皖天然气(603689) - 2025 Q2 - 季度财报

Definitions This section provides definitions for key terms, reporting periods, company abbreviations, major subsidiaries, and long-distance pipelines - Reporting period: January 1, 2025, to June 30, 2025[14] - Company abbreviation: Wan Natural Gas, full name Anhui Provincial Natural Gas Development Co., Ltd[14] - Major subsidiaries and related parties include Natural Gas Co., Ltd., Wanneng Group, Wanneng Electric Power, Xinji Energy, Huishang Bank, etc[14] - Key long-distance pipelines include Tongzong, Huizong, Bengbu, Huainan, Wutong, Lifu, Lihuai, Hecao, Longtang, Libo, Jiangbei Interconnection, Chizhou, Xuancheng, Anqing, Heliu, Jiangnan Interconnection (Xuanwuma), Chitong, Liying, Xuanninghuang, Huoshan, Guangde, Dingfeng, Qingyang, Jiangbei Industrial Concentration Zone, Nanling-Jingxian, Gas Power Plant, and Baomei branches[14][15] Company Profile and Key Financial Indicators This section outlines the company's basic information, contact details, changes in fundamental situation, information disclosure, stock overview, and key financial performance metrics Company Information This section discloses the company's Chinese name, abbreviation, foreign name, and legal representative information - Company Chinese name: Anhui Provincial Natural Gas Development Co., Ltd[17] - Company Chinese abbreviation: Wan Natural Gas[17] - Legal Representative: Wu Hai[17] Contact Person and Information This section provides the names, contact addresses, phone numbers, fax numbers, and email addresses of the company's Board Secretary and Securities Affairs Representative - Board Secretary: Tao Qingfu[18] - Contact number: 0551-62225677[18] - Email: Ahtrqgs@vip.163.com[18] Brief Introduction to Changes in Basic Information This section introduces the company's registered and office addresses, noting no historical changes during the reporting period - Company registered address: No. 9 Dalian Road, Baohe Industrial Park, Hefei City, Anhui Province[19] - Company office address: Floors 17-21, Building B01, Yunguo Financial City, No. 2528 Chengdu Road, Baohe District, Hefei City[19] Brief Introduction to Changes in Information Disclosure and Document Storage Locations This section lists the company's designated newspapers for information disclosure, the website address for semi-annual reports, and the location for report availability - Information disclosure newspapers: Shanghai Securities News, Securities Times, Securities Daily[20] - Website for semi-annual reports: www.sse.com.cn[20](index=20&type=chunk) Company Stock Profile This section provides information on the company's stock type, listing exchange, stock abbreviation, and stock code - Stock type: A-shares[21] - Stock exchange: Shanghai Stock Exchange[21] - Stock abbreviation: Wan Natural Gas, Stock code: 603689[21] Company's Key Accounting Data and Financial Indicators This section details the company's key accounting data and financial indicators for the first half of 2025, including operating revenue, total profit, net profit, net cash flow, earnings per share, and return on net assets, with comparisons to the prior year period Key Accounting Data This section discloses the company's key accounting data for January-June 2025, showing a year-on-year decrease in operating revenue and total profit, but a significant increase in net cash flow from operating activities Key Accounting Data (Jan-Jun) | Key Accounting Data (Jan-Jun) | Current Reporting Period (yuan) | Prior Year Period (yuan) | Change (%) | | :---------------------------- | :------------------------------ | :----------------------- | :--------- | | Operating Revenue | 2,674,456,590.86 | 2,922,670,469.36 | -8.49 | | Total Profit | 248,313,453.13 | 258,644,967.82 | -3.99 | | Net Profit Attributable to Shareholders of the Listed Company | 184,951,506.16 | 189,880,488.35 | -2.60 | | Net Cash Flow from Operating Activities | 520,106,047.80 | 413,297,702.54 | 25.84 | | Net Assets Attributable to Shareholders of the Listed Company (Period-end) | 3,337,337,801.01 | 3,300,285,057.30 | 1.12 | | Total Assets (Period-end) | 7,511,407,805.06 | 7,446,203,609.51 | 0.88 | Key Financial Indicators This section provides the company's key financial indicators for January-June 2025, including basic earnings per share, diluted earnings per share, and weighted average return on net assets, with comparisons to the prior year period Key Financial Indicators (Jan-Jun) | Key Financial Indicators (Jan-Jun) | Current Reporting Period | Prior Year Period | Change (%) | | :--------------------------------- | :----------------------- | :---------------- | :--------- | | Basic Earnings Per Share (yuan/share) | 0.38 | 0.40 | -5.00 | | Diluted Earnings Per Share (yuan/share) | 0.31 | 0.32 | -3.12 | | Basic Earnings Per Share After Deducting Non-recurring Gains and Losses (yuan/share) | 0.38 | 0.39 | -2.56 | | Weighted Average Return on Net Assets (%) | 5.57 | 6.04 | Decrease of 0.47 percentage points | Non-recurring Gains and Losses Items and Amounts This section lists the company's non-recurring gains and losses items and their amounts for the first half of 2025, totaling -75,308.42 yuan Non-recurring Gains and Losses Items | Non-recurring Gains and Losses Items | Amount (yuan) | | :--------------------------------- | :------------ | | Gains and losses from disposal of non-current assets | -34,935.99 | | Government grants recognized in current profit and loss | 992,628.80 | | Gains and losses from changes in fair value and disposal of financial assets and liabilities | 237,033.33 | | Other non-operating income and expenses | -745,248.17 | | Other items meeting the definition of non-recurring gains and losses | 217,232.49 | | Less: Income tax impact | 167,065.89 | | Minority interest impact (after tax) | 574,952.99 | | Total | -75,308.42| Net Profit After Deducting Share-based Payment Impact This section discloses the company's net profit after deducting the impact of share-based payments for the first half of 2025, which was 189,422,049.07 yuan, a year-on-year decrease of 4.43% Net Profit After Deducting Share-based Payment Impact (Jan-Jun) | Key Accounting Data (Jan-Jun) | Current Reporting Period (yuan) | Prior Year Period (yuan) | Change (%) | | :---------------------------- | :------------------------------ | :----------------------- | :--------- | | Net Profit After Deducting Share-based Payment Impact | 189,422,049.07 | 198,198,489.78 | -4.43 | Management Discussion and Analysis This section provides an overview of the company's industry, main business operations, operating performance, core competitiveness, and other significant disclosures during the reporting period Industry and Main Business Operations During the Reporting Period This section details the company's core businesses in Anhui Province, including investment, construction, operation, sales, city gas, facility installation, and integrated energy services for natural gas long-distance pipelines, listing operational pipelines and franchise areas - Company's main businesses: natural gas long-distance pipeline investment and operation, sales and trading, city gas, facility installation, integrated energy, and equity investment[29] - Operational long-distance pipelines cover 16 cities and 41 counties (districts) across the province[30] - Obtained gas franchise rights in specific areas including Suzhou City, Guangde City, Hexian County, Shucheng County, Lujiang County, Huoshan County, Yingshang County, Ningguo City, Wanjiang Jiangbei Emerging Industrial Concentration Zone, Wanjiang Jiangnan Emerging Industrial Concentration Zone, Jingxian County, and Bengtong Industrial Park[30] Discussion and Analysis of Operations During the reporting period, the company's gas transmission and sales volume and operating revenue decreased year-on-year, but total profit remained relatively stable, with progress in strategic planning, cost control, state-owned enterprise reform, technological innovation, and digital empowerment, while continuously strengthening safety production and risk prevention - In the first half of 2025, gas transmission and sales volume was 1.956 billion cubic meters, a year-on-year decrease of 15.6%[31] - Operating revenue was 2.674 billion yuan, a year-on-year decrease of 8.49%; total profit was 248 million yuan, a year-on-year decrease of 3.99%[31] - Scientifically planned the "15th Five-Year Plan," actively expanded natural gas upstream resource projects, and promoted the construction of charging and swapping infrastructure[32] - Strengthened cost control, improved operational efficiency, and deepened efforts in increasing revenue, reducing expenditure, and enhancing efficiency[32] - Deepened state-owned enterprise reform, strengthened performance evaluation and incentives for management, and advanced the "Double Hundred Enterprises" three-year work goals[32] - Focused on technological innovation, promoted the construction of a technical supervision system, and independently carried out gas design services[32] - Accelerated digital empowerment, with the smart gas integrated operation platform launching functions such as transmission and distribution management and pipeline inspection, and obtaining an invention patent for the natural gas integrated operation and control platform[32] - Fully implemented safety production responsibilities, conducted special safety inspections, strengthened safety education, and improved emergency response capabilities[33] Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in the huge development potential of the natural gas industry, its first-mover advantage and comprehensive pipeline network in Anhui Province, its ability to extend business across the natural gas industry chain, and its rich operational management experience - The natural gas industry has immense development potential, with Anhui Province's natural gas consumption demand expected to exceed 20 billion cubic meters by 2030[34] - Market first-mover and pipeline construction advantages: operational long-distance pipelines cover all 16 cities and 41 counties (districts) in the province, establishing a provincial natural gas pipeline network system[34] - Business chain extension advantages: engaged in multiple upstream, midstream, and downstream natural gas business areas, achieving independent operation of engineering, sales, and pipeline operation companies, with mutual promotion among businesses[35] - Rich operational management advantages in the natural gas industry: accumulated extensive experience in long-distance pipeline, city network operation, and safety management, possessing a professional technical and management talent team, and strictly implementing safety production responsibilities[35] Key Operating Performance During the Reporting Period This section analyzes the company's financial statement item changes, asset and liability status, investment situation, and the operating performance of major subsidiaries and associates during the reporting period Main Business Analysis Financial statement items show a year-on-year decrease in operating revenue and cost, significant growth in R&D expenses, and substantial changes in net cash flows from investing and financing activities Financial Statement Item Change Analysis Table | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change (%) | | :--- | :--------------------------- | :------------------------------ | :--------- | | Operating Revenue | 2,674,456,590.86 | 2,922,670,469.36 | -8.49 | | Operating Cost | 2,329,536,233.10 | 2,565,402,183.91 | -9.19 | | R&D Expenses | 3,802,709.22 | 2,879,599.68 | 32.06 | | Net Cash Flow from Operating Activities | 520,106,047.80 | 413,297,702.54 | 25.84 | | Net Cash Flow from Investing Activities | -288,852,763.64 | -147,172,190.30 | -96.27 | | Net Cash Flow from Financing Activities | -75,472,232.34 | -126,459,581.79 | 40.32 | - Reason for R&D expenses change: primarily due to the company's increased innovation and R&D efforts[36] - Reason for net cash flow from investing activities change: primarily due to a decrease in redemptions of wealth management products purchased with idle raised funds compared to the prior year period[36] - Reason for net cash flow from financing activities change: primarily due to a decrease in cash paid for debt repayment compared to the prior year period[36] Asset and Liability Analysis At the end of the reporting period, the company's total assets and net assets slightly increased. Cash and cash equivalents and short-term borrowings significantly increased, while financial assets held for trading, prepayments, and taxes payable substantially decreased Asset and Liability Status | Item | Period-end Amount (yuan) | Period-end Amount as % of Total Assets | Change from Prior Year Period-end (%) | | :--------------------- | :----------------------- | :----------------------------------- | :------------------------------------ | | Cash and Cash Equivalents | 674,203,923.88 | 8.98 | 30.05 | | Financial Assets Held for Trading | 60,031,232.88 | 0.80 | -40.06 | | Prepayments | 55,960,408.42 | 0.75 | -66.08 | | Other Non-current Assets | 60,472,678.87 | 0.81 | 44.22 | | Short-term Borrowings | 179,360,449.30 | 2.39 | 79.23 | | Taxes Payable | 27,354,276.41 | 0.36 | -44.52 | - Financial assets held for trading decreased by 40.06%, primarily due to the redemption of the company's structured deposits upon maturity[38] - Prepayments decreased by 66.08%, primarily due to a decrease in prepaid gas payments to upstream gas suppliers[38] - Short-term borrowings increased by 79.23%, primarily due to new working capital loans[38] - Taxes payable decreased by 44.52%, primarily due to corporate income tax payments and a decrease in value-added tax payable[38] Investment Status Analysis At the end of the reporting period, the company's long-term equity investments slightly increased, and this section also discloses financial assets measured at fair value, including structured deposits and unlisted equity instrument investments - At the end of the reporting period, the company's long-term equity investments were 1,674.3652 million yuan, an increase of 1.52% from the beginning of the period[39] Financial Assets Measured at Fair Value | Asset Category | Period-beginning Amount (yuan) | Amount Purchased in Current Period (yuan) | Amount Sold/Redeemed in Current Period (yuan) | Period-end Amount (yuan) | | :----------------------- | :----------------------------- | :---------------------------------------- | :-------------------------------------------- | :----------------------- | | Structured Deposits | 100,159,041.10 | 290,000,000.00 | 330,948,594.52 | 60,031,232.88 | | Unlisted Equity Instrument Investments | 252,426,889.48 | - | - | 252,426,889.48 | | Total | 352,585,930.58 | 290,000,000.00 | 330,948,594.52 | 312,458,122.36 | Analysis of Major Subsidiaries and Associates During the reporting period, the company disposed of part of its equity in Anhui Nenggang Clean Energy Co., Ltd. and liquidated Wanneng Jiaotou (Tongling) Integrated Energy Co., Ltd., but these had no significant impact on overall production, operations, and performance. This section also lists the financial data of major subsidiaries and associates whose impact on the company's net profit exceeds 10% - Disposal of part of the equity in Anhui Nenggang Clean Energy Co., Ltd. resulted in loss of control, which did not have a significant impact on the company's overall production, operations, and performance[42] - Liquidation of Wanneng Jiaotou (Tongling) Integrated Energy Co., Ltd. did not have a significant impact on the company's overall production, operations, and performance[42] Major Subsidiaries and Associates | Company Name | Shareholding Ratio | Operating Revenue (yuan) | Operating Profit (yuan) | Net Profit (yuan) | | :----------- | :----------------- | :----------------------- | :---------------------- | :---------------- | | Guangde Natural Gas | 100% | 274,850,179.51 | 23,757,560.41 | 17,791,860.40 | | Sales Company | 100% | 2,225,925,118.57 | 67,831,301.49 | 53,094,383.42 | | Wanneng Ganghua | 51% | 172,512,828.43 | 10,532,610.02 | 10,609,502.06 | | Wanneng Xin'ao | 51% | 50,470,371.88 | 9,986,895.99 | 7,099,442.52 | | Sinopec Wanneng | 50% | - | 9,176.90 | -82,074.85 | | Shenneng Ran Kong | 10% | 5,724,758,129.99 | 186,979,010.09 | 156,659,223.99 | | Charging and Swapping Company | 51% | 55,395,442.19 | -12,554,356.95 | -12,498,495.07 | Other Disclosures This section discloses potential risks related to safety production, natural gas industry chain competition, and urban gas business development, and evaluates the implementation of the "Quality Improvement, Efficiency Enhancement, and High Returns" action plan, highlighting progress in strengthening main business, increasing R&D investment, improving corporate governance, and enhancing investor returns Potential Risks The company faces risks in safety production, the need to enhance competitiveness in the natural gas industry chain, and limitations in the development space for urban gas business - Safety production risks: involving investment, operation, and maintenance of long-distance and urban pipeline networks, facing risks such as corrosion, aging, third-party damage, and outdated pipelines[44] - Competitiveness in the natural gas industry chain needs improvement: pipeline network advantages are affected by national pipeline network policies, terminal market competition is fierce, requiring increased efforts to acquire high-quality upstream gas sources[44] - Urban gas business development risks: limited access to franchise rights, slow development of new projects, facing challenges from slowing urbanization and economic structural adjustments[44] Other Disclosures The company's "Quality Improvement, Efficiency Enhancement, and High Returns" action plan has achieved positive results, mainly reflected in strengthening main business, increasing R&D investment, improving corporate governance, reinforcing the performance responsibilities of "key few," valuing investor returns, and enhancing investor communication - Strengthening main business: steadily constructing natural gas trunk and branch lines, actively promoting upstream and downstream project development, exploring urban network market potential, and broadening sales and trading channels[45] - Increasing R&D investment: obtained 1 invention patent and 10 utility model patents in the first half of the year; the Charging and Swapping Company completed high-tech enterprise application, and digital transformation achievements such as the smart gas integrated operation platform project are significant[45] - Improving corporate governance system: strictly adhering to laws and regulations, perfecting the corporate governance structure, and formulating a "Market Value Management System"[46][47] - Reinforcing performance responsibilities of "key few": maintaining close communication with controlling shareholders and directors, supervisors, and senior management, strengthening support for external directors' performance, and enhancing decision-making capabilities[47] - Valuing investor returns: adhering to a stable and sustainable dividend policy, with the 2024 annual cash dividend ratio increasing to 51.61% of net profit, and a proposed 2025 semi-annual profit distribution plan[48] - Enhancing investor communication: upholding the principles of "truthful, accurate, complete, timely, and fair" information disclosure, optimizing information disclosure quality, publishing ESG special reports, and holding performance briefings[49] Corporate Governance, Environment, and Society This section covers changes in the company's directors and senior management, profit distribution plans, equity incentive schemes, and efforts in consolidating poverty alleviation achievements and rural revitalization Changes in Company Directors and Senior Management During the reporting period, the company's board of directors underwent a re-election, with Tao Qingfu and Li Kun elected as directors, Zhang Weiyi resigning, and Cao Genmiao and Jin Yong appointed as Deputy General Manager and Chief Engineer, respectively - Tao Qingfu was elected as a director and serves as General Manager, Board Secretary, and Chief Compliance Officer[51] - Li Kun was elected as an employee director[51] - Zhang Weiyi resigned as a director[51] - Cao Genmiao was appointed as Deputy General Manager[51] - Jin Yong was appointed as Chief Engineer[51] Profit Distribution or Capital Reserve Capitalization Plan The company proposes to distribute a cash dividend of 0.5 yuan (inclusive of tax) per 10 shares to all shareholders based on the total share capital as of June 30, 2025, totaling 24,509,653.65 yuan (inclusive of tax) - Proposed cash dividend of 0.5 yuan (inclusive of tax) per 10 shares[52] - Total cash dividend distributed: 24,509,653.65 yuan (inclusive of tax)[52] - Distribution base: total share capital of 490,193,073 shares as of June 30, 2025[52] Company Equity Incentive Plan, Employee Stock Ownership Plan, or Other Employee Incentive Measures and Their Impact This section discloses the repurchase and cancellation of restricted shares and the lifting of sales restrictions for the first vesting period under the 2022 Restricted Stock Incentive Plan, and explains the fair value measurement method for equity instruments - 292,000 restricted shares were repurchased and canceled under the 2022 Restricted Stock Incentive Plan[53] - 2,409,990 shares were released from sales restrictions during the first vesting period of the 2022 Restricted Stock Incentive Plan[53] - Fair value measurement method for each restricted share: closing price on grant date - grant price[54] - Measurement result: 24.3859 million yuan[55] Number of Restricted Shares Held by Directors and Senior Management at Period-end | Name | Position | Number of Restricted Shares Held at Period-end (ten thousand shares) | | :--- | :------- | :--------------------------------------------------- | | Wu Hai | Chairman | 8.04 | | Li Kun | Employee Director | 6.70 | | Tao Qingfu | Director, General Manager, Board Secretary, Chief Compliance Officer, General Counsel | 6.70 | | Zhang Xianfeng | Deputy General Manager | 6.70 | | Jin Yong | Chief Engineer | 3.953 | Specific Situation of Consolidating Poverty Alleviation Achievements and Rural Revitalization The company steadily advanced its assistance work for Renhezai Village in Linquan County according to the annual rural revitalization work list, helping to promote local project construction and achieve local industrial revitalization - Steadily advanced assistance work for Renhezai Village in Linquan County[55] - Assisted in promoting local project construction to achieve local industrial revitalization[55] Significant Matters This section covers the fulfillment of commitments, non-operating appropriation of funds by controlling shareholders, illegal guarantees, significant lawsuits, related party transactions, and the progress in the use of raised funds Fulfillment of Commitments During the reporting period, there were no commitment matters requiring disclosure from the company's actual controller, shareholders, related parties, acquirers, or the company itself - No commitment matters during or continuing into the reporting period[57] Non-operating Appropriation of Funds by Controlling Shareholders and Other Related Parties During the Reporting Period During the reporting period, there was no non-operating appropriation of funds by controlling shareholders and other related parties - No non-operating appropriation of funds by controlling shareholders and other related parties[57] Illegal Guarantees During the reporting period, the company did not provide any external guarantees in violation of prescribed decision-making procedures - No external guarantees provided in violation of prescribed decision-making procedures[57] Significant Lawsuits and Arbitrations During the reporting period, the company had no significant lawsuits or arbitrations - The company had no significant lawsuits or arbitrations during the current reporting period[58] Significant Related Party Transactions This section details the company's related party transactions in daily operations, including sales and purchases of goods, provision and acceptance of services, and financial business dealings with related financial companies Related Party Transactions Related to Daily Operations The company engages in daily operating related party transactions with several related parties, including sales of natural gas, procurement of construction and installation services, materials, and property services, with some actual transaction amounts lower than estimated amounts Related Party Transactions Related to Daily Operations | Related Party Transaction Type | Related Party Transaction Content | 2025 Estimated Amount (ten thousand yuan) | 2025 Actual Amount (ten thousand yuan) | | :--------------------------- | :-------------------------------- | :---------------------------------------- | :------------------------------------- | | Sales of goods, provision of services to related parties | Sales of natural gas | 52,000.00 | 25,693.03 | | Sales of goods, provision of services to related parties | Sales of natural gas | 6,000.00 | 4,108.05 | | Procurement of goods, acceptance of services from related parties | Construction and installation services | 600.00 | 201.44 | | Procurement of goods, acceptance of services from related parties | Property services | 1,000.00 | 231.12 | | Procurement of goods, acceptance of services from related parties | Procurement of steam | 800.00 | 523.10 | | Leasing of houses to related parties | House leasing | 225.00 | 105.25 | Financial Business with Related Financial Companies The company has deposit, loan, and credit line business dealings with Anhui Energy Group Finance Co., Ltd., with a period-end deposit balance of 550.2065 million yuan and a loan balance of 122 million yuan Deposit Business | Related Party | Period-beginning Balance (ten thousand yuan) | Total Deposits in Current Period (ten thousand yuan) | Total Withdrawals in Current Period (ten thousand yuan) | Period-end Balance (ten thousand yuan) | | :--------------------------------- | :----------------------------------- | :------------------------------------------- | :-------------------------------------------- | :----------------------------------- | | Anhui Energy Group Finance Co., Ltd. | 31,176.41 | 460,812.30 | 436,968.06 | 55,020.65 | Loan Business | Related Party | Period-beginning Balance (ten thousand yuan) | Total Loans in Current Period (ten thousand yuan) | Total Repayments in Current Period (ten thousand yuan) | Period-end Balance (ten thousand yuan) | | :--------------------------------- | :----------------------------------- | :---------------------------------------- | :------------------------------------------- | :----------------------------------- | | Anhui Energy Group Finance Co., Ltd. | 12,600.00 | 0.00 | 400.00 | 12,200.00 | Credit Line Business | Related Party | Credit Business Type | Credit Limit (ten thousand yuan) | Period-end Used Amount (ten thousand yuan) | | :--------------------------------- | :------------------- | :------------------------------- | :--------------------------------- | | Anhui Energy Group Finance Co., Ltd. | Working Capital Loan Credit | 7,000.00 | 4,400.00 | | Anhui Energy Group Finance Co., Ltd. | Project Loan Credit | 8,000.00 | 7,800.00 | Explanation of Progress in Use of Raised Funds This section details the overall use of the company's raised funds, specifics of investment projects, and cash management of idle raised funds Overall Use of Raised Funds The company raised a total of 930 million yuan through convertible bonds, with a net amount of 927.0203 million yuan, and as of the end of the reporting period, a cumulative investment of 884.8265 million yuan Overall Use of Raised Funds | Source of Raised Funds | Total Raised Funds (ten thousand yuan) | Net Raised Funds (ten thousand yuan) | Total Committed Investment in Prospectus (ten thousand yuan) | Cumulative Investment of Raised Funds at Period-end (ten thousand yuan) | Investment Progress at Period-end (%) | | :--------------------- | :----------------------------------- | :----------------------------------- | :------------------------------------------- | :---------------------------------------------------------- | :------------------------------------ | | Issuance of Convertible Bonds | 75,000.00 | 75,000.00 | 75,000.00 | 70,780.62 | 94.37 | | Issuance of Convertible Bonds | 18,000.00 | 17,702.03 | 17,702.03 | 17,702.03 | 100.00 | | Total | 93,000.00 | 92,702.03 | 92,702.03 | 88,482.65 | / | Details of Investment Projects Investment projects include the Lu'an-Huoqiu-Yingshang trunk line, Suzhou-Huaibei-Xiaoxian-Dangshan trunk line, Guzhen-Lingbi-Sixian branch line project, and supplementary funds for natural gas project construction and operation; the Lu'an-Huoqiu-Yingshang trunk line has exceeded its investment, and the supplementary operating funds project is 100% invested Details of Investment Projects | Source of Raised Funds | Project Name | Planned Total Investment of Raised Funds (ten thousand yuan) | Cumulative Investment of Raised Funds at Period-end (ten thousand yuan) | Cumulative Investment Progress at Period-end (%) | | :--------------------- | :--------------------------------- | :------------------------------------------- | :---------------------------------------------------------- | :----------------------------------------------- | | Issuance of Convertible Bonds | Lu'an-Huoqiu-Yingshang Trunk Line | 37,600.00 | 38,015.69 | 101.11 | | Issuance of Convertible Bonds | Suzhou-Huaibei-Xiaoxian-Dangshan Trunk Line Project | 27,400.00 | 27,076.53 | 98.82 | | Issuance of Convertible Bonds | Guzhen-Lingbi-Sixian Branch Line Project | 10,000.00 | 5,688.40 | 56.88 | | Issuance of Convertible Bonds | Supplementary Funds for Natural Gas Project Construction and Operation | 17,702.03 | 17,702.03 | 100.00 | | Total | / | 92,702.03 | 88,482.65 | / | Other Information on the Use of Raised Funds During the Reporting Period The company managed idle raised funds through cash management, with an authorized limit of 350 million yuan during the reporting period, and a period-end cash management balance of 60 million yuan, which did not exceed the authorized limit - Authorized limit for cash management of raised funds: 350 million yuan[77] - Period-end cash management balance: 60 million yuan[77] - The maximum balance during the period did not exceed the authorized limit[77] Changes in Shares and Shareholder Information This section details changes in the company's share capital, including restricted stock repurchases and cancellations, convertible bond conversions, and provides an overview of shareholder information Changes in Share Capital During the reporting period, the company's total share capital slightly decreased due to the repurchase and cancellation of restricted shares and the conversion of convertible corporate bonds, resulting in a decrease in restricted shares and an increase in unrestricted tradable shares Share Capital Change Table | Share Category | Number Before This Change (shares) | Increase/Decrease in This Change (shares) | Number After This Change (shares) | Percentage After This Change (%) | | :--------------- | :------------------------------- | :-------------------------------------- | :-------------------------------- | :------------------------------- | | I. Restricted Shares | 7,595,000 | -2,701,990 | 4,893,010 | 1 | | II. Unrestricted Tradable Shares | 482,884,944 | 2,415,119 | 485,300,063 | 99 | | III. Total Shares | 490,479,944 | -286,871 | 490,193,073 | 100 | - During the reporting period, the company completed the repurchase and cancellation of 292,000 restricted shares and the lifting of sales restrictions for 2,409,990 shares under the 2022 Restricted Stock Incentive Plan[81] - Convertible corporate bonds converted to shares increased by 5,129 shares during the reporting period[81] Shareholder Information As of the end of the reporting period, the company had a total of 15,521 common shareholders. Anhui Energy Group Co., Ltd. was the largest shareholder, holding 41.56% of the shares - Total number of common shareholders at the end of the reporting period: 15,521 households[84] Top Ten Shareholders' Shareholding | Shareholder Name | Period-end Shareholding (shares) | Percentage (%) | Shareholder Nature | | :----------------------------- | :------------------------------- | :------------- | :----------------- | | Anhui Energy Group Co., Ltd. | 203,734,208 | 41.56 | State-owned Legal Person | | Hong Kong and China Gas (Anhui) Co., Ltd. | 96,949,440 | 19.78 | Overseas Legal Person | | Anhui Wanneng Co., Ltd. | 21,591,360 | 4.40 | State-owned Legal Person | | China Coal Xinji Energy Co., Ltd. | 19,756,800 | 4.03 | State-owned Legal Person | | Anhui Wanneng Capital Investment Co., Ltd. | 8,752,800 | 1.79 | State-owned Legal Person | - Top ten restricted shareholders' shareholding: Wu Hai 80,400 shares, Li Kun 67,000 shares, Zhang Hongbin 67,000 shares, Zhang Xianfeng 67,000 shares, Tao Qingfu 67,000 shares[89] Directors and Senior Management Information This section discloses the number of restricted shares held by the company's directors and senior management at the end of the reporting period, with Chairman Wu Hai holding 80,400 shares Number of Restricted Shares Held by Directors and Senior Management at Period-end | Name | Position | Number of Restricted Shares Held at Period-end (ten thousand shares) | | :--- | :------- | :--------------------------------------------------- | | Wu Hai | Chairman | 8.04 | | Li Kun | Employee Director | 6.70 | | Tao Qingfu | Director, General Manager, Board Secretary, Chief Compliance Officer, General Counsel | 6.70 | | Zhang Xianfeng | Deputy General Manager | 6.70 | | Jin Yong | Chief Engineer | 3.953 | Bond-Related Information This section provides details on the company's convertible corporate bonds, including issuance amount, conversion status, and credit rating Convertible Corporate Bonds The company issued 930 million yuan in convertible corporate bonds, with 37,000 yuan converted to shares during the reporting period, a cumulative conversion of 12,489,213 shares, and an unconverted amount of 839.923 million yuan. The conversion price has been adjusted multiple times, with the latest being 6.86 yuan/share. The company maintains a reasonable debt structure and an AA+ credit rating - Total amount of convertible corporate bonds issued: 930,000,000.00 yuan[94] - Amount converted to shares during the reporting period: 37,000 yuan, number of shares converted: 5,129 shares[98] - Cumulative number of shares converted: 12,489,213 shares, accounting for 2.6550% of the company's total issued shares before conversion[98] - Unconverted amount: 839,923,000 yuan, accounting for 90.3143% of the total convertible bond issuance[98] - Latest conversion price at the end of the reporting period: 6.86 yuan/share[100] - Company's total liabilities: 3.611 billion yuan, asset-liability ratio: 48.07%[101] - Main credit rating: AA+, convertible corporate bond credit rating: AA+[101] Financial Report This section presents the company's unaudited financial statements for the first half of 2025, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity, along with notes on significant accounting policies and financial items Audit Report This semi-annual report is unaudited - This semi-annual report is unaudited[5] Financial Statements This section provides the company's consolidated and parent company balance sheets as of June 30, 2025, consolidated and parent company income statements, cash flow statements, and statements of changes in owners' equity for January-June 2025 Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 7.511 billion yuan, total liabilities were 3.611 billion yuan, and total owners' equity was 3.901 billion yuan Consolidated Balance Sheet Summary | Item | June 30, 2025 (yuan) | December 31, 2024 (yuan) | | :------------------------- | :----------------------- | :----------------------- | | Total Current Assets | 1,021,727,980.96 | 1,065,756,176.80 | | Total Non-current Assets | 6,489,679,824.10 | 6,380,447,432.71 | | Total Assets | 7,511,407,805.06 | 7,446,203,609.51 | | Total Current Liabilities | 1,633,854,914.06 | 1,669,397,573.23 | | Total Non-current Liabilities | 1,976,667,314.53 | 1,884,632,932.96 | | Total Liabilities | 3,610,522,228.59 | 3,554,030,506.19 | | Total Owners' Equity Attributable to Parent Company | 3,337,337,801.01 | 3,300,285,057.30 | | Minority Interests | 563,547,775.46 | 591,888,046.02 | | Total Owners' Equity | 3,900,885,576.47 | 3,892,173,103.32 | Consolidated Income Statement For January-June 2025, the company achieved total operating revenue of 2.674 billion yuan, total profit of 248 million yuan, net profit of 188 million yuan, and net profit attributable to parent company shareholders of 185 million yuan Consolidated Income Statement Summary | Item | 2025 Semi-annual (yuan) | 2024 Semi-annual (yuan) | | :--------------------------------- | :---------------------- | :---------------------- | | Total Operating Revenue | 2,674,456,590.86 | 2,922,670,469.36 | | Total Operating Cost | 2,455,880,866.82 | 2,697,122,407.83 | | Total Profit | 248,313,453.13 | 258,644,967.82 | | Net Profit | 187,596,560.37 | 194,976,389.31 | | Net Profit Attributable to Parent Company Shareholders | 184,951,506.16 | 189,880,488.35 | | Basic Earnings Per Share (yuan/share) | 0.38 | 0.40 | | Diluted Earnings Per Share (yuan/share) | 0.31 | 0.32 | Consolidated Cash Flow Statement For January-June 2025, the company's net cash flow from operating activities was 520 million yuan, net cash flow from investing activities was -289 million yuan, and net cash flow from financing activities was -75 million yuan Consolidated Cash Flow Statement Summary | Item | 2025 Semi-annual (yuan) | 2024 Semi-annual (yuan) | | :--------------------------------- | :---------------------- | :---------------------- | | Net Cash Flow from Operating Activities | 520,106,047.80 | 413,297,702.54 | | Net Cash Flow from Investing Activities | -288,852,763.64 | -147,172,190.30 | | Net Cash Flow from Financing Activities | -75,472,232.34 | -126,459,581.79 | | Net Increase in Cash and Cash Equivalents | 155,781,051.82 | 139,665,930.45 | | Period-end Cash and Cash Equivalents Balance | 674,203,923.88 | 853,193,447.12 | Company Basic Information This section introduces the company's establishment, share capital evolution, unified social credit code, domicile, legal representative, and business scope, emphasizing its primary engagement in the construction, operation, and management of natural gas long-distance pipelines - The company was established by the overall conversion of Anhui Provincial Natural Gas Development Co., Ltd. into a joint-stock company[138] - As of June 30, 2025, the company's total share capital was 490,193,073.00 shares[144] - Business scope: construction, operation, and management of provincial natural gas trunk and branch pipeline networks; participation in urban natural gas pipeline network development, construction, and operation management; representing Anhui Province in purchasing natural gas resources from upstream and selling natural gas to urban pipeline networks and large users; developing natural gas, coalbed methane, and other energy applications and related projects[144] Basis of Financial Statement Preparation The company's financial statements are prepared on a going concern basis, adhering to the Accounting Standards for Business Enterprises and their application guidelines and interpretations, and disclosing financial information in accordance with relevant regulations of the China Securities Regulatory Commission - Basis of preparation: going concern, adhering to Accounting Standards for Business Enterprises and their application guidelines and interpretations[145] - Going concern assessment: no matters affecting going concern ability were found[146] Significant Accounting Policies and Estimates This section details the significant accounting policies and estimates followed by the company in preparing its financial statements, including business combinations, consolidated financial statements, cash and cash equivalents, financial instruments, receivables, inventories, contract assets, long-term equity investments, fixed assets, construction in progress, intangible assets, impairment of long-term assets, employee benefits, revenue recognition, government grants, deferred income tax assets/liabilities, leases, and safety production expenses - Statement on adherence to Accounting Standards for Business Enterprises: financial statements truthfully and completely reflect the company's financial position, operating results, and other information[148] - Classification and measurement of financial instruments: classified into three categories: measured at amortized cost, measured at fair value with changes recognized in current profit or loss, and measured at fair value with changes recognized in other comprehensive income[174][175][176] - Revenue recognition principles: revenue is recognized when the customer obtains control of the related goods, and the recognition method is determined based on the type of performance obligation (over time or at a point in time)[249][250][251] - Safety production expenses and maintenance funds: accrued based on the actual operating revenue of the previous year, recognized in relevant product costs or current profit or loss, and simultaneously recorded in the "Special Reserve" account[270] Taxes This section discloses the company's main tax categories and rates, including value-added tax, urban maintenance and construction tax, education surcharge, local education surcharge, and corporate income tax, and explains the tax preferential policies enjoyed by the company and its subsidiaries - Main tax categories and rates: Value-added tax at 6%, 9%, 13%; Corporate income tax at 25%[271] - Value-added tax: the portion of value-added tax on pipeline transportation service revenue exceeding the 3% tax rate is subject to immediate refund upon collection[273] - Corporate income tax: subsidiary Anhui Nenggang Clean Energy Co., Ltd., as a small and micro-profit enterprise, has the portion of its annual taxable income not exceeding 3 million yuan reduced by 25% and taxed at a 20% rate[273] - Subsidiary Anhui Aodong New Energy Technology Co., Ltd. is a high-tech enterprise and enjoys a 15% corporate income tax rate[274] Notes to Consolidated Financial Statement Items This section provides detailed notes for each major item in the consolidated financial statements, including cash and cash equivalents, financial assets held for trading, accounts receivable, contract assets, other receivables, inventories, long-term equity investments, fixed assets, construction in progress, intangible assets, goodwill, short-term borrowings, accounts payable, contract liabilities, employee benefits payable, taxes payable, other payables, non-current liabilities due within one year, long-term borrowings, bonds payable, lease liabilities, deferred income, share capital, capital reserves, treasury stock, other comprehensive income, special reserves, surplus reserves, undistributed profits, operating revenue and cost, taxes and surcharges, selling expenses, administrative expenses, R&D expenses, financial expenses, other income, investment income, credit impairment losses, asset impairment losses, asset disposal gains, non-operating income, non-operating expenses, income tax expenses, other comprehensive income, and cash flow statement items - Cash and cash equivalents period-end balance of 674 million yuan, an increase of 30.05% from the beginning of the period[274] - Accounts receivable period-end balance of 84.0539 million yuan, a decrease of 20.38% from the beginning of the period[278][279] - Inventories period-end balance of 39.8199 million yuan, a decrease of 10.38% from the beginning of the period[316] - Fixed assets period-end book value of 3.470 billion yuan, an increase of 2.63% from the beginning of the period[336] - Short-term borrowings period-end balance of 179 million yuan, an increase of 79.23% from the beginning of the period[364] - Accounts payable period-end balance of 310 million yuan, a decrease of 23.11% from the beginning of the period[367] - Bonds payable period-end balance of 873 million yuan, an increase of 1.72% from the beginning of the period[384] - Operating revenue of 2.674 billion yuan, operating cost of 2.330 billion yuan[403] - Investment income of 27.7008 million yuan, including investment income from associates and joint ventures of 22.5032 million yuan[411] - Credit impairment losses of 1.811 million yuan, asset impairment losses of -0.2025 million yuan[413] R&D Expenses During the reporting period, the company's total R&D expenses were 3.8027 million yuan, all expensed, primarily consisting of labor costs, depreciation, and other expenses - Current period amount: 3,802,709.22 yuan[438] - Prior period amount: 2,879,599.68 yuan[438] - Main components: labor costs 3,336,383.05 yuan, depreciation and other expenses 466,326.17 yuan[438] - All R&D expenditures were expensed[438] Changes in Consolidation Scope During the reporting period, the company disposed of part of its equity in Anhui Nenggang Clean Energy Co., Ltd., leading to a loss of control, and liquidated its subsidiary Wanneng Jiaotou (Tongling) Integrated Energy Co., Ltd - Disposal of part of the equity in Anhui Nenggang Clean Energy Co., Ltd. resulted in loss of control, with a disposal price of 3.9043 million yuan[439] - Liquidation of subsidiary Wanneng Jiaotou (Tongling) Integrated Energy Co., Ltd[440] Interests in Other Entities This section discloses the company's interests in subsidiaries, joint ventures, and associates, including the composition of the enterprise group, financial information of significant non-wholly-owned subsidiaries, and financial information of significant joint ventures and associates - The company owns several wholly-owned or controlling subsidiaries, with business natures covering city gas, gas engineering, natural gas wholesale, and motor vehicle charging sales[441][442][443][444] Significant Non-wholly-owned Subsidiaries | Subsidiary Name | Minority Shareholding Ratio (%) | Profit/Loss Attributable to Minority Shareholders in Current Period (yuan) | Dividends Declared and Distributed to Minority Shareholders in Current Period (yuan) | Period-end Minority Interests Balance (yuan) | | :-------------- | :------------------------------ | :--------------------------------------------------------- | :----------------------------------------------------------- | :------------------------------------------- | | Wanneng Ganghua | 49 | 5,198,656.01 | 0 | 75,331,041.65 | | Charging and Swapping Company | 49 | -8,088,454.13 | 0 | 267,583,354.97 | Key Financial Information of Significant Joint Ventures | Item | Sinopec Wanneng Natural Gas Co., Ltd. (yuan) | | :--- | :------------------------------------------- | | Total Assets | 2,606,157,828.11 | | Total Liabilities | 1,905,989,970.50 | | Owners' Equity Attributable to Parent Company | 700,167,857.61 | | Net Profit | -82,074.85 | Key Financial Information of Significant Associates | Item | Shenzhen Energy Gas Investment Holding Co., Ltd. (yuan) | | :--- | :------------------------------------------------------ | | Total Assets | 13,313,574,482.06 | | Total Liabilities | 5,857,398,078.71 | | Owners' Equity Attributable to Parent Company | 6,671,879,347.49 | | Net Profit | 156,659,223.99 | Government Grants During the reporting period, the company received new government grants totaling 4.2872 million yuan, with 0.9217 million yuan recognized in profit or loss for the current period, primarily related to assets - New grants received in current period: 4,287,200.00 yuan[457] - Amount transferred to other income in current period: 921,685.37 yuan[457] - Period-end deferred income balance: 19,763,177.99 yuan[457] - Government grants recognized in current profit or loss: 921,685.37 yuan, primarily asset-related[459] Risks Related to Financial Instruments The company faces credit risk, liquidity risk, and market risk (foreign exchange risk and interest rate risk), which are managed through credit policies, regular monitoring of liquidity needs, and interest rate levels - Risks related to financial instruments: credit risk, liquidity risk, and market risk[459] - Credit risk management: assessing customer creditworthiness, regularly monitoring credit records, and taking measures against defaulting customers[460] - Liquidity risk management: coordinating cash management across subsidiaries, regularly monitoring short-term and long-term liquidity needs[464] - Foreign exchange risk: as of June 30, 2025, the company had no foreign currency, thus no exchange rate risk[464] - Interest rate risk: primarily arises from long-term bank borrowings, bonds payable, etc., managed by monitoring interest rate levels and adjusting the proportion of fixed/floating rate contracts[464] Fair Value Disclosures This section discloses the period-end fair values of the company's assets and liabilities measured at fair value, including financial assets held for trading and other equity instrument investments, and explains the valuation techniques used for Level 3 fair value measurement items Period-end Fair Value of Assets and Liabilities Measured at Fair Value | Item | Level 3 Fair Value Measurement (yuan) | Total (yuan) | | :--------------------------------- | :---------------------------- | :----------- | | Financial Assets Held for Trading | 60,031,232.88 | 60,031,232.88| | Other Equity Instrument Investments | 252,426,889.48 | 252,426,889.48| | Total Assets Continuously Measured at Fair Value | 312,458,122.36 | 312,458,122.36| - Other equity instrument investments are measured at investment cost as a reasonable estimate of fair value[469] - Financial assets and liabilities not measured at fair value primarily include cash and cash equivalents, notes receivable, accounts receivable, short-term borrowings, accounts payable, long-term borrowings, and bonds payable[471] Related Parties and Related Party Transactions This section details the company's parent company, subsidiaries, joint ventures, associates, and other related parties, as well as related party transactions during the reporting period, including sales and purchases