CHINA RES GAS(HK:01193)2021-04-19 09:00Business Operations and Growth - CR Gas's total city gas projects reached 257, distributed across 22 provinces in China, including 14 provincial capitals and 3 municipalities[3]. - The annual gross gas sales volume was approximately 29.0 billion cubic meters, serving 41.84 million customers[3]. - The Group developed 41,900 new industrial and commercial users and 3.0526 million new residential users during the year[26]. - The annual natural gas sales volume reached 29.024 billion cubic meters, representing a year-on-year increase of 3.62%[18]. - The Group's industrial gas sales volume was 14.866 billion cubic meters, an increase of 6.41%, accounting for 51.22% of total gas sales[22]. - Commercial gas sales volume was 5.800 billion cubic meters, a decrease of 5.38%, accounting for 19.98% of total gas sales[22]. - Residential gas sales increased by 10.66% to 6.988 billion cubic meters, accounting for 24.08% of total gas sales[22]. - The Group successfully registered 28 projects and signed 32 new projects, expected to bring an annual gas sales volume of 883 million cubic meters and 663,100 new users[25]. - The Group signed 14 new distributed energy projects with a total estimated investment of approximately HK$295 million, bringing the cumulative total to 46 projects[38]. - The Group put into operation 2 new hydrogen refueling stations, totaling 9 approved stations across various cities[39]. Financial Performance - Profit attributable to the owners of the Group was HK$5.151 billion, reflecting a year-on-year increase of 2.14%[18]. - Proposed final dividend of 78 HK cents per share, totaling 93 HK cents for the year, an increase of 6.90% from 87 HK cents in 2019, with a dividend payout ratio of 40.26%[18]. - The Group's turnover for the year ended December 31, 2020, slightly decreased by 2.0% to HK$55.86 billion, while profit attributable to equity holders increased by 2.1% to HK$5.15 billion[66][67]. - The overall gross profit margin increased by 2 percentage points to 26.90%, with gross profit rising by 5.73% to HK$15.027 billion[50][53]. - The Group's operating cash flow reached HK$8.616 billion, representing a year-on-year increase of 0.17%[54]. - The basic earnings per share for the year was HK$2.31, down by 0.43%[50][53]. - The total assets of the Group rose by 14.7% to HK$93.871 billion from HK$81.824 billion in 2019[93]. - The total equity attributable to the Company's equity holders increased by 35.4% to HK$36.274 billion from HK$26.795 billion in 2019[93]. - The Group's liquidity position remained strong with bank balances and cash totaling HK$13.4 billion at the end of 2020[107]. Environmental and Social Responsibility - The Chinese government's policies are driving the growth of clean energy consumption, providing long-term growth momentum for CR Gas's clean energy sales and integrated services[15]. - The Group distributed approximately 29.0 billion cubic meters of natural gas annually, helping to replace around 350,928,984 tons of coal usage and reduce approximately 87,487,522 tons of carbon dioxide emissions[86]. - The Group's greenhouse gas emissions decreased by 20.2% year-on-year, and energy consumption per unit of revenue fell by 1%[46]. - The Group has actively supported the PRC government's environmental policies by expanding its cleaner natural gas business[88]. - The Group's charitable donations totaled HKD 7.748 million in 2020, with 107,000 volunteer service hours contributed, particularly in response to the COVID-19 pandemic[86]. Corporate Governance and Management - The company has a strong governance structure with various committees including Audit and Risk Management, Remuneration, and Nomination Committees[135]. - The management team comprises individuals with diverse backgrounds in finance, law, and corporate governance, enhancing the company's strategic decision-making capabilities[137]. - The company emphasizes leadership development and talent management as part of its human resources strategy[134]. - The Board consists of 2 Executive Directors, 5 Non-executive Directors, and 4 Independent Non-executive Directors, with Mr. Yu Hon To having the required professional accounting experience as per Listing Rules[160]. - The Company has maintained a credible corporate governance framework to ensure transparency and accountability to shareholders[154]. Operational Efficiency and Cost Management - CR Gas aims to enhance operational efficiency while expanding through both organic and acquisition growth strategies[3]. - The Group has 84 regional centers to enhance operational efficiency and respond quickly to local demands, with a focus on minimizing resource use while maximizing results[73]. - Centralized procurement accounted for 92.0% of total material procurement expenditure by the end of 2020, leading to reduced costs while maintaining product quality[75]. - The implementation of a value-oriented management system has effectively reduced costs and expenses across member companies, significantly lowering overall borrowing costs[76]. - The Group aims to transform its growth model from resource-driven to efficiency-driven through benchmarking and operational enhancements[72]. Safety and Risk Management - Safety management policies and qualified personnel have been established to prevent potential environmental incidents related to natural gas facilities[77]. - The Group completed safety audits for 69 regional companies, discovering a total of 3,740 hidden safety hazards throughout the year[79]. - The Group has implemented various safety management policies and procedures to prevent potential accidents in natural gas facilities[78]. - The Group has been recognized as an A-level unit for legal risk management for three consecutive years, reflecting its commitment to risk control[84]. Market and Industry Trends - The optimization of energy structure and environmental pollution control is expected to sustain the growth of natural gas consumption in China[3]. - The promotion and application of natural gas are emphasized in China's "14th Five-Year Plan" and the draft of "Long-Range Objectives through the Year 2035"[3]. - The Chinese government set a carbon neutrality goal for 2060, which is expected to drive the natural gas industry's development in the short to medium term[58][61].