Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 4,321,868, representing a 16.8% increase from HKD 3,699,210 in the same period of 2018[6]. - Gross profit was HKD 1,139,398 with a gross margin of 26.4%, down from HKD 1,183,015 and a gross margin of 32.0% in 2018, reflecting a decrease of 3.7% in gross profit[6]. - Profit attributable to owners of the company increased by 20.8% to HKD 507,293 compared to HKD 419,980 in the previous year[6]. - Adjusted profit attributable to owners, excluding foreign exchange gains/losses, was HKD 517,169, a slight increase of 1.0% from HKD 511,972[6]. - The company reported a total comprehensive income of HKD 470,523 for the period, compared to HKD 495,138 in the same period of 2018[9]. - For the six months ended June 30, 2019, the company reported a net profit of HKD 507,293,000, an increase of 20.7% compared to HKD 419,980,000 for the same period in 2018[26]. - The company reported interest income from financial assets of HKD 6,231,000 for the six months ended June 30, 2019, compared to HKD 5,059,000 in 2018, reflecting a 23.2% increase[21]. - EBITDA for the six months ended June 30, 2019, was approximately HKD 1,079,079,000, a slight decrease of 1.4% from HKD 1,094,590,000 in the previous year[69]. - Net profit margin improved to 11.7% from 11.4% year-on-year[71]. Revenue Breakdown - Revenue from gas sales reached HKD 2,882,143,000, up from HKD 2,250,015,000 in the previous year, representing a growth of 28.0%[16]. - Revenue from gas pipeline construction was HKD 1,015,434,000, a decrease from HKD 1,193,700,000 in 2018, reflecting a decline of 15.0%[16]. - Revenue from the sale of stoves and other services increased significantly to HKD 251,719,000 from HKD 75,831,000, showing a growth of 231.0%[16]. - Industrial customer gas sales increased by 22.3% to HKD 1,748,722,000, with a natural gas average selling price up 9.8% to RMB 3.03 per cubic meter[56]. - Residential customer gas sales rose by 36.9% to HKD 616,070,000, driven by the "coal-to-gas" policy, with 278,641 new connections made[57]. - Commercial customer gas sales increased by 7.5% to HKD 301,262,000, with a 15.0% increase in the number of commercial customers to 11,948[57]. - Gas pipeline construction revenue decreased by 14.9% to HKD 1,015,434,000, with "coal-to-gas" project revenue down 32.6% to HKD 547,251,000[58][59]. - Non-"coal-to-gas" project residential gas pipeline construction revenue increased by 23.8% to HKD 401,801,000[60]. - Sales of stoves and other services surged by 231.9% to HKD 251,719,000, accounting for 5.8% of total revenue[61]. Cash Flow and Investments - Cash generated from operating activities for the six months ended June 30, 2019, was HKD 349,941,000, a decrease of 48.3% compared to HKD 676,159,000 in 2018[13]. - Net cash used in investing activities was HKD (2,115,992,000) for the six months ended June 30, 2019, compared to HKD (1,517,899,000) in the previous year, indicating an increase in investment outflows[13]. - Net cash generated from financing activities was HKD 2,593,843,000, up from HKD 1,923,722,000 in 2018, reflecting a significant increase of 34.9%[13]. - The company reported a total cash and cash equivalents balance of HKD 2,423,606,000 as of June 30, 2019, compared to HKD 1,525,404,000 at the end of June 2018, marking a year-over-year increase of 59.0%[13]. Assets and Liabilities - Total assets less current liabilities amounted to HKD 13,558,776, an increase from HKD 8,989,084 in the previous year[11]. - The group's total assets increased by HKD 3,336,577,000 or 20.5% to HKD 19,617,931,000 as of June 30, 2019, compared to HKD 16,281,354,000 as of December 31, 2018[32]. - Total borrowings and finance lease liabilities increased by HKD 2,952,376,000 or 34.8% to HKD 11,429,849,000 as of June 30, 2019, compared to HKD 8,477,473,000 as of December 31, 2018[32]. - The net debt to equity ratio was approximately 1.80 as of June 30, 2019, compared to 1.52 as of December 31, 2018[32]. - The current ratio improved to approximately 1.1 as of June 30, 2019, up from 0.6 as of December 31, 2018[32]. Dividends and Shareholder Information - The company proposed an interim dividend of 2.00 HK cents per share, not applicable in the previous year[6]. - The board proposed an interim dividend of HKD 0.02 per share, compared to no dividend in the previous year[75]. - As of June 30, 2019, the total number of issued shares of the company was 2,538,217,357[79]. - Mr. Wang Wenliang holds 759,714,206 shares, representing approximately 29.91% of the issued share capital[77]. - China Gas Holdings Limited owns 1,064,783,071 shares, accounting for 41.97% of the company[81]. - The beneficial interest of Hezhong Investment Holdings Limited is 730,451,289 shares, which is about 28.76% of the total shares[81]. Operational Highlights - The number of new residential gas connections decreased by 20.5% to 278,641 from 350,276 in the previous year[6]. - The total number of connectable residential users reached 4,889,000, a 34.8% increase from 3,628,000[49]. - The cumulative number of connected residential gas customers reached 3,264,628, an increase of 30.1% from 2,509,802[49]. - The number of operational locations increased to 65, up from 60, representing a growth of 8.3%[49]. - The company plans to deepen penetration in key regions and explore opportunities in eastern and central China, as well as Guangdong Province[73]. Governance and Compliance - The company has adopted the corporate governance code as per Appendix 14 of the Listing Rules and has complied with all applicable provisions during the review period[84]. - The Audit Committee, composed of independent non-executive directors, reviewed the accounting principles and financial reporting matters, including the unaudited consolidated performance for the six months ended June 30, 2019[85]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2019[88].
中裕能源(03633) - 2019 - 中期财报