2025-08-19 10:45Financial Performance Summary This section provides a summary of key operational and financial indicators Key Financial Indicators This chapter summarizes key operational and financial indicators for the six months ended June 30, 2025, showing increased natural gas sales volume and revenue, but decreased profit before income tax and profit attributable to equity holders Key Financial Performance Summary for the Six Months Ended June 30 | Indicator | 2025 | 2024 | Change % | | :--- | :--- | :--- | :--- | | Total Natural Gas Sales Volume (million cubic meters) | 29,095 | 26,438 | 10.05 | | Natural Gas Retail Volume (million cubic meters) | 16,666 | 16,302 | 2.23 | | Revenue (RMB million) | 97,543 | 92,922 | 4.97 | | Profit Before Income Tax Expense (RMB million) | 6,737 | 7,249 | (7.06) | | Profit for the Period Attributable to Equity Holders (RMB million) | 3,161 | 3,305 | (4.36) | | Earnings Before Interest, Tax, Depreciation and Amortization (RMB million) | 9,523 | 9,915 | (3.95) | | Earnings Per Share (Basic) (RMB cents) | 36.51 | 38.17 | (4.35) | | Dividend Per Share - Interim (RMB cents) | 16.60 | 16.41 | 1.16 | Unaudited Consolidated Interim Financial Statements This section presents the unaudited consolidated interim financial statements Unaudited Consolidated Interim Statement of Comprehensive Income This chapter details the unaudited consolidated interim statement of comprehensive income for the six months ended June 30, 2025, outlining revenue, expenses, profit before tax, income tax, and profit for the period, allocated to equity holders and non-controlling interests Unaudited Consolidated Interim Statement of Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Revenue | 97,543 | 92,922 | | Other income, net | 381 | 746 | | Interest income | 337 | 499 | | Purchases, services and others | (84,778) | (79,752) | | Employee compensation costs | (2,850) | (3,169) | | Depreciation, depletion and amortization | (2,800) | (2,754) | | Other selling, general and administrative expenses | (1,121) | (1,230) | | Taxes other than income tax | (216) | (239) | | Interest expense | (323) | (411) | | Share of profit less loss: associates | 294 | 335 | | Share of profit less loss: joint ventures | 270 | 302 | | Profit before income tax expense | 6,737 | 7,249 | | Income tax expense | (1,735) | (1,929) | | Profit for the period | 5,002 | 5,320 | | Profit for the period attributable to equity holders of the Company | 3,161 | 3,305 | | Profit for the period attributable to non-controlling interests | 1,841 | 2,015 | | Total comprehensive income attributable to equity holders of the Company | 3,145 | 3,218 | | Total comprehensive income attributable to non-controlling interests | 1,825 | 2,013 | Unaudited Consolidated Interim Statement of Financial Position This chapter presents the unaudited consolidated interim statement of financial position as of June 30, 2025, and December 31, 2024, detailing non-current assets, current assets, equity, current liabilities, and non-current liabilities, reflecting changes in total assets and liabilities Unaudited Consolidated Interim Statement of Financial Position (As of June 30 and December 31) | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | ASSETS | | | | Total non-current assets | 84,376 | 86,153 | | Total current assets | 56,449 | 57,237 | | TOTAL ASSETS | 140,825 | 143,390 | | EQUITY | | | | Capital and reserves attributable to equity holders of the Company | 66,988 | 65,149 | | Non-controlling interests | 24,080 | 23,686 | | TOTAL EQUITY | 91,068 | 88,835 | | LIABILITIES | | | | Total current liabilities | 29,800 | 35,676 | | Total non-current liabilities | 19,957 | 18,879 | | TOTAL LIABILITIES | 49,757 | 54,555 | | TOTAL EQUITY AND LIABILITIES | 140,825 | 143,390 | | Net current assets | 26,649 | 21,561 | | Total assets less current liabilities | 111,025 | 107,714 | Notes to the Unaudited Consolidated Interim Financial Information This section provides detailed notes to the unaudited consolidated interim financial information Basis of Preparation and Accounting Policies This chapter explains the basis of preparation for the interim financial information, adhering to HKAS 34 and HKEX Listing Rules, noting that new and revised standards adopted this period, such as HKAS 21 amendments, had no significant impact on the Group's accounting policies - The Group's unaudited interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited9 - The Group first applied 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability – Amendments to HKAS 21' from January 1, 2025, but this amendment had no significant impact on the Group's accounting policies and required no retrospective adjustments1011 Segment Information This chapter details the Group's four operating segments by product and service: natural gas sales, LPG sales, LNG processing and storage, and exploration and production, providing revenue, results, and asset data for each segment to assess performance - The Group's business is divided into four operating segments: natural gas sales, LPG sales, LNG processing and storage, and exploration and production13 Segment Revenue and Results for the Six Months Ended June 30, 2025 | Segment | Revenue from External Customers (RMB million) | Segment Results (RMB million) | Profit/(Loss) Before Income Tax Expense (RMB million) | | :--- | :--- | :--- | :--- | | Natural Gas Sales | 80,078 | 3,974 | 4,477 | | LPG Sales | 13,020 | 538 | 544 | | LNG Processing and Storage | 4,371 | 1,835 | 1,836 | | Exploration and Production | 74 | 18 | 61 | | Corporate Headquarters | – | (192) | (181) | | Total | 97,543 | 6,173 | 6,737 | Segment Revenue and Results for the Six Months Ended June 30, 2024 | Segment | Revenue from External Customers (RMB million) | Segment Results (RMB million) | Profit/(Loss) Before Income Tax Expense (RMB million) | | :--- | :--- | :--- | :--- | | Natural Gas Sales | 75,506 | 4,545 | 5,005 | | LPG Sales | 12,887 | 563 | 561 | | LNG Processing and Storage | 4,441 | 1,640 | 1,648 | | Exploration and Production | 88 | 14 | 174 | | Corporate Headquarters | – | (150) | (139) | | Total | 92,922 | 6,612 | 7,249 | Revenue This chapter clarifies that the Group's revenue primarily stems from natural gas sales, LPG sales, LNG processing and storage, and crude oil sales - Revenue primarily refers to income from natural gas sales, LPG sales, LNG processing and storage, and crude oil sales19 Interest Expense This chapter discloses the composition of interest expense, including capitalized amounts, and notes a decrease in the average annual interest rate for capitalized borrowing costs during the period Interest Expense (For the Six Months Ended June 30) | Indicator | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Interest expense | 339 | 426 | | Less: Capitalized amount | (16) | (15) | | Total interest expense | 323 | 411 | - The average annual interest rate used for capitalized borrowing costs during the period was 3.13% (2024: 3.40%), showing a decrease20 Profit Before Income Tax Expense This chapter lists the expenses deducted from profit before income tax expense, including amortization of intangible assets, depreciation of property, plant and equipment, depreciation of right-of-use assets, cost of inventories, and impairment (reversal)/loss on trade receivables Items Deducted from Profit Before Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Amortization of intangible assets | 40 | 42 | | Depreciation and depletion of: | | | | – Owned property, plant and equipment | 2,495 | 2,447 | | – Right-of-use assets | 265 | 265 | | Cost of inventories recognized as expense | 84,816 | 79,793 | | Impairment (reversal)/loss on trade receivables | (29) | 51 | Income Tax Expense This chapter explains the calculation of income tax expense, including the corporate income tax rate for PRC subsidiaries (primarily 25%, with 15%-20% preferential rates in some regions) and overseas profit tax rates, noting no Hong Kong profits tax provision for the period Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Current tax: China | 1,728 | 1,847 | | Current tax: Overseas | 11 | 19 | | Deferred tax | (4) | 63 | | Total | 1,735 | 1,929 | - The PRC corporate income tax rate for the Group's subsidiaries in mainland China is primarily 25%, with certain regions enjoying preferential tax rates ranging from 15% to 20% for eligible operations22 - No provision for Hong Kong profits tax was made for the period as the Group had no assessable profits subject to Hong Kong profits tax23 Basic and Diluted Earnings Per Share This chapter calculates basic earnings per share and states that diluted earnings per share are the same as basic earnings per share for the current period and the corresponding period in 2024, as there are no potential dilutive ordinary shares Basic Earnings Per Share (For the Six Months Ended June 30) | Indicator | 2025 (RMB cents) | 2024 (RMB cents) | | :--- | :--- | :--- | | Basic earnings per share | 36.51 | 38.17 | - Basic earnings per share is calculated based on profit attributable to equity holders of the Company of approximately RMB 3,161 million (2024: RMB 3,305 million) and the weighted average number of ordinary shares outstanding of approximately 8,659 million shares26 - Diluted earnings per share for the current period and the corresponding period in 2024 are the same as basic earnings per share, as there are no potential dilutive ordinary shares26 Dividends This chapter lists the 2023 final dividend, 2024 final dividend, and the 2025 interim dividend declared by the Board, including per-share amounts, total amounts, and payment dates, noting shareholders' option to receive dividends in RMB or HKD Dividend Declaration Details | Dividend Type | Amount Per Share (RMB cents) | Total Amount (RMB million) | Approval Date | Payment Date | | :--- | :--- | :--- | :--- | :--- | | 2023 Final Dividend | 28.38 | 2,457 | 2024年5月30日 | 2024年7月18日 | | 2024 Final Dividend | 15.17 | 1,314 | 2025年5月29日 | 2025年7月18日 | | 2025 Interim Dividend | 16.60 | 1,437 | 2025年8月19日 | Expected October 23, 2025 | - Shareholders have the option to receive dividends in RMB or HKD27 Trade Receivables This chapter provides an aging analysis of trade receivables (net of loss allowance) as of June 30, 2025, and December 31, 2024, and explains the collection periods for different businesses Aging Analysis of Trade Receivables (RMB million) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 1,834 | 1,713 | | 3 to 6 months | 705 | 58 | | 6 to 12 months | 333 | 252 | | Over 12 months | 532 | 521 | | Total | 3,404 | 2,544 | - Revenue from receiving station services and crude oil sales is generally collected within 30 to 90 days from the invoice date, while natural gas sales have a credit period not exceeding 90 days28 Trade and Other Payables and Accrued Liabilities This chapter details the composition of trade and other payables and accrued liabilities as of June 30, 2025, and December 31, 2024, and provides an aging analysis of trade payables Trade and Other Payables and Accrued Liabilities (RMB million) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 3,197 | 3,106 | | Contract liabilities | 10,671 | 12,690 | | Salaries and welfare payable | 852 | 326 | | Accrued expenses | 230 | 22 | | Dividends payable | 1,505 | 158 | | Interest payable | 154 | 137 | | Construction and equipment costs payable | 4,611 | 5,541 | | Amounts due to related parties | 2 | 2 | | Other payables | 3,136 | 3,242 | | Total | 24,358 | 25,224 | Aging Analysis of Trade Payables (RMB million) | Aging | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Within 3 months | 2,575 | 2,576 | | 3 to 6 months | 251 | 116 | | Over 6 months | 371 | 414 | | Total | 3,197 | 3,106 | Chairman's Report This section presents the Chairman's report on the Group's performance and outlook Performance Overview The Chairman's report begins with an overview of the Group's H1 2025 performance, showing growth in natural gas sales and revenue, but a decline in profit before income tax and net profit attributable to equity holders due to various factors H1 2025 Key Performance Overview (Year-on-Year) | Indicator | H1 2025 | Change % | | :--- | :--- | :--- | | Natural Gas Sales Volume | 29.095 billion cubic meters | +