HK & CHINA GAS(00003)2024-09-02 08:43Financial Performance - For the six months ended June 30, 2024, the core profit was HKD 3.186 billion, an increase of HKD 69 million or 2% compared to the same period last year[9]. - The net profit attributable to shareholders for the same period was HKD 3.040 billion, a decrease of HKD 574 million or 16% year-on-year[9]. - The total revenue for the first half of 2024 was HKD 27.496 billion, down from HKD 29.178 billion in the previous year[10]. - The basic earnings per share for the first half of 2024 were HKD 16.3 cents, down from HKD 19.4 cents in the same period last year[10]. - The company declared an interim dividend of HKD 0.12 per share, payable to shareholders on September 11, 2024[11]. - The company achieved a pre-tax profit of HKD 4,574.2 million, down 19.6% from HKD 5,687.4 million in the previous year[22]. - The total comprehensive income for the period was HKD 1,775.0 million, an increase from HKD 1,595.6 million in the previous year[23]. - The company reported a net profit of HKD 3,561.4 million for the six months ended June 30, 2024, compared to HKD 4,319.5 million in 2023, indicating a decline of approximately 17.5%[44]. - The total tax expense for the six months ended June 30, 2024, was HKD 903.0 million, compared to HKD 1,197.9 million in 2023[54]. Customer and Market Growth - The number of Hong Kong customers as of June 30, 2024, was approximately 2.027 million, an increase of 7,678 customers compared to the end of 2023[10]. - The number of gas customers in mainland cities reached 41.394 million, an increase from 38.564 million in the previous year[10]. - The number of gas customers increased to over 41.39 million, representing a growth of 7.3% year-on-year[13]. - The company expects stable gas sales in Hong Kong for 2024, supported by recent tariff adjustments[21]. - The company anticipates continued growth in gas and natural gas operations in mainland cities in the second half of the year, contributing to profit improvement[21]. Revenue and Sales - The total gas sales volume of the urban gas business reached approximately 18.6 billion cubic meters, an increase of 7% compared to the same period last year[13]. - Gas sales, including fuel adjustment fees, amounted to HKD 21,296.3 million for the first half of 2024, down from HKD 21,689.3 million in the previous year, a decrease of approximately 1.8%[42]. - Revenue from external customers in Hong Kong for the six months ended June 30, 2024, was HKD 6,170.8 million, compared to HKD 6,391.5 million in 2023, a decrease of about 3.4%[48]. - Revenue from external customers in Mainland China for the same period was HKD 21,325.4 million, down from HKD 22,786.1 million in 2023, representing a decline of approximately 6.4%[48]. Operational Efficiency - The company has integrated its mainland and Hong Kong retail businesses to enhance synergies and drive growth in smart kitchen, insurance, and home safety services[17]. - The group employed 2,117 staff in the Hong Kong gas business as of June 30, 2024, serving 2,027,334 customers, resulting in an efficiency of 958 customers per employee, a slight increase from the previous year[86]. - The group’s human resources cost for the first half of the year was HKD 658 million, an increase of HKD 39 million compared to the same period last year[86]. Investments and Projects - The company is developing Hong Kong's first "green hydrogen" pilot project, expected to produce about 330 kg of hydrogen daily by 2025[12]. - The company plans to invest in green hydrogen production from landfill gas, aiming to enhance sustainable fuel supply and support low-carbon transformation[21]. - The company has accumulated contracts for 3.3 GW of renewable energy projects, with 2.1 GW connected to the grid as of June 30, 2024[15]. - The green methanol production plant in Inner Mongolia is expected to increase its capacity to 120,000 tons per year in the coming years[18]. Financial Position and Liabilities - As of June 30, 2024, total assets minus current liabilities amounted to HKD 115,937.4 million, a decrease from HKD 119,883.6 million as of December 31, 2023, representing a decline of approximately 3.1%[25]. - Total equity as of June 30, 2024, was HKD 67,999.3 million, down from HKD 71,018.7 million at the beginning of the year, marking a decrease of about 4.5%[27]. - The total liabilities as of June 30, 2024, were HKD 47,938.1 million, slightly down from HKD 48,864.9 million as of December 31, 2023[25]. - The group’s net current borrowings as of June 30, 2024, were HKD 134.73 billion, an increase from HKD 98.73 billion as of December 31, 2023[81]. - The group has sufficient and stable funding sources, including bank financing agreements and bond issuances, to meet future capital investment and working capital needs[81]. Corporate Governance and Management - The company has been recognized as one of the top 1% of Chinese enterprises in global ESG ratings, reflecting its commitment to social responsibility and governance[19]. - The group has complied with all corporate governance codes as per the Hong Kong Stock Exchange Listing Rules as of June 30, 2024[87]. - Mr. Chen Yinglong was appointed as the Executive Director and Chief Investment Officer of the company on June 25, 2024[92]. Shareholder Information - As of June 30, 2024, Dr. Li Ka-shing holds 7,748,692,715 shares, representing 41.53% of the company's total issued shares[99]. - Timpani Investments Limited holds 5,989,193,083 shares, accounting for 32.10% of the company's total issued shares[99]. - Macrostar Investment Limited holds 1,759,499,632 shares, representing 9.43% of the company's total issued shares[99]. - The company has granted stock options for EcoCeres, Inc. shares to certain directors, with 31,818 shares available at an exercise price of $57.00[96]. - The company has also granted stock options for Honghua Smart Energy shares, with 1,800,000 shares available at an exercise price of HKD 3.40[94].