HK & CHINA GAS(00003)2024-08-16 08:31Financial Performance - For the first half of 2024, the core profit of the group increased to HKD 3.186 billion, a rise of 2% compared to the same period last year[3]. - The group’s business core profit for the first half of 2024 was HKD 3.186 billion, while the net profit attributable to shareholders decreased by 16% to HKD 3.040 billion[3]. - The group reported a revenue of HKD 27,496.2 million for the first half of 2024, a decrease of 5.8% compared to HKD 29,177.6 million in the same period of 2023[18]. - The group's profit before tax for the first half of 2024 was HKD 4,574.2 million, down 19.6% from HKD 5,687.4 million in the first half of 2023[18]. - The net profit for the first half of 2024 was HKD 3,561.4 million, a decline of 17.6% compared to HKD 4,319.5 million in the same period of 2023[19]. - The total comprehensive income for the first half of 2024 was HKD 1,775.0 million, an increase from HKD 1,595.6 million in the same period of 2023[19]. - The adjusted EBITDA for the group was HKD 6,211.9 million for the six months ended June 30, 2024, compared to HKD 6,335.5 million for the same period in 2023, indicating a slight decrease[37]. - The group reported a net profit of HKD 3,561.4 million for the period, compared to HKD 4,574.2 million for the same period in 2023, reflecting a decrease of 22.1%[37]. Revenue and Sales - The total gas sales volume in mainland cities reached 18.625 billion cubic meters, representing a 7% increase year-on-year[4]. - The group’s Hong Kong gas sales volume was 14,932 million MJ, remaining stable compared to the previous year[7]. - Revenue from gas sales, excluding fuel adjustment fees, was HKD 20,755.9 million for the six months ended June 30, 2024, a decrease of 1.7% compared to HKD 21,115.0 million for the same period in 2023[35]. - The total revenue for the group for the six months ended June 30, 2024, was HKD 27,496.2 million, down from HKD 29,177.6 million in the same period of 2023, representing a decline of 5.8%[35]. - Revenue from renewable energy business increased to HKD 754.8 million for the six months ended June 30, 2024, compared to HKD 443.3 million in the same period of 2023, representing a growth of 70.1%[35]. - The group’s total revenue from gas installation services was HKD 1,412.9 million for the six months ended June 30, 2024, slightly down from HKD 1,449.8 million in the same period of 2023, a decrease of 2.5%[35]. Dividends and Shareholder Returns - The group announced an interim dividend of HKD 0.12 per share, payable on September 11, 2024[5]. - The group maintained a dividend of HKD 2,239.2 million for the first half of 2024, consistent with the previous year[18]. - The group plans to declare an interim dividend of HKD 0.12 per share for 2024, consistent with the previous year's interim dividend[45]. Business Development and Strategy - The group is focusing on green energy development, particularly in hydrogen, sustainable aviation fuel, and green methanol markets[2]. - The group is actively restructuring its business and optimizing operations to enhance efficiency amid an uncertain economic environment[6]. - The group is developing Hong Kong's first "green hydrogen" pilot project, expected to produce approximately 330 kg of hydrogen daily by 2025[7]. - The group plans to leverage landfill gas conversion into sustainable fuel "green hydrogen" to enhance supply capacity and support low-carbon transformation in Hong Kong[15]. - The group expects continued growth in gas and natural gas businesses in mainland cities in the second half of 2024, contributing to future business development[15]. - The group aims to expand production capacity in SAF and green methanol projects to meet future demand for low-carbon fuels[16]. Financial Position and Assets - The group reported total assets of HKD 134,158.8 million as of June 30, 2024, a slight decrease from HKD 135,343.8 million as of December 31, 2023[20]. - The total assets minus current liabilities stood at HKD 115,937.4 million, down from HKD 119,883.6 million at the end of 2023[21]. - The net assets of the group were HKD 67,999.3 million, compared to HKD 71,018.7 million as of December 31, 2023, reflecting a decrease of approximately 4.3%[21]. - The group's total equity was HKD 67,999.3 million, down from HKD 71,018.7 million, indicating a decline in shareholder equity[21]. - The group reported a current net debt of approximately HKD 18,200 million, which includes borrowings due within one year of approximately HKD 22,100 million[22]. - The group has received a commitment letter from the bank to extend the maturity of certain loans by five years, pending administrative procedures[22]. - The total financial assets measured at fair value as of June 30, 2024, was HKD 4,003.7 million, down from HKD 4,195.4 million at the end of 2023[30]. - The total financial liabilities measured at fair value as of June 30, 2024, was HKD 181.6 million, compared to HKD 208.4 million at the end of 2023[30]. Employee and Labor Costs - As of June 30, 2024, the number of employees in the Hong Kong gas business was 2,117, slightly up from 2,100 in the same period last year, serving a total of 2,027,334 customers, resulting in an efficiency of 958 customers per employee[52]. - The total number of employees across all Hong Kong operations, including telecommunications and engineering contracting, was 2,341 as of June 30, 2024, compared to 2,325 in the same period last year[52]. - The group's related labor costs for the first half of the year were HKD 658 million, an increase of HKD 39 million compared to the same period last year[52]. Financial Risks and Management - The group faces several financial risks, including market risk, credit risk, and liquidity risk, with no changes in risk management policies since year-end[29]. - The group’s financial instruments are classified into three levels based on the observability of inputs used for fair value measurement[29]. - The group’s financial risk management disclosures are not fully included in the interim financial statements and should be read in conjunction with the annual consolidated financial statements[29]. Compliance and Governance - The company has adopted the standard code of conduct for securities trading as per Appendix C3 of the Listing Rules, confirming compliance for the six months ending June 30, 2024[60]. - There were no repurchases, sales, or redemptions of any listed securities by the company or its subsidiaries during the six months ending June 30, 2024, except for details regarding the redemption of perpetual capital securities in February 2024[61].