HK & CHINA GAS(HK:00003)2021-04-21 08:36Financial Performance - The total operating revenue for the year 2020 was HKD 40,927 million, a slight increase of 1% compared to HKD 40,628 million in 2019[8]. - The net profit attributable to shareholders decreased by 14% to HKD 6,007 million from HKD 6,966 million in the previous year[8]. - The company reported a post-tax profit of HKD 72,556 million, an increase of approximately 3% from the previous year[15]. - The group’s net profit attributable to shareholders for the year was HKD 6.007 billion, a decrease of approximately 14% compared to the previous year[18]. - The company reported a significant increase in revenue, with a year-over-year growth of 15%[35]. - The company provided a positive outlook for the next quarter, projecting a revenue increase of 10%[35]. - The company’s total liabilities increased to HKD 41,320.6 million in 2020 from HKD 38,905.9 million in 2019, representing an increase of approximately 10.5%[150]. Customer Metrics - The number of customers as of December 31, 2020, reached 1,943,777, reflecting a growth of 1% from 1,933,727 in 2019[8]. - The number of gas customers increased to approximately 31.81 million, reflecting a growth of 7%[22]. - The customer base reached approximately 2 million, with a continuous focus on enhancing service quality and safety measures[79]. - The company expects the number of gas users to increase to 40 million by 2021, contributing to a larger urban gas group[30]. Gas Sales and Operations - The gas sales volume for the year was 27,947 million megajoules, down 3% from 28,712 million megajoules in 2019[8]. - The total gas sales volume in Hong Kong for 2020 was approximately 27,947 million MJ, a slight decrease of 2.7% year-on-year[19]. - The total gas sales volume for urban gas business was approximately 26.9 billion cubic meters in 2020, representing a 5% increase compared to 2019[45]. - The highest hourly demand for gas reached 511 thousand cubic meters, an increase of 8% from 473 thousand cubic meters in 2019[8]. Investments and Projects - The group invested HKD 7.295 billion in production facilities, pipelines, and other fixed assets to expand existing and new businesses in Hong Kong and mainland China[18]. - The group has 436 projects across 27 provinces, autonomous regions, and municipalities in mainland China, as well as one project in Thailand[5]. - The group plans to trial production of sustainable aviation fuel (SAF) based on biomass fuel within the year to cultivate new market growth points[19]. - The group is actively expanding its biomass utilization projects, with two pilot projects in Hebei province expected to commence trial production in the second and fourth quarters of 2021[26]. Environmental Initiatives - The group aims to promote natural gas as a clean energy application to replace high-emission fossil fuels like coal and oil[19]. - The group has received the "Hong Kong Environmental Excellence Award" for its ESG performance, indicating its leadership in environmental, social, and governance responsibilities[19]. - The company is committed to addressing environmental pollution caused by burning agricultural waste through efficient utilization projects[30]. - The company is exploring patented biomass gasification technology to convert agricultural waste into hydrogen-rich gas[93]. Corporate Governance and Compliance - The group strictly adheres to local laws and regulations, including the Prevention of Bribery Ordinance, and has implemented a zero-tolerance policy towards corruption[154]. - The company has a robust risk management system in place to prevent gas leaks or explosions, ensuring compliance with the Gas Safety Ordinance[154]. - The board has established governance functions to review and monitor compliance with legal and regulatory requirements, as well as training for directors and senior management[181]. - The company has adopted a whistleblowing policy to provide guidance for reporting misconduct related to financial reporting or other matters[198]. Employee and Community Engagement - The number of employees as of December 31, 2020, was 2,130, up from 2,096 in 2019, indicating a 2% increase[8]. - The average training hours per employee in Hong Kong for 2020 was 17.5 hours, with a focus on developing a talent pipeline[120]. - The company provided 30,000 meal packages to 1,000 families in need to alleviate their dietary expenses during the pandemic[101]. - The company organized volunteer services totaling 16,633 hours in Hong Kong and 714,300 hours in mainland China[115]. Future Outlook and Strategic Plans - The company anticipates a recovery to high growth in business in a relatively short time post-pandemic[30]. - The company is focusing on cost-saving measures and optimizing operational processes to enhance service levels and operational efficiency[30]. - The company is actively pursuing market expansion through strategic partnerships and acquisitions in the energy sector[133]. - The company is committed to increasing its market share in the clean energy sector through innovative projects and technologies[133].