CHINA RES GAS(HK:01193)2025-04-28 09:49Business Performance - At the end of 2024, CR Gas's portfolio consisted of 276 city gas projects across 25 provinces, including 15 provincial capitals and 76 prefecture-level cities, with an annual gas sales volume of approximately 39.9 billion cubic meters and 60.62 million customers[8][12]. - The total connectable population reached 99.98 million households, indicating significant market penetration and growth potential[12]. - The Group's total natural gas sales volume increased by 2.9% year-on-year to 39.91 billion cubic meters, with revenue rising by 1.4% to HK$102.68 billion[23]. - The annual gas sales volume of 39.9 billion cubic meters reflects a robust demand for natural gas in the regions served by CR Gas[12]. - The total gas sales volume rose by 2.9% from 38.78 billion m³ to 39.91 billion m³[72]. - The total number of newly connected residential users in 2024 was 2.693 million[77]. - The Group's gas sales volume from 2008 to 2024 is projected to grow at a compound annual growth rate (CAGR) of 23.45%[43]. - The Group's natural gas consumption is projected to grow at a CAGR of 12.5% from 2000 to 2024, while production is expected to grow at 9.64%[34]. Strategic Initiatives - CR Gas aims to leverage favorable operating conditions to expand through both organic and external growth, enhancing its position as a leader in the gas industry[10]. - The company is committed to delivering safe and reliable clean energy while providing efficient services to customers, contributing to sustainable performance for shareholders[10]. - The Group's focus on urban gas core business development has solidified its leading position in the market[31]. - The Group's proactive exploration of the gas value chain and customer base aims to identify new business opportunities[20]. - The Group plans to adhere to a "1+2+N" business strategy in 2025, focusing on clean energy development and enhancing its natural gas resource pool[65]. Financial Performance - The Group achieved a turnover of HK$102.68 billion in 2024, representing a year-on-year increase of 1.4%[53]. - Profit for the year decreased by 18.6% to HK$5,748,294 from HK$7,058,886 in 2023[123]. - The attributable profit to the owners of the Company decreased by 21.7% to HK$4.09 billion compared to HK$5.22 billion in the previous year[137]. - Operating profit declined by 15.9% to HK$7.74 billion, and cash generated from operations fell from HK$10.16 billion in 2023 to HK$7.00 billion in 2024[71]. - The overall gross profit margin was 17.8%, a decrease of 0.4 percentage points compared to the previous year, primarily due to a reduction in the share of revenue from gas connection from 10.8% to 9.0%[53]. - The average gas tariff decreased to RMB 3.42 per cubic meter from RMB 3.50 in 2023[130]. - The Group's debt to capitalisation ratio improved to 26.4% from 29.5% in 2023[126]. Operational Efficiency - The Group's operational strategy includes a commitment to professional development opportunities for employees, fostering a skilled workforce to support its growth objectives[10]. - The management team is focused on improving operational efficiency to achieve sustainable organic growth[74]. - Benchmarking initiatives have been implemented across all business sectors to enhance performance and identify gaps[82]. - The Group has 84 regional centers to manage daily operations of city gas projects, enhancing service and operational efficiency[86]. - Centralized procurement accounted for 85.54% of total material procurement expenditure by the end of 2024, leading to cost reductions while ensuring quality[89]. Environmental and Social Responsibility - The Chinese government emphasizes the promotion of green and low-carbon development, which aligns with CR Gas's strategy to enhance operational efficiency and provide clean energy solutions[9][10]. - The Group's ESG rating was maintained at A by MSCI, reflecting its commitment to sustainable development and compliance with environmental standards[49]. - As of the end of 2024, the Group's carbon dioxide emission intensity decreased by 61.28% and comprehensive energy consumption per RMB 10,000 of revenue decreased by 35.59% compared to the end of 2020[118]. - Total charitable donations amounted to HK$3,103,600, with cumulative volunteer services of 74,100 persons/times in 2024[119]. Governance and Management - The Group is committed to enhancing its corporate governance standards by adopting best practices and a Corporate Governance Handbook[58]. - The Group's management team consists of professionals with significant expertise in financial, legal, commercial, and engineering disciplines[108]. - The Group has established 6 audit centers nationwide to enhance audit and risk control functions[112]. - Mr. WANG Gaoqiang has over 30 years of experience in corporate finance, internal audit, internal control, risk management, and corporate governance[183]. - Ms. GE Lu has over 30 years of experience in the pharmaceutical industry, specializing in supply chain management and logistics management[188].