Financial Performance - The total revenue for 2020 was HKD 8,543,710, representing a 4.9% increase from HKD 8,143,771 in 2019[4]. - The net profit attributable to shareholders was HKD 1,056,617, a significant increase of 145.7% compared to HKD 430,121 in the previous year[4]. - The EBITDA under non-Hong Kong Financial Reporting Standards was HKD 1,897,378, up by 5.2% from HKD 1,804,238 in 2019[4]. - The gas sales business contributed 72.4% of the total revenue, with sales reaching HKD 6,184,492,000, a year-on-year increase of 6.5%[26]. - The overall gross margin for the year ended December 31, 2020, was 22.8%, a decrease from 23.5% in 2019, primarily due to a reduction in the proportion of revenue from pipeline construction[69]. - The net profit margin for 2020 was 12.4%, up from 5.3% in 2019[75]. - Basic and diluted earnings per share for 2020 were HKD 0.3995 and HKD 0.3988, respectively, compared to HKD 0.1693 and HKD 0.1673 in 2019[75]. - The company reported a significant increase in other income, amounting to HKD 107,743, compared to HKD 53,493 in 2019[163]. - The company reported a net profit of HKD 1,056,617 for the year, compared to HKD 430,121 in the previous year, indicating a significant increase of about 146%[175]. Sales and Market Expansion - The sales volume of natural gas reached 2,239,002 thousand cubic meters, marking a 15.2% increase from 1,943,564 thousand cubic meters in 2019[4]. - The company added 224,927 new pipeline gas connections for residential users under the "coal-to-gas" project, a 3.3% increase from 217,674 in the previous year[4]. - The group expanded its pipeline gas connections by adding 463,957 new customers, increasing the total length of main pipelines from 23,318 kilometers to 25,456 kilometers, a growth of 9.2%[26]. - The company is actively expanding its business footprint across nine provinces in China, serving approximately 18,777 industrial customers and 3.96 million residential users[28]. - The cumulative number of residential gas customers reached 3,956,342, reflecting a growth of 13.5% from 3,485,127 in the previous year[48]. Strategic Initiatives - The company plans to enhance its energy trading business by penetrating the end retail market for liquefied natural gas and exploring distribution agency models in pipeline gas trading[16]. - The company aims to build a diversified, low-carbon, smart, safe, clean, and efficient new energy system to provide comprehensive energy services to users[18]. - The company plans to improve customer service quality and brand image through low-cost, long-term maintenance strategies to enhance customer loyalty and ensure continuous profitability[30]. - The company aims to capture various market opportunities by expanding its business ecosystem and increasing operational revenue[30]. - The company plans to continue pursuing acquisitions to increase market coverage in response to favorable energy policies in China[67]. Corporate Governance - The company has committed to high levels of corporate governance, ensuring a balance of interests among different stakeholders and managing governance affairs effectively[89]. - The board consists of nine directors, including five executive directors, one non-executive director, and three independent non-executive directors[90]. - The company fully complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules for the year ending December 31, 2020[89]. - The board's main roles include setting business objectives, formulating strategic policies, and overseeing operational and financial performance[92]. - The company emphasizes the importance of board diversity, considering various factors such as gender, skills, and experience[40]. Financial Position and Liabilities - The total assets of the group increased to HKD 23,634,423,000, a rise of 16.5% from HKD 20,289,099,000 in 2019[75]. - The group’s net debt amounted to HKD 9,868,471,000 as of December 31, 2020, compared to HKD 9,199,319,000 in 2019[75]. - The total borrowings and lease liabilities increased by 4.6% to HKD 11,617,523,000 as of December 31, 2020[75]. - The group’s current ratio was approximately 0.6 as of December 31, 2020, down from 0.8 in 2019[75]. - The company’s total liabilities decreased to HKD 5,438,934 from HKD 7,661,746, representing a reduction of approximately 29%[172]. Operational Efficiency - The company aims to enhance operational efficiency and reduce costs by implementing a "one body, three wings" development strategy, targeting various types of industrial users to create new profit points and expand profit margins[30]. - The average distribution cost of natural gas per cubic meter decreased to RMB 0.21 from RMB 0.22 in the previous year[50]. - The average procurement cost of gas decreased by 8.8% to RMB 2.06 per cubic meter[1]. - The company emphasizes the importance of talent selection and management to improve overall operational efficiency[30]. - The company has established clear organizational structures and delegated daily operational authority to senior management to achieve business objectives[104]. Risk Management and Compliance - The company is committed to strengthening management and oversight by establishing an independent regulatory and risk prevention system to enhance management effectiveness[30]. - The board is responsible for reviewing and monitoring compliance with legal and regulatory policies and practices[99]. - The company has implemented policies to prevent unauthorized use of confidential or insider information[106]. - The internal audit department evaluates the effectiveness and efficiency of the risk management and internal control systems through regular audits[106]. - The company has established policies to protect employee rights and strictly adheres to labor laws, prohibiting child labor and forced labor[141]. Shareholder Returns - The proposed final dividend per share is HKD 5.00, reflecting a 40.0% increase[4]. - The company has allocated HKD 228,439 in cash dividends during the year, reflecting its commitment to returning value to shareholders[175]. - The company’s dividend declaration and payment are subject to the board's discretion and compliance with applicable laws and regulations[41]. - The company proposed a final dividend of HKD 0.07 per share, expected to be paid on August 3, 2021, subject to shareholder approval[117]. Environmental and Social Responsibility - The company has complied with relevant laws and regulations that significantly impact the group, including environmental policies to reduce wastewater and solid waste[141]. - The group’s charitable donations for the year amounted to approximately RMB 1,390,000[147]. - Annual energy consumption targets have been set for various departments, with regular assessments and rewards to encourage energy-saving practices among employees[141]. - The group actively prevents gas leaks and has established a comprehensive monitoring system to ensure timely detection[147].

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 4,276,591, a decrease of 1.0% compared to HKD 4,321,868 in 2019[5] - Gross profit increased by 11.1% to HKD 1,265,958, with a gross margin of 29.6%, up from 26.4% in the previous year[5] - Profit attributable to owners of the company was HKD 513,088, a slight increase of 1.1% from HKD 507,293 in 2019[5] - Non-HKFRS profit attributable to owners rose by 23.7% to HKD 666,614, compared to HKD 539,070 in the prior year[5] - The group reported a net profit of HKD 2,466,824,000 for the six months ended June 30, 2020, compared to HKD 2,691,612,000 for the same period in 2019, reflecting a decrease in profit[24] - The company reported a net profit attributable to shareholders of HKD 513,088,000, a 1.1% increase from HKD 507,293,000 in 2019[49] - The company’s net profit margin was 12.0%, up from 11.7% in the previous year[72] Revenue Breakdown - Revenue from gas sales was HKD 2,723,451, a decrease of 5.5% from HKD 2,882,143 in 2019[16] - Revenue from gas pipeline construction increased to HKD 1,119,765, up 10.3% from HKD 1,015,434 in the previous year[16] - Revenue from "coal-to-gas" projects for residential users increased by 5.1% to HKD 575,239,000, while non-"coal-to-gas" projects rose by 26.1% to HKD 506,491,000[57][58] - Residential gas sales increased by 43.1% to HKD 881,656,000, driven by pipeline connections and population growth, contributing 32.4% to total gas sales[55] - Commercial gas sales decreased by 34.8% to HKD 196,281,000, representing 7.2% of total gas sales, with a 27.7% drop in gas consumption[55] Operational Metrics - Natural gas sales volume increased by 7.9% to 983,750 thousand cubic meters, up from 911,514 thousand cubic meters[5] - New residential gas connections under the "coal-to-gas" project increased by 23.7% to 192,719, compared to 155,818 in 2019[5] - The number of residential gas connections increased by 30.9% to 364,631 during the period, with a total of 3,849,758 residential customers connected[49] - The cumulative number of industrial customers connected increased to 3,030, up from 2,673 in the previous year, reflecting a growth of 13.4%[46] - The total sales volume of pipeline natural gas reached 898,575,000 cubic meters, an increase of 11.6% from 805,401,000 cubic meters in 2019[46] Cash Flow and Liquidity - Cash generated from operating activities increased significantly by 76.5% to HKD 617,807, compared to HKD 349,941 in 2019[5] - Net cash generated from operating activities was HKD 617,807, compared to HKD 349,941 for the same period in 2019, representing a 76.7% increase[13] - The company's current liabilities increased to HKD 8,227,403 from HKD 7,191,280, reflecting a rise of 14.4%[10] - The total liabilities increased to HKD 11,189,776,000, a rise of 0.8% from HKD 11,102,632,000 in 2019, with net debt totaling HKD 9,619,350,000[31] - The current ratio as of June 30, 2020, was approximately 0.7, down from 0.8 in 2019, indicating a decrease in liquidity[31] Dividends and Shareholder Information - The company declared an interim dividend of 2.00 HKD cents per share, unchanged from the previous year[5] - The board proposed an interim dividend of HKD 0.02 per share, consistent with the previous year[76] - The proposed interim dividend is expected to be paid on November 16, 2020, to shareholders listed on October 20, 2020[86] - As of June 30, 2020, the company's directors collectively held approximately 30.87% of the shares, with the largest shareholder owning 28.79%[78] Investments and Financing - The company has secured loan financing of up to USD 200,000,000 from several banks in Hong Kong during the review period[32] - The group reported a net cash outflow from investing activities of HKD 1,151,599, an improvement from HKD 2,115,992 in the same period of 2019[13] - Financing activities generated net cash of HKD 63,710, a significant decrease from HKD 2,593,843 in the prior year[13] - Financing costs totaled HKD 146,930,000 for the six months ended June 30, 2020, up from HKD 110,962,000 in 2019, indicating a rise in borrowing costs[22] Market and Strategic Developments - The company anticipates a rebound in domestic gas consumption, supported by the gradual recovery of China's manufacturing and export activities since Q2 2020[74] - The establishment of the National Oil and Gas Pipeline Group in Beijing and the first asset acquisitions are expected to enhance the gas supply structure in China, promoting a unified pipeline network and expanding the downstream market[74] - The company plans to deepen its market penetration, focusing on mergers and acquisitions that can synergize with existing operations, and aims to enrich its product and service offerings through the new online shopping platform, Zhongyu iHome[74] - The company has been actively expanding its value-added business segment since 2017, targeting industrial and commercial clients with gas-related products, which is expected to drive future growth[75] Governance and Compliance - The audit committee reviewed the unaudited consolidated results for the six months ending June 30, 2020, with no disagreements on accounting treatments[85] - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions during the review period[84] - The board of directors includes executive and independent non-executive members, ensuring a diverse governance structure[87]

Financial Performance - The company's revenue for the year ended December 31, 2019, was HKD 8,143,771, representing a 6.8% increase from HKD 7,627,088 in 2018[6] - Gross profit decreased by 14.0% to HKD 1,909,920, with a gross margin of 23.5%, down from 29.1% in the previous year[6] - Profit attributable to shareholders was HKD 430,121, a decline of 30.7% compared to HKD 620,684 in 2018[6] - Adjusted profit attributable to shareholders, excluding foreign exchange losses and share-based payment expenses, was HKD 722,485, down 27.9% from HKD 1,001,436[6] - The company reported an EBITDA of HKD 1,813,582, a decrease of 14.0% from HKD 2,107,648 in 2018[6] - The group recorded a 30.7% decrease in profit attributable to shareholders, down to HKD 430,100,000 from HKD 620,700,000 in 2018[38] - The net profit margin for the year ended December 31, 2019, was 5.3%, down from 8.1% in 2018[103] Sales and Customer Growth - The total natural gas sales volume increased by 20.3% to 1,943,564 thousand cubic meters, compared to 1,615,646 thousand cubic meters in 2018[6] - The company added 451,149 new gas users in 2019, bringing the total number of pipeline gas customers to over 3.5 million[26] - The number of new pipeline gas connections for residential users under the "coal-to-gas" project decreased by 51.1% to 217,674, while non-"coal-to-gas" residential connections increased by 3.3% to 230,622[6] - The number of industrial and commercial customers served reached approximately 16,627, while residential users totaled 3,485,127[36] - The cumulative number of residential gas customers increased by 21.1% to 3,485,127 from 2,878,103 in 2018[64] Revenue Breakdown - The three main business segments accounted for 71.3% (gas sales), 19.4% (pipeline construction and connection), and 5.1% (sales of stoves and other services) of the total revenue in 2019[39] - The gas sales business generated revenue of HKD 5,805,421,000, representing a year-on-year growth of 19.2%, driven by an increase in the overall customer base[40] - Revenue from gas pipeline construction decreased by 29.8% to HKD 1,581,238,000, primarily due to a 48.8% drop in revenue from "coal-to-gas" projects[85][88] - Sales from stoves and other services surged by 166.3% to HKD 412,348,000, accounting for 5.1% of total revenue[90] Dividends and Shareholder Returns - The company plans to pay a final dividend of HKD 0.05 per share, down 28.6% from HKD 0.07 in the previous year[6] - The board recommended an interim dividend of HKD 0.02 per share for the year ended December 31, 2019, which was paid on November 15, 2019[193] Market Expansion and Strategy - The company plans to continue expanding its market share and integrating newly acquired projects while enhancing value-added services[28] - The company is actively pursuing mergers and acquisitions, targeting projects with strong local demand and future growth potential[28] - The company aims to expand its natural gas sales and develop smart energy and distributed energy businesses, including electric vehicle charging stations, to diversify revenue sources[44] - The company plans to continue expanding its pipeline gas business and focus on mergers and acquisitions that can create synergies with existing operations[47] Corporate Governance - The company is committed to high levels of corporate governance and has fully complied with the corporate governance code as of December 31, 2019[146] - The board of directors consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2019[147] - The company has established a remuneration committee consisting of three independent non-executive directors to review and recommend remuneration policies for all directors and senior management[166] Risk Management and Internal Controls - The company has implemented a risk management and internal control system that is crucial for achieving business objectives, with annual reviews conducted by the audit committee[171] - The internal audit department assesses compliance with statutory requirements and internal policies, evaluating the effectiveness and efficiency of the risk management and internal control systems[175] - The board conducts an annual review of the effectiveness of the risk management and internal control systems, covering all significant monitoring measures[176] Employee and Operational Metrics - As of December 31, 2019, the group had a total of 4,388 employees, an increase from 3,816 employees in 2018, with employee benefits expenses amounting to approximately HKD 512,635,000, up from HKD 483,630,000 in 2018[115] - The total length of existing trunk and main pipelines increased from 14,928 kilometers to 23,318 kilometers, a growth of 56.2%[40] Financial Position - The total assets increased by HKD 4,007,745,000 or 24.6% to HKD 20,289,099,000 as of December 31, 2019[107] - The total borrowings, lease liabilities, and finance lease liabilities increased by approximately HKD 2,625,159,000 or 31.0% to HKD 11,102,632,000 as of December 31, 2019[110] - The net asset liability ratio as of December 31, 2019, was approximately 1.69, up from 1.52 in 2018[110]

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 4,321,868, representing a 16.8% increase from HKD 3,699,210 in the same period of 2018[6]. - Gross profit was HKD 1,139,398 with a gross margin of 26.4%, down from HKD 1,183,015 and a gross margin of 32.0% in 2018, reflecting a decrease of 3.7% in gross profit[6]. - Profit attributable to owners of the company increased by 20.8% to HKD 507,293 compared to HKD 419,980 in the previous year[6]. - Adjusted profit attributable to owners, excluding foreign exchange gains/losses, was HKD 517,169, a slight increase of 1.0% from HKD 511,972[6]. - The company reported a total comprehensive income of HKD 470,523 for the period, compared to HKD 495,138 in the same period of 2018[9]. - For the six months ended June 30, 2019, the company reported a net profit of HKD 507,293,000, an increase of 20.7% compared to HKD 419,980,000 for the same period in 2018[26]. - The company reported interest income from financial assets of HKD 6,231,000 for the six months ended June 30, 2019, compared to HKD 5,059,000 in 2018, reflecting a 23.2% increase[21]. - EBITDA for the six months ended June 30, 2019, was approximately HKD 1,079,079,000, a slight decrease of 1.4% from HKD 1,094,590,000 in the previous year[69]. - Net profit margin improved to 11.7% from 11.4% year-on-year[71]. Revenue Breakdown - Revenue from gas sales reached HKD 2,882,143,000, up from HKD 2,250,015,000 in the previous year, representing a growth of 28.0%[16]. - Revenue from gas pipeline construction was HKD 1,015,434,000, a decrease from HKD 1,193,700,000 in 2018, reflecting a decline of 15.0%[16]. - Revenue from the sale of stoves and other services increased significantly to HKD 251,719,000 from HKD 75,831,000, showing a growth of 231.0%[16]. - Industrial customer gas sales increased by 22.3% to HKD 1,748,722,000, with a natural gas average selling price up 9.8% to RMB 3.03 per cubic meter[56]. - Residential customer gas sales rose by 36.9% to HKD 616,070,000, driven by the "coal-to-gas" policy, with 278,641 new connections made[57]. - Commercial customer gas sales increased by 7.5% to HKD 301,262,000, with a 15.0% increase in the number of commercial customers to 11,948[57]. - Gas pipeline construction revenue decreased by 14.9% to HKD 1,015,434,000, with "coal-to-gas" project revenue down 32.6% to HKD 547,251,000[58][59]. - Non-"coal-to-gas" project residential gas pipeline construction revenue increased by 23.8% to HKD 401,801,000[60]. - Sales of stoves and other services surged by 231.9% to HKD 251,719,000, accounting for 5.8% of total revenue[61]. Cash Flow and Investments - Cash generated from operating activities for the six months ended June 30, 2019, was HKD 349,941,000, a decrease of 48.3% compared to HKD 676,159,000 in 2018[13]. - Net cash used in investing activities was HKD (2,115,992,000) for the six months ended June 30, 2019, compared to HKD (1,517,899,000) in the previous year, indicating an increase in investment outflows[13]. - Net cash generated from financing activities was HKD 2,593,843,000, up from HKD 1,923,722,000 in 2018, reflecting a significant increase of 34.9%[13]. - The company reported a total cash and cash equivalents balance of HKD 2,423,606,000 as of June 30, 2019, compared to HKD 1,525,404,000 at the end of June 2018, marking a year-over-year increase of 59.0%[13]. Assets and Liabilities - Total assets less current liabilities amounted to HKD 13,558,776, an increase from HKD 8,989,084 in the previous year[11]. - The group's total assets increased by HKD 3,336,577,000 or 20.5% to HKD 19,617,931,000 as of June 30, 2019, compared to HKD 16,281,354,000 as of December 31, 2018[32]. - Total borrowings and finance lease liabilities increased by HKD 2,952,376,000 or 34.8% to HKD 11,429,849,000 as of June 30, 2019, compared to HKD 8,477,473,000 as of December 31, 2018[32]. - The net debt to equity ratio was approximately 1.80 as of June 30, 2019, compared to 1.52 as of December 31, 2018[32]. - The current ratio improved to approximately 1.1 as of June 30, 2019, up from 0.6 as of December 31, 2018[32]. Dividends and Shareholder Information - The company proposed an interim dividend of 2.00 HK cents per share, not applicable in the previous year[6]. - The board proposed an interim dividend of HKD 0.02 per share, compared to no dividend in the previous year[75]. - As of June 30, 2019, the total number of issued shares of the company was 2,538,217,357[79]. - Mr. Wang Wenliang holds 759,714,206 shares, representing approximately 29.91% of the issued share capital[77]. - China Gas Holdings Limited owns 1,064,783,071 shares, accounting for 41.97% of the company[81]. - The beneficial interest of Hezhong Investment Holdings Limited is 730,451,289 shares, which is about 28.76% of the total shares[81]. Operational Highlights - The number of new residential gas connections decreased by 20.5% to 278,641 from 350,276 in the previous year[6]. - The total number of connectable residential users reached 4,889,000, a 34.8% increase from 3,628,000[49]. - The cumulative number of connected residential gas customers reached 3,264,628, an increase of 30.1% from 2,509,802[49]. - The number of operational locations increased to 65, up from 60, representing a growth of 8.3%[49]. - The company plans to deepen penetration in key regions and explore opportunities in eastern and central China, as well as Guangdong Province[73]. Governance and Compliance - The company has adopted the corporate governance code as per Appendix 14 of the Listing Rules and has complied with all applicable provisions during the review period[84]. - The Audit Committee, composed of independent non-executive directors, reviewed the accounting principles and financial reporting matters, including the unaudited consolidated performance for the six months ended June 30, 2019[85]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2019[88].

Financial Performance - The company reported a revenue of HKD 7,627,088 thousand for 2018, representing a 51.1% increase from HKD 5,048,100 thousand in 2017[5]. - Gross profit reached HKD 2,221,873 thousand, up 72.4% from HKD 1,289,102 thousand in the previous year, with a gross margin of 29.1%[5]. - Profit attributable to shareholders was HKD 620,684 thousand, an 11.2% increase from HKD 557,959 thousand in 2017[5]. - Adjusted profit attributable to shareholders, excluding foreign exchange gains/losses and share option expenses, surged 125.9% to HKD 1,001,436 thousand from HKD 443,212 thousand[5]. - EBITDA for the year was HKD 2,048,801 thousand, reflecting a 62.9% increase from HKD 1,257,947 thousand in 2017[5]. - The company recorded a significant increase in connection revenue, which surged by 325.0% to HKD 1,447,721,000 from HKD 340,616,000 in 2017[20]. - The company's adjusted profit attributable to shareholders for the year was HKD 1,001,436,000, representing a 125.9% increase compared to HKD 443,212,000 in 2017[20]. - The profit attributable to the owners of the company for 2018 was HKD 620,684,000, an increase of 11.2% compared to HKD 557,959,000 in 2017[55]. - The net profit for the year was HKD 714,355 thousand, an increase of 20.8% compared to HKD 591,596 thousand in 2017[157]. Dividends - The company declared a final dividend of HKD 0.07 per share, a 40.0% increase from HKD 0.05 per share in the previous year[5]. - The company proposed a final dividend of HKD 0.07 per share to thank shareholders for their long-term support[13]. - The board of directors has approved a dividend payout of $0.05 per share, representing a 10% increase from the previous year[67]. - The company proposed a final dividend of HKD 0.05 per share for the year ended December 31, 2017, which was paid on August 1, 2018, and a proposed final dividend of HKD 0.07 per share for the year ended December 31, 2018, expected to be paid on August 1, 2019, subject to shareholder approval[110]. Market Expansion and Strategy - The company aims to expand its market presence and enhance value-added services, targeting high-margin industrial customers[14]. - The company completed the acquisition of 100% equity in two natural gas companies in January 2019, gaining exclusive operating rights in Mengzhou and Wenxian, enhancing its market share in Henan Province[14]. - The company plans to implement a comprehensive cloud-based information system to improve business management and customer service in 2019[16]. - The company is focusing on developing smart energy demonstration projects to diversify and enhance competitiveness[16]. - The company aims to enhance its market presence through strategic expansions in various regions, including Jiangsu and Shandong provinces[26]. - The company plans to continue expanding its market coverage through acquisitions in response to favorable energy policies in China[46]. - The company aims to become a competitive integrated smart energy supplier by increasing pilot bases and optimizing systems[23]. Customer and User Growth - Natural gas sales volume increased by 21.7% to 1,615,646 thousand cubic meters from 1,327,480 thousand cubic meters in 2017[5]. - The number of new residential gas connections rose by 83.1% to 668,577 from 365,178 in the previous year[5]. - In 2018, the company added 445,324 residential users through the "coal-to-gas" project, totaling 671,196 new users, bringing the cumulative total to 2,890,624 users[13]. - The cumulative number of residential gas customers reached 2,878,103, reflecting a 33.3% increase from the previous year[30]. - The company reported a significant increase in user data, with a total of 1.5 million active users, representing a 25% year-over-year growth[64]. Operational Efficiency - The company emphasizes safety, quality, efficiency, and effectiveness as core values for sustainable development[16]. - The company has reported a steady increase in user connections, with a focus on both residential and commercial sectors[26]. - The operational statistics reflect a robust growth trajectory, positioning the company favorably for future market opportunities[26]. - The company has established a comprehensive performance evaluation system, conducted annually, to assess financial and operational performance against targets[92]. Corporate Governance - The board of directors consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2018[73]. - The company has fully complied with the corporate governance code as per the Hong Kong Stock Exchange rules for the year ended December 31, 2018[72]. - The company has established a remuneration committee consisting of three independent non-executive directors to oversee the compensation policies for all directors and senior management[90]. - The company has a structured approach to managing conflicts of interest among board members[78]. - The company encourages all directors to participate in continuous professional development programs to enhance their knowledge and skills[86]. Financial Position and Assets - The total assets of the group increased by HKD 4,480,623,000 or 38.0% to HKD 16,281,354,000 as of December 31, 2018[55]. - The company's total liabilities amounted to HKD 4,468,915 thousand in 2018, compared to HKD 4,400,845 thousand in 2017, indicating a slight increase of about 1.6%[162]. - The company's borrowings increased significantly to HKD 4,499,852 thousand in 2018 from HKD 1,581,936 thousand in 2017, marking an increase of approximately 184.8%[162]. - The company’s non-current assets, particularly property, plant, and equipment, rose to HKD 8,880,175 thousand from HKD 7,124,176 thousand, a 24.7% increase[160]. - The fair value of the pipelines included in property, plant and equipment as of December 31, 2018, was HKD 5,795,225,000, with a revaluation increase of HKD 384,750,000 recognized in other comprehensive income during the year[148]. Risk Management and Internal Controls - The company has implemented a risk management and internal control system that is crucial for achieving business objectives and ensuring compliance with laws and regulations[89]. - The audit committee is responsible for reviewing financial reporting procedures and ensuring effective communication between the board and external auditors[96]. - The company emphasizes the importance of operational monitoring as part of its risk management and internal control systems[94]. - The management is tasked with continuous monitoring of the risk management and internal control systems, reporting to the board[94]. Environmental and Social Responsibility - The company has established policies to reduce wastewater and solid waste, ensuring compliance with environmental laws and regulations in various regions of China[134]. - The company reported charitable donations of approximately RMB 1,055,000 during the review year[142]. - The company actively recruits talent through public recruitment and campus hiring to support business expansion[135].