2024-09-27 09:00Gas Sales and Market Performance - CR Gas achieved a total gas sales volume of approximately 20.901 billion cubic meters in the first half of 2024[9] - Total natural gas sales volume increased by 5.3% year-on-year to 20.9 billion cubic meters, with revenue rising 7.7% to HK$52.08 billion[18][19] - Industrial gas sales reached 9.66 billion cubic meters, up 3.7%, accounting for 46.2% of total gas sales[20][22] - Commercial gas sales grew 8.1% to 5.01 billion cubic meters, representing 24.0% of total gas sales[20][22] - Residential gas sales increased 7.0% to 5.76 billion cubic meters, making up 27.6% of total gas sales[20][22] - The Group developed 25,000 new industrial and commercial users and 1.031 million new residential users, including 882,000 new house connections[21][24] - Gas penetration rate in China increased from 58.4% to 59.6% year-on-year[21][24] - Annual gas contract coverage rate increased to 99.7%, with 1.75 billion cubic meters procured, up 30% year-on-year[20][22] - Supplemental unconventional gas resources exceeded 200 million cubic meters, improving gas supply security and cost optimization[20][22] Business Expansion and Operations - CR Gas operates 276 city gas projects across 25 provinces in China, including 15 provincial capitals and 76 prefecture-level cities[13] - The company continues to expand through organic growth, leveraging favorable industry fundamentals and execution competency[13] - The Group signed 2 new projects and registered 3 projects, bringing total registered city gas projects to 276 across 25 provinces[25][27] - The Group's grid-based customer service model now covers 32.61 million users, with 19.86 million users on enterprise WeChat[26] - The Group's distributed photovoltaic projects reached a total of 208, with energy sales volume of 1.49 billion kWh, a 54.6% year-on-year increase[30][32] - The Group's distributed energy projects totaled 211, with 28 new projects signed and 31 newly put into operation in H1 2024[30][32] - The Group's transport charging business expanded to 263 charging stations, an increase of 86, with electricity sales of 180 million kWh, up 20% year-on-year[30][33] - The Group's comprehensive energy consumption per RMB10,000 operating revenue decreased by 7.8%, and per RMB10,000 value added decreased by 10.9% in H1 2024[35] - The Group's Gas Butler service model now covers 32.61 million users, with 19.86 million WeChat Business users[28] Financial Performance - The Group achieved a revenue of HK$52.08 billion in the first half of 2024, representing a year-on-year increase of 7.7%[36][38] - The overall gross profit margin of the Group was 18.6%, an increase of 0.4 percentage points compared to the same period last year[36][38] - The proportion of revenue from gas connection business decreased from 8.8% in 2023 to 5.8% in the first half of 2024[36][38] - The Group's operating cash flow in the first half of 2024 was HK$4.25 billion, maintaining high-quality management[36][39] - Revenue increased by 7.7% to HK$52,075.59 million in 2024 compared to HK$48,369.60 million in 2023[97] - Gross profit rose by 9.7% to HK$9,671.18 million in 2024 from HK$8,818.87 million in 2023[97] - Profit attributable to the owners of the company decreased by 2.5% to HK$3,456.74 million in 2024 from HK$3,545.26 million in 2023[97] - Net cash from operating activities (after tax payments) declined by 10.6% to HK$4,252.98 million in 2024 from HK$4,756.32 million in 2023[97] - Basic EPS decreased by 2.6% to 152 HK cents in 2024 from 156 HK cents in 2023[97] - Total assets grew by 1.3% to HK$139,687.37 million in 2024 from HK$137,871.09 million in 2023[99] - Bank balances and cash increased by 15.9% to HK$11,568.36 million in 2024 from HK$9,978.47 million in 2023[99] - Total borrowings rose by 6.2% to HK$28,161.15 million in 2024 from HK$26,528.72 million in 2023[99] - Gross profit margin improved to 18.6% in 2024 from 18.2% in 2023[100] - Net profit margin (attributable to owners of the company) decreased to 6.6% in 2024 from 7.3% in 2023[100] - Revenue for the six months ended 30 June 2024 increased to HK$52,075.59 million, up 7.66% compared to HK$48,369.60 million in the same period of 2023[111] - Gross profit rose to HK$9,671.18 million in 2024, a 9.67% increase from HK$8,818.87 million in 2023[111] - Profit before taxation grew by 2.22% to HK$5,716.43 million in 2024, compared to HK$5,592.07 million in 2023[111] - Profit for the period slightly decreased to HK$4,493.42 million in 2024, down 1.41% from HK$4,557.55 million in 2023[111] - Total comprehensive income for the period increased by 20.18% to HK$4,001.83 million in 2024, compared to HK$3,329.99 million in 2023[111] - Earnings per share (Basic) for 2024 stood at HK$1.52, a slight decrease from HK$1.56 in 2023[116] - The company's share of results from joint ventures increased by 44.73% to HK$286.26 million in 2024, compared to HK$197.78 million in 2023[111] - Exchange differences arising on translation improved significantly, with a loss of HK$492.67 million in 2024 compared to a loss of HK$1,226.47 million in 2023[111] - Net movement in fair value reserve (non-recycling) turned positive at HK$1.08 million in 2024, compared to a negative HK$1.09 million in 2023[111] - Profit attributable to owners of the company decreased by 2.50% to HK$3,456.74 million in 2024, compared to HK$3,545.26 million in 2023[111] - Non-current assets increased to HK$103,213,990,000 from HK$102,417,286,000, reflecting growth in property, plant, and equipment[118] - Current liabilities rose to HK$57,056,620,000 from HK$51,108,934,000, driven by higher bank and other borrowings[118] - Total equity grew to HK$64,904,354,000 from HK$63,383,682,000, with equity attributable to owners increasing to HK$41,616,168,000[120] - Bank and other borrowings under non-current liabilities decreased to HK$11,592,572,000 from HK$17,279,384,000[120] - Net current liabilities worsened to HK$(20,583,243,000) from HK$(15,655,135,000)[118] - Total comprehensive income for the period was HK$3,127,803,000, with dividends paid amounting to HK$2,283,866,000[123] - Reserves increased to HK$41,384,767,000 from HK$40,540,830,000, reflecting retained profits and other adjustments[120] - Investment properties decreased slightly to HK$888,658,000 from HK$913,030,000[118] - Loans to a joint venture stood at HK$1,896,389,000, showing a minor decline from HK$1,909,907,000[118] - Deposits for acquisition of assets reduced to HK$300,724,000 from HK$413,073,000[118] - Exchange differences arising on translation resulted in a loss of HK$1,025,978,000[127] - Total comprehensive income for the period was HK$2,518,688,000[127] - Dividends paid amounted to HK$2,126,341,000 for the six months ended 30 June 2024, compared to HK$2,041,394,000 in the same period last year[128][129] - Net cash from operating activities was HK$4,252,981,000 for the six months ended 30 June 2024, down from HK$4,756,323,000 in the same period last year[133] - Proceeds from redemption of other deposits were HK$20,732,105,000, up from HK$19,670,681,000 in the same period last year[133] - Payments for acquisition of property, plant and equipment were HK$2,265,949,000, compared to HK$2,105,301,000 in the same period last year[133] - Net cash used in investing activities was HK$3,861,284,000, up from HK$3,357,131,000 in the same period last year[133] - Proceeds from new bank and other loans were HK$21,806,890,000, compared to HK$18,969,893,000 in the same period last year[133] - Repayments of bank and other loans were HK$16,352,769,000, significantly higher than HK$2,647,796,000 in the same period last year[133] - Net cash from financing activities was HK$835,665,000, down from HK$10,964,476,000 in the same period last year[133] - Net increase in cash and cash equivalents for 2024 was HK$1,227,362,000, compared to HK$12,363,668,000 in 2023[135] - Cash and cash equivalents at the end of the period for 2024 were HK$11,127,977,000, down from HK$18,600,688,000 in 2023[136] - The Group's current liabilities exceeded its current assets by approximately HK$20,583,243,000 as of 30 June 2024[142] - The Group has capital commitments of approximately HK$127,738,000 as of 30 June 2024[142] - Total bank and other borrowings, and medium-term notes amounted to approximately HK$28,161,145,000 as of 30 June 2024, with HK$16,020,738,000 classified as current liabilities[142] - Unutilised banking facilities stood at HK$37,579,135,000 as of 30 June 2024[142] - The Group's bank balances and cash in the consolidated statement of financial position were HK$11,568,360,000 for 2024, down from HK$18,600,688,000 in 2023[136] - The effect of foreign exchange rate changes resulted in a net decrease of HK$77,853,000 in 2024, compared to a net decrease of HK$200,459,000 in 2023[135] - The Group's cash and cash equivalents at the beginning of the period were HK$9,978,468,000 for 2024, up from HK$6,437,479,000 in 2023[135] - Deposits with banks with more than three months to maturity when placed amounted to HK$440,383,000 for 2024, with no comparable figure for 2023[136] - Revenue from external sales reached HKD 52.08 billion, with the largest contribution from gas fuel and related products at HKD 45.92 billion[149] - Segment results showed a profit before taxation of HKD 5.72 billion, with the gas fuel and related products segment contributing HKD 4.65 billion[149] - Gas connection segment revenue was HKD 3.02 billion, contributing HKD 1.12 billion to segment results[149] - Comprehensive services segment generated HKD 1.77 billion in revenue, with segment results of HKD 761.12 million[149] - Design and construction services segment revenue was HKD 335.50 million, contributing HKD 33.96 million to segment results[149] - Gas stations segment revenue was HKD 1.04 billion, with segment results of HKD 93.89 million[149] - Share of results from joint ventures and associates amounted to HKD 286.26 million and HKD 158.90 million respectively[149] - Unallocated income and expenses were HKD 567.93 million and HKD 1.43 billion respectively[149] - Finance costs, excluding interest on lease liabilities, totaled HKD 539.54 million[149] - The Group's operating segments include gas fuel sales, gas connection, comprehensive services, design and construction services, and gas stations[145] - Total revenue for the six months ended 30 June 2023 was HK$48,369,601 thousand, with external sales contributing HK$41,236,701 thousand from gas fuel and related products[151] - Segment results for the period were HK$5,879,439 thousand, with the largest contribution from gas fuel and related products at HK$3,509,041 thousand[151] - Share of results from joint ventures and associates amounted to HK$197,782 thousand and HK$230,292 thousand, respectively[151] - Unallocated income and expenses were HK$1,143,112 thousand and HK$(1,433,073) thousand, respectively, impacting the overall profit before taxation of HK$5,592,066 thousand[151] - Segment assets as of 30 June 2024 totaled HK$139,687,367 thousand, with the largest portion attributed to the sale and distribution of gas fuel and related products at HK$84,716,768 thousand[155] - Segment liabilities as of 30 June 2024 were HK$74,783,013 thousand, with the sale and distribution of gas fuel and related products accounting for HK$18,528,181 thousand[155] - Current tax for the six months ended 30 June 2024 was HK$1,357,984 thousand, primarily from PRC Enterprise Income Tax[159] - Deferred taxation for the same period resulted in a credit of HK$(134,977) thousand, reducing the total tax expense to HK$1,223,007 thousand[159] - No provision for Hong Kong Profits Tax was made as the company and its subsidiaries in Hong Kong had no assessable profits for the period[160] - Net profit attributable to owners of the company for the six months ended 30 June 2024 was HK$3,456,742,000, compared to HK$3,545,256,000 in the same period last year[166] - The company declared an interim dividend of 25 HK cents per share for the six months ended 30 June 2024, totaling HK$567,054,000, an increase from 15 HK cents per share (HK$340,232,000) in the same period last year[163][164] - Total depreciation and amortization expenses for the six months ended 30 June 2024 were HK$1,901,466,000, including HK$1,548,538,000 for property, plant and equipment, and HK$203,590,000 for right-of-use assets[162] - The company incurred HK$2,513,240,000 in construction in progress costs for the six months ended 30 June 2024, compared to HK$1,965,553,000 in the same period last year[171][174] - Additions to prepaid land lease payments and other right-of-use assets totaled HK$47,130,000 and HK$77,673,000 respectively for the six months ended 30 June 2024[172][175] - Interest expenses on bank and other borrowings increased to HK$522,932,000 for the six months ended 30 June 2024 from HK$399,895,000 in the same period last year[162] - The company provided unsecured loans to a joint venture at an interest rate of 5-year Loan Prime Rate floating downward 20% with a five-year term[173][176] - Trade receivables decreased to HK$11,192,821,000 as of June 30, 2024, from HK$11,435,927,000 on December 31, 2023, with an impairment of HK$446,444,000[178] - Amounts due from joint ventures increased significantly to HK$1,012,318,000 as of June 30, 2024, compared to HK$433,893,000 on December 31, 2023[178] - Amounts due from associates rose to HK$290,694,000 as of June 30, 2024, from HK$150,100,000 on December 31, 2023[178] - Trade payables decreased to HK$13,382,458,000 as of June 30, 2024, from HK$14,435,105,000 on December 31, 2023[183] - Receipts in advance dropped to HK$8,973,043,000 as of June 30, 2024, from HK$10,134,560,000 on December 31, 2023[183] - Other payables and accruals increased to HK$7,983,966,000 as of June 30, 2024, from HK$6,786,984,000 on December 31, 2023[183] - The ageing analysis of trade receivables shows that 0-90 days receivables decreased to HK$7,151,121,000 as of June 30, 2024, from HK$7,599,525,000 on December 31, 2023[181] - Over 365 days receivables increased to HK$2,314,724,000 as of June 30, 2024, from HK$2,141