HK & CHINA GAS(00003)2024-03-20 08:31Financial Performance - The group's total revenue for 2023 was HKD 56,971 million, a decrease of 6% compared to HKD 60,953 million in 2022[3] - The net profit attributable to shareholders for the year was HKD 6,070 million, an increase of 16% from HKD 5,248 million in the previous year[3] - The core profit rose by 11% to HKD 5,894 million, compared to HKD 5,325 million in 2022[3] - Total revenue for the year ended December 31, 2023, was HKD 56,971.1 million, a decrease of 6.5% compared to HKD 60,953.4 million in 2022[14] - Net profit for the year increased to HKD 7,171.3 million, up 13.4% from HKD 6,324.4 million in the previous year[14] - Basic earnings per share rose to HKD 32.5, compared to HKD 28.1 in 2022, reflecting a growth of 15.7%[14] - The group reported a decrease in gas sales revenue to HKD 41.46 billion in 2023 from HKD 42.27 billion in 2022, reflecting a decline of 1.9%[28] - The total revenue for 2023 was HKD 54,335.1 million, a decrease from HKD 58,207.2 million in 2022, representing a decline of approximately 3%[30] - Adjusted EBITDA for 2023 was HKD 11,914.8 million, compared to HKD 12,046.4 million in 2022, indicating a slight decrease of about 1%[31] - The net profit for the year 2023 was HKD 7,171.3 million, down from HKD 6,324.4 million in 2022, reflecting a decrease of approximately 13%[31] Customer and Sales Growth - The total gas sales volume in Hong Kong was approximately 27,125 million megajoules, a slight decrease of 1% year-on-year[7] - The number of customers in Hong Kong increased by 24,574 to reach 2,020,000 by the end of 2023, representing a growth of 1%[3] - The mainland gas sales volume increased by 8% year-on-year, with a total of 34,699 million cubic meters sold[3] - The total gas sales volume for the group in 2023 was approximately 34.7 billion cubic meters, representing an 8% increase from the previous year[9] - The number of gas customers increased to approximately 40.19 million, a growth of 7.8%[9] Dividends and Shareholder Returns - The company plans to distribute a final dividend of HKD 0.23 per share, maintaining a total annual dividend of HKD 0.35 per share[6] - The company declared an interim dividend of HKD 0.12 per share and proposed a final dividend of HKD 0.23 per share, maintaining the same dividend levels as in 2022[38] - The company maintained a consistent dividend payout of HKD 6,531.0 million for both 2023 and 2022[14] Investment and Development - The company invested approximately HKD 10.2 billion in production facilities, pipelines, and other fixed assets to support ongoing business development[5] - The company is actively developing hydrogen energy and has signed a memorandum of understanding to use hydrogen as an alternative fuel for public buses[8] - The renewable energy business continues to expand, with a cumulative signed photovoltaic capacity of 2.96 GW and 1.8 GW connected to the grid[2] - The renewable energy business achieved profitability in 2023, with a total of 354 renewable energy projects, an increase of 171 projects from the previous year[10] - The group signed 1.6 GW of new distributed photovoltaic contracts and connected 1.2 GW to the grid during the year[10] - The group plans to enhance its renewable energy projects, with a focus on wind and solar power, as well as energy storage solutions[12] - The group is expanding its production capacity for sustainable aviation fuel (SAF) and green methanol, with expected annual production of 120,000 tons of green methanol in Inner Mongolia[13] Financial Position and Assets - Non-current assets totaled HKD 135,343.8 million, down from HKD 139,758.3 million in the previous year[16] - Current assets decreased to HKD 24,434.9 million from HKD 28,711.0 million in 2022[16] - Total liabilities decreased to HKD 39,424.5 million from HKD 43,522.8 million in 2022[17] - The company's net assets amounted to HKD 71,018.7 million, down from HKD 75,138.7 million in the previous year[17] - The total assets as of December 31, 2023, amounted to HKD 161,977.6 million, an increase from HKD 159,429.2 million in 2022[32] Financial Risks and Management - The group faces various financial risks, including market risk, credit risk, and liquidity risk, which are managed through fair value measurement of financial instruments[21] - The group has maintained a strong financial position, believing it has sufficient financial resources to meet its obligations[18] - The group’s financial instruments are measured at fair value, with a classification into three levels based on the observability of inputs used in the valuation[21] - The group has adopted new accounting standards effective from January 1, 2023, but these changes did not have a significant impact on the group's performance or financial position[20] Human Resources and Employment - As of December 31, 2023, the group employed 2,135 staff in the Hong Kong gas business, serving 2,019,656 customers, resulting in an overall productivity of 946 customers per employee[51] - The total human resources cost for 2023 was HKD 1.278 billion, an increase of HKD 21 million compared to the previous year[51] - The group’s total employee count, including mainland and overseas operations, was approximately 54,080 as of the end of 2023, an increase of about 210 from the previous year[52] Corporate Governance and Compliance - The group complied with all provisions of the Corporate Governance Code during the year ended December 31, 2023[55] - The group’s auditor provided an unqualified opinion on the financial statements for the years ended December 31, 2022, and 2023, with no significant issues raised[19]