES](index=30&type=section&id=15.%20TRADE%20AND%20OTHER%20RECEIVABLES) As of June 30, 2025, the Group's total trade and other receivables increased by 15% to HK$351,028 thousand from the end of 2024, with a significant increase in trade receivables from third-party piped natural gas sales and a decrease in impairment provisions Trade and Other Receivables Details as of June 30, 2025 | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Amounts due from third parties (unimpaired) | 324,078 | 298,762 | +8% | | Less: Impairment provision | (88,922) | (95,950) | -7% | | Amounts due from third parties (impaired) | 235,156 | 202,812 | +16% | | Amounts due from related parties (impaired) | 4,667 | 6,210 | -25% | | Other receivables (impaired) | 111,205 | 95,580 | +16% | | **Total** | **351,028** | **304,602** | **+15%** | Ageing Analysis of Trade Receivables as of June 30, 2025 (based on revenue recognition date) | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | 0-90 days | 88,075 | 65,725 | +34% | | 91-180 days | 5,249 | 20,059 | -74% | | 181-365 days | 35,033 | 27,778 | +26% | | Over 365 days | 201,738 | 196,293 | +3% | | **Total** | **330,095** | **309,855** | **+6.5%** | - The Group provides a **90-day** credit period to piped natural gas sales customers and gas transmission service customers, and a **180-day** credit period to construction and gas pipeline installation service customers[93](index=93&type=chunk) - The Group applies the simplified approach under HKFRS 9 to measure expected credit losses, applying a lifetime expected loss allowance for all trade receivables and contract assets[97](index=97&type=chunk) [16. SHARE CAPITAL](index=32&type=section&id=16.%20SHARE%20CAPITAL) As of June 30, 2025, the Company's total issued and fully paid share capital decreased by 8.5% to HK$258,292 thousand from the end of 2024, primarily due to the redemption of redeemable preference shares Share Capital Composition as of June 30, 2025 | Share Capital Type | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Ordinary shares | 138,325 | 138,325 | 0% | | Redeemable preference shares | 119,967 | 144,000 | -16.7% | | **Total** | **258,292** | **282,325** | **-8.5%** | [17. TRADE AND OTHER PAYABLES](index=33&type=section&id=17.%20TRADE%20AND%20OTHER%20PAYABLES) As of June 30, 2025, the Group's total trade and other payables increased by 1.8% to HK$1,226,107 thousand from the end of 2024, with slight increases in both trade payables and other payables Trade and Other Payables Details as of June 30, 2025 | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 661,493 | 647,310 | +2.2% | | Other payables | 562,151 | 550,485 | +2.1% | | Accrued expenses | 2,463 | 6,617 | -63% | | **Total** | **1,226,107** | **1,204,412** | **+1.8%** | Ageing Analysis of Trade Payables as of June 30, 2025 (based on invoice date from suppliers) | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | 0-90 days | 113,751 | 174,303 | -35% | | 91-180 days | 64,790 | 51,766 | +25% | | 181-365 days | 124,697 | 101,772 | +22.5% | | Over 365 days | 358,255 | 319,469 | +12% | | **Total** | **661,493** | **647,310** | **+2.2%** | [18. BORROWINGS](index=34&type=section&id=18.%20BORROWINGS) As of June 30, 2025, the Group's total borrowings increased by 11.3% to HK$3,706,434 thousand from the end of 2024, with current borrowings significantly increasing by 73% while non-current borrowings decreased; borrowings are primarily denominated in RMB, partly secured, and include syndicated loans Total Borrowings and Composition as of June 30, 2025 | Borrowing Type | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Total non-current borrowings | 1,849,470 | 2,258,172 | -18% | | Total current borrowings | 1,856,964 | 1,071,352 | +73% | | **Total borrowings** | **3,706,434** | **3,329,524** | **+11.3%** | - The RMB tranche of the syndicated loan was repaid in April 2025, with the remaining principal due in June 2026[104](index=104&type=chunk) - Secured bank borrowings are guaranteed by charging rights and trade receivables of certain subsidiaries[109](index=109&type=chunk) - Other borrowings are secured by equity interests and natural gas pipeline assets of a subsidiary[111](index=111&type=chunk) Borrowings Repayment Schedule as of June 30, 2025 | Repayment Period | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Within one year | 1,856,964 | 1,071,352 | +73% | | Over one year but not exceeding two years | 986,190 | 1,430,495 | -31% | | Over two years but not exceeding five years | 337,793 | 309,582 | +9% | | Over five years | 525,487 | 518,095 | +1.4% | | **Total** | **3,706,434** | **3,329,524** | **+11.3%** | [19. DEFERRED INCOME](index=38&type=section&id=19.%20DEFERRED%20INCOME) As of June 30, 2025, the Group's total deferred income slightly decreased to HK$142,627 thousand from the end of 2024, primarily comprising government grants and construction project grants related to natural gas pipeline construction and heating projects, which are recognized in profit or loss on a straight-line basis over the estimated useful lives of the related assets Deferred Income Details as of June 30, 2025 | Deferred Income Type | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Government grants | 52,260 | 57,433 | -9% | | Construction project grants | 90,367 | 87,832 | +3% | | **Total** | **142,627** | **145,265** | **-1.8%** | - Government grants related to natural gas pipeline construction projects are recognized in profit or loss on a straight-line basis over their estimated useful life of **30 years**[118](index=118&type=chunk) - Construction project grants related to natural gas pipeline and heating projects are recognized in profit or loss on a straight-line basis over the estimated useful lives of the related assets[118](index=118&type=chunk) [20. DEFERRED TAXATION](index=39&type=section&id=20.%20DEFERRED%20TAXATION) As of June 30, 2025, the Group's net deferred tax assets decreased to HK$26,617 thousand from the end of 2024, primarily arising from deferred income and impairment provisions, while deferred tax liabilities mainly stemmed from accelerated depreciation of equipment Deferred Tax Assets as of June 30, 2025 | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Total deferred tax assets | 51,905 | 53,375 | -2.7% | | Offsetting deferred tax liabilities | (25,288) | (22,602) | +12% | | **Net deferred tax assets** | **26,617** | **30,773** | **-13.5%** | Changes in Deferred Tax Assets for H1 2025 | Source | January 1, 2025 (HK$ Thousand) | Charged to profit or loss (HK$ Thousand) | Currency translation differences (HK$ Thousand) | June 30, 2025 (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Deferred income | 27,235 | (756) | 778 | 27,257 | | Impairment provision | 13,550 | (2,491) | 357 | 11,416 | | Accrued expenses | 3,646 | — | 382 | 4,028 | | Tax losses | 8,944 | — | 260 | 9,204 | | **Total** | **53,375** | **(3,247)** | **1,777** | **51,905** | Deferred Tax Liabilities as of June 30, 2025 | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Total deferred tax liabilities | 32,335 | 34,866 | -7.3% | | Offsetting deferred tax assets | (25,288) | (22,602) | +12% | | **Net deferred tax liabilities** | **7,047** | **12,264** | **-42.6%** | Changes in Deferred Tax Liabilities for H1 2025 | Source | January 1, 2025 (HK$ Thousand) | (Credited)/charged to profit or loss (HK$ Thousand) | Currency translation differences (HK$ Thousand) | June 30, 2025 (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Withholding tax on unremitted earnings | 5,315 | (5,391) | 76 | — | | Accelerated depreciation of equipment | 29,105 | 1,899 | 872 | 31,876 | | Others | 446 | — | 13 | 459 | | **Total** | **34,866** | **(3,492)** | **961** | **32,335** | [21. COMMITMENTS](index=43&type=section&id=21.%20COMMITMENTS) As of June 30, 2025, the Group's contracted but unprovided capital commitments primarily relate to property, plant and equipment, amounting to HK$495,937 thousand, a significant increase from the end of 2024 Capital Commitments as of June 30, 2025 | Commitment Type | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Contracted but not provided for - property, plant and equipment | 495,937 | 307,959 | +61% | [22. RELATED PARTY TRANSACTIONS](index=43&type=section&id=22.%20RELATED%20PARTY%20TRANSACTIONS) This section details various transactions and balances between the Group and its major shareholders (TEDA and Sinopec) and their controlled entities, as well as other related parties, including piped natural gas sales, construction, natural gas purchases, rental income, interest expenses, and receivables/payables, all conducted in the ordinary course of business and adhering to market pricing principles - TEDA, the Company's largest ultimate shareholder, and its indirect subsidiaries hold a **42.18%** equity interest, while Sinopec, the second largest ultimate shareholder, and its wholly-owned subsidiaries hold a **29.52%** equity interest[132](index=132&type=chunk) Related Party Transactions for H1 2025 (Summary) | Transaction Type | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Sales of piped natural gas | 196,975 | 197,629 | -0.3% | | Construction and gas pipeline installation services | 2,554 | 2,783 | -8.2% | | Gas transmission service income | 50 | — | N/A | | Rental income | — | 115 | -100% | | Purchase of natural gas | 460,532 | 990,910 | -53.5% | | Purchase of gasoline and others | 10,593 | 787 | +1245% | | Interest expenses | 6,424 | 6,510 | -1.3% | | Other service fees | 7,900 | 8,029 | -1.6% | | Sales of meters and others | 809 | 1,036 | -22% | Related Party Balances as of June 30, 2025 (Summary) | Balance Type | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Trade and other receivables | 11,603 | 11,566 | +0.3% | | Prepayments | 24,404 | 47,224 | -48.3% | | Trade and other payables | 11,054 | 8,201 | +34.8% | | Contract liabilities | 10,652 | 16,412 | -35.1% | | Borrowings | 328,740 | 319,354 | +2.9% | - The pricing for the Group's sales of piped natural gas to related parties is based on reference prices issued by local governments[148](index=148&type=chunk) - The Group conducts various transactions with other state-controlled entities in China, including buying and selling piped natural gas, construction, asset leasing, and financing, with terms comparable to those with non-state-controlled entities[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk) [Business Review and Management Discussion and Analysis](index=53&type=section&id=Business%20Review%20and%20Management%20Discussion%20and%20Analysis) This section comprehensively reviews the Group's business performance in H1 2025, including piped natural gas sales, construction, gas transmission, and value-added services, analyzing market conditions, financial position, financing strategies, and future outlook; despite revenue declines in some core businesses due to a warm winter and slow economic recovery, value-added services performed strongly, and the Group effectively reduced costs by optimizing its financing structure [Business Review](index=53&type=section&id=Business%20Review) The Group primarily engages in piped natural gas sales, construction and gas pipeline installation services, gas transmission services, and value-added services; revenue from piped natural gas sales and construction services decreased due to a warm winter and slow economic recovery, but value-added service revenue increased [Sales of Piped Natural Gas](index=53&type=section&id=Sales%20of%20Piped%20Natural%20Gas) Due to a warm winter and slow economic recovery, China's apparent natural gas consumption decreased by 0.9% year-on-year in H1 2025; the Group's total gas sales volume decreased by 14%, and piped natural gas sales revenue decreased by 17% to HK$2,741,373 thousand - In H1 2025, China's apparent natural gas consumption reached **211.97 billion cubic meters**, a year-on-year decrease of **0.9%**[165](index=165&type=chunk) - The Group's total gas sales volume in H1 was **1.14 billion cubic meters**, a year-on-year decrease of **14%**; piped gas sales volume was **0.83 billion cubic meters**, a year-on-year decrease of **12.4%**[165](index=165&type=chunk) Sales of Piped Natural Gas Revenue for H1 2025 | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Sales of piped natural gas revenue | 2,741,373 | 3,295,229 | -17% | [Construction and Gas Pipeline Installation Service](index=54&type=section&id=Construction%20and%20Gas%20Pipeline%20Installation%20Service) Affected by a weaker-than-expected recovery in China's real estate market, the Group's total user base grew by 1% to **2.47 million**; as of June 30, 2025, the urban medium-pressure gas pipeline network length increased by **38 kilometers**, and service revenue for the period decreased by 25% to HK$124,976 thousand - The Group's total user base increased to **2.47 million households**, a year-on-year increase of **1%**[170](index=170&type=chunk) - As of June 30, 2025, the urban medium-pressure gas pipeline network length was approximately **4,014 kilometers**, an increase of **38 kilometers** from the end of 2024[170](index=170&type=chunk) Construction and Gas Pipeline Installation Service Revenue for H1 2025 | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Service revenue | 124,976 | 167,572 | -25% | [Gas Transmission Service](index=55&type=section&id=Gas%20Passing%20Through%20Service) Natural gas, as a clean and efficient energy source, plays a crucial role in the Group's transmission services; during the period, the Group's gas transmission volume was approximately **311,520 thousand cubic meters**, and gas transmission service revenue decreased by 16% to HK$27,099 thousand - Natural gas as a clean and efficient energy source plays an indispensable role in addressing environmental pollution[172](index=172&type=chunk) - During the period, the Group's gas transmission volume was approximately **311,520 thousand cubic meters**[173](index=173&type=chunk) Gas Transmission Service Revenue for H1 2025 | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Service revenue | 27,099 | 32,391 | -16% | [Value-added Service](index=56&type=section&id=Value-added%20Service) The Group offers various value-added services including gas appliance sales, minor installations, maintenance, and insurance agency; during the period, total value-added service revenue increased by 7% to HK$37,670 thousand, with significant growth in gas appliance sales, maintenance, and insurance agency service revenues - Value-added services include gas appliance sales, minor installation services, maintenance services, and insurance agency services[175](index=175&type=chunk) Value-added Service Revenue Details for H1 2025 | Service Type | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Total value-added service revenue | 37,670 | 35,254 | +7% | | Gas appliance sales revenue | 9,931 | 7,167 | +39% | | Minor installation service revenue | 18,464 | 20,652 | -11% | | Maintenance service revenue | 4,177 | 3,195 | +31% | | Insurance agency service revenue | 5,098 | 4,240 | +20% | [Property Development](index=56&type=section&id=Property%20Development) As of June 30, 2025, the Group held a commercial development land parcel of approximately **15,899.6 square meters** in Tianjin Airport Economic Area; given the Group's strategic focus on gas business development, it plans to dispose of this property under construction - The Group holds a commercial development land parcel of approximately **15,899.6 square meters** in Tianjin Airport Economic Area[176](index=176&type=chunk) - The Group plans to dispose of this property under construction to focus on gas business development[179](index=179&type=chunk) [Management Discussion and Analysis](index=57&type=section&id=Management%20Discussion%20and%20Analysis) Management discussed the challenges and opportunities in the natural gas market during H1 2025, highlighting the Group's strategies in diversified gas sources, upstream-downstream integration, value-added service expansion, and integrated energy transition; it also detailed the Group's financial performance, liquidity, borrowing structure, and risk management, expressing confidence in future profit growth [Prospects](index=57&type=section&id=Prospects) In H1 2025, China's natural gas market experienced insufficient demand due to a warm winter and slow economic recovery; the Group's total gas sales volume decreased by 14% year-on-year, but Q2 sales volume increased by 13%, indicating continued rapid business development, and the Group will persist in its diversified gas source strategy, deepen cooperation with upstream suppliers, and accelerate the development of value-added services and integrated energy projects - In H1 2025, the natural gas market in mainland China generally operated weakly, with apparent consumption decreasing by **0.9%** year-on-year[182](index=182&type=chunk) - The Group's total gas sales volume decreased by **14%** year-on-year in H1, but total gas sales volume in Q2 increased by **13%** year-on-year, indicating rapid development of the gas sales business[182](index=182&type=chunk) - Local governments have issued natural gas retail price adjustment policies, improving the inverted residential gas price situation and helping city gas companies restore gross profit margins[184](index=184&type=chunk) - The Group will continue to adhere to a diversified gas source strategy, deepen cooperation with major upstream gas suppliers, and leverage its integrated upstream and downstream industrial chain layout[186](index=186&type=chunk) - Value-added service revenue and gross profit both increased by **7%** year-on-year, with self-branded "Taiyuejia" gas appliance sales revenue and gross profit increasing by **39%** and **91%** year-on-year, respectively[187](index=187&type=chunk) - The Group plans to expand the scope of value-added services, enrich the "Taiyuejia" product range, launch kitchen renovation services, and complete the establishment of an e-commerce platform in the second half of the year[187](index=187&type=chunk) [Financial Review](index=61&type=section&id=Financial%20Review) During the period, the Group's consolidated gross profit margin increased to **10.6%**, primarily due to an improved gross profit margin from piped natural gas sales; administrative expenses increased by 10% year-on-year, and profit attributable to owners of the Company grew by 3% year-on-year, mainly driven by higher other income and lower finance costs Financial Review Summary for H1 2025 | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Consolidated gross profit | 310,000 | 343,000 | -10% | | Consolidated gross profit margin | 10.6% | 9.7% | +0.9 percentage points | | Administrative expenses | 90,000 | 82,000 | +10% | | Profit attributable to owners of the Company | 173,000 | 168,000 | +3% | | Basic earnings per share | 12.54 HK cents | 12.41 HK cents | +0.13 HK cents | - The increase in consolidated gross profit margin was primarily due to an increase in the gross profit margin from sales of piped natural gas[193](index=193&type=chunk) - The increase in profit attributable to owners of the Company was mainly due to an increase in other income and a decrease in finance costs[195](index=195&type=chunk) [Liquidity and Financial Resources](index=62&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily meets its liquidity needs through operating cash flows and interest-bearing bank loans and other borrowings; as of June 30, 2025, total borrowings were HK$3,706,434 thousand, cash and bank deposits were approximately HK$391,851 thousand, the current ratio was **0.29**, and the gearing ratio was approximately **58%** - The Group primarily finances its capital liquidity needs through cash flows generated from operating activities and interest-bearing bank loans and other borrowings[201](index=201&type=chunk) Liquidity and Financial Resources Summary as of June 30, 2025 | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Total borrowings | 3,706,434 | 3,329,524 | +11.3% | | Cash and bank deposits | 391,851 | 415,125 | -5.6% | | Consolidated current assets | 1,056,238 | — | N/A | | Current ratio | 0.29 | — | N/A | | Gearing ratio | 58% | 56% | +2 percentage points | - The Group's current liabilities exceeded current assets by approximately **HK$2,536,894 thousand**, but the Board believes the Group has sufficient working capital to meet its financial obligations[208](index=208&type=chunk)[210](index=210&type=chunk) [Borrowings Structure](index=63&type=section&id=Borrowings%20Structure) As of June 30, 2025, the Group's total borrowings amounted to HK$3,706,434 thousand, with **18%** denominated in USD and **82%** in RMB; **25%** were at fixed interest rates and **75%** at floating rates, and the total current portion of short-term and long-term borrowings was HK$1,856,964 thousand - As of June 30, 2025, **18%** of total borrowings were denominated in USD and **82%** in RMB[205](index=205&type=chunk) - Syndicated loans are in USD with an interest rate of SOFR plus **2.35%** per annum; domestic bank secured RMB borrowings have annual interest rates ranging from **3.20% to 5.00%**[206](index=206&type=chunk) - **25%** of borrowings are at fixed interest rates, and **75%** are at floating interest rates[206](index=206&type=chunk) - The total current portion of short-term and long-term borrowings amounted to **HK$1,856,964 thousand**[206](index=206&type=chunk) [Exposure to Exchange Rate Fluctuations](index=64&type=section&id=Exposure%20to%20Exchange%20Rate%20Fluctuations) The Group's deposits and bank borrowings denominated in HKD and USD expose it to foreign exchange risk; for the six months ended June 30, 2025, financing activities generated approximately **HK$11 million** in net exchange gains, and while the Group currently has no foreign exchange hedging policy, management continuously monitors this risk - The Group's deposits and bank borrowings denominated in HKD and USD expose it to foreign exchange risk[211](index=211&type=chunk) - For the six months ended June 30, 2025, financing activities generated approximately **HK$11 million** in net exchange gains[211](index=211&type=chunk) - The Group currently has no foreign exchange hedging policy, but management monitors foreign exchange risk and considers hedging when necessary[212](index=212&type=chunk) [Treasury Policies](index=64&type=section&id=Treasury%20Policies) For the six months ended June 30, 2025, the Group adopted a prudent financial approach to treasury policies, committed to cautious capital and cash flow management to maintain a robust liquidity position - The Group adopts a prudent financial approach to treasury policies and is committed to cautious capital and cash flow management[213](index=213&type=chunk) [Charge on the Group's Assets](index=64&type=section&id=Charge%20on%20the%20Group's%20Assets) As of June 30, 2025, **50%** of Tianjin Clean Energy's equity interest (approximately **HK$658,353 thousand**) was pledged as security for other borrowings; additionally, pipeline networks and equipment with a net book value of approximately **HK$347,729 thousand** were also pledged - As of June 30, 2025, **50%** of Tianjin Clean Energy's equity interest (approximately **HK$658,353 thousand**) was pledged as security for other borrowings[214](index=214&type=chunk) - As of June 30, 2025, pipeline networks and equipment with a net book value of approximately **HK$347,729 thousand** were pledged as security for other borrowings[215](index=215&type=chunk) - The Group's restricted bank deposits amounted to **HK$31,081 thousand**[214](index=214&type=chunk) [Final Dividend](index=65&type=section&id=Final%20Dividend) The Board recommended a final dividend of **HK$0.076 per ordinary share** for the year ended December 31, 2024, totaling approximately **HK$104,428 thousand**, which was paid on June 10, 2025 - The Board recommended a final dividend of **HK$0.076 per ordinary share** for the year ended December 31, 2024[219](index=219&type=chunk) - The total 2024 final dividend of approximately **HK$104,428 thousand** was paid on June 10, 2025[219](index=219&type=chunk) [Interim Dividend](index=65&type=section&id=Interim%20Dividend) The Board did not declare an interim dividend for the six months ended June 30, 2025 - The Board did not declare an interim dividend for the six months ended June 30, 2025[220](index=220&type=chunk) [Contingent Liabilities](index=65&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[221](index=221&type=chunk) [Significant Investments](index=65&type=section&id=Significant%20Investments) During the period, the Company held no significant investments - During the period, the Company held no significant investments[222](index=222&type=chunk) [Material Acquisitions and Disposals of Subsidiaries and Associated Companies](index=65&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associated%20Companies) During the period, the Group did not undertake any material acquisitions or disposals of subsidiaries and associated companies - During the period, the Group did not undertake any material acquisitions or disposals of subsidiaries and associated companies[223](index=223&type=chunk) [IMPORTANT EVENTS AFTER THE END OF THE FINANCIAL PERIOD](index=66&type=section&id=IMPORTANT%20EVENTS%20AFTER%20THE%20END%20OF%20THE%20FINANCIAL%20PERIOD) As of the date of this interim report, no significant events affecting the Group have occurred - As of the date of this interim report, no significant events affecting the Group have occurred[229](index=229&type=chunk) [FUTURE PLANS FOR MATERIAL INVESTMENTS AND CAPITAL ASSETS](index=66&type=section&id=FUTURE%20PLANS%20FOR%20MATERIAL%20INVESTMENTS%20AND%20CAPITAL%20ASSETS) The Group currently has no future plans for material investments or capital assets - The Group currently has no future plans for material investments or capital assets[230](index=230&type=chunk) [Employees](index=66&type=section&id=Employees) As of June 30, 2025, the Group had **1,740** employees, a slight decrease from the end of 2024; staff salaries and wages for the period amounted to approximately **HK$139 million**, of which approximately **HK$21 million** was charged to research and development expenses - As of June 30, 2025, the Group had **1,740** employees (December 31, 2024: 1,746 employees)[231](index=231&type=chunk) - Staff salaries and wages for the period amounted to approximately **HK$139 million** (H1 2024: HK$121 million)[231](index=231&type=chunk) - Approximately **HK$21 million** of this was charged to research and development expenses (H1 2024: HK$23 million)[231](index=231&type=chunk) [Remuneration Policy](index=66&type=section&id=Remuneration%20Policy) The Group is committed to providing competitive remuneration, fostering a fair, inclusive, and safe work environment, and motivating employees through training, performance evaluations, and a share option scheme; salaries are determined based on market rates, employee performance, qualifications, and experience, with benefits including pension, unemployment, work injury, medical, maternity insurance, and housing provident fund - The Group is committed to providing competitive remuneration and fostering a fair, inclusive, and safe work environment[232](index=232&type=chunk) - Salaries are determined with reference to market rates, employee performance, qualifications, and experience, with discretionary bonuses awarded[237](index=237&type=chunk) - The Group provides training opportunities and other benefits to employees, including pension insurance, unemployment insurance, work injury insurance, medical insurance, maternity insurance, and housing provident fund[237](index=237&type=chunk) - The Company adopted a share option scheme on January 13, 2021, as an incentive and reward program for directors, senior management, and eligible employees[238](index=238&type=chunk) [Other Information](index=68&type=section&id=Other%20Information) This section discloses the interests and short positions of directors, chief executives, substantial shareholders, and other persons in the Company's shares and underlying shares, along with details of the share option scheme; it also covers changes in directors' information, the audit committee, code of conduct for securities transactions by directors, corporate governance code, purchases, sales, and redemptions of listed securities, and the redemption of redeemable preference shares [INTERESTS AND SHORT POSITIONS OF DIRECTORS, CHIEF EXECUTIVES, SUBSTANTIAL SHAREHOLDERS AND OTHER PERSONS IN THE SHARES AND UNDERLYING SHARES OF THE COMPANY](index=68&type=section&id=INTERESTS%20AND%20SHORT%20POSITIONS%20OF%20DIRECTORS,%20CHIEF%20EXECUTIVES,%20SUBSTANTIAL%20SHAREHOLDERS%20AND%20OTHER%20PERSONS%20IN%20THE%20SHARES%20AND%20UNDERLYING%20SHARES%20OF%20THE%20COMPANY) As of June 30, 2025, Mr. Gao Liang and Professor Luo Wenyu, directors, held interests in the Company's ordinary shares and underlying shares; substantial shareholders TEDA and Sinopec, through their controlled entities, held **41.89%** and **29.31%** of the Company's ordinary share interests, respectively Interests of Directors and Chief Executives in the Company's Ordinary Shares as of June 30, 2025 | Name of Director | Capacity | Interests in underlying ordinary shares by virtue of share options | Total Interests | Approximate % of total issued ordinary shares | | :--- | :--- | :--- | :--- | :--- | | Mr. Gao Liang | Beneficial owner | 1,969,281 | 1,969,281 | 0.14% | | Professor Luo Wenyu | Beneficial owner | — | 100,000 | 0.01% | Interests of Substantial Shareholders in the Company's Share Capital as of June 30, 2025 | Name of Shareholder | Capacity and Nature of Interest | Interests in the Company | Total Interests | Approximate % of total issued ordinary shares | | :--- | :--- | :--- | :--- | :--- | | TEDA | Interest in controlled corporations | 579,378,707 | 579,378,707 | 41.89% | | China Petrochemical Corporation | Interest in controlled corporations | 405,472,337 | 405,472,337 | 29.31% | | Sinopec | Interest in controlled corporations | 405,472,337 | 405,472,337 | 29.31% | - TEDA holds ordinary shares of the Company through its indirect subsidiaries TEDA Hong Kong, Santa Resources, and Leader Top[255](index=255&type=chunk) - China Petrochemical Corporation is the controlling shareholder of Sinopec and is deemed to have an interest in all shares held by Sinopec[255](index=255&type=chunk) [SHARE OPTION SCHEME](index=73&type=section&id=SHARE%20OPTION%20SCHEME) The Company adopted the 2021 Share Option Scheme on January 13, 2021, to improve governance, incentivize management and core employees, and attract and retain talent; participants include directors, senior management, and core technical personnel, with options having a seven-year exercise period and exercise prices determined by fair market value, and during the period, some first and second batch options lapsed, but no new options were granted or exercised - The 2021 Share Option Scheme aims to improve the Company's governance structure, incentivize management and core employees, and attract and retain core talent[257](index=257&type=chunk) - Participants include directors (excluding independent non-executive directors), senior management, and core technical and management personnel who directly influence the Company's overall operating performance and sustainable development[258](index=258&type=chunk) - The option exercise period is **seven years** from the grant date, and the exercise price is the higher of the closing price of ordinary shares on the grant date, the average closing price for the five trading days preceding the grant date, and the nominal value of ordinary shares on the grant date[262](index=262&type=chunk)[263](index=263&type=chunk) Share Option Movements as of June 30, 2025 (Summary) | Batch | Grantees | Outstanding as at January 1, 2025 (thousand shares) | Lapsed during the period (thousand shares) | Outstanding as at June 30, 2025 (thousand shares) | | :--- | :--- | :--- | :--- | :--- | | First Batch | Mr. Gao Liang | 1,174 | (352) | 822 | | First Batch | Employees | 17,547 | (5,509) | 12,038 | | Second Batch and Further Second Batch | Mr. Gao Liang | 1,912 | (765) | 1,147 | | Second Batch and Further Second Batch | Employees | 33,841 | (12,453) | 21,388 | | **Total** | | **54,474** | **(19,079)** | **35,395** | - The effectiveness of the Second Batch and Further Second Batch share options is linked to performance assessment indicators and individual performance assessment results[268](index=268&type=chunk) - No share options were granted, exercised, cancelled, or lapsed during the period ended June 30, 2025[272](index=272&type=chunk)[280](index=280&type=chunk) [CHANGE IN DIRECTORS' INFORMATION](index=82&type=section&id=CHANGE%20IN%20DIRECTORS'%20INFORMATION) As of the date of this report, the Company is unaware of any other changes in directors' information required to be disclosed under Rule 13.51B(1) of the Listing Rules - As of the date of this report, the Company is unaware of any other changes in directors' information required to be disclosed under Rule 13.51B(1) of the Listing Rules[291](index=291&type=chunk) [AUDIT COMMITTEE](index=82&type=section&id=AUDIT%20COMMITTEE) The Company has established an Audit Committee in accordance with the Listing Rules, comprising four independent non-executive directors, with Mr. Lau Siu Kee and Dr. Tang Lai Wah being qualified accountants; the Audit Committee has reviewed the Group's unaudited consolidated results for the period and provided advice on the interim report - The Audit Committee comprises four independent non-executive directors: Mr. Lau Siu Kee, Mr. Yip Sing Cheong, Professor Luo Wenyu, and Dr. Tang Lai Wah[292](index=292&type=chunk) - Mr. Lau Siu Kee, the Committee Chairman, and Dr. Tang Lai Wah are qualified accountants[292](index=292&type=chunk) - The Audit Committee has reviewed the Group's unaudited consolidated results for the period and provided advice and comments on the interim report[292](index=292&type=chunk) [CODE OF CONDUCT REGARDING SECURITIES TRANSACTIONS BY DIRECTORS](index=83&type=section&id=CODE%20OF%20CONDUCT%20REGARDING%20SECURITIES%20TRANSACTIONS%20BY%20DIRECTORS) The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the Model Code; all directors have confirmed compliance with this code throughout the period - The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the required standards for dealing as set out in the Model Code[296](index=296&type=chunk) - All directors have confirmed compliance with the required dealing standards set out in the Model Code and the Company's code of conduct throughout the period[297](index=297&type=chunk) [CORPORATE GOVERNANCE CODE](index=83&type=section&id=CORPORATE%20GOVERNANCE%20CODE) The Company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the period - The Company has complied with the applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the period[298](index=298&type=chunk) [PURCHASES, SALES OR REDEMPTION OF LISTED SECURITIES](index=83&type=section&id=PURCHASES,%20SALES%20OR%20REDEMPTION%20OF%20LISTED%20SECURITIES) For the six months ended June 30, 2025, the Company repurchased a total of **3,138,000** ordinary shares on the Stock Exchange for a total consideration of approximately **HK$3,417,520**, under a general mandate approved by shareholders, aiming to increase net asset value per share and/or earnings per share; the repurchased shares were subsequently held by the Company as treasury shares, totaling **9,660,000** shares - For the six months ended June 30, 2025, the Company repurchased a total of **3,138,000** ordinary shares for a total consideration of approximately **HK$3,417,520**[299](index=299&type=chunk) - The share repurchases aimed to increase the Company's net asset value per share and/or earnings per share[299](index=299&type=chunk) Details of Share Repurchases for H1 2025 | Month of Repurchase | Number of Shares Repurchased | Highest Price Paid (HK$) | Lowest Price Paid (HK$) | Total Consideration Paid (HK$) | | :--- | :--- | :--- | :--- | :--- | | January | 816,000 | 1.16 | 1.06 | 918,080 | | March | 1,060,000 | 1.12 | 1.05 | 1,155,020 | | April | 806,000 | 1.14 | 1.02 | 875,820 | | May | 256,000 | 1.04 | 1.01 | 262,620 | | June | 200,000 | 1.06 | 1.01 | 205,980 | | **Total** | **3,138,000** | | | **3,417,520** | - As of June 30, 2025, the Company held a total of **9,660,000** treasury shares[304](index=304&type=chunk) - The Board believes that repurchasing and holding treasury shares provides a more flexible approach to capital operations, helping to optimize the capital structure and reduce capital costs[305](index=305&type=chunk) [Redemption of Redeemable Preference Shares](index=85&type=section&id=Redemption%20of%20Redeemable%20Preference%20Shares) During the period, the Board resolved to redeem **480,650** redeemable preference shares from TEDA Hong Kong at a redemption price of **HK$50 per share**, totaling **HK$24,032,500**; as of the date of this interim report, the aforementioned redemption amount has not yet been paid, and the redeemable preference shares involved have not yet been redeemed - The Board resolved to redeem **480,650** redeemable preference shares from TEDA Hong Kong[307](index=307&type=chunk) - The redemption amount is **HK$50 per share**, totaling **HK$24,032,500**[307](index=307&type=chunk) - As of the date of this interim report, the aforementioned redemption amount has not yet been paid, and the redeemable preference shares involved have not yet been redeemed[307](index=307&type=chunk)

Core Viewpoint - Binhai Investment (02886) reported its mid-year results for 2025, showing revenue and gross profit pressure due to warm winter and ongoing economic recovery in China, but managed to maintain profit growth through cost-cutting and efficiency measures. Excluding the one-time impact of the warm winter, gross margin has significantly improved, and the growth of value-added services is rapid. The company is expected to see stable EPS growth from 2025 to 2027, with an increased dividend policy, maintaining a "Buy" rating and a target price of HKD 1.58 [1][10]. Sales Volume and Gross Margin - In the first half of 2025, total sales volume decreased by 14% year-on-year to 1.14 billion cubic meters, with pipeline sales down 12% to 830 million cubic meters and pipeline transportation down 18% to 310 million cubic meters. The decline was mainly due to warm winter, market demand changes, and major clients' maintenance [2]. - Despite the drop in sales volume, the company has seen a significant recovery in gross margin, with an average gross margin of RMB 0.44 per cubic meter, leading to an estimated gross profit of approximately HKD 366 million [3]. Value-Added Services - The value-added services segment has been growing rapidly since its launch in 2021, with revenue and gross profit both increasing by 7% year-on-year in the first half of 2025, reaching HKD 37.67 million and HKD 25.40 million, respectively. The gross margin remains at 67.4% [4]. - Among the four categories of value-added services, three recorded growth in gross profit, including a 91% increase in gas appliance sales due to the success of the proprietary brand "Taiyuejia" [4]. E-commerce Platform Launch - The company plans to launch an e-commerce platform by the end of September, which includes three systems: a store system, an after-sales service system, and a mobile online mall. This initiative aims to enhance the development of value-added services and reach more potential customers [5]. Connection Business - The connection business revenue fell by 25% year-on-year to HKD 125 million in the first half of 2025, with gross profit down 30% to HKD 71.9 million. However, the number of new connections showed a slight recovery compared to the previous half [6]. Financing Cost Reduction - The company has successfully reduced financing costs, with a significant decrease of 39% year-on-year to HKD 45.49 million in the first half of 2025. The proportion of loans in RMB increased to 82%, while high-interest USD loans decreased to 18% [8]. Support from Sinopec - Binhai Investment's subsidiary received a credit line of RMB 150 million from Sinopec's financial subsidiary to facilitate natural gas procurement payments. This support helps optimize the company's financing structure and reduce financial costs [9]. Future Outlook - The company expects that if the winter weather is normal, there will be strong growth in sales volume, coupled with gross margin recovery, leading to significant year-on-year growth in revenue and gross profit for the entire gas sales business in 2025 [9].

Core Viewpoint - Binhai Investment (02886) reported its mid-year results for 2025, showing revenue and gross profit pressure due to a warm winter and ongoing economic recovery in China, but managed to maintain profit growth through cost-cutting and efficiency measures. The company is expected to see stable EPS growth from 2025 to 2027, supported by an increase in dividend policy, leading to a "Buy" rating with a target price of HKD 1.58 [1] Sales Gas Business - Total sales gas volume for 20251H decreased by 14% year-on-year to 1.14 billion cubic meters, with pipeline sales gas down 12% to 830 million cubic meters and pipeline transmission gas down 18% to 310 million cubic meters, primarily due to warm winter impacts and maintenance by major clients [2] - The company has significantly improved its gross margin, with an average gross margin of RMB 0.44 per cubic meter and a pipeline sales gas gross margin rate increasing by 1.1 percentage points to 6.9%, which is crucial as pipeline sales gas accounts for 61% of the company's gross profit [2][3] Value-Added Services - Revenue and gross profit from value-added services increased by 7% year-on-year to HKD 37.67 million and HKD 25.40 million, respectively, with a maintained gross margin of 67.4%. The growth was driven by significant increases in gas appliance sales and insurance services [4] - The company plans to introduce kitchen beautification services to address declining margins in small installations, anticipating a gross margin of 45% due to a shift in consumer behavior towards home renovations [4] E-commerce Platform - The company will launch an e-commerce platform by the end of September, which includes a store management system and an online sales channel, aimed at enhancing the reach of value-added services and potentially increasing revenue, although initial costs may impact margins [5] Connection Business - The connection business saw a 25% year-on-year revenue decline to HKD 125 million, with gross profit down 30% to HKD 71.9 million. However, the number of new connections showed slight recovery compared to the previous half-year [6] Financing Costs - The company has successfully reduced financing costs, with a 39% year-on-year decrease in financing costs to HKD 45.49 million. The loan structure has shifted to 82% in RMB, with lower interest loans replacing higher interest ones, improving cash flow and funding for business development [8] Support from Sinopec - Binhai Investment's subsidiary received a credit line of RMB 150 million from Sinopec's financial arm, providing low-cost funding and optimizing the company's financing structure [9] Future Outlook - If the winter weather is normal, the company expects strong growth in sales gas volume, with potential significant year-on-year increases in revenue and gross profit for the entire sales gas business in 2025. EPS is projected to be HKD 0.198 and HKD 0.218 for 2025 and 2026, respectively, leading to a target price of HKD 1.58 [10]

Financial Performance - The company reported a net profit attributable to shareholders of HKD 173 million for the mid-2025 period, representing a year-on-year growth of 3% despite a 0.9% decline in national natural gas apparent consumption [1] - The average gross margin for urban gas increased by RMB 0.07 per cubic meter to RMB 0.50 per cubic meter, with a comprehensive gross margin rising to RMB 0.44 per cubic meter, driven by the implementation of residential gas pricing and upstream gas source optimization [1][2] - The company achieved a reduction in comprehensive financing costs, with the financing rate decreasing to 4.67%, down 82 basis points year-on-year, resulting in a decrease of HKD 29.14 million in financing costs [2] Business Operations - Total gas sales volume for the mid-2025 period was 1.14 billion cubic meters, a year-on-year decrease of 14%, but showed a recovery in the second quarter with a 13% increase [2] - The company has incorporated value-added services into its main business starting in 2025, with mid-term revenue and gross profit both increasing by 7% [2] - The launch of an e-commerce platform by the end of September is expected to further enhance revenue growth and serve as an important profit support outside the main business [2] Industry Environment - The urban gas industry is benefiting from multiple favorable policies, including stable supply growth from domestic and pipeline gas, and the nationwide promotion of a residential gas pricing mechanism [3] - The company has several subsidiaries that have received project approvals for urban gas pipeline upgrades, supported by the issuance of long-term special bonds by the government [3] Competitive Advantages - The company benefits from a strong shareholder structure, with the largest shareholder being Tianjin TEDA Investment Holding, providing government resources and credit support [4] - The business layout includes 40 subsidiaries across eight provinces and two municipalities, allowing for both deep cultivation in core areas and expansion into external markets [4] - The company is focusing on technological innovation and safety, with subsidiaries obtaining national high-tech enterprise qualifications, ensuring safe operations through advanced gas equipment and pipeline inspection systems [4] Investment Outlook - The overall business outlook for the company is optimistic, particularly if the revenue growth from value-added services post-e-commerce platform launch exceeds expectations [4] - The current expected price-to-earnings ratio is below 7 times, with an anticipated dividend yield of approximately 7.2%, indicating an attractive valuation for potential investors [4]