华润燃气(一百)(01193) - 2023 - 年度财报

Financial Performance - Revenue grew by 7.3% year-on-year to HKD 101.27 billion in 2023[11] - The Group's profit attributable to owners increased by 10.4% to HK$5.22 billion, with a proposed final dividend of 100.69 HK cents and a total dividend of 115.69 HK cents for the year, representing a dividend payout ratio of 50.3%[15] - The Group's comprehensive service revenue increased by 27.0% to HK$4.04 billion, with segment profit growing by 19.0% to HK$1.37 billion, and excluding currency fluctuations, revenue and profit grew by 33.3% and 24.9%, respectively[24] - The Group achieved a turnover of HK$101.27 billion in 2023, representing a year-on-year increase of 7.3%[38] - The Group's operating cash flow increased by HK$5.8 billion to HK$10.16 billion, representing a 58.0% year-on-year growth[36] - The Group's share price increased by 7.5 times from HK$3.4 in 2008 to HK$25.6 in 2023, and its market capitalization grew by 19.2 times from HK$3.08 billion to HK$59.24 billion[41] - The Group's profit increased by 21.8 times from HK$240 million in 2008 to HK$5.22 billion in 2023, while turnover grew by 33.9 times from HK$2.99 billion to HK$101.27 billion[41] - In 2023, the Group's revenue increased by 7.3% to HK$101.27 billion, with profit attributable to owners rising by 10.4% to HK$5.22 billion[46] - The Group's operating profit increased by 6.3% to HK$9.21 billion in 2023, and cash generated from operations rose from HK$4.35 billion in 2022 to HK$10.16 billion in 2023[46] - Revenue for 2023 increased by 7.3% to HK$101,271,905,000 compared to HK$94,338,329,000 in 2022[66] - Gross profit rose by 2.0% to HK$18,451,671,000 from HK$18,081,851,000 in 2022[66] - Profit for the year grew by 11.9% to HK$7,058,886,000 from HK$6,308,519,000 in 2022[66] - Net cash from operating activities surged by 133.4% to HK$10,156,593,000 from HK$4,351,390,000 in 2022[66] - Total assets increased by 22.8% to HK$137,871,085,000 from HK$112,303,585,000 in 2022[69] - Bank balances and cash grew by 55.0% to HK$9,978,468,000 from HK$6,437,479,000 in 2022[69] - Net profit margin (attributable to shareholders) improved by 0.2ppt to 5.2% from 5.0% in 2022[70] - Return on equity increased by 0.8ppt to 12.8% from 12.0% in 2022[70] - Total equity rose by 20.6% to HK$63,383,682,000 from HK$52,545,423,000 in 2022[69] - The Group's annual revenue in 2023 amounted to HK$101.27 billion, a 7.3% increase from HK$94.34 billion in 2022, driven by rapid development in gas sales and rising upstream natural gas prices[74] - Profit attributable to owners of the Company increased by 10.4% to HK$5.22 billion in 2023 from HK$4.73 billion in 2022[74] - Net operating cash flow after tax in 2023 was HK$10.16 billion, with bank balances and cash totaling HK$9.98 billion at the end of the year[75] - Net cash inflow after tax from operations during the year amounted to HK$10.16 billion (2022: HK$4.35 billion)[77][79] - Bank balances and cash at year-end were HK$9.98 billion (2022: HK$6.44 billion), with 99.45% denominated in Renminbi[77][79] - The Group's reserves available for distribution to shareholders at 31st December 2023 amounted to HK$40,540,830,000[179] - The company recommended a 2023 Final Dividend of 100.69 HK cents per share, with a total distribution for 2023 of 115.69 HK cents per share (2022: 105 HK cents per share)[180][181] Gas Sales and Operations - Total natural gas sales volume increased by 8.1% year-on-year to 38.78 billion cubic meters in 2023[11] - Annual gas sales volume reached 38.784 billion cubic meters, serving 57.78 million customers by the end of 2023[8] - Natural gas sales increased by 8.1% to 38.78 billion cubic meters, with industrial gas sales accounting for 51.9% (20.11 billion cubic meters), commercial gas sales for 21.2% (8.21 billion cubic meters), and residential gas sales for 24.3% (9.44 billion cubic meters)[16][17] - The Group's national apparent consumption of natural gas reached 394.53 billion cubic meters, a 7.6% increase year-on-year, with a total gas volume of approximately 3.00 billion cubic meters, representing a 68.0% year-on-year increase[15] - Gross gas sales volume increased by 8.1% from 35.89 billion m3 in 2022 to 38.78 billion m3 in 2023[48] - Revenue from sales and distribution of gas fuel and related products accounted for 81.6% of total revenue in 2023, up from 79.6% in 2022[46] - Gross gas volume in 2023 reached 38.78 billion cubic meters, an 8.1% increase compared to the previous year[74] - Total connected customers increased by 3,412,568 to 57,779,698 in 2023, with residential customers accounting for 57,294,810, a 3,369,962 increase from 2022[73] - Gross sales volume of gas increased by 8.1% to 38,784 million cubic meters in 2023, with residential, industrial, and commercial segments growing by 11.1%, 7.2%, and 9.0% respectively[73] Expansion and Acquisitions - CR Gas operates 276 city gas projects across 25 provinces in China, including 15 provincial capitals and 76 prefecture-level cities[5] - The total connectable population covered by CR Gas is 346 million[8] - CR Gas aims to expand through sustainable organic growth and quality external acquisitions while exploring new opportunities in the gas value chain[14] - The Group developed 41,310 new industrial and commercial users and 3,313,000 residential users, including 2,833,000 new house connections, 384,000 old house connections, and 46,000 rural "coal-to-gas conversion" users[19] - The Group signed 3 new projects and registered 8 projects, expanding its operational region by 4,057 square kilometers, and consolidated 重慶燃氣集團股份有限公司, acquired 51% equity in 昆明煤氣（集團）控股有限公司, and increased its shareholding in 廈門華潤燃氣有限公司 by 2%[20][21] - The Group's registered city gas projects reached 276, spanning 25 provinces, including 15 provincial capital cities and 76 prefecture-level cities[22] - The Group invested in 11 new projects in 2023, with expected improvements in return rates as these projects achieve higher operating efficiency and generate more returns[75] - The Group spent HK$2.74 billion in capital expenditure for acquisition expansion and HK$5.15 billion on upgrading and expanding city gas pipelines and related facilities (2022: HK$6.24 billion)[77][79] - In 2023, the Company invested or paid HK$2.74 billion in 11 city gas projects, with most projects wholly or majority-owned by the Group[190] - As of December 31, 2023, CR Gas's portfolio included 276 city gas projects, covering 25 Chinese provinces, including 15 provincial capitals and 76 prefecture-level cities[190] Operational Efficiency and Cost Management - The company focuses on improving operational efficiency and consolidating its core advantages in the city gas market of sophisticated regions[13] - Centralized procurement accounted for 90.14% of total material procurement expenditure by the end of 2023, reducing costs while maintaining product quality[53] - The company implemented benchmarking initiatives across all business sectors, leading to significant improvements in cost reductions and performance in 2023[50] - The company centralized design and construction activities, enhancing standardization and further reducing costs[52] - The company improved customer service by increasing household safety inspection success rates, shortening complaint processing times, and promoting internet payments[53] - The company enhanced cash management by including more member companies in the system, significantly increasing cash reserves and reducing overall borrowing costs[54] - The company streamlined supply chain management with rigorous tender systems and new guidelines for projects and quality control[53] - The company promoted IT systems across various operational levels, including project management, financial reporting, and customer service, to improve efficiency[53] - The Group centralized cash management, significantly increasing the cash pool size and reducing overall borrowing costs[55] - The Group implemented taxation rationalization measures to reduce tax exposure and expedite tax setoffs and refunds[55] Safety and Training - The Group conducted safety audits for 74 regional companies, identifying over 5,031 hidden safety hazards in 2023[57][58] - The Group provided a total of 372,800 person/times of safety training for employees in 2023[57][59] - The Group invested HK$0.111 billion in 2023 to complete the transformation of 80 km of cast iron pipeline[58] - The Group operates 5 regional training centers across China, located in Wuxi, Jining, Zhengzhou, Fuzhou, and Chengdu[60][61] Corporate Governance and Leadership - Mr. YANG Ping, aged 49, was appointed as Executive Director and CEO on 23rd December 2021, and is also the chairman of the Corporate Governance Committee[92][93] - Mr. LI Xiaoshuang, aged 45, was appointed as Executive Director on 8th December 2023, and has been Vice President since 2016 and CFO since 2017[94] - Mr. WANG Gaoqiang, aged 54, was appointed as Non-executive Director on 15th September 2021, with over 30 years of experience in corporate finance and internal audit[95] - Mr. LIU Jian, aged 63, was appointed as Non-executive Director on 15th September 2021, with extensive experience in international trade and sales[96] - Ms. GE Lu, aged 52, was appointed as Non-executive Director on 27th September 2023, with over 30 years of experience in the pharmaceutical industry[97] - Mr. WONG Tak Shing, aged 73, was appointed as an Independent Non-executive Director in 1998 and serves as the Chairman of the Remuneration Committee[98] - Mr. YU Hon To, David, aged 76, was appointed as an Independent Non-executive Director and Chairman of the Audit and Risk Management Committee on December 28, 2012[99] - Mr. YANG Yuchuan, aged 60, was appointed as an Independent Non-executive Director and a member of the Audit and Risk Management Committee in August 2018[100] - Mr. LI Pok Yan, aged 66, was appointed as an Independent Non-executive Director and a member of the Remuneration Committee on 27th September 2023[101] - The Company has adopted the mandatory provisions of the Corporate Governance Code and maintains a Corporate Governance Handbook, updated since 2005[107][108] - The Company complied with the Corporate Governance Code throughout the year, except for deviations from provisions C.3.3 and F.2.2[108][109] - The Board consists of 2 Executive Directors, 4 Non-executive Directors, and 4 Independent Non-executive Directors, with one-third of Directors required to retire by rotation at each annual general meeting[114] - The Board held 5 meetings in 2023, with detailed attendance records provided for each Director[115][116] - The company held one general meeting in 2023, with attendance details for Directors[117] - The company has a total of 58,608 employees as of the end of 2023, comprising approximately 19,341 females and 39,267 males, reflecting a gender ratio of 2:1[120][121] - To achieve gender diversity on the Board, the company appointed one female Director in 2023 to comply with the Listing Rules[120][121] - The Board will annually review the implementation and effectiveness of the Board diversity policy, considering it effective in achieving diversity[122] - The Nomination Committee did not set any measurable objectives for achieving diversity on the Board during the review year[120][121] - The company encourages all Directors to participate in continuous professional development to enhance and update their knowledge and skills[125][126] - The Audit and Risk Management Committee reviewed the financial statements and yearly results announcement for 2022, and the half-yearly and yearly results for 2023, including the Group's financial and accounting policies and practices[139] - The Audit and Risk Management Committee held four meetings in 2023, with detailed attendance records for each member[140] - The Remuneration Committee held three meetings in 2023 to review and determine the bonus and compensation of Executive Directors and senior management[142] - The remuneration of senior management for the year ended 31st December 2023 is categorized into bands, with 3 individuals earning between HKD2,000,001 to HKD2,500,000 and 4 individuals earning between HKD2,500,001 to HKD3,000,000[144] - The Nomination Committee held two meetings in 2023, with attendance details provided for each member[149][150] - The Nomination Committee evaluates candidates based on criteria including diversity, commitment, industry experience, integrity, and potential contributions to the Board[151] - The Nomination Committee may consult various sources for identifying suitable candidates, such as referrals, advertising, and third-party recommendations[153] - The Nomination Committee considers factors like attendance, participation, and performance when recommending retiring Directors for re-appointment[151] - The Nomination Committee follows a structured process for evaluating and recommending candidates, including interviews, background checks, and submission of personal information[153] - The Investment Committee was responsible for making investment decisions within the threshold of US$8 million to US$20 million or other thresholds authorized by the Board[155] - The Investment Committee was dissolved and discharged on 25th August, 2023[155] - The Corporate Governance Committee held one meeting on 31st March, 2023, with full attendance from its members[158] - The Board maintains an effective risk management and internal control system to manage risks related to ESG and other business objectives[159] - The Internal Audit Division conducted reviews of key risk management systems and reported findings to the Audit and Risk Management Committee for further improvement[159] - The Company has adopted anti-corruption and whistleblowing policies to regulate employee conduct and report any misconduct[160] - The Board is satisfied with the effectiveness of the current risk management and internal control systems based on the annual review[160] - The Company has adopted the Model Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules, and all directors complied with the code during the year[161] - The company paid HK$12.234 million for audit services and HK$1.335 million for interim review services in 2023[167] - Non-assurance services, including assurance on continuing connected transactions and agreed-upon procedures on annual results, cost HK$556,000 and HK$111,000 respectively in 2023[167] - Total fees paid or payable to the external auditor, KPMG, amounted to HK$14.236 million for the year ended 31st December 2023[167] - The company's risk management and internal control systems were deemed effective by the Board based on the annual review[162] - The company has adopted an anti-corruption and anti-bribery policy and a whistleblowing policy to address improprieties[162] - All directors complied with the Model Code for Securities Transactions by Directors during the year[163] - The company's shareholders holding at least one-tenth of the paid-up capital can convene a special general meeting[170] - Shareholders holding at least 5% of the paid-up capital or 100 registered shareholders can request the company to circulate a statement of up to 1,000 words for a general meeting[170] - The company's Company Secretary, Mr. LO Chi Lik Peter, resigned effective 1st January 2024, and Ms. CHENG Kwai Yuk was appointed as the new Company Secretary[169] - The primary contact for the Company Secretary is Mr. LI Xiaoshuang, the Executive Director and Chief Financial Officer[169] Sustainability and ESG - The Group's ESG rating was maintained at A by MSCI, reflecting its commitment to sustainable development[35] - The company aims to become a world-class energy service enterprise trusted by the public, focusing on reducing energy costs and carbon emissions for customers[110][111] - The company's strategy includes innovation in development models, upgrading products and services, and adhering to a low-carbon cycle to enhance sustainability[112] - Charitable donations by CR Gas amounted to HK$3,695,000 with cumulative volunteer services of 79,000 persons/times in 2023[65] Market and Economic Environment - China's GDP grew by 5.2% year-on-year in 2023, with natural gas consumption expected to continue steady growth[11] - Natural gas sales are expected to grow steadily in 2024, supported by declining international natural gas prices and China's push for carbon neutrality[42] - Moody's, Standard & Poor's, and Fitch maintained the Group's credit rating at A2, A-, and A- respectively in 2023, reflecting strong financial performance[39][41] - The Group plans to adhere to the "1+2+N" business strategy in 2024, focusing on steady growth in principal business and