HK & CHINA GAS(00003)2025-04-23 08:41Financial Performance - The group's revenue for 2024 was HKD 55,473 million, a decrease of 3% compared to HKD 56,971 million in 2023[20] - Shareholders' profit attributable for 2024 was HKD 5,712 million, down 6% from HKD 6,070 million in 2023[20] - The diluted earnings per share for 2024 was HKD 0.301, a decrease of 5% from HKD 0.316 in 2023[20] - The group's total revenue for the year was HKD 55.473 billion, with core business profit increasing by 5% to HKD 5.955 billion[35] - The group's attributable profit, before property revaluation, was HKD 5.668 billion, up 2%[35] - The group achieved a basic earnings per share of HKD 0.306, with a proposed final dividend of HKD 0.23 per share, totaling HKD 0.35 per share for the year[36] Customer Growth - The number of customers in Hong Kong as of December 31, 2024, was 2,037 thousand, an increase of 1% from 2,020 thousand in 2023[20] - The number of customers in mainland cities as of December 31, 2024, was 42,491 thousand, reflecting a growth of 6% from 40,186 thousand in 2023[20] - The group reported a total of 12,825 shareholders as of December 31, 2024, down 3% from 13,177 in 2023[20] Gas Sales and Operations - The group maintained a consistent gas sales volume in Hong Kong at 27,159 TJ, slightly up from 27,125 TJ in 2023[20] - In Hong Kong, gas sales volume remained stable with a slight increase of 0.1%, driven by more local restaurants switching to gas stoves[37] - Industrial gas sales volume increased by 2% overall, with hotel-related gas sales rising by 6.6%, while residential gas sales slightly decreased by 1.4%, resulting in an overall gas sales volume increase of 0.1%[88] - The group achieved a gas supply reliability rate of 99.992%, with 100% of customers notified three days in advance of any supply interruptions[97] Renewable Energy Initiatives - The group operates over 1,000 renewable energy projects across 24 provincial cities in mainland China, with distributed photovoltaic capacity reaching 2.3 GW and generating 1.83 billion kWh[41] - The renewable energy business achieved a net profit of HKD 479 million in 2024, representing a fivefold year-on-year growth, with over 1,000 renewable energy projects across 24 provinces[137] - The group has developed 128 zero-carbon smart parks across various regions, contributing to carbon neutrality goals and generating positive economic benefits[143] - The group is committed to gradually introducing zero-carbon fuels to replace fossil fuels, aiming for carbon neutrality in the long term[98] Strategic Development and Investments - The group aims to develop into a leading green smart energy enterprise, focusing on sustainable energy solutions[7] - The group plans to invest RMB 10 billion to develop a green methanol production facility with an annual capacity of 1 million tons, with construction expected to start in mid-2025[44] - The group has signed distribution cooperation agreements for green methanol with multiple companies, enhancing its supply chain capabilities[152][153] - The group has established a long-term agreement for the import of 1.5 million tons of liquefied natural gas annually through its Hong Kong international trade platform, enhancing resource security and flexibility[133] Technological Innovation - The company aims to strengthen its digital systems, including enhancing the capabilities of its AIoT platform to fully leverage data value[51] - The company will continue to embrace technological innovation, hosting the TERA-Award Smart Energy Innovation Competition to discover more zero-carbon projects and accelerate the commercialization of research outcomes[51] - The "Kwang Wah Chip" developed in collaboration with Sai Fang Technology has achieved a cumulative shipment of over 3.85 million units by the end of 2024, expanding its application from smart gas meters to various scenarios including smart kitchens and safety homes[174] Corporate Governance and Leadership - The company is committed to corporate governance and transparency, as evidenced by its diverse and experienced board composition[62] - The company has a diverse board with members holding various prestigious honors and extensive industry experience[63] - The board includes independent directors with significant contributions to the financial and educational sectors[64] - The company appointed Professor Huang as an independent non-executive director effective June 2024, bringing extensive experience from major financial institutions[67] Community Engagement and Social Responsibility - The group has provided over 1 million service hours and benefited over 8.5 million individuals through its "Gas Warmth Volunteer Team" since its establishment in 1999[194] - The group continues to support the government's "Co-Creating Bright 'Teen' Program" and has participated in the "Corporate Internship Program" for four consecutive years[195] - The "Gas Discount Program" has benefited over 40,000 households in Hong Kong, with a total amount exceeding HKD 36 million[178] Environmental and Sustainability Efforts - The company has achieved a 9% reduction in greenhouse gas emissions compared to the 2020 baseline[179] - The group actively promotes clean energy applications, including green methanol, hydrogen energy, and sustainable aviation fuel, in response to national carbon neutrality goals[187] - The group has successfully issued a green asset-backed securities plan worth 515 million RMB, receiving 2.5 times subscription, marking a significant milestone in the market[143] Future Outlook - The company anticipates stable growth in gas sales in Hong Kong, driven by the recovery of the tourism industry and the "High Talent Pass" program, which is expected to bring in tens of thousands of people[49] - The group plans to provide 500,000 tons of green methanol annually by 2028, with production capacity expected to increase to 150,000 tons by the end of 2025[151] - The new production facility in Johor, Malaysia is expected to commence operations in the second half of 2025, adding an annual capacity of 300,000 tons[150]