中裕能源(03633) - 2025 - 中期业绩

Financial and Operational Summary The company's financial and operational performance for the six months ended June 30, 2025, shows a decrease in revenue but an increase in profit attributable to owners of the Company and basic earnings per share Financial and Operational Summary for the Six Months Ended June 30, 2025 | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 6,575,509 | 7,255,090 | (9.4)% | | Profit attributable to owners of the Company | 245,510 | 239,077 | 2.7% | | Basic earnings per share (HK cents) | 8.89 | 8.57 | 3.7% | | Natural gas sales volume (Thousand cubic meters) | 1,688,073 | 1,738,419 | (2.9)% | | Natural gas sales volume to LNG wholesale customers (Thousand cubic meters) | 357,900 | 178,291 | 100.7% | | New piped gas connections for industrial and commercial customers | 1,757 | 1,345 | 30.6% | | Cumulative number of integrated energy projects | 262 | 216 | 21.3% | Consolidated Statement of Profit or Loss and Other Comprehensive Income The consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, reflects a decrease in revenue and gross profit, but an increase in profit attributable to owners of the Company Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Six Months Ended June 30, 2025 | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 6,575,509 | 7,255,090 | (9.4)% | | Cost of sales | (5,786,266) | (6,240,798) | (7.3)% | | Gross profit | 789,243 | 1,014,292 | (22.2)% | | Other income and losses | 123,142 | (57,746) | Improvement | | Profit before tax | 400,608 | 410,177 | (2.3)% | | Profit for the period | 248,181 | 262,838 | (5.6)% | | Profit attributable to owners of the Company | 245,510 | 239,077 | 2.7% | | Total comprehensive income for the period | 373,463 | 106,121 | 251.9% | | Total comprehensive income attributable to owners of the Company | 355,853 | 91,661 | 288.2% | | Basic earnings per share (HK cents) | 8.89 | 8.57 | 3.7% | | Diluted earnings per share (HK cents) | 8.89 | 8.57 | 3.7% | Consolidated Statement of Financial Position The consolidated statement of financial position as of June 30, 2025, indicates an increase in total equity but a significant rise in net current liabilities Key Data from Consolidated Statement of Financial Position as of June 30, 2025 | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 19,988,244 | 19,664,880 | 1.6% | | Current assets | 6,389,654 | 6,557,744 | (2.6)% | | Current liabilities | 11,304,106 | 9,675,694 | 16.8% | | Net current liabilities | (4,914,452) | (3,117,950) | (57.6)% | | Total assets less current liabilities | 15,073,792 | 16,546,930 | (8.9)% | | Total equity | 8,611,136 | 8,380,971 | 2.7% | | Non-current liabilities | 6,462,656 | 8,165,959 | (20.9)% | Notes This section provides detailed explanations and disclosures regarding the basis of preparation, accounting policies, and specific financial statement line items 1. Basis of Preparation The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the HKEX Listing Rules, and should be read with the annual financial statements - The condensed consolidated financial statements are prepared in compliance with Hong Kong Accounting Standard 34 and the disclosure requirements of the Listing Rules[8] - The statements should be read in conjunction with the annual financial statements for the year ended December 31, 2024[8] 2. Significant Accounting Policies The condensed consolidated financial statements are prepared using the historical cost convention, with certain assets measured at revalued amounts or fair value, and new accounting standards had no material impact - The financial statements are primarily prepared under the historical cost convention, with certain assets such as property, plant and equipment, financial instruments, and investment properties measured at revalued amounts or fair value[9] - The revised Hong Kong Financial Reporting Standards, including HKAS 21 (Amendment) "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," issued by the HKICPA, were adopted for the first time in this interim period[10][11] - The application of new accounting standards had no material impact on the Group's financial position and performance for the current and prior periods[11] 3. Revenue The Group's revenue for the six months ended June 30, 2025, decreased by 9.4% year-on-year, with gas sales remaining the primary source, but gas pipeline construction and smart energy revenue significantly declined Revenue from Contracts with Customers Analysis (by Product or Service Type) | Product or Service Type | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gas sales | 5,619,687 | 5,860,550 | (4.1)% | | Gas pipeline construction | 380,049 | 580,215 | (34.5)% | | Smart energy | 332,361 | 548,680 | (39.4)% | | Value-added services | 151,416 | 169,567 | (10.7)% | | Sales of compressed natural gas/liquefied natural gas at vehicle filling stations | 91,996 | 96,078 | (4.2)% | | Total | 6,575,509 | 7,255,090 | (9.4)% | Timing of Revenue Recognition from Contracts with Customers | Timing of Revenue Recognition | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | At a point in time | 6,195,460 | 6,674,875 | | Over time | 380,049 | 580,215 | | Total | 6,575,509 | 7,255,090 | - Revenue from contracts with customers primarily originates from China[12] 4. Segment Information The Group's operating segments include gas sales, gas pipeline construction, smart energy, value-added services, and vehicle filling station operations, all experiencing a decline in revenue and profit for the period - The Group's operating segments include gas sales, gas pipeline construction, smart energy, value-added services, and the operation of compressed natural gas/liquefied natural gas vehicle filling stations[14] Segment Revenue and Profit for the Six Months Ended June 30, 2025 | Segment | Revenue (HK$ Thousand) | Profit (HK$ Thousand) | | :--- | :--- | :--- | | Gas sales | 5,619,687 | 218,055 | | Gas pipeline construction | 380,049 | 181,600 | | Smart energy | 332,361 | 28,962 | | Value-added services | 151,416 | 40,821 | | Operation of compressed natural gas/liquefied natural gas vehicle filling stations | 91,996 | 1,529 | | Consolidated | 6,575,509 | 470,967 | | Profit before tax | | 400,608 | Segment Revenue and Profit for the Six Months Ended June 30, 2024 | Segment | Revenue (HK$ Thousand) | Profit (HK$ Thousand) | | :--- | :--- | :--- | | Gas sales | 5,860,550 | 290,763 | | Gas pipeline construction | 580,215 | 307,699 | | Smart energy | 548,680 | 38,642 | | Value-added services | 169,567 | 61,930 | | Operation of compressed natural gas/liquefied natural gas vehicle filling stations | 96,078 | 1,847 | | Consolidated | 7,255,090 | 700,881 | | Profit before tax | | 410,177 | 5. Other Income and Losses Other income and losses for the period turned from a net loss of HK$57,746 thousand in the prior year to a net gain of HK$123,142 thousand, primarily due to foreign exchange gains Details of Other Income and Losses | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Foreign exchange gain (loss) | 126,756 | (57,176) | | Net loss on disposal of property, plant and equipment | (1,436) | (570) | | Others | (2,178) | – | | Total | 123,142 | (57,746) | 6. Finance Costs Finance costs for the six months ended June 30, 2025, decreased by 24.8% year-on-year, mainly attributable to lower effective interest rates Details of Finance Costs | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on borrowings and lease liabilities | 267,937 | 321,570 | | Amortisation of loan financing fees related to bank borrowings | 17,730 | 34,385 | | Total borrowing costs | 285,667 | 355,955 | | Less: Amounts capitalised in construction in progress | (77,174) | (78,520) | | Total | 208,493 | 277,435 | 7. Income Tax Expense Income tax expense for the six months ended June 30, 2025, increased by 3.5% year-on-year, primarily due to a higher effective tax rate Income Tax Expense | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | China corporate income tax | 152,427 | 147,339 | - The tax rate for PRC subsidiaries is 25%, while Hong Kong profits tax rate is 16.5% (no assessable profits for the current period)[20] - PRC tax authorities levied withholding tax of HK$30,355 thousand (2024: HK$17,493 thousand) on dividends paid by overseas Group entities[20] 8. Profit for the Period Profit for the period is stated after deducting expenses such as amortization of other intangible assets, depreciation of right-of-use assets, and depreciation of property, plant, and equipment Items Deducted from Profit for the Period | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Amortisation of other intangible assets (included in cost of sales) | 41,437 | 42,010 | | Depreciation of right-of-use assets | 9,107 | 9,948 | | Depreciation of property, plant and equipment | 251,195 | 250,214 | 9. Dividends The Board recommended a final dividend of HK 2 cents per ordinary share for the year ended December 31, 2024, totaling HK$54,966 thousand, but no interim dividend is proposed for the current period - The Board has recommended a final dividend of HK 2 cents per ordinary share for the year ended December 31, 2024, totaling HK$54,966 thousand, which has been approved by shareholders[22] - No dividends were paid for the six months ended June 30, 2024, and 2025[23] - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025, after the end of this interim period[24] 10. Earnings Per Share Basic and diluted earnings per share attributable to owners of the Company for the six months ended June 30, 2025, both increased to HK 8.89 cents Earnings Per Share Calculation Data | Item | 2025 (HK$ Thousand/Thousand Shares) | 2024 (HK$ Thousand/Thousand Shares) | | :--- | :--- | :--- | | Profit (Profit attributable to owners of the Company for the period) | 245,510 | 239,077 | | Weighted average number of ordinary shares | 2,762,021 | 2,790,825 | | Basic and diluted earnings per share (HK cents) | 8.89 | 8.57 | 11. Trade Receivables Total trade receivables as of June 30, 2025, increased to HK$2,177,368 thousand compared to December 31, 2024, with a notable increase in amounts aged 0 to 180 days - The Group generally grants an average credit period of 30 to 180 days to its trade customers[27] Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 180 days | 1,223,535 | 767,545 | | 181 to 360 days | 254,112 | 271,130 | | Over 360 days | 699,721 | 694,172 | | Total trade receivables | 2,177,368 | 1,732,847 | - As of June 30, 2025, trade receivables included HK$953,833 thousand of overdue debts not considered in default, primarily from debtors with no history of bad debts or low credit risk local governments in China[28] 12. Trade Payables Total trade payables as of June 30, 2025, decreased to HK$1,453,832 thousand compared to December 31, 2024 - The average credit period for purchases of goods is 90 days[29] Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 90 days | 714,749 | 746,400 | | 91 to 180 days | 102,115 | 108,586 | | Over 180 days | 636,968 | 692,389 | | Total trade payables | 1,453,832 | 1,547,375 | Liquidity, Financial Resources and Working Capital This section details the Group's treasury management, liquidity position, and financial resources, highlighting a rise in net current liabilities and a decrease in the current ratio Treasury Management and Financing The Group's treasury management aims to maintain a diversified and balanced debt profile and financing structure, ensuring sufficient liquidity for operations and growth through centralized coordination - The Group's financing and treasury policy aims to maintain a diversified and balanced debt profile and financing structure[30] - Cash flows and debt positions are continuously monitored through centralized coordination to enhance the cost-effectiveness of financing activities[30] - A robust funding base has been established, and the Group continuously seeks cost-effective financing channels to provide financial flexibility and sufficient liquidity for operations, potential investments, and growth plans[30] Liquidity As of June 30, 2025, the Group's total assets slightly increased, but net current liabilities significantly rose due to an increase in borrowings due within one year, leading to a decrease in the current ratio - As of June 30, 2025, the Group's total assets increased by 0.6% to HK$26,377,898 thousand[31] - Net current liabilities increased by 57.6% to HK$4,914,452 thousand, primarily due to an increase in borrowings due within one year[31] - The current ratio was approximately 0.6 (December 31, 2024: 0.7)[31] - Total borrowings and lease liabilities increased by 2.9% to HK$13,303,738 thousand[31] - Total net debt was HK$12,646,810 thousand, with a net gearing ratio of approximately 1.47 (December 31, 2024: 1.35)[32] Financial Resources The Group primarily funds its operations through internal resources and bank borrowings, all on normal commercial terms and unaffected by seasonality, with the Board deeming working capital sufficient - The Group generally funds its operations through internally generated resources and bank and other borrowings[33] - All bank and other borrowings are entered into on normal commercial terms and are not subject to seasonal fluctuations[33][34] - The Board believes the Group has sufficient working capital to meet its requirements, given its sound financial and liquidity position[35] Exchange Rate Fluctuation Risk The Group's monetary assets and liabilities are primarily denominated in RMB, HKD, or USD, with business transactions mainly in RMB, and it actively seeks financial instruments to hedge against potential RMB depreciation - The Group's monetary assets and liabilities are primarily denominated in Renminbi, Hong Kong Dollars, or US Dollars, with business transactions mainly conducted in Renminbi[36] - Due to the appreciation of the Renminbi since mid-May 2025, the Group recorded foreign exchange gains on its bank borrowings denominated in US Dollars and Hong Kong Dollars[36] - The Group actively seeks appropriate financial instruments to hedge against potential Renminbi depreciation, although no hedging activities were undertaken as of June 30, 2025[36] Employee Information As of June 30, 2025, the Group had 5,143 employees, with approximately 99.7% located in China, and total employee benefit expenses increased due to a higher headcount - As of June 30, 2025, the Group had 5,143 employees in Hong Kong and China (2024: 5,111 employees)[37] - Total employee benefit expenses amounted to approximately HK$322,884 thousand (2024: HK$317,661 thousand), with the increase primarily due to a higher headcount[37] - Approximately 99.7% of the Group's employees are located in China[37] - Remuneration and bonus policies are determined based on individual employee performance, and directors' remuneration is recommended by the Remuneration Committee[38] Pledge of the Group's Assets As of June 30, 2025, and December 31, 2024, the Group had no pledged bank deposits to secure short-term general banking facilities - As of June 30, 2025, and December 31, 2024, no bank deposits were pledged to secure short-term general banking facilities granted to the Group[39] Material Investments and Major Acquisitions and Disposals During the review period, the Group did not undertake any material investments or significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the review period, the Group did not undertake any material investments, nor did it engage in any major acquisitions or disposals of subsidiaries, associates, or joint ventures[40] Future Plans for Material Investments or Capital Assets As of June 30, 2025, the Board had no specific plans for material investments or capital assets - As of June 30, 2025, the Board had no specific plans regarding material investments or capital assets[41] Capital and Other Commitments As of June 30, 2025, capital expenditure contracted but not provided for in the condensed consolidated financial statements amounted to HK$92,022 thousand, primarily for the acquisition of property, plant, and equipment and right-of-use assets Capital Expenditure Commitments | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Capital expenditure contracted but not provided for | 92,022 | 98,076 | - Capital expenditure is primarily for the acquisition of property, plant and equipment and right-of-use assets[42] Contingent Liabilities As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[43] Business Review This section provides an overview of the Group's operations, key operating data, and a detailed analysis of revenue and profitability across its various business segments Business Overview The Group primarily invests in, operates, and manages gas pipeline infrastructure in China, distributing piped gas to residential, industrial, and commercial users, while also developing smart energy, providing value-added services, and operating vehicle filling stations - The Group's principal businesses include investment, operation, and management of gas pipeline infrastructure, and distribution of piped gas to residential, industrial, and commercial users[44] - Other businesses include the development of smart energy, sales of stoves and other related value-added services, and the operation of compressed natural gas/liquefied natural gas vehicle filling stations[44] Piped Gas Distribution Projects As of June 30, 2025, the Group held exclusive operating rights for 74 gas projects in China - As of June 30, 2025, the Group held exclusive operating rights for 74 gas projects in China[45] Key Operating Data The Group's natural gas distribution business saw a slight decrease in operating locations but continued growth in connectable population and residential users, with total natural gas sales volume slightly down, yet LNG wholesale sales volume doubled Key Operating Data for the Six Months Ended June 30, 2025 | Indicator | 2025 | 2024 | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Number of operating locations | 74 | 75 | (1) | | Connectable population (Thousand persons) | 25,939 | 25,244 | 2.8% | | Connectable residential users (Thousand households) | 7,411 | 7,199 | 2.9% | | New piped gas connections during the period - Residential users | 105,560 | 171,112 | (38.3)% | | New piped gas connections during the period - Industrial customers | 186 | 138 | 34.8% | | New piped gas connections during the period - Commercial customers | 1,571 | 1,207 | 30.2% | | Cumulative number of connected piped gas customers - Residential users | 5,297,310 | 5,109,629 | 3.7% | | Cumulative number of connected piped gas customers - Industrial customers | 4,764 | 4,409 | 8.1% | | Cumulative number of connected piped gas customers - Commercial customers | 28,201 | 24,323 | 15.9% | | Penetration rate of residential piped connections | 71.5% | 71.0% | 0.5% | | Piped natural gas sales volume to retail customers - Residential users (Thousand cubic meters) | 442,897 | 466,566 | (5.1)% | | Piped natural gas sales volume to retail customers - Industrial customers (Thousand cubic meters) | 621,303 | 654,231 | (5.0)% | | Piped natural gas sales volume to retail customers - Commercial customers (Thousand cubic meters) | 80,246 | 84,245 | (4.7)% | | Natural gas sales volume to wholesale customers - Piped natural gas (Thousand cubic meters) | 160,999 | 331,808 | (51.5)% | | Natural gas sales volume to wholesale customers - LNG (Thousand cubic meters) | 357,900 | 178,291 | 100.7% | | Total natural gas sales volume (Thousand cubic meters) | 1,663,345 | 1,715,141 | (3.0)% | | Vehicle natural gas sales volume (Thousand cubic meters) | 24,728 | 23,278 | 6.2% | | Cumulative number of integrated energy projects in operation | 262 | 216 | 21.3% | | Integrated energy sales volume (Million kWh) | 818 | 1,255 | (34.8)% | Overall Review and Revenue Analysis The Group's revenue for the six months ended June 30, 2025, decreased by 9.4% year-on-year, primarily due to lower revenue from gas pipeline construction and smart energy, but profit attributable to owners of the Company increased by 2.7% - Revenue decreased by 9.4% to HK$6,575,509 thousand, primarily due to lower revenue from gas pipeline construction and smart energy[50][52] - Profit attributable to owners of the Company increased by 2.7% to HK$245,510 thousand[50] Revenue by Product and Service | Product and Service | 2025 (HK$ Thousand) | Share (%) | 2024 (HK$ Thousand) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Gas sales | 5,619,687 | 85.5% | 5,860,550 | 80.8% | (4.1)% | | Gas pipeline construction | 380,049 | 5.8% | 580,215 | 8.0% | (34.5)% | | Smart energy | 332,361 | 5.0% | 548,680 | 7.6% | (39.4)% | | Value-added services | 151,416 | 2.3% | 169,567 | 2.3% | (10.7)% | | Sales of compressed natural gas/liquefied natural gas at vehicle filling stations | 91,996 | 1.4% | 96,078 | 1.3% | (4.2)% | | Total | 6,575,509 | 100% | 7,255,090 | 100% | (9.4)% | Gas Sales Gas sales decreased by 4.1% year-on-year, mainly impacted by RMB depreciation against HKD, with declines in industrial, residential, and commercial sales, but growth in wholesale gas sales driven by a doubling of LNG sales volume Gas Sales by Customer Type | Customer Type | 2025 (HK$ Thousand) | Share (%) | 2024 (HK$ Thousand) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Industrial customers | 2,383,814 | 42.4% | 2,609,084 | 44.5% | (8.6)% | | Residential users | 1,276,873 | 22.7% | 1,367,314 | 23.3% | (6.6)% | | Commercial customers | 339,315 | 6.1% | 367,219 | 6.3% | (7.6)% | | Wholesale customers | 1,619,685 | 28.8% | 1,516,933 | 25.9% | 6.8% | | Total | 5,619,687 | 100% | 5,860,550 | 100% | (4.1)% | - Gas sales accounted for 85.5% of the Group's total revenue, serving as the primary source[53] - Gas sales revenue in RMB terms decreased by 2.7%, with a further reduction in HKD terms mainly due to the depreciation of RMB against HKD[53] Industrial Customers Industrial customer gas sales decreased by 8.6% year-on-year, primarily due to RMB depreciation, lower gas consumption, and reduced average selling prices, yet it remains the main source of gas sales - Industrial customer gas sales decreased by 8.6% to HK$2,383,814 thousand, primarily due to RMB depreciation, a 5.0% decrease in gas consumption, and a 2.5% reduction in average selling price[54] - The Group added 186 new industrial customers[54] - Industrial customer gas sales accounted for 42.4% of total gas sales, remaining the primary source[55] Residential Users Residential user gas sales decreased by 6.6% year-on-year, affected by RMB depreciation and lower gas consumption, but maintained stability due to ongoing pipeline connections and clean energy heating promotion - Residential user gas sales decreased by 6.6% to HK$1,276,873 thousand, primarily due to RMB depreciation and a 5.1% decrease in gas consumption[56] - The Group added 105,560 new residential user connections[56] - The average selling price of natural gas to residential customers slightly decreased by 0.4%[56] Commercial Customers Commercial customer gas sales decreased by 7.6% year-on-year, primarily due to RMB depreciation, reduced market demand, and lower gas consumption, despite an increase in the number of commercial customers - Commercial customer gas sales decreased by 7.6% to HK$339,315 thousand, primarily due to RMB depreciation, a 4.7% decrease in gas consumption, and a 1.8% reduction in average selling price[57] - The Group added 1,571 new commercial customers, resulting in a 5.9% increase in the number of commercial customers[57] - Demand for gas from restaurants, schools, and entertainment facilities decreased[57] Wholesale Customers Wholesale customer gas sales increased by 6.8% year-on-year, mainly driven by a doubling of LNG sales volume, which offset the decline in piped natural gas sales volume - Wholesale customer gas sales increased by 6.8% to HK$1,619,685 thousand, with sales revenue in RMB terms growing by 8.3%[58] - Piped natural gas consumption decreased by 51.5%, but the average selling price increased by 0.8%[59] - LNG sales volume increased by 100.7% to 357,900 thousand cubic meters, but the average selling price decreased by 1.6% due to lower international LNG prices[59] Gas Pipeline Construction Gas pipeline construction revenue significantly decreased by 34.5% year-on-year, primarily due to RMB depreciation and a weak domestic real estate market, leading to a substantial drop in residential user connection projects, despite an increase in average connection fees - Gas pipeline construction revenue was HK$380,049 thousand, a year-on-year decrease of 34.5%[60] - The decline in revenue was mainly due to the depreciation of RMB against HKD and the weak performance of the domestic real estate industry[60] Gas Pipeline Construction Revenue by Customer Type | Customer Type | 2025 (HK$ Thousand) | Share (%) | 2024 (HK$ Thousand) | Share (%) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Residential users | 319,804 | 84.1% | 511,051 | 88.1% | (37.4)% | | Non-residential customers | 60,245 | 15.9% | 69,164 | 11.9% | (12.9)% | | Total | 380,049 | 100% | 580,215 | 100% | (34.5)% | - Residential user gas pipeline construction revenue decreased by 37.4%, mainly due to a reduction in completed connection projects from 171,112 to 105,560, though the average connection fee increased from RMB2,712 to RMB2,790[63] - The gross profit margin for gas pipeline construction remained stable at 75.7%[64] - The residential pipeline connection penetration rate was 71.5%, and the Group will continue to increase market coverage through acquisitions[64] Smart Energy Smart energy revenue decreased by 39.4% year-on-year, but the Group is actively expanding new business networks such as natural gas distributed energy, photovoltaic power generation, incremental distribution networks, and charging stations to meet diverse customer energy demands - Smart energy revenue was HK$332,361 thousand, a year-on-year decrease of 39.4%[65] - The Group is leveraging its gas project market and customer base to establish a broad network of new businesses, including natural gas distributed energy, photovoltaic power generation, incremental distribution networks, and charging stations[65] - Smart energy business accounted for 5.0% of total revenue, and the Group will continue to explore operating models and expand energy projects[65] Value-Added Services Value-added services revenue decreased by 10.7% year-on-year, mainly due to a decline in pipeline modification services and sales of corrugated pipes and alarms, though sales of stoves and other related services (excluding pipeline modification) increased by 7.3% in RMB terms - Value-added services revenue was HK$151,416 thousand, a year-on-year decrease of 10.7%, primarily impacted by RMB depreciation[66] - The decrease in revenue was mainly due to a 37.8% reduction in pipeline modification services and sales of corrugated pipes and alarms, from HK$64,211 thousand to HK$39,958 thousand[66] - Sales of stoves and other related services (excluding pipeline modification, etc.) increased by 7.3% in RMB terms[66] - The Group is actively developing its own brand "Zhongyu Phoenix" gas water heaters, cooking appliances, and wall-mounted boilers, and expanding its market through online shopping platforms like "Zhongyu iHome"[66] Sales of Compressed Natural Gas/Liquefied Natural Gas at Vehicle Filling Stations Revenue from vehicle filling stations decreased by 4.2% year-on-year, primarily due to RMB depreciation and lower average selling prices, despite an increase in vehicle natural gas sales volume. The Group owns 56 operational and 7 under-construction filling stations - Revenue from vehicle filling stations was HK$91,996 thousand, a year-on-year decrease of 4.2%, primarily impacted by RMB depreciation[67] - Natural gas sales to vehicles increased by 6.2% to 24,728 thousand cubic meters, but the average selling price decreased by 8.5% to RMB3.43 per cubic meter[67] - The Group operates 56 compressed natural gas/liquefied natural gas vehicle filling stations and has 7 under construction[67] Gross Profit Margin The overall gross profit margin for the period was 12.0%, a year-on-year decrease, mainly due to a reduced gross profit margin from sales of compressed natural gas/liquefied natural gas at vehicle filling stations - The overall gross profit margin was 12.0% (2024: 14.0%), with the decrease primarily due to a reduction in the gross profit margin from sales of compressed natural gas/liquefied natural gas at vehicle filling stations[68][69] - The gross profit margin for piped natural gas sales remained stable at 7.6%[69] - The gross profit margin for gas pipeline construction remained stable at 75.7%[69] - The smart energy gross profit margin increased to 14.4% (2024: 10.2%), mainly due to the rapid development of integrated energy business and improved management operations[69] - The value-added services gross profit margin increased to 88.2% (2024: 80.2%), primarily due to increased gross profit margins from sales of self-closing valves, corrugated pipes, and alarms, as well as the higher gross profit margin of newly launched gas pipeline beautification services[69] - The gross profit margin for sales of compressed natural gas/liquefied natural gas at vehicle filling stations was 1.1% (2024: 2.8%), as the decrease in average selling price exceeded the decrease in procurement costs[69] Other Income and Losses (Details) The Group recognized net other income of HK$123,142 thousand during the review period, primarily from foreign exchange gains due to RMB appreciation - The Group recognized net other income of HK$123,142 thousand during the review period (2024: net other losses of HK$57,746 thousand)[70] - This primarily stemmed from a net foreign exchange gain of HK$12,756 thousand (2024: net foreign exchange loss of HK$57,176 thousand), mainly due to the appreciation of the Renminbi as of June 30, 2025[70] Selling and Distribution Costs and Administrative Expenses Selling and distribution costs decreased by 12.8% year-on-year due to lower salaries from reduced value-added services, while administrative expenses increased by 6.9% due to higher professional fees and insurance expenses - Selling and distribution costs decreased by 12.8% to HK$104,445 thousand, primarily due to lower salaries resulting from a decrease in value-added services[71] - Administrative expenses increased by 6.9% to HK$297,674 thousand, mainly due to higher professional fees and insurance expenses[71] Finance Costs (Details) Finance costs for the six months ended June 30, 2025, decreased by 24.8% year-on-year, primarily due to a reduction in effective interest rates - Finance costs decreased by 24.8% to HK$208,493 thousand, primarily due to a reduction in effective interest rates[72] Income Tax Expense (Details) Income tax expense for the six months ended June 30, 2025, increased by 3.5% year-on-year, mainly due to an increase in the Group's effective tax rate - Income tax expense increased by 3.5% to HK$152,427 thousand, primarily due to an increase in the Group's effective tax rate[73] Profit Attributable to Owners of the Company Profit attributable to owners of the Company for the six months ended June 30, 2025, increased by 2.7% compared to the same period last year - Profit attributable to owners of the Company was HK$245,510 thousand, an increase of 2.7% compared to the same period last year[74] Net Profit Margin The net profit margin for the six months ended June 30, 2025, improved to 3.7% compared to the prior year Net Profit Margin | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Net profit margin | 3.7% | 3.3% | Earnings Per Share (Details) Basic and diluted earnings per share attributable to owners of the Company for the six months ended June 30, 2025, both increased compared to the prior year Earnings Per Share | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic earnings per share | 8.89 | 8.57 | | Diluted earnings per share | 8.89 | 8.57 | Net Asset Value Per Share Net asset value per share attributable to owners of the Company as of June 30, 2025, increased by 4.1% compared to December 31, 2024 Net Asset Value Per Share | Indicator | June 30, 2025 (HK$) | December 31, 2024 (HK$) | | :--- | :--- | :--- | | Net asset value per share | 2.77 | 2.66 | Outlook Facing global economic slowdown and domestic real estate challenges, the Group focuses on its core city gas business, expanding smart energy, enhancing refined management, optimizing financing costs, driving business innovation, exploring carbon asset management, and deepening digital transformation, while strengthening ESG governance for long-term sustainable development - The global economic recovery is slowing, Sino-US tariffs are restrictive, and the sluggish real estate sector is dragging down the domestic industrial economy[78] - The Group adheres to a "back to basics" approach, focusing on its core city gas business to consolidate its foundation, breaking industry constraints through smart energy expansion, and mitigating external risks with refined management[78] - In the first half, there were zero major production safety accidents, and debt costs were significantly reduced through capital structure adjustments[79] - In the second half, the Group will continue to focus on stable operations, strengthen the rectification of major hidden dangers, enhance emergency response capabilities, and continuously optimize financing costs[79] - The urban gas business will further drive business innovation, expand commercial and agricultural project development, and in value-added services, focus on gas pipeline beautification and insurance, and expand the external market for its own brand kitchen appliance sub-products[79] - In energy trading, the Group successfully opened international LNG trade channels and will continue to explore new windows of opportunity for more international business cooperation[79] - The smart energy business will focus on biomass energy utilization, coupled with photovoltaics, wind power, heat pumps, energy storage, and waste heat, to provide zero-carbon park construction solutions and explore carbon asset management[80] - In terms of information technology, the Group will continue to enhance its digital system construction, focusing on upgrading and reconstructing core business application systems in the second half, empowering digital and intelligent transformation through Artificial Intelligence (AI) technology[81] - Regarding ESG, the Group will intensify governance risk identification, promote green finance cooperation, strengthen precise alignment of funds with low-carbon projects, and transform ESG concepts into a shared consensus and conscious action among all employees[81] - In the future, the Group will adhere to the "dual-driven, integrated development" business strategy, enhancing efficiency through organizational optimization, reducing costs and increasing efficiency through refined management, and empowering development through digital and intelligent transformation to achieve long-term sustainable growth[81] Corporate Governance and Other Information This section outlines the Company's corporate governance practices, including directors' and substantial shareholders' interests, compliance with governance codes, and the role of the Audit Committee (a) Directors' Interests As of June 30, 2025, several directors held interests in the Company's shares or related shares, with Mr. Wang Wenliang and his spouse, Ms. Feng Haiyan, collectively holding approximately 29.12% of the equity Directors' Long Positions in the Company's Shares and/or Related Shares | Director Name | Number of Shares and/or Related Shares | Nature of Interest | Approximate Shareholding (%) | | :--- | :--- | :--- | :--- | | Mr. Wang Wenliang | 800,225,206 | Beneficial interest/Interest in controlled corporation/Spouse's interest | 29.12% | | Mr. Yao Zhisheng | 188,000,000 | Interest in controlled corporation | 6.84% | | Mr. Lü Xiaoqiang | 19,002,179 | Beneficial interest | 0.69% | | Mr. Jia Kun | 7,055,031 | Beneficial interest | 0.26% | | Mr. Peng Jun | 396,000 | Beneficial interest | 0.01% | | Mr. Li Chunyan | 1,510,761 | Beneficial interest | 0.05% | | Ms. Liu Yujie | 502,900 | Beneficial interest | 0.02% | - Mr. Wang Wenliang beneficially owns a 51% interest through Harmony Investment Holdings Limited and directly holds a portion of shares, while his spouse, Ms. Feng Haiyan, also directly holds a portion of shares[85] - The interests of Mr. Lü Xiaoqiang and Mr. Li Chunyan include related shares issuable under the share option scheme[85] (b) Substantial Shareholders' Interests in the Company As of June 30, 2025, China Gas Holdings Limited was the Company's largest substantial shareholder, holding 37.49% of the equity, with Harmony Investment Holdings Limited and Ms. Feng Haiyan also holding significant stakes Substantial Shareholders' Long Positions in the Company's Shares | Shareholder Name | Nature of Interest | Number of Shares | Approximate Shareholding (%) | | :--- | :--- | :--- | :--- | | China Gas Holdings Limited | Interest in controlled corporation | 1,030,402,000 | 37.49% | | Harmony Investment Holdings Limited | Beneficial interest | 767,962,289 | 27.94% | | Ms. Feng Haiyan | Beneficial interest/Interest in controlled corporation/Spouse's interest | 800,225,206 | 29.12% | | Huizi International Investment Limited | Beneficial interest | 188,000,000 | 6.84% | - China Gas Holdings Limited holds shares through its wholly-owned subsidiary, Rich Legend International Limited[87] - Ms. Feng Haiyan's interests include shares directly held by her and interests deemed to be held by Harmony Investment Holdings Limited and Mr. Wang Wenliang[87] Corporate Governance Code The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the Listing Rules[89] Standard of Dealings in Securities by Directors The Company has adopted and complied with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, with all directors confirming compliance - The Company has adopted and complied with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions[90] - All directors have confirmed their compliance with the required dealing standards and the Model Code[90] Audit Committee The Company's Audit Committee has reviewed the Group's accounting principles, practices, and financial reporting matters with management, including the interim results, with no internal disagreements on accounting treatments - The Audit Committee comprises independent non-executive directors Mr. Li Chunyan, Dr. Liu Ke, and Ms. Liu Yujie[91] - The Audit Committee has reviewed the Group's accounting principles and practices and financial reporting matters with management, including the interim results[91] - There were no disagreements within the Audit Committee regarding the accounting treatments adopted by the Company[91] Purchase, Sale or Redemption of the Company's Listed Securities During the period ended June 30, 2025, the Company repurchased 29,390,000 shares on the Stock Exchange for a total consideration of HK$126,103,560, aiming to enhance net asset value per share and earnings per share - During the period ended June 30, 2025, the Company repurchased 29,390,000 shares on the Stock Exchange for a total consideration of HK$126,103,560[92] - The share repurchases were aimed at enhancing the Company's net asset value per share and earnings per share[92] Share Repurchase Details | Month of Repurchase | Total Shares Repurchased | Repurchase Price Per Share (HK$) - Lowest | Repurchase Price Per Share (HK$) - Highest | Total Consideration (HK$) | | :--- | :--- | :--- | :--- | :--- | | January 2025 | 5,900,000 | 4.33 | 4.56 | 26,326,290 | | March 2025 | 1,500,000 | 4.14 | 4.29 | 6,363,790 | | April 2025 | 19,990,000 | 3.95 | 4.46 | 84,790,940 | | May 2025 | 2,000,000 | 4.28 | 4.34 | 8,622,540 | - The repurchased shares were cancelled on March 19, 2025, and June 20, 2025[92] Publication of Information on the HKEX and the Company's Website This announcement has been published on the HKEX and the Company's website, with the interim report to be published in September 2025 - This announcement has been published on the HKEX website www.hkex.com.hk and the Company's website www.zhongyuenergy.com[93](index=93&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be published on the HKEX and the Company's website in September 2025[93] Board of Directors The Company's Board of Directors comprises six executive directors, including Mr. Wang Wenliang (Chairman), and three independent non-executive directors, including Mr. Li Chunyan - The Board of Directors includes executive directors Mr. Wang Wenliang (Chairman), Mr. Yao Zhisheng (Vice Chairman), Mr. Lü Xiaoqiang (Chief Executive Officer), Mr. Jia Kun (Executive President), Mr. Peng Jun, and Mr. Wang Jichao[94] - Independent non-executive directors include Mr. Li Chunyan, Dr. Liu Ke, and Ms. Liu Yujie[94]