ENN ENERGY(02688)2024-09-13 08:43Financial Performance - The company's revenue for the first half of 2024 was RMB 54.59 billion, a slight increase of 0.9% from RMB 54.11 billion in the same period last year[6]. - The gross profit decreased by 9.7% to RMB 6.47 billion, down from RMB 7.16 billion[6]. - The mid-term earnings per share decreased by 22.4% to RMB 2.29, down from RMB 2.95[6]. - Profit attributable to shareholders was RMB 2.573 billion, down 22.8% year-on-year, with basic earnings per share of RMB 2.29, a decrease of 22.4%[17]. - The core profit from domestic operations grew by 9.5% to RMB 3.080 billion, excluding the impact of overseas LNG sales and related taxes[17]. - The company reported a revenue of RMB 54,587 million for the six months ended June 30, 2024, compared to RMB 48,122 million for the same period in 2023, representing an increase of approximately 13.3%[82]. - Gross profit for the same period was RMB 6,465 million, with a gross margin of approximately 11.8%[82]. - The net profit attributable to the company's owners was RMB 2,573 million, compared to RMB 2,029 million in the previous year, reflecting a year-on-year increase of about 27%[82]. Natural Gas and Energy Business - The company's natural gas retail volume reached 12.71 billion cubic meters, a year-on-year increase of 4.5%[5]. - The total sales volume of the energy business was 19.74 billion kilowatt-hours, reflecting a significant growth of 26.0% compared to the previous year[7]. - In the first half of 2024, the company achieved a retail sales volume of natural gas of RMB 30.085 billion, with a year-on-year growth of 4.5%, and revenue and gross profit increased by 3.0% and 7.4% respectively[12]. - The company signed 707 energy projects in the first half of 2024, including 412 energy microgrid projects, with a total energy supply scale of 57.4 billion kWh from ongoing and completed projects[15]. - The company’s energy business revenue and gross profit increased by 17.6% and 17.0% to RMB 8.219 billion and RMB 1.068 billion respectively, with a sales volume of 19.740 billion kWh[15]. Customer Base and User Development - The number of new natural gas users developed during the period was 775, a decrease of 22.3% from 998 users in the previous year[6]. - The cumulative number of household users reached 30.54 million, an increase of 5.6% from 28.92 million[6]. - The company installed 775,000 household users in the first half of 2024, with over 700,000 projects expected to be completed in the second half of the year[13]. - The company expanded its customer base by installing 7.26 million cubic meters per day for industrial and commercial users, with a signed scale exceeding 200,000 cubic meters per day[11]. Financial Position and Debt Management - The company maintained a financing cost of 3.4% and reduced its interest-bearing liabilities to RMB 19.83 billion[5]. - The company's net debt ratio improved to 24.3%, down 1 percentage point from the previous year, indicating a more robust debt structure[21]. - Cash and cash equivalents (excluding restricted bank deposits) amounted to RMB 8.071 billion, a decrease of RMB 1.618 billion compared to the end of last year[21]. - The total borrowings decreased to RMB 19.825 billion, down RMB 2.098 billion from the previous year-end, primarily due to loan repayments[23]. - The company reported financing costs of RMB 390 million for the period, which is a decrease from RMB 481 million in the previous year[82]. Shareholder Returns and Dividends - The company declared an interim dividend of HKD 0.65 per share, a slight increase of 1.6% from HKD 0.64[6]. - The proposed interim dividend is HKD 0.65 per share, equivalent to approximately RMB 0.59, totaling RMB 671 million for the six months ended June 30, 2024[110]. - The company reported a total of RMB 2,376 million in payable dividends, indicating a commitment to return value to shareholders[84]. ESG and Sustainability Initiatives - The company was recognized as one of the top 5% in S&P Global's ESG ratings and awarded the title of "Best Progressing Company in the Industry" in July 2024[28]. - The company plans to release an updated Green Action 2030 report in November 2024, detailing its net-zero emissions roadmap[28]. - The company is committed to achieving net-zero emissions while providing clean and low-carbon development services to its customers[28]. - The company maintained an AA ESG rating from MSCI as of June 30, 2024, reflecting its commitment to environmental, social, and governance responsibilities[40]. - The company has established a dedicated ESG committee consisting of six directors to review and update ESG policies regularly[40]. Stock Options and Incentive Plans - The company has established a stock option plan and a share award plan to attract and retain key employees and business consultants[52]. - The company reported a total of 12,000,000 stock options granted under the 2012 plan, with an additional 12,328,000 options granted in subsequent batches[54]. - The company has a structured stock option plan that includes performance targets for vesting, excluding the chairman and independent non-executive directors[57]. - The total number of stock options exercised during the six months ended June 30, 2024, was 2,900, while 288,600 options were exercised in the same period of the previous year[144]. - The company has recorded RMB 35 million in other income related to the early redemption of senior notes during the reporting period[138]. Investments and Acquisitions - The company has made significant investments in property, plant, and equipment amounting to RMB (2,305) million during the reporting period[90]. - The company sold four subsidiaries between January and April 2024, generating a total consideration of 61 million RMB[156]. - The company reported a net cash inflow of RMB 54 million from the sale of subsidiaries, with a total consideration received of RMB 54 million and a net asset value of RMB 24 million derecognized[158]. Operational Efficiency and Future Plans - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and customer service[92]. - The company aims to enhance its natural gas sales by optimizing procurement costs through international and domestic resource integration[33]. - The company is focusing on expanding its smart home business to meet customer demands and unlock more market potential[33].