[Executive Summary](index=1&type=section&id=Executive%20Summary) The Group reported a 28.7% revenue increase and a 3.8% rise in profit attributable to owners, with significant growth in clean energy business, but no interim dividend is recommended | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,019.6 | 792.4 | 28.7% | | Profit Attributable to Owners of the Company | 52.2 | 50.3 | 3.8% | | EBITDA | 147.3 | 153.3 | (3.9%) | | Clean Energy and New Energy Segment Revenue | 8.4 | 1.2 | 600.0% | | Clean Energy and New Energy Segment Profit | 5.1 | 1.1 | 363.6% | | Basic and Diluted Earnings Per Share | 0.23 cents | 0.22 cents | 4.5% | - The Board does not recommend declaring an **interim dividend** for the first half of 2025[3](index=3&type=chunk) [Unaudited Interim Results](index=2&type=section&id=Unaudited%20Interim%20Results) This section presents the condensed consolidated financial statements, highlighting the Group's financial performance and position for the interim period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's revenue increased by 28.7% to RMB 1,019.6 million, with profit attributable to owners rising 3.8%, despite an 18.8% decline in gross profit | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,019,577 | 792,399 | | Cost of Sales | (1,007,241) | (777,215) | | Gross Profit | 12,336 | 15,184 | | Other Income and Gains, Net | 9,484 | 4,247 | | Administrative Expenses | (52,337) | (66,539) | | Reversal of Impairment Losses on Financial Assets, Net | 8,038 | 1,581 | | Finance Costs | (45,547) | (58,313) | | Share of Profit of Associates | 131,898 | 154,056 | | Profit Before Tax | 62,938 | 48,905 | | Profit for the Period | 47,774 | 37,755 | | Profit Attributable to Owners of the Company | 52,206 | 50,266 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total non-current assets increased to RMB 3,654.5 million, driven by investments in associates, while net current liabilities stood at RMB 2,038.6 million, indicating liquidity pressure | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 3,654,512 | 3,554,066 | | Total Current Assets | 839,636 | 896,562 | | Total Current Liabilities | 2,878,261 | 2,871,531 | | Net Current Liabilities | (2,038,625) | (1,974,969) | | Net Assets | 1,521,823 | 1,480,155 | | Total Equity | 1,521,823 | 1,480,155 | [Notes to the Unaudited Condensed Consolidated Interim Financial Information](index=6&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed notes on the Group's interim financial information, covering accounting policies, segment data, and key financial statement items [1. General Information](index=6&type=section&id=1.%20General%20Information) The company, registered in Bermuda and listed on HKEX, primarily engages in natural gas distribution, trading, and clean energy, with Beijing Enterprises Group Company Limited as its ultimate controlling shareholder - The Company is incorporated in Bermuda and its shares are listed on the Stock Exchange of Hong Kong[10](index=10&type=chunk) - The Group primarily engages in natural gas transmission and distribution, gas equipment sales, pipeline connection services, CNG/LNG refilling station operations, natural gas trading and distribution, and integrated clean energy and new energy businesses[11](index=11&type=chunk)[13](index=13&type=chunk) - The Company's ultimate controlling company is Beijing Enterprises Group Company Limited, wholly owned by the Beijing State-owned Assets Supervision and Administration Commission[11](index=11&type=chunk) [2. Basis of Presentation and Preparation](index=6&type=section&id=2.%20Basis%20of%20Presentation%20and%20Preparation) The Group faces net current liabilities of approximately RMB 2,039 million, but the Board believes in its going concern based on inter-company loans, bank offers, associate dividends, and ongoing support from the controlling shareholder [2.1 Basis of Presentation](index=6&type=section&id=2.1%20Basis%20of%20Presentation) - As of June 30, 2025, the Group's **net current liabilities** were approximately **RMB 2,039 million**[12](index=12&type=chunk) - The Board believes the Group will have sufficient funds for **going concern**, based on a **HKD 1,000 million** revolving loan from a fellow subsidiary, a **RMB 1,200 million** 3-year syndicated loan offer from major banks, expected dividends from associates, and ongoing financial support from the controlling company[12](index=12&type=chunk)[14](index=14&type=chunk) [2.2 Basis of Preparation](index=7&type=section&id=2.2%20Basis%20of%20Preparation) - The unaudited interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of Appendix D2 to the Listing Rules[15](index=15&type=chunk) - This interim condensed consolidated financial information is unaudited but has been reviewed by the Company's Audit Committee[16](index=16&type=chunk) [Change in Presentation Currency](index=7&type=section&id=Change%20in%20Presentation%20Currency) - Effective January 1, 2024, the Company's consolidated financial statements' presentation currency changed from HKD to RMB, with comparative figures retrospectively accounted for and restated[17](index=17&type=chunk) - The Board considers RMB more appropriate as the presentation currency, as most of the Group's transactions are denominated and settled in RMB, providing clearer financial performance insights for shareholders and potential investors[17](index=17&type=chunk) [3. Changes in Accounting Policies and Disclosures](index=7&type=section&id=3.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The first-time adoption of revised IFRS accounting standards (IAS 21 amendments) had no material impact on the Group's interim condensed consolidated financial information, as its transaction and functional currencies are convertible - The first-time adoption of revised IFRS accounting standards (IAS 21 amendments) had no impact on the Group's interim condensed consolidated financial information[18](index=18&type=chunk) - The amendment addresses assessing currency exchange and estimating spot exchange rates when convertibility is lacking, but the Group's transaction and functional currencies are convertible[18](index=18&type=chunk) [4. Seasonal Factors in Operations](index=7&type=section&id=4.%20Seasonal%20Factors%20in%20Operations) The Group's natural gas business experiences seasonal fluctuations, with higher demand in the second half due to winter heating, meaning first-half results may not reflect full-year performance - The Group's natural gas business experiences **seasonal fluctuations**, with higher demand typically in the second half due to winter heating[19](index=19&type=chunk) - The interim results for the first half may not be indicative of the operating performance for the entire financial year[20](index=20&type=chunk) [5. Operating Segment Information](index=8&type=section&id=5.%20Operating%20Segment%20Information) The Group operates in city gas, natural gas trading and distribution, and integrated clean and new energy segments, with significant revenue growth in natural gas trading and distribution in H1 2025 - The Group's operating segments include city gas operations, natural gas trading and distribution, and the development and operation of integrated clean energy and new energy[21](index=21&type=chunk)[24](index=24&type=chunk) | Segment | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | H1 2025 Profit/(Loss) (RMB thousand) | H1 2024 Profit (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | City Gas Operations | 440,969 | 480,643 | 120,113 | 121,110 | | Natural Gas Trading and Distribution | 570,184 | 310,536 | (3,378) | 1,807 | | Clean Energy and New Energy | 8,424 | 1,220 | 5,132 | 1,071 | | **Total** | **1,019,577** | **792,399** | **121,867** | **123,988** | [6. Revenue](index=9&type=section&id=6.%20Revenue) Total revenue for H1 2025 reached RMB 1,019.6 million, a 28.7% year-on-year increase, primarily driven by an 83.6% surge in natural gas trading and distribution revenue | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | City Gas Operations | 440,969 | 480,643 | | Natural Gas Trading and Distribution | 570,184 | 310,536 | | Development and Operation of Integrated Clean Energy and New Energy | 8,424 | 1,220 | | **Total** | **1,019,577** | **792,399** | - Total revenue for H1 2025 increased by **28.7%** year-on-year, primarily due to increased revenue from the natural gas trading and distribution business[27](index=27&type=chunk) [7. Other Income and Gains, Net](index=10&type=section&id=7.%20Other%20Income%20and%20Gains,%20Net) Net other income and gains for H1 2025 significantly increased to RMB 9.5 million from RMB 4.2 million, primarily due to growth in other income | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 1,368 | 1,330 | | Government Grants and Subsidies | 70 | 165 | | Net Exchange Differences | (195) | (1,536) | | Other | 8,241 | 4,288 | | **Total** | **9,484** | **4,247** | - Net other income and gains increased by **123.3%** year-on-year, primarily driven by significant growth in the 'other' category[29](index=29&type=chunk) [8. Finance Costs](index=10&type=section&id=8.%20Finance%20Costs) Finance costs decreased by 22.0% to RMB 45.5 million in H1 2025, mainly due to reduced interest expenses on bank borrowings and loans from the controlling company | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Expense on Bank Borrowings | 24,079 | 30,836 | | Interest Expense on Other Borrowings | 303 | 2,055 | | Interest Expense on Convertible Bonds and Corporate Bonds | 13,854 | 14,986 | | Interest Expense on Loans from Controlling Company | 7,275 | 10,039 | | Interest Expense on Lease Liabilities | 36 | 397 | | **Total** | **45,547** | **58,313** | - Finance costs decreased by **22.0%** year-on-year, mainly due to reduced interest expenses on bank borrowings and loans from the controlling company[30](index=30&type=chunk) [9. Profit Before Tax](index=11&type=section&id=9.%20Profit%20Before%20Tax) Profit before tax was achieved after deducting cost of inventories sold, depreciation, amortization, and employee benefits, with a significant increase in net reversal of impairment losses on financial assets to RMB 8.0 million | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 988,085 | 746,078 | | Depreciation of Property, Plant and Equipment | 25,009 | 31,823 | | Amortization of Operating Rights | 8,765 | 9,024 | | Total Employee Benefit Expenses | 29,619 | 38,354 | | Reversal of Impairment Losses on Financial Assets, Net | (8,038) | (1,581) | | Reversal of Impairment Losses on Property, Plant and Equipment | (446) | (5,626) | - Net reversal of impairment losses on financial assets increased from **RMB (1,581) thousand** in H1 2024 to **RMB (8,038) thousand** in H1 2025, indicating an increase in impairment reversals[31](index=31&type=chunk) [10. Income Tax](index=11&type=section&id=10.%20Income%20Tax) Income tax expense for H1 2025 was RMB 15.2 million, primarily comprising current tax for PRC subsidiaries and withholding tax on dividends from PRC subsidiaries | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current – Mainland China | 7,610 | 5,392 | | Withholding Tax on Dividends Distributed by PRC Subsidiaries | 10,000 | 8,000 | | Deferred | (2,446) | (2,242) | | **Total Tax Expense for the Period** | **15,164** | **11,150** | - Income tax expense for H1 2025 increased by **36.0%** year-on-year, mainly due to higher current tax in mainland China and increased withholding tax on dividends[34](index=34&type=chunk) [11. Dividends](index=12&type=section&id=11.%20Dividends) The Board does not recommend declaring an interim dividend for the first half of 2025 - The Board does not recommend declaring an **interim dividend** for the six months ended June 30, 2025[35](index=35&type=chunk) [12. Earnings Per Share Attributable to Owners of the Company](index=12&type=section&id=12.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Basic earnings per share for H1 2025 slightly increased to RMB 0.23 cents, with unconverted convertible bonds having no dilutive effect on basic EPS | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | RMB 52,206,000 | RMB 50,266,000 | | Weighted Average Number of Ordinary Shares in Issue | 22,736,114,715 shares | 22,736,114,715 shares | | **Basic Earnings Per Share** | **RMB 0.23 cents** | **RMB 0.22 cents** | - Unconverted convertible bonds have no dilutive effect on the presented basic earnings per share amount[36](index=36&type=chunk) [13. Trade Receivables](index=12&type=section&id=13.%20Trade%20Receivables) As of June 30, 2025, total trade receivables increased by RMB 12.4 million to RMB 85.9 million, correlating with revenue growth | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 215,811 | 203,652 | | Impairment | (129,917) | (130,200) | | **Total** | **85,894** | **73,452** | - As of June 30, 2025, total trade receivables increased by **17.0%** to **RMB 85.9 million**, related to revenue growth[37](index=37&type=chunk) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unbilled and Billed within 3 Months | 36,193 | 32,716 | | 4 to 6 Months | 4,791 | 3,647 | | 7 to 12 Months | 13,479 | 19,591 | | Over 1 Year | 31,431 | 17,498 | [14. Trade and Bills Payables](index=13&type=section&id=14.%20Trade%20and%20Bills%20Payables) As of June 30, 2025, total trade and bills payables were RMB 113.3 million, remaining largely consistent with the end of 2024 | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 31,345 | 31,609 | | 4 to 6 Months | 10,987 | 11,412 | | 7 to 12 Months | 15,301 | 7,255 | | Over 1 Year | 52,922 | 51,952 | | Unbilled | 2,764 | 5,210 | | **Total** | **113,319** | **107,438** | - As of June 30, 2025, total trade and bills payables were **RMB 113.3 million**, a slight increase from the end of 2024[38](index=38&type=chunk) [15. Events After the Reporting Period](index=13&type=section&id=15.%20Events%20After%20the%20Reporting%20Period) Post-reporting period, on July 29, 2025, the Group established a 51%-owned joint venture with Beijing ENN New Energy Investment Co., Ltd., with a capital injection of RMB 40.8 million, to engage in integrated energy services - On July 29, 2025, the Group established a **51%-owned joint venture** with Beijing ENN New Energy Investment Co., Ltd., a wholly-owned subsidiary of ENN Energy Holdings Limited[39](index=39&type=chunk) - The joint venture was capitalized with **RMB 40,800,000** to engage in integrated energy services, investment, construction, and operation of integrated energy facilities, and smart energy management platforms[39](index=39&type=chunk) [16. Capital Commitments](index=13&type=section&id=16.%20Capital%20Commitments) As of June 30, 2025, the Group's capital commitments primarily for property, plant, and equipment totaled RMB 1.8 million, a significant decrease from the end of 2024 | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, Plant and Equipment | 1,814 | – | | Equity Interest in an Entity | – | 25,088 | | **Total** | **1,814** | **25,088** | - As of June 30, 2025, total capital commitments were **RMB 1.8 million**, a significant **92.8% decrease** from the end of 2024, primarily due to the completion of equity investment commitments from 2024 year-end[40](index=40&type=chunk) [17. Comparative Amounts](index=13&type=section&id=17.%20Comparative%20Amounts) The Group has changed the presentation currency of its consolidated financial statements from HKD to RMB, with comparative figures retrospectively restated - The Group has changed the presentation currency of its consolidated financial statements from HKD to RMB, with comparative figures retrospectively accounted for and restated[41](index=41&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the industry, a detailed business review, future outlook, and an in-depth analysis of the Group's financial performance and position [Industry Overview](index=14&type=section&id=Industry%20Overview) In H1 2025, global natural gas supply-demand remained fragile, domestic market was weak with a 0.9% decline in apparent consumption, while China promotes energy structure optimization and higher new energy power generation targets - In H1 2025, global natural gas supply-demand remained fragile, the domestic natural gas market was weak, and national apparent consumption decreased by **0.9%** year-on-year[42](index=42&type=chunk) - The Chinese government is committed to green and low-carbon transition, optimizing the energy structure, highlighting natural gas as a 'transition energy', and targeting **non-fossil energy power generation capacity to reach approximately 60% by 2025**[43](index=43&type=chunk) - As a key participant in the energy system, the Group continuously strengthens resource supply, enhances the efficiency of the entire natural gas industry chain, and actively expands into clean and low-carbon sectors[44](index=44&type=chunk) [Business Review](index=15&type=section&id=Business%20Review) In H1 2025, the Group's total gas sales volume grew 23.3% to 324.9 million cubic meters, revenue increased 28.7%, but gross margin declined, as it optimized city gas and accelerated new energy deployment | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Gas Sales Volume | 324.9 million cubic meters | 263.4 million cubic meters | 23.3% | | Revenue | RMB 1,019.6 million | RMB 792.4 million | 28.7% | | Gross Profit | RMB 12.3 million | RMB 15.2 million | (18.8%) | | Gross Margin | 1.2% | 1.9% | Decrease of 0.7 percentage points | | Profit for the Period | RMB 47.8 million | RMB 37.8 million | 26.5% | - The increase in profit for the period was primarily due to a decrease in administrative expenses and finance costs[45](index=45&type=chunk) - The Group's natural gas projects primarily cover **7 provinces and autonomous regions** in China[45](index=45&type=chunk) [Development and Operation of City Gas Business](index=16&type=section&id=Development%20and%20Operation%20of%20City%20Gas%20Business) - City gas business revenue was **RMB 441.0 million**, a **8.2% year-on-year decrease**, with connection revenue falling **19.3% to RMB 26.7 million**, mainly due to reduced industrial user connection services[48](index=48&type=chunk) - During the period, **14,386 new gas pipeline users** were connected, bringing the cumulative user count to **583,755**[48](index=48&type=chunk) | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Natural Gas Sales Volume | 131.7 million cubic meters | 141.9 million cubic meters | (7.2%) | | - Residential Users | 51.4 million cubic meters | 50.3 million cubic meters | 2.2% | | - Non-residential Users | 80.3 million cubic meters | 91.6 million cubic meters | (12.3%) | [LNG and CNG Trading and Distribution Business](index=17&type=section&id=LNG%20and%20CNG%20Trading%20and%20Distribution%20Business) - Total trade volume in H1 2025 was **192.3 million cubic meters**, a **67.4% year-on-year increase**, with segment sales of **RMB 570.2 million**, mainly due to the Group's enhanced market development in Zhejiang and Guangdong provinces for trading and distribution businesses[49](index=49&type=chunk) - The Group entered into a master agreement with a wholly-owned subsidiary of its controlling shareholder, Beijing Gas Group, to ensure natural gas supply from January 1, 2024, to December 31, 2026[50](index=50&type=chunk) [LNG Receiving Terminal Project](index=18&type=section&id=LNG%20Receiving%20Terminal%20Project) - The Group holds a **29% equity interest** in PetroChina Jingtang, an LNG receiving terminal that serves as a major winter peak-shaving and supply station for the Beijing-Tianjin-Hebei region[51](index=51&type=chunk) - In H1 2025, PetroChina Jingtang's total LNG receiving volume reached **2,959.9 million cubic meters**, a **10.9% year-on-year decrease**, primarily due to reduced gas demand in Beijing[51](index=51&type=chunk) [Development and Operation of Integrated Clean Energy and New Energy Business](index=18&type=section&id=Development%20and%20Operation%20of%20Integrated%20Clean%20Energy%20and%20New%20Energy%20Business) - The Group actively explores transformation, accelerating its new energy business layout in energy storage, distributed energy, and multi-energy complementarity through acquisitions, self-construction, and joint ventures[52](index=52&type=chunk)[56](index=56&type=chunk) - The Group holds a **49% equity interest** in Beijing Unite Energy Engineering Technology Co., Ltd., which primarily engages in planning, design, and consulting for gas, heating, integrated energy utilization, and new energy power generation projects[53](index=53&type=chunk) - The Beiqijia Business Park Energy Center project generated **RMB 6.7 million** in revenue (**458.3% year-on-year increase**) and **RMB 2.0 million** in segment profit (**81.8% year-on-year increase**) for the Group's integrated clean energy and new energy business[54](index=54&type=chunk) - The Yangzhou Wutingqiao Cylinder Liner Co., Ltd. user-side energy storage system project officially commenced operations in Q4 2024, with other energy storage businesses also starting operations in various regions[55](index=55&type=chunk) [Future Outlook](index=19&type=section&id=Future%20Outlook) For H2 2025, China's economy is expected to moderately recover, with deepening green and low-carbon energy transition, as the Group aims to strengthen natural gas, accelerate new energy, and transform into an integrated clean energy provider - In H2 2025, China's economy is expected to moderately recover, with deepening green and low-carbon energy transition and a continuous increase in clean energy's share[57](index=57&type=chunk) - The Group will actively respond to the 'Dual Carbon' strategy, consolidate its natural gas business advantages, accelerate new energy deployment, and transform into an integrated clean energy service provider[57](index=57&type=chunk) - In natural gas, the Group will strengthen synergy with its controlling shareholder to expand full industry chain advantages; in integrated energy, it will further improve new energy business layout and accelerate the transition of old and new growth drivers[57](index=57&type=chunk) [Financial Performance Analysis](index=20&type=section&id=Financial%20Performance%20Analysis) This section details H1 2025 financial performance, including revenue growth, gross profit decline, reduced administrative and finance costs, and increased impairment reversals, collectively leading to a slight rise in profit attributable to owners [Revenue](index=20&type=section&id=Revenue_MDA) - Revenue for H1 2025 was **RMB 1,019.6 million**, an increase of **28.7%** compared to H1 2024, primarily due to increased revenue from natural gas trading and distribution[58](index=58&type=chunk) [Gross Profit and Gross Margin](index=20&type=section&id=Gross%20Profit%20and%20Gross%20Margin_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 12.3 | 15.2 | (18.8%) | | Gross Margin | 1.2% | 1.9% | Decrease of 0.7 percentage points | - The decline in gross margin was primarily due to rising cost of sales caused by continuous adjustments in upstream prices[59](index=59&type=chunk) [EBITDA](index=20&type=section&id=EBITDA_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | EBITDA | 147.3 | 153.3 | (3.9%) | - EBITDA remained largely stable[60](index=60&type=chunk) [Other Income and Gains, Net](index=20&type=section&id=Other%20Income%20and%20Gains,%20Net_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Other Income and Gains, Net | 9.5 | 4.2 | 5.3 | [Administrative Expenses](index=20&type=section&id=Administrative%20Expenses_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 52.3 | 66.5 | (14.2) | - The decrease in administrative expenses was due to the Group's continuous implementation of cost reduction and efficiency improvement measures and enhanced operational efficiency[62](index=62&type=chunk) [Reversal of Impairment Losses on Financial Assets, Net](index=20&type=section&id=Reversal%20of%20Impairment%20Losses%20on%20Financial%20Assets,%20Net_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Reversal of Impairment Losses on Financial Assets, Net | 8.0 | 1.6 | 6.4 | - The increase in impairment reversals was due to the recovery of previously recognized impairment losses on financial assets during the period[63](index=63&type=chunk) [Other Expenses, Net](index=20&type=section&id=Other%20Expenses,%20Net_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Other Expenses, Net | 0.8 | 1.5 | (0.7) | [Finance Costs](index=20&type=section&id=Finance%20Costs_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 45.5 | 58.3 | (22.0%) | - The decrease in finance costs was due to the Group's continuous implementation of cost reduction and efficiency improvement measures and enhanced operational efficiency[65](index=65&type=chunk) [Income Tax](index=21&type=section&id=Income%20Tax_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Income Tax Expense | 15.2 | 11.2 | - Income tax expense primarily refers to current tax of **RMB 7.6 million** for PRC subsidiaries and withholding tax of **RMB 10.0 million** on dividends distributed by PRC subsidiaries[66](index=66&type=chunk) [Profit Attributable to Owners of the Company](index=21&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company_MDA) | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 52.2 | 50.3 | 3.8% | - Profit attributable to owners of the Company remained largely stable compared to H1 2024[67](index=67&type=chunk) [Changes in Key Items of Condensed Consolidated Statement of Financial Position](index=21&type=section&id=Changes%20in%20Key%20Items%20of%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section analyzes balance sheet changes, including increased non-current assets due to associate investments, higher trade receivables and lower prepayments in current assets, and reduced other payables in current liabilities [Non-current Assets](index=21&type=section&id=Non-current%20Assets_MDA) - The balance of property, plant and equipment decreased by **RMB 30.9 million** compared to the end of 2024, mainly due to depreciation provisions in H1 2025[68](index=68&type=chunk) - The net carrying amount of investments in associates increased compared to December 31, 2024, primarily due to the share of profit from associate PetroChina Jingtang during the period[69](index=69&type=chunk) [Current Assets](index=21&type=section&id=Current%20Assets_MDA) - The balance of trade receivables increased by **RMB 12.4 million** compared to December 31, 2024, related to revenue growth[70](index=70&type=chunk) - The balance of prepayments, deposits and other receivables decreased by **RMB 86.0 million** compared to December 31, 2024, mainly due to collections during the period[70](index=70&type=chunk) - Cash and cash equivalents balance was **RMB 364.7 million**, largely consistent with the balance as of December 31, 2024[71](index=71&type=chunk) [Non-current Liabilities](index=22&type=section&id=Non-current%20Liabilities_MDA) - The balance of non-current liabilities remained largely consistent with the balance as of December 31, 2024[72](index=72&type=chunk) [Current Liabilities](index=22&type=section&id=Current%20Liabilities_MDA) - The balance of other payables and accrued expenses decreased compared to December 31, 2024, mainly due to enhanced management by the Group during the period[73](index=73&type=chunk) - The balance of bank and other borrowings remained largely consistent with the balance as of December 31, 2024, primarily comprising shareholder loans from the controlling company and certain RMB bank borrowings[73](index=73&type=chunk) - Convertible bonds refer to those issued by the Company to Beijing Gas Company Limited with a total principal amount of **HKD 300 million**, maturing on December 28, 2025[73](index=73&type=chunk) [Capital Structure and Financial Resources](index=22&type=section&id=Capital%20Structure%20and%20Financial%20Resources) The Group maintains a sound financial policy, financing through equity, bank borrowings, and convertible bonds, with net current liabilities of RMB 2,038.6 million, a debt-to-asset ratio of 66.1%, and a net debt-to-equity ratio of 130.2% as of June 30, 2025 | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 364.7 | 360.3 | 1.2% | | Net Current Liabilities | (2,038.6) | (1,975.0) | (3.2%) | | Current Ratio | 0.29 | 0.31 | (6.5%) | | Debt-to-Asset Ratio | 66.1% | 66.7% | (0.6 percentage points) | | Leverage Ratio | 52.2% | 52.4% | (0.2 percentage points) | | Net Debt-to-Equity Ratio | 130.2% | 133.3% | (3.1 percentage points) | - Since 2023, the Group has leveraged the advantage of low-cost RMB financing to replace HKD and USD borrowings, securing **RMB bank borrowings equivalent to HKD 1,000 million** at lower interest rates in H1 2025[76](index=76&type=chunk) - The Group will continue to explore various financing options to enhance its financing portfolio and improve financial independence, with no financial instruments entered into for hedging purposes during the period[76](index=76&type=chunk) [Employee Information](index=23&type=section&id=Employee%20Information) As of June 30, 2025, the Group had 574 employees, with compensation based on market conditions and individual performance, including medical insurance and discretionary bonuses - As of June 30, 2025, the Group had **574 employees**, an increase of **10** from December 31, 2024[77](index=77&type=chunk) - Employee compensation is determined based on market conditions and individual performance, including medical insurance and discretionary bonuses[77](index=77&type=chunk) [Tax Relief](index=23&type=section&id=Tax%20Relief) The Company is unaware of any tax relief or exemptions granted to its shareholders for holding the Company's securities - The Company is unaware of any tax relief or exemptions granted to its shareholders for holding the Company's securities[78](index=78&type=chunk) [Pledge of the Group's Assets](index=24&type=section&id=Pledge%20of%20the%20Group's%20Assets) As of June 30, 2025, the Group's assets pledged include property, plant and equipment, equity interests in subsidiaries, investment properties, and collection rights for natural gas sales receivables - As of June 30, 2025, the Group's assets pledged include certain property, plant and equipment, equity interests in subsidiaries, investment properties, and collection rights for receivables from natural gas sales by a subsidiary[79](index=79&type=chunk)[80](index=80&type=chunk)[86](index=86&type=chunk) [Exchange Rate Fluctuation Risk](index=24&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) Most of the Company's monetary assets and liabilities are denominated in RMB, limiting significant foreign currency risk, with no current hedging policy but ongoing monitoring by the Board to mitigate currency risks - Most of the Company's monetary assets and liabilities are denominated in RMB, thus not facing significant foreign currency risk[81](index=81&type=chunk) - Currently, the Group has no foreign currency hedging policy, but the Directors will continue to monitor relevant foreign exchange risks and take appropriate measures to mitigate currency risks[81](index=81&type=chunk) [Contingent Liabilities](index=24&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[82](index=82&type=chunk) [Events After the Reporting Period](index=24&type=section&id=Events%20After%20the%20Reporting%20Period_MDA) Details of material events after the reporting period are disclosed in Note 15 of this interim results announcement, with no other material events - Details of material events after the reporting period are contained in Note 15 of this interim results announcement, with no other material events[83](index=83&type=chunk) [Dividends](index=24&type=section&id=Dividends_MDA) The Board does not recommend declaring an interim dividend for the first half of 2025 - The Board does not recommend declaring an **interim dividend** for the first half of 2025[84](index=84&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=24&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) Except as disclosed in this announcement, the Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures in H1 2025 - Except as disclosed in this announcement, the Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures for the six months ended June 30, 2025[85](index=85&type=chunk) [Material Investments and Future Plans for Material Investments or Capital Assets](index=25&type=section&id=Material%20Investments%20and%20Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) The Group entered into a joint venture cooperation agreement with Beijing ENN New Energy Investment Co., Ltd. on May 19, 2025, to engage in integrated energy services, with future plans to identify potential investment opportunities and conduct feasibility studies - On May 19, 2025, the Group entered into a joint venture cooperation agreement with Beijing ENN New Energy Investment Co., Ltd. to engage in integrated energy services[87](index=87&type=chunk) - Feasibility studies will be conducted and implementation plans developed to identify potential investment opportunities, funded by internal resources[87](index=87&type=chunk) [Corporate Governance and Other Information](index=25&type=section&id=Corporate%20Governance%20and%20Other%20Information) The Group is committed to high corporate governance standards, complying with Listing Rules, with the Audit Committee reviewing interim financial statements, no listed securities transactions, and the Board appointing a lead independent non-executive director [Audit Committee Review](index=25&type=section&id=Audit%20Committee%20Review) - The Board's Audit Committee has reviewed the Company's H1 2025 condensed consolidated financial statements and unaudited consolidated interim results, deeming appropriate accounting policies adopted and sufficient disclosures made[88](index=88&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) - In H1 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares[89](index=89&type=chunk) [Corporate Governance](index=25&type=section&id=Corporate%20Governance) - The Board is committed to upholding high standards of corporate governance and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during H1 2025[90](index=90&type=chunk)[91](index=91&type=chunk) - All Directors complied with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules throughout H1 2025[92](index=92&type=chunk) [Directors](index=26&type=section&id=Directors) - The Board appointed Mr. Xu Jianwen, an independent non-executive Director, as the Lead Independent Non-executive Director, effective August 28, 2025, to act as an intermediary between other Directors and shareholders[93](index=93&type=chunk) [Publication of Results Announcement and Interim Report](index=26&type=section&id=Publication%20of%20Results%20Announcement%20and%20Interim%20Report) - This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and uploaded to the aforementioned websites in due course[94](index=94&type=chunk)

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].