Core Viewpoint - Beijing Gas Blue Sky (06828.HK) will hold a board meeting on August 28, 2025, to approve the publication of its interim results for the six months ending June 30, 2025, and to consider the distribution of an interim dividend, if any [1] Group 1 - The board meeting is scheduled for August 28, 2025 [1] - The meeting will include the approval of the interim results announcement for the six months ending June 30, 2025 [1] - The company will also consider the distribution of an interim dividend during the meeting [1]

（股份代號：6828） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不會對因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 BEIJING GAS BLUE SKY HOLDINGS LIMITED 北京燃氣藍天控股有限公司 （於百慕達註冊成立之有限公司） 承董事會命 北京燃氣藍天控股有限公司 主席 李蔚齊 香港，二零二五年八月十五日 於本公告日期，本公司執行董事為李蔚齊先生、吳海鵬先生、李憲寧先生及 楊碩軒先生；本公司非執行董事為高平先生；及本公司獨立非執行董事為崔玉磊 先生、徐慧敏女士及許劍文先生。 董事會會議日期 北京燃氣藍天控股有限公司（「本公司」）之董事（「董事」）會（「董事會」）謹此宣佈， 本公司將於二零二五年八月二十八日（星期四）舉行董事會會議，藉以（其中包括） 批准刊發本公司及其附屬公司截至二零二五年六月三十日止六個月之中期業績 公告，以及考慮派發中期股息（如有）。 ...

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 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 北京燃氣藍天控股有限公司 呈交日期: 2025年8月1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) | 06828 | | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 22,736,114,715 | | 0 | | 22,736,114,715 | | 增加 / 減少 (-) | | | | | | | | | | 本月底結存 | | | | 22,736,114,715 | | 0 | | 22,736,114,715 | 第 2 頁 共 10 頁 v 1.1.1 FF301 | 1. ...

Core Viewpoint - The establishment of a joint venture between Beijing Gas Blue Sky and Beijing New Energy aims to capitalize on the growing opportunities in the comprehensive energy services market, driven by Beijing's carbon neutrality goals and the transition from fossil fuels to renewable energy sources [1][2] Group 1: Joint Venture Details - The joint venture will have a total registered capital of RMB 80 million, with Beijing Gas Blue Sky holding a 51% stake and Beijing New Energy holding 49% [1] - The joint venture will focus on comprehensive energy services, including project design, investment, construction, operation, and energy-saving services [1] Group 2: Market Opportunities - Beijing's current heating area is 1.058 billion square meters, indicating significant potential for comprehensive energy development and energy-saving renovations [1] - The capital market views the energy-saving renovation sector as having substantial growth potential, aligning with the city's carbon neutrality objectives [1] Group 3: Strategic Benefits - The collaboration with a leading company in the energy-saving sector will enhance the company's sustainable development capabilities and competitiveness, thereby boosting investor confidence and long-term corporate value [2] - The joint venture is expected to diversify the company's business and create a stable and sustainable return for all shareholders [2]

Financial Performance - In 2024, the company recorded revenue of RMB 1,688.4 million, a decrease of 12.8% year-on-year[9]. - The net profit attributable to shareholders for the year was RMB 85.1 million, an increase of 3.5% year-on-year[9]. - The gross profit for 2024 was RMB 49.7 million, a decrease of 15.5% from RMB 58.8 million in 2023, with a gross margin of 2.9%[19][21]. - The net profit for 2024 was RMB 84.9 million, down 8.0% from RMB 92.4 million in 2023, while the profit attributable to shareholders increased by 3.5% to RMB 85.1 million[19][21]. - The company reported a cash and cash equivalents balance of RMB 360.3 million as of December 31, 2024, a slight decrease of 0.9% from RMB 363.7 million in 2023[21]. - The total assets of the company decreased by 2.5% to RMB 4,450.6 million as of December 31, 2024, compared to RMB 4,564.4 million in 2023[21]. - The current ratio as of December 31, 2024, was 0.31, a decrease from 0.55 in 2023, indicating a decline in liquidity[55]. - The group recorded a total revenue of RMB 1,688.4 million for the year 2024, a decrease of 12.8% compared to RMB 1,935.6 million in 2023, primarily due to reduced income from natural gas trading and distribution[36]. - EBITDA for 2024 reached RMB 305.0 million, a decline from RMB 371.0 million in 2023[38]. - Other income and gains for 2024 amounted to RMB 54.8 million, down from RMB 69.7 million in 2023, including bank interest income of RMB 2.3 million and government subsidies of RMB 16.6 million[39]. - Administrative expenses for 2024 were RMB 136.3 million, slightly lower than RMB 146.8 million in 2023, indicating stable operational costs[40]. - Financing costs decreased by 36.3% to RMB 110.7 million in 2024 from RMB 173.7 million in 2023, attributed to the shift to RMB bank loans[43]. - The company has no reserves available for distribution to equity holders as of December 31, 2024[198]. - The company did not engage in any purchase, sale, or redemption of its listed securities during the year 2024[194]. Market and Operational Highlights - China's apparent natural gas consumption reached 426.05 billion cubic meters in 2024, growing by 8% year-on-year[8]. - The total gas sales volume of the company was 546.7 million cubic meters, a decrease of 25.5% compared to 733.6 million cubic meters in 2023[19]. - The company has six urban gas projects primarily located in Guangxi Zhuang Autonomous Region and Shanxi Province, with gas sales volume of 267.8 million cubic meters in 2024, down 6.0% from 284.8 million cubic meters in 2023[22]. - The residential gas sales volume increased by 8.1% to 82.3 million cubic meters in 2024, while non-residential gas sales volume decreased by 11.2% to 185.5 million cubic meters[22]. - The total natural gas sales volume to residential and non-residential users reached 267.8 million cubic meters in 2024, a decrease of 6% compared to 2023[23]. - The total trade volume for LNG and CNG in 2024 was 269.1 million cubic meters, a decrease of 37.9% from 433.2 million cubic meters in 2023[24]. - The LNG receiving station project had a total unloading volume of 6,340.6 million cubic meters in 2024, down 8.2% from 6,906.9 million cubic meters in 2023[27]. - The company added 33,084 new gas pipeline users in 2024, bringing the total to 569,369 users, with residential users accounting for 565,467[23]. Strategic Initiatives and Acquisitions - The company acquired 49% of Beijing Unait Energy Engineering Technology Co., Ltd., enhancing its core competitiveness in the new energy sector[12]. - The company completed the acquisition of assets related to the North Seven Business Park Energy Center project, aligning with national dual carbon policy[12]. - The company is actively expanding its clean and low-carbon business and positioning itself in the new energy sector to contribute to the new energy supply structure[18]. - The acquisition of assets related to the Beiqijia Business Park Energy Center generated revenue of RMB 8.7 million in 2024, with a segment profit of RMB 4.1 million[31]. - The company is focusing on energy storage business development, with the Yangzhou project generating revenue of RMB 0.4 million in 2024[32]. - The group plans to focus on the "dual carbon" strategy, enhancing its clean energy and renewable energy business while optimizing energy structure and accelerating industrial upgrades[35]. Governance and Management - The company has adopted corporate governance practices in compliance with the corporate governance code for the fiscal year ending December 31, 2024[89]. - The management team has extensive experience in gas network operations and safety management, with over 20 years in the industry[80]. - The board is committed to high standards of corporate governance and has implemented self-regulatory practices[89]. - The company has appointed Mr. Li Weiqi as the Chairman of the Board and Mr. Wu Haipeng as the CEO for the year 2024[109]. - The board held a total of 5 meetings in 2024, with all directors attending 100% of the meetings[93]. - The company emphasizes the importance of corporate governance and has adopted internal guidelines requiring board approval for significant matters such as major asset acquisitions and dividend distributions[92]. - The company has established a formal and transparent procedure for the selection and nomination of new directors[122]. - The company has arranged appropriate liability insurance for its directors and executives[108]. - The company secretary ensures smooth communication within the board and provides necessary professional development assistance[148]. Risk Management and Compliance - The group has established a risk management framework to assess and prioritize risks based on their potential financial impact and management's focus[156]. - The board has confirmed the effectiveness of the risk management and internal control systems for the year 2024[154]. - The group has a zero-tolerance policy towards bribery, extortion, fraud, and money laundering, maintaining high standards of integrity and transparency[158]. - The company has implemented reporting procedures for employees and the public to raise concerns about potential misconduct internally[157]. - The company has not faced any significant fines or penalties due to non-compliance with laws and regulations during 2024[184]. Shareholder Communication - The company emphasizes regular, effective, timely, and fair communication with shareholders regarding all significant matters affecting the group[169]. - The company is committed to clear, detailed, and timely disclosure of information to shareholders, including regular updates and responses to shareholder concerns[170].

Core Viewpoint - North Gas Blue Sky (06828.HK) is making significant progress in its new energy transformation strategy in 2024, optimizing its business structure and expanding into the new energy sector [1][2]. Financial Performance - In 2024, North Gas Blue Sky achieved a total revenue of 1.688 billion RMB, with a net profit attributable to the parent company of 85.066 million RMB, and a pre-tax profit of 116 million RMB, reflecting a year-on-year growth of 16.4% [3]. - Despite a decline in revenue, the increase in profit highlights the company's effectiveness in cost control and business restructuring [3]. - The company successfully reduced financial costs by 36.3% through optimizing its financing structure, providing solid financial support for its transformation [3]. - The net asset size reached 1.48 billion RMB, with cash on hand amounting to 360 million RMB, indicating strong financial health [3]. Business Strategy - The overall operational strategy for 2024 focuses on leveraging the full industry chain advantages, consolidating the natural gas base, and steadily advancing new energy business [4]. - The total gas sales volume for 2024 was 546.7 million cubic meters, with the company holding a 29% stake in PetroChina's Jing-Tang project, which plays a crucial role in energy supply for the Beijing-Tianjin-Hebei region [4]. - The LNG receiving station at PetroChina Jing-Tang maintained stable operations, contributing approximately 302 million RMB in investment income for the company [4]. New Energy Business Development - North Gas Blue Sky is actively exploring opportunities in energy storage, distributed energy, and multi-energy complementarity, aiming to integrate its natural gas business with new energy [5][6]. - The company has increased the revenue share from its new energy business to nearly 1%, achieving this in less than six months, demonstrating effective execution [5]. - The acquisition of a 49% stake in Beijing Unait Energy Engineering Technology Co., Ltd. enhances the company's technical capabilities and accelerates its renewable energy business layout [7]. - The company also acquired assets related to the North Seven Business Park Energy Center project for 33 million RMB, which provides cooling and heating services to commercial and residential areas [8]. Market Potential and Future Outlook - The rapid development of the energy storage industry presents significant opportunities for North Gas Blue Sky, with a projected compound annual growth rate of 30.40%-37.1% for new energy storage installations in China from 2024 to 2030 [9]. - The company is strategically positioning itself in regions with advantageous electricity pricing policies, focusing on technology innovation and business model transformation to increase its market share in energy storage [9]. - The successful transition of the new energy business from "0 to 1" marks a critical step in the company's transformation, establishing a foundation for long-term development in technology reserves, market experience, and industry chain collaboration [10]. - With ongoing support from policies, technological advancements, and market demand, the long-term value of North Gas Blue Sky is expected to become more prominent as it continues to expand its energy storage applications [11].

Financial Performance - The group recorded revenue of RMB 1,688.4 million for the year 2024, a decrease of 12.8% compared to RMB 1,935.6 million in 2023[3]. - Profit attributable to shareholders increased by 3.5% to RMB 85.1 million in 2024, up from RMB 82.2 million in 2023[3]. - EBITDA for 2024 was RMB 305.0 million, down 17.8% from RMB 371.0 million in 2023[3]. - Total comprehensive income for the year was RMB 93.8 million, down from RMB 108.0 million in 2023[6]. - The gross profit for 2024 was RMB 49.7 million, a decline of 15.5% from RMB 58.8 million in 2023, with a gross margin of 2.9%[41]. - The total segment profit for the year was RMB 320,176,000, compared to RMB 326,528,000 in 2023, indicating a slight decrease of 1.1%[22]. - The pre-tax profit for the year was RMB 116,274,000, compared to RMB 99,868,000 in 2023, showing an increase of 16.4%[29]. - The company reported other income and gains of RMB 54,832,000, down from RMB 69,729,000 in the previous year, a decrease of 21.4%[27]. - The company's net profit attributable to shareholders for the year was RMB 85,066,000, an increase from RMB 82,161,000 in 2023, representing a growth of approximately 3.5%[33]. - The total income tax expense for the year was RMB 31,329,000, significantly higher than RMB 7,493,000 in 2023, indicating a substantial increase in tax obligations[9]. Business Segments - The clean energy and new energy business segment generated revenue of RMB 9.1 million in 2024, with a segment profit of RMB 7.5 million[3]. - The city gas operation segment generated revenue of RMB 928,085,000, up from RMB 915,202,000 in 2023, reflecting a growth of 1%[26]. - The natural gas trading and distribution segment reported revenue of RMB 751,199,000, down 26.4% from RMB 1,020,417,000 in the previous year[26]. - The clean energy and new energy business segment contributed RMB 9,147,000 in revenue, which was not present in the previous year[26]. - The company began operations in the integrated clean energy and new energy business, establishing it as a new reportable segment during the year[21]. Assets and Liabilities - Non-current assets totaled RMB 3,554.1 million as of December 31, 2024, an increase from RMB 3,419.7 million in 2023[7]. - Current liabilities increased to RMB 2,871.5 million in 2024 from RMB 2,078.7 million in 2023[8]. - Total equity attributable to shareholders rose to RMB 1,355.8 million in 2024, compared to RMB 1,261.9 million in 2023[8]. - The group's current liabilities as of December 31, 2024, are approximately RMB 1.97 billion[10]. - Total assets as of December 31, 2024, were RMB 44,506 million, with a debt-to-asset ratio of 66.7%, down from 68.9% in 2023[71]. - The total borrowings as of December 31, 2024, were RMB 23,339 million, with a leverage ratio of 52.4%, down from 53.9% in 2023[71]. Financing and Capital Structure - The group has secured a revolving loan of HKD 1 billion from a subsidiary and a preliminary offer for a syndicated loan of RMB 1 billion from a major bank[12]. - Financing costs decreased to RMB 110,664,000 from RMB 173,735,000, a reduction of 36.3%[28]. - The company plans to continue seeking low-interest debt financing to reduce overall interest costs[73]. - The company has utilized 100% of the funds raised from the capital increase and asset injection plan, totaling RMB 1,494.5 million[74]. Corporate Governance and Compliance - The financial statements are prepared in accordance with International Financial Reporting Standards and have been restated to reflect the change in presentation currency[13]. - The audit committee has reviewed the financial statements and confirmed compliance with accounting principles[91]. - The company has adopted high standards of corporate governance and complied with the relevant codes throughout 2024[87][88]. - The board has proposed amendments to the company's articles of association, pending shareholder approval[93]. Strategic Focus and Future Outlook - The company is focused on developing and operating integrated clean energy and new energy businesses[11]. - The group anticipates sufficient financial resources to continue operations based on past performance and banking relationships[10]. - The company is actively expanding its clean energy business and enhancing its natural gas supply capabilities to contribute to the new energy supply landscape[39]. - The group is focusing on the dual carbon strategy and aims to strengthen its position as a comprehensive clean energy service provider by enhancing its natural gas and renewable energy business[53]. - The company is committed to optimizing its energy structure and improving energy efficiency in response to national policies promoting green and low-carbon development[39]. Shareholder Returns - The board did not recommend a final dividend for 2024, consistent with 2023[3]. - The company will not declare dividends for the years ending December 31, 2024, and 2023, indicating a focus on reinvestment[32]. - The average number of ordinary shares issued during the year remained stable at 22,736,114,715 shares, with no adjustments made for diluted earnings per share due to the absence of convertible bonds[33]. Employee and Operational Metrics - The number of employees decreased to 564 as of December 31, 2024, from 677 in 2023[75]. - The company added 33,084 new gas pipeline users in 2024, bringing the total to 569,369 users[42]. Awards and Recognition - The group received the "ESG Environmentally Friendly Excellence Enterprise" award, reflecting its commitment to sustainable development and improved recognition in the capital market[52].

[Company Information](index=3&type=section&id=Company%20Information) The report provides detailed company information as of August 29, 2024, including board members, committee compositions, main office address, share registrar, auditor (EY), principal bankers, and company website - The report provides detailed company information as of August 29, 2024, including board members, committee compositions, main office address, share registrar, auditor (Ernst & Young), principal bankers, and company website[2](index=2&type=chunk) [Company Profile](index=4&type=section&id=Company%20Profile) The Group is positioned as a comprehensive energy service provider focusing on the entire natural gas industry chain, with Beijing Gas Group Co., Ltd. as its single largest shareholder - The Group is positioned as a comprehensive energy service provider focusing on the entire natural gas industry chain, with Beijing Gas Group Co., Ltd. as its single largest shareholder[4](index=4&type=chunk) - Its main businesses cover three segments: (1) City Gas Business; (2) Natural Gas Trading and Distribution Business; and (3) Integrated Clean Energy and New Energy Business[4](index=4&type=chunk) - In response to the national "Dual Carbon" goals, the Group is actively expanding its integrated clean energy and new energy businesses through self-construction, acquisitions, and collaborations[4](index=4&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In the first half of 2024, the company's revenue decreased by **26.8%** to **HKD 872 million** year-on-year, with gross profit down **62.5%** to **HKD 16.71 million**, while profit attributable to owners increased by **71.2%** to **HKD 55.31 million** due to increased share of profit from associates and lower finance costs, resulting in basic earnings per share of **HKD 0.24 cents** 2024 First Half Profit or Loss Key Data (HKD thousands) | Indicator | 2024 First Half (Unaudited) | 2023 First Half (Unaudited) | Year-on-year change | | :--- | :--- | :--- | :--- | | **Revenue** | **871,956** | **1,191,450** | **-26.8%** | | Cost of sales | (855,247) | (1,146,846) | -25.4% | | **Gross Profit** | **16,709** | **44,604** | **-62.5%** | | Share of profit from associates | 169,523 | 135,650 | +25.0% | | Finance costs | (64,168) | (76,700) | -16.3% | | Profit before tax | 53,816 | 46,590 | +15.5% | | **Profit for the period** | **41,546** | **43,084** | **-3.6%** | | **Profit attributable to owners of the Company** | **55,313** | **32,272** | **+71.2%** | | **Basic earnings per share (HK cents)** | **0.24** | **0.14** | **+71.4%** | [Condensed Consolidated Statement of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the company's total assets slightly increased to **HKD 5.18 billion**, and net assets rose to **HKD 1.65 billion**, though it still faces a net current liability of approximately **HKD 1.19 billion**, indicating ongoing short-term liquidity pressure Financial Position Key Data (HKD thousands) | Indicator | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 4,042,237 | 3,823,828 | +5.7% | | Total current assets | 1,137,388 | 1,262,939 | -9.9% | | **Total Assets** | **5,179,625** | **5,086,767** | **+1.8%** | | Total current liabilities | 2,327,551 | 2,284,337 | +1.9% | | Total non-current liabilities | 1,201,593 | 1,176,502 | +2.1% | | **Total Liabilities** | **3,529,144** | **3,460,839** | **+2.0%** | | **Net Assets** | **1,650,481** | **1,625,928** | **+1.5%** | | Net current liabilities | (1,190,163) | (1,021,398) | +16.5% | [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In the first half of 2024, net cash flow from operating activities significantly decreased to **HKD 17.22 million**, but cash flow from investing activities turned into a net inflow of **HKD 136 million**, leading to an increase in period-end cash and cash equivalents to **HKD 515 million**, primarily due to dividend income from associates Cash Flow Key Data (HKD thousands) | Indicator | 2024 First Half (Unaudited) | 2023 First Half (Unaudited) | | :--- | :--- | :--- | | Net cash flows from operating activities | 17,219 | 81,036 | | Net cash flows from investing activities | 135,549 | 10,243 | | Net cash flows used in financing activities | (36,268) | (241,520) | | Net increase / (decrease) in cash and cash equivalents | 116,500 | (150,241) | | **Cash and cash equivalents at end of period** | **514,517** | **354,982** | [Summary of Notes to the Financial Statements](index=10&type=section&id=Summary%20of%20Notes%20to%20the%20Financial%20Statements) [Operating Segment Information](index=12&type=section&id=Note%205.%20Operating%20Segment%20Information) The Group's business is divided into three segments, with the City Gas Operations segment being the primary profit driver in the first half of 2024, contributing **HKD 133 million** in segment profit, while the newly established Clean Energy segment has begun generating modest revenue and profit 2024 First Half Segment Revenue and Profit (HKD thousands) | Segment | Revenue | Segment Profit | | :--- | :--- | :--- | | City Gas Operations | 528,900 | 133,269 | | Natural Gas Trading and Distribution | 341,714 | 1,988 | | Development and Operation of Integrated Clean Energy and New Energy | 1,342 | 1,179 | | **Total** | **871,956** | **136,436** | Segment Revenue Year-on-Year Change (HKD thousands) | Segment | 2024 First Half | 2023 First Half | Year-on-year change | | :--- | :--- | :--- | :--- | | City Gas Operations | 528,900 | 540,330 | -2.1% | | Natural Gas Trading and Distribution | 341,714 | 651,120 | -47.5% | | Development and Operation of Integrated Clean Energy and New Energy | 1,342 | – | N/A | | **Total** | **871,956** | **1,191,450** | **-26.8%** | [Dividends](index=17&type=section&id=Note%2011.%20Dividends) The Board of Directors does not recommend the declaration of any interim dividend for the six months ended June 30, 2024 - The Board of Directors does not recommend the declaration of an interim dividend for 2024, consistent with the policy for the same period in 2023[34](index=34&type=chunk) [Events After Reporting Period](index=19&type=section&id=Note%2016.%20Events%20After%20Reporting%20Period) After the reporting period, the company appealed a litigation judgment and completed the acquisition of a **49%** equity interest in Beijing Unite Energy Engineering Technology Co., Ltd - Regarding a lawsuit concerning the acquisition of equity in a target company, the company filed an appeal against the first-instance judgment on July 25, 2024[41](index=41&type=chunk) - On July 3, 2024, the Group completed the acquisition of a **49%** equity interest in Beijing Unite Energy Engineering Technology Co., Ltd. for a consideration of **RMB 41.65 million**[42](index=42&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=21&type=section&id=Business%20Review) In the first half of 2024, the Group's total gas sales volume decreased by **20.2%** year-on-year, leading to a **26.8%** revenue decline due to reduced natural gas demand, yet profit attributable to owners grew significantly by **71.2%** driven by increased profit contribution from associate PetroChina Jingtang and effective control over finance costs, while substantial progress was made in clean energy and new energy sectors 2024 First Half Key Operating Data | Indicator | 2024 First Half | 2023 First Half | Year-on-year change | | :--- | :--- | :--- | :--- | | Total Gas Sales Volume (million cubic meters) | 263.4 | 329.9 | -20.2% | | Revenue (million HKD) | 872.0 | 1,191.5 | -26.8% | | Gross Profit (million HKD) | 16.7 | 44.6 | -62.5% | | Profit attributable to owners of the Company (million HKD) | 55.3 | 32.3 | +71.2% | - Profit growth was primarily attributable to: (i) increased share of profit from associate PetroChina Jingtang project; and (ii) lower finance costs[48](index=48&type=chunk)[70](index=70&type=chunk) [Segment Business Performance](index=24&type=section&id=Segment%20Business%20Performance) City gas sales volume increased by **15.2%**, but connection revenue decline led to a **2.1%** segment revenue decrease, while natural gas trading and distribution business saw significant contraction, and the associate LNG receiving terminal project contributed substantial profit with **7.2%** increase in offloading volume, and new clean energy businesses began contributing revenue and are actively expanding - **City Gas Business**: Gas sales volume increased by **15.2%** year-on-year to **141.9 million cubic meters**, primarily driven by the Shanxi project, but connection revenue decreased by **29.5%** due to fewer industrial user connections[52](index=52&type=chunk)[53](index=53&type=chunk) - **Natural Gas Trading and Distribution Business**: Total trading volume decreased by **42.2%** year-on-year to **114.9 million cubic meters**, with sales revenue down **47.5%** to **HKD 341.7 million**, mainly due to decreased natural gas demand[54](index=54&type=chunk) - **LNG Receiving Terminal Project**: The **29%**-owned PetroChina Jingtang project's total LNG offloading volume reached **3.32 billion cubic meters** in the first half, a **7.2%** year-on-year increase, serving as a significant source of Group profit[55](index=55&type=chunk) - **Integrated Clean Energy and New Energy Business**: Achieved substantial progress, including completing the acquisition of Beiqijia assets (contributing **HKD 1.3 million** in revenue), advancing the acquisition of a **49%** equity interest in Beijing Unite, and commencing construction of the Yangzhou user-side energy storage project[56](index=56&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) [Financial Review](index=28&type=section&id=Financial%20Review) The company's revenue and gross profit both declined in the first half, with gross margin falling from **3.7%** to **1.9%**, yet finance costs decreased by **16.3%** to **HKD 64.2 million** due to optimized debt structure, and the increase in profit attributable to owners was mainly driven by associate contributions and reduced interest expenses, while the net debt-to-equity ratio improved from **141.9%** to **136.8%**, but the current ratio of **0.49** indicates ongoing short-term liquidity pressure - Gross margin decreased from **3.7%** in the same period last year to **1.9%**, primarily due to gas price adjustments in some city gas projects and rising upstream costs[62](index=62&type=chunk) - Finance costs decreased by **16.3%** year-on-year, mainly due to the Group replacing HKD and USD borrowings with lower-cost RMB bank borrowings since 2023[68](index=68&type=chunk) Key Financial Ratios | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 0.49 | 0.55 | | Debt-to-asset Ratio | 68.1% | 68.0% | | Gearing Ratio (Total Borrowings/Total Assets) | 53.5% | 53.3% | | Net Debt-to-equity Ratio | 136.8% | 141.9% | [Future Outlook](index=27&type=section&id=Future%20Outlook) The Group will continue to seize strategic opportunities from national energy transformation and green low-carbon development, focusing on the new energy business, particularly the industrial and commercial energy storage market, aiming to become a first-class new energy enterprise - The Group's recognition in ESG and capital markets improved, receiving "ESG Environmentally Friendly Excellence Enterprise" and "Most Promising Listed Company" awards[59](index=59&type=chunk) - Future strategic focus will be on new energy businesses, especially the industrial and commercial energy storage market with diversified application scenarios, to seek new growth points[60](index=60&type=chunk) [Other Information](index=35&type=section&id=Other%20Information) [Major Shareholders' Interests](index=35&type=section&id=Major%20Shareholders'%20Interests) As of June 30, 2024, Beijing Gas Co., Ltd. is the company's controlling shareholder, holding **66.37%** of shares, with its ultimate controlling party being Beijing Enterprises Group Company Limited, wholly owned by the Beijing SASAC Major Shareholder Holdings | Shareholder Name | Capacity | Number of Shares Held (Long Position) | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Beijing Gas Co., Ltd. | Beneficial Owner | 15,091,042,131 | 66.37% | | Beijing Gas Group | Interest in Controlled Corporation | 15,091,042,131 | 66.37% | | Beijing Enterprises Group Company Limited | Interest in Controlled Corporation | 15,091,042,131 | 66.37% | [Control Clauses in Financing Agreements](index=37&type=section&id=Disclosure%20under%20Listing%20Rule%2013.21) Several of the company's bank financing agreements contain change of control clauses, generally requiring Beijing SASAC, Beijing Enterprises Group, and Beijing Gas Group to maintain ultimate control or single largest shareholder status over the company, with banks having the right to demand immediate repayment of all outstanding amounts if these clauses are breached - Multiple bank financing agreements signed in 2023 and 2024 stipulate that if the controlling shareholder (Beijing Gas Group)'s shareholding in the company falls below **51%**, or if there are significant changes in its upstream shareholder structure, it will trigger a default, allowing banks to demand early repayment[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk)

Financial Performance - The group recorded revenue of HKD 872.0 million for the first half of 2024, a decrease of 26.8% compared to HKD 1,191.5 million in the first half of 2023[1]. - Profit attributable to shareholders increased by 71.2% to HKD 55.3 million, up from HKD 32.3 million in the same period last year[1]. - EBITDA for the first half of 2024 was HKD 168.7 million, a decrease of 2.8% from HKD 173.6 million in the first half of 2023[1]. - The group reported a total comprehensive income of HKD 24.6 million for the first half of 2024, a significant improvement from a loss of HKD 63.1 million in the same period last year[3]. - Total revenue for the six months ended June 30, 2024, was HKD 871,956,000, a decrease of 26.8% from HKD 1,191,450,000 for the same period in 2023[15]. - The total segment profit for the six months ended June 30, 2024, was HKD 136,436,000, compared to HKD 114,982,000 for the same period in 2023, indicating an increase of 18.6%[15]. - The pre-tax profit for the six months ended June 30, 2024, was HKD 53,816,000, compared to HKD 46,590,000 for the same period in 2023, reflecting an increase of 15.0%[19]. - The company reported a total gas sales volume of 263.4 million cubic meters for the first half of 2024, down 20.2% from 329.9 million cubic meters in the same period of 2023[30]. - Gross profit for the first half of 2024 was HKD 16.7 million, down 62.5% from HKD 44.6 million in the same period of 2023, resulting in a gross margin of 1.9%[30]. - The company's attributable profit for the first half of 2024 was HKD 55.3 million, an increase of 71.2% compared to HKD 32.3 million in the first half of 2023[30]. Dividends and Earnings Per Share - Basic and diluted earnings per share for the first half of 2024 were both HKD 0.24, compared to HKD 0.14 in the same period last year[1]. - The board of directors did not recommend the declaration of an interim dividend for the first half of 2024, consistent with the previous year[1]. - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[22]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 4,042.2 million, an increase from HKD 3,823.8 million as of December 31, 2023[4]. - Current liabilities totaled HKD 2,327.6 million as of June 30, 2024, compared to HKD 2,284.3 million at the end of 2023[5]. - Net assets attributable to shareholders increased to HKD 1,650.5 million from HKD 1,625.9 million at the end of 2023[5]. - As of June 30, 2024, the group's current liabilities net amount is approximately HKD 1,190.2 million, indicating sufficient available funds for continued operations[7]. - Total liabilities to total assets ratio was 68.1% as of June 30, 2024, slightly up from 68.0% as of December 31, 2023[55]. - The net debt ratio improved to 136.8% as of June 30, 2024, down from 141.9% as of December 31, 2023[55]. - The group maintained a current ratio of 0.49 as of June 30, 2024, compared to 0.55 as of December 31, 2023[55]. Business Operations and Segments - The group operates three main business segments: urban gas operations, natural gas trading and distribution, and integrated clean energy and new energy development[11]. - The group has commenced the development and operation of integrated clean energy and new energy businesses, marking a new operational segment[11]. - The natural gas business experiences seasonal fluctuations, with higher demand typically observed in the second half of the year due to winter heating needs[10]. - The gas operation segment generated revenue of HKD 528,900,000, down from HKD 540,330,000, while the natural gas trading and distribution segment saw a significant decline to HKD 341,714,000 from HKD 651,120,000[15]. - The group added 15,561 new gas connection users in the first half of 2024, bringing the total number of users to 551,846[34]. - The group signed a long-term gas supply agreement with Beijing Gas Group, ensuring stable gas supply from January 1, 2024, to December 31, 2026[35]. Financing and Investments - The company completed the acquisition of a 49% stake in Beijing Unait Energy Engineering Technology Co., Ltd. for RMB 41,650,000 (approximately HKD 45,737,000) on July 3, 2024[26]. - The company has a capital commitment of HKD 57,790,000 as of June 30, 2024, compared to HKD 45,960,000 as of December 31, 2023[27]. - The group issued convertible bonds totaling HKD 300 million, maturing on December 28, 2025[52]. - The group has utilized 100% of the funds raised from the capital increase and asset injection plan for repaying existing bank loans and related interests[58]. - The company is appealing a civil judgment requiring it to pay RMB 25,088,000 related to a lawsuit, with the appeal scheduled for September 5, 2024[26]. Sustainability and Future Plans - The company aims to increase its clean low-carbon energy business in response to the rapid development of the energy storage market, which has seen a growth of over 40% in installed capacity compared to the end of 2023[29]. - The company is focusing on the green low-carbon transition, with non-fossil energy consumption expected to reach 18.9% of total energy consumption by 2024[29]. - The company is focusing on expanding its energy storage business, particularly in East and South China, with the Yangzhou project entering the construction phase[39]. - The company received the "ESG Environmentally Friendly Excellence Enterprise" award, reflecting its commitment to sustainable development[40]. Corporate Governance - The board is committed to high standards of corporate governance and has adopted practices in line with the corporate governance code[70]. - The audit committee has reviewed the accounting principles and discussed risk management and internal controls for the first half of 2024[68].

Audit and Financial Controls - The company paid HKD 4,000,000 for audit services and HKD 673,340 for non-audit services to Ernst & Young in 2023[144] - The audit committee reviewed the independence and objectivity of external auditors and the efficiency of the audit process[137] - The audit committee has the authority to investigate any matters that may significantly impact the company's operational or financial performance[141] - The company's financial controls, risk management, and internal control systems were reviewed to ensure effective implementation by management[142] Corporate Governance - The board of directors held 5 meetings in 2023, with full attendance from key members including the Chairman and CEO[157] - The compliance committee, established in July 2022, is chaired by the audit committee chairman and includes all independent non-executive directors[153] - The company confirmed the independence of its independent non-executive directors, including Mr. Cui Yulei, Ms. Xu Huimin, and Mr. Xu Jianwen[164] - The board is responsible for corporate governance functions, including reviewing the training and professional development of directors and senior management[145] - The company's directors are required to retire and be eligible for re-election at shareholder meetings in accordance with the company's articles of association[160] Financial Performance - Revenue for the year reached 2,150.3 million HKD, a 37.1% increase compared to 2022[178] - Net profit for the year was 102.6 million HKD, a 786.0% increase compared to 2022[178] - Gross profit for the year was 65.4 million HKD, a 31.9% increase compared to 2022[178] - Gross margin for the year was 3.0%, a slight decrease from 3.2% in 2022[178] - Profit attributable to shareholders was 91.3 million HKD, a 390.9% increase compared to 2022[178] - Revenue for 2023 increased by 37.1% to HK$2,150,279 thousand compared to HK$1,568,466 thousand in 2022[192] - Net profit for 2023 surged by 786.0% to HK$102,640 thousand from HK$11,584 thousand in 2022[192] - The company's EBITDA for 2023 rose by 77.9% to HK$416,736 thousand from HK$234,287 thousand in 2022[192] - Cash and cash equivalents decreased by 27.6% to HK$401,344 thousand in 2023 from HK$554,062 thousand in 2022[192] Gas Sales and Market Trends - Gas sales volume reached 733.6 million cubic meters, a 93.5% increase compared to 2022[187] - Natural gas sales volume in 2023 reached 284.8 million cubic meters, a 111.6% increase from 134.6 million cubic meters in 2022[193] - Residential user gas sales volume increased by 6.9% to 76.1 million cubic meters in 2023 from 71.2 million cubic meters in 2022[193] - China's natural gas apparent consumption in 2023 was 394.53 billion cubic meters, a 7.6% year-on-year increase[173] Strategic Investments and Agreements - The company has no significant investment or capital asset agreements as of the report date but will consider potential opportunities in the future[146] - The company secured a 700 million HKD equivalent RMB term loan facility from its controlling shareholder, Beijing Gas Group, in December 2023[187] - The company signed a natural gas purchase agreement with Beijing Gas Group, effective from January 1, 2024, to December 31, 2026[196] - The company acquired a 49% stake in Beijing Unite Energy Engineering Technology Co., Ltd. for RMB 41,650,000, with the transaction expected to be completed by June 30, 2024[200] - The company entered into a strategic cooperation framework agreement with Beijing Guoneng Guoyuan Energy Technology Co., Ltd. in June 2023 to collaborate in new energy, asset-light business, and technology R&D[199] Business Growth and Contributions - The acquisition of Guangxi Tengxian city gas business contributed to the revenue and profit growth[178] - The company's gas trade and distribution business also contributed to the revenue growth[178]