中国燃气(00384) - 2023 - 年度财报

Financial Performance - Revenue for the fiscal year ending March 31, 2023, increased by 4.3% to HKD 91,988,445 thousand compared to HKD 88,225,193 thousand in 2022[10] - Gross profit decreased by 23.5% to HKD 12,034,675 thousand in 2023 from HKD 15,738,992 thousand in 2022[10] - Net profit attributable to the company's owners dropped by 44.0% to HKD 4,293,484 thousand in 2023 from HKD 7,662,036 thousand in 2022[10] - Basic earnings per share fell by 42.4% to HKD 0.80 in 2023 from HKD 1.39 in 2022[10] - Operating cash flow increased by 1.5% to HKD 10,027,284 thousand in 2023 from HKD 9,876,339 thousand in 2022[10] - Free cash flow improved significantly to HKD 2,519,991 thousand in 2023 from a negative HKD 2,328,703 thousand in 2022[10] - Total assets decreased by 3.6% to HKD 157,291,209 thousand in 2023 from HKD 163,146,352 thousand in 2022[10] - Bank balances and cash increased by 4.2% to HKD 10,617,686 thousand in 2023 from HKD 10,188,486 thousand in 2022[10] - Shareholders' equity declined by 8.9% to HKD 57,900,584 thousand in 2023 from HKD 63,577,893 thousand in 2022[10] - The company's average financing cost increased to 4.5% in 2023 from 3.7% in 2022[11] - Revenue increased by 4.3% to HKD 91.99 billion, while profit decreased by 41.8% to HKD 5.11 billion[41] - Revenue for the year ended 31 March 2023 increased to HK$91,988.445 million, up from HK$88,225.193 million in the previous year[196] - Gross profit decreased to HK$12,034.675 million from HK$15,738.992 million year-over-year[196] - Profit before taxation dropped to HK$6,038.002 million compared to HK$10,787.316 million in the prior year[196] - Profit for the year attributable to owners of the company was HK$4,293.484 million, down from HK$7,662.036 million in 2022[198] - Basic earnings per share decreased to HK$0.80 from HK$1.39 in the previous year[198] - Total comprehensive income for the year showed a loss of HK$1,755.313 million, compared to a gain of HK$11,287.791 million in 2022[196] - Non-current assets decreased to HK$105,070.770 million from HK$107,722.980 million year-over-year[200] - Current assets decreased to HK$52,220.439 million from HK$55,423.372 million in the previous year[200] - Net current assets dropped significantly to HK$440.236 million from HK$1,136.224 million in 2022[200] - Total assets less current liabilities decreased to HK$105,511.006 million from HK$108,859.204 million year-over-year[200] Gas Business Operations - Total number of pipeline gas projects increased to 661, a 0.2% growth compared to the previous year[12] - City gas projects reached 53.9 million connectable residential users, a 0.7% increase from 53.5 million[12] - Total natural gas sales volume grew by 6.9% to 39,249.1 million cubic meters[12] - Residential user gas sales volume increased by 14.0% to 8,382.8 million cubic meters[12] - Industrial user gas sales volume rose by 3.8% to 11,211.5 million cubic meters[12] - New residential user connections decreased by 21.8% to 2,299,452[12] - Cumulative residential user connections grew by 5.3% to 45,394,697[12] - The company signed long-term LNG contracts with Energy Transfer and Next Decade for 25 and 20 years respectively[16] - The company expects domestic natural gas consumption to rebound post-COVID-19, driven by the "dual carbon" policy[14] - The company is focusing on optimizing price management and enhancing customer stickiness to drive stable growth in natural gas sales[16] - Total natural gas sales volume reached 39.25 billion cubic meters, a year-on-year increase of 6.9%[41] - Urban pipeline network sales volume was 23.0 billion cubic meters, up 5.0% year-on-year[47] - Trade and direct supply pipeline sales volume was 16.24 billion cubic meters, up 9.9% year-on-year[47] - The company added 2,299,452 new residential users, bringing the total to 45,394,697, a year-on-year increase of 5.3%[45] - The company added 2,300 new industrial users and 31,671 new commercial users, with total industrial and commercial users reaching 22,108 and 329,335, respectively, representing year-on-year growth of 11.6% and 10.6%[45] - The company has built a total of 551,688 kilometers of gas pipelines[44] - The company operates 533 CNG/LNG refueling stations, with plans to transform some into multi-energy stations[46] - The company secured 1 new urban pipeline gas project, bringing the total to 661 projects across 30 provinces, municipalities, and autonomous regions[43] - The company's smart gas project in Wuhu, Anhui, was recognized as a national demonstration project for smart gas[42] LPG Business Operations - Domestic LPG production in 2022 was 48.67 million tons, a year-on-year increase of 2.3%, and imports were 26.6 million tons, a year-on-year increase of 8.6%[25] - The company operates 7 LPG dedicated terminals and 7 large petrochemical storage logistics bases, with an annual handling capacity of over 12 million tons and storage capacity of over 800,000 cubic meters[25] - The company has 106 LPG terminal distribution projects and over 863 retail stores, with bottle gas sales and user numbers ranking first in the country[26] - The company has built a large VLGC ocean-going fleet and dozens of professional hazardous chemical transport fleets with advanced logistics management systems[26] - The company's LPG distribution business covers 19 provinces in China, making it the largest vertically integrated LPG operator in the country[25] - The company has launched an intelligent micro-pipeline network model, which has been promoted and applied in 9 provinces including Qinghai, Hubei, and Guangdong[27] - The company's LPG business has formed a nationwide import gas source layout, covering coastal and riverine chemical industrial parks[26] - The company's LPG smart micro-pipeline network utilizes automation, IoT, cloud platforms, and AI technologies to enhance safety and intelligence levels[27] - The company's LPG business has a total annual distribution volume exceeding 4.13 million tons[25] - The company's LPG terminals and retail stores are densely distributed in core regions such as Guangxi, Guangdong, and Fujian, as well as in key cities like Beijing and Shanghai[26] - LPG sales volume was 4.132 million tons, a year-on-year decrease of 3.2%[48] - LPG wholesale sales volume was 3.397 million tons, down 4.3% year-on-year[48] - LPG terminal retail sales volume was 735,000 tons, up 2.1% year-on-year[48] - LPG sales revenue totaled HKD 22,499,530,000, a year-on-year decrease of 2.5%[48] Value-Added and Diversified Business - The company's value-added business covers over 700 cities across 30 provinces, municipalities, and autonomous regions, reaching over 50 million household and commercial users, covering a population of 200 million[31] - The company has established 4 major centers (Shenzhen Yipinhui Headquarters, Hangzhou New Retail Operations Center, Product and Manufacturing Center, Dual Carbon Center) and 7 modules to drive value-added business growth[31] - The company has signed high-quality distributed photovoltaic self-investment projects in 6 key cities: Nanjing, Hangzhou, Wuhu, Wuhan, Nanning, and Guangzhou[32] - The company is actively expanding charging station and hydrogen-blended gas businesses in provinces such as Guangdong, Guangxi, Hainan, Fujian, Zhejiang, Jiangsu, Anhui, and Shandong[32] - The company has completed 10 comprehensive energy efficiency demonstration projects, including the "Carbon Neutral" energy demonstration base for Unilever Guangzhou and the near-zero carbon renovation of Shenzhen Luohu District Hospital of Traditional Chinese Medicine[32] - The company has established the Zero Carbon Environment Energy Research Institute in collaboration with the Shanghai Environment and Energy Exchange to explore carbon finance and carbon credit businesses[32] - Value-added business revenue was HKD 3,455,031,000, a year-on-year decrease of 27.9%[50] - Pre-tax profit from value-added business was HKD 1,496,217,000, a year-on-year decrease of 6.5%[50] - Electricity trading volume reached 5.5 billion kWh[51] Coal-to-Gas Project and Environmental Impact - The company has connected over 8.42 million rural households to the "coal-to-gas" project since 2017, providing 8.85 billion cubic meters of natural gas for winter heating[17] - The "coal-to-gas" project has contributed 26%, 39%, and 35% to PM2.5 concentration reduction nationwide, in the Beijing-Tianjin-Hebei region, and the Fenwei Plain, respectively[17] - The National Development and Reform Commission emphasized the importance of ensuring stable and affordable natural gas supply for rural "coal-to-gas" projects in 2023[17] - The company operates in regions including Tianjin, Hebei, Shanxi, Shandong, Henan, and Shaanxi for the "coal-to-gas" initiative[17] - Rural clean heating has significantly improved air quality and living standards in rural areas[17] Corporate Governance and Board Structure - The company adheres to high corporate governance standards, complying with the Hong Kong Stock Exchange's Corporate Governance Code, except for the separation of Chairman and CEO roles[78] - The Board of Directors held a total of 14 meetings during the fiscal year ending March 31, 2023, with attendance records provided for each director[80] - The Board consists of 15 members, including 6 executive directors, 4 non-executive directors, and 5 independent non-executive directors[81] - The company has adopted a Board Diversity Policy since 2013 to ensure a range of skills, experience, and perspectives[82] - The Chairman and CEO roles are both held by Mr. Liu Minghui, a structure that the Board believes does not compromise checks and balances[84] - Directors are subject to retirement by rotation, with one-third required to retire and seek re-election at each Annual General Meeting[85] - The Board has delegated authority to five committees: Executive, Audit, Nomination, Remuneration, and Risk Control Committees[86] - Independent non-executive directors have confirmed their compliance with independence requirements under the Listing Rules[83] - Directors receive meeting agendas and materials at least 3 days before scheduled Board meetings[79] - The company ensures directors have access to all relevant data and the services of the company secretary to comply with procedures and regulations[79] - Management is responsible for providing timely, sufficient, and reliable information to the Board and its committees for informed decision-making[79] - The Executive Committee approved projects, policies, credit limits, and core management team appointments for the company and its subsidiaries for the fiscal year ending March 31, 2023[87] - The Audit Committee reviewed the company's interim and annual financial statements and recommended the reappointment of Deloitte Touche Tohmatsu as the external auditor for the 2022/23 fiscal year[89] - The Audit Committee approved the external auditor's fees and terms of engagement, with audit fees for the fiscal year ending March 31, 2023, amounting to HKD 10.5 million[90] - The Nomination Committee reviewed the board's composition and confirmed the effectiveness of the existing diversity policy[91] - The Nomination Committee follows a structured process for evaluating and selecting board candidates, considering factors such as personal reputation, industry experience, and diversity[92] - The company's board consists of 15 members, with 3 females and 12 males, and 14 of Chinese ethnicity and 1 non-Chinese[94] - The workforce as of March 31, 2023, is 64% male and 36% female[94] - The board members are distributed by age: 1 under 40, 3 aged 41-50, 8 aged 51-60, and 3 over 60[94] - The board members' service tenure: 9 with 1-10 years and 6 with over 10 years[94] - The nomination committee reviewed the board's structure, size, and composition, including gender, age, cultural background, education, skills, knowledge, professional experience, and service tenure[96] - The remuneration committee approved salary adjustments and bonuses for executive directors and employees at the vice president level and above[99] - The company granted 45,000 reward shares to an employee on April 1, 2022, with a vesting period of less than 12 months[99] - The remuneration committee reviewed and recommended bonuses for all non-executive and independent non-executive directors[99] - The company's senior management annual salary ranges: 1 in the HKD 1,000,001 to 1,500,000 bracket and 3 in the HKD 1,500,001 to 2,000,000 bracket[101] - The Risk Control Committee is responsible for assisting the Board in overseeing corporate governance and risk control in the company's business operations and financial management[102] - The Risk Control Committee reviewed the company's internal control and risk management systems, ensuring their adequacy and effectiveness[104] - The company's internal audit function conducted operational and financial reviews to ensure all major controls, including financial, operational, compliance, and risk management functions, were properly executed and effective[110] - The Legal and Compliance Department upgraded the compliance control system to prevent violations and strengthened safety production, financial management, and contract management across regions[110] - The Risk Control Committee received bi-annual reports from both the Audit and Inspection Department and the Legal and Compliance Department, confirming the effectiveness of the company's internal control and risk management systems[110] - The company has adopted an employee whistleblowing policy to strengthen governance and internal controls, with no significant internal control issues identified for the fiscal year ending March 31, 2023[111] Shareholder Communication and Dividend Policy - The company held over 450 meetings with analysts and investors, 2 analyst and investor briefings, and 20 international investor summits and roadshows during the fiscal year ending March 31, 2023[113] - The company's Board of Directors maintains a strong focus on shareholder communication, with multiple formal channels for timely information dissemination[113] - The company's Annual General Meeting serves as a key platform for direct shareholder communication, with the Chairman and Board members participating to address shareholder inquiries[114] - The company has adopted a dividend policy aiming to provide reasonable returns to investors while ensuring long-term sustainable development, with dividends expected to be distributed twice annually[119] - The company proposed a final dividend of 40 HK cents per share, with a total annual dividend of 50 HK cents per share for the fiscal year ending March 31, 2023[35] - The company proposed a final dividend of HKD 0.40 per share for the fiscal year ending March 31, 2023, totaling approximately HKD 2.176 billion[122] - The company's distributable reserves (including accumulated profits) as of March 31, 2023, amounted to approximately HKD 7.384 billion[125] - The company's dividend payout ratio for the year was 62.5%, with a proposed dividend of 50 HK cents per share[41] Share Options and Equity - No share options were granted under the Share Option Scheme during the year ended March 31, 2023[137] - The total number of share options outstanding as of March 31, 2023, was 245,017,600, with 108,000,000 held by directors and 137,017,600 held by eligible employees and consultants[138] - The exercise price for the share options is HKD 23.80, with an exercise period from October 15, 2022, to December 31, 2026[138] - During the year, 10,767,800 share options were forfeited/cancelled, with 10,523,800 from eligible employees and 244,000 from consultants[138] - A total of 700,000 share options were transferred from eligible employees to consultants during the year[138] - The total number of shares issued as of March 31, 2023, is 5,440,335,772 shares[139] - Mr. Liu is deemed to have interests in a total of 1,025,745,428 shares, including 70,000,000 shares owned by Cross-Strait Common Market Development Co., Ltd., 336,483,228 shares owned directly, and 569,262,200 shares owned by China Gas Group Limited[139] - The maximum number of shares that may be issued upon the exercise of all options under the share option plan is 479,253,509 shares, representing 10% of the issued shares as of the adoption date of the plan[140] - As of March 31, 2023, the remaining number of options available for issuance under the share option plan is 245,017,600, representing approximately 4.50% of the company's issued share capital[140] - The share option plan, adopted on August 20, 2013, will expire on August 20, 2023, with less than one year remaining as of March 31, 2023[140] - The company adopted a share award plan on November 27, 2020, which is valid for 10 years from the adoption date, with approximately 7.5 years remaining as of March 31, 2023[141] - Tricor Trust (Hong Kong