北京燃气蓝天(06828) - 2025 - 中期业绩

Executive Summary The Group reported a 28.7% revenue increase and a 3.8% rise in profit attributable to owners, with significant growth in clean energy business, but no interim dividend is recommended | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,019.6 | 792.4 | 28.7% | | Profit Attributable to Owners of the Company | 52.2 | 50.3 | 3.8% | | EBITDA | 147.3 | 153.3 | (3.9%) | | Clean Energy and New Energy Segment Revenue | 8.4 | 1.2 | 600.0% | | Clean Energy and New Energy Segment Profit | 5.1 | 1.1 | 363.6% | | Basic and Diluted Earnings Per Share | 0.23 cents | 0.22 cents | 4.5% | - The Board does not recommend declaring an interim dividend for the first half of 2025[3] Unaudited Interim Results This section presents the condensed consolidated financial statements, highlighting the Group's financial performance and position for the interim period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group's revenue increased by 28.7% to RMB 1,019.6 million, with profit attributable to owners rising 3.8%, despite an 18.8% decline in gross profit | Metric | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,019,577 | 792,399 | | Cost of Sales | (1,007,241) | (777,215) | | Gross Profit | 12,336 | 15,184 | | Other Income and Gains, Net | 9,484 | 4,247 | | Administrative Expenses | (52,337) | (66,539) | | Reversal of Impairment Losses on Financial Assets, Net | 8,038 | 1,581 | | Finance Costs | (45,547) | (58,313) | | Share of Profit of Associates | 131,898 | 154,056 | | Profit Before Tax | 62,938 | 48,905 | | Profit for the Period | 47,774 | 37,755 | | Profit Attributable to Owners of the Company | 52,206 | 50,266 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total non-current assets increased to RMB 3,654.5 million, driven by investments in associates, while net current liabilities stood at RMB 2,038.6 million, indicating liquidity pressure | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 3,654,512 | 3,554,066 | | Total Current Assets | 839,636 | 896,562 | | Total Current Liabilities | 2,878,261 | 2,871,531 | | Net Current Liabilities | (2,038,625) | (1,974,969) | | Net Assets | 1,521,823 | 1,480,155 | | Total Equity | 1,521,823 | 1,480,155 | Notes to the Unaudited Condensed Consolidated Interim Financial Information This section provides detailed notes on the Group's interim financial information, covering accounting policies, segment data, and key financial statement items 1. General Information The company, registered in Bermuda and listed on HKEX, primarily engages in natural gas distribution, trading, and clean energy, with Beijing Enterprises Group Company Limited as its ultimate controlling shareholder - The Company is incorporated in Bermuda and its shares are listed on the Stock Exchange of Hong Kong[10] - The Group primarily engages in natural gas transmission and distribution, gas equipment sales, pipeline connection services, CNG/LNG refilling station operations, natural gas trading and distribution, and integrated clean energy and new energy businesses[11][13] - The Company's ultimate controlling company is Beijing Enterprises Group Company Limited, wholly owned by the Beijing State-owned Assets Supervision and Administration Commission[11] 2. Basis of Presentation and Preparation The Group faces net current liabilities of approximately RMB 2,039 million, but the Board believes in its going concern based on inter-company loans, bank offers, associate dividends, and ongoing support from the controlling shareholder 2.1 Basis of Presentation - As of June 30, 2025, the Group's net current liabilities were approximately RMB 2,039 million[12] - The Board believes the Group will have sufficient funds for going concern, based on a HKD 1,000 million revolving loan from a fellow subsidiary, a RMB 1,200 million 3-year syndicated loan offer from major banks, expected dividends from associates, and ongoing financial support from the controlling company[12][14] 2.2 Basis of Preparation - The unaudited interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and the applicable disclosure requirements of Appendix D2 to the Listing Rules[15] - This interim condensed consolidated financial information is unaudited but has been reviewed by the Company's Audit Committee[16] Change in Presentation Currency - Effective January 1, 2024, the Company's consolidated financial statements' presentation currency changed from HKD to RMB, with comparative figures retrospectively accounted for and restated[17] - The Board considers RMB more appropriate as the presentation currency, as most of the Group's transactions are denominated and settled in RMB, providing clearer financial performance insights for shareholders and potential investors[17] 3. Changes in Accounting Policies and Disclosures The first-time adoption of revised IFRS accounting standards (IAS 21 amendments) had no material impact on the Group's interim condensed consolidated financial information, as its transaction and functional currencies are convertible - The first-time adoption of revised IFRS accounting standards (IAS 21 amendments) had no impact on the Group's interim condensed consolidated financial information[18] - The amendment addresses assessing currency exchange and estimating spot exchange rates when convertibility is lacking, but the Group's transaction and functional currencies are convertible[18] 4. Seasonal Factors in Operations The Group's natural gas business experiences seasonal fluctuations, with higher demand in the second half due to winter heating, meaning first-half results may not reflect full-year performance - The Group's natural gas business experiences seasonal fluctuations, with higher demand typically in the second half due to winter heating[19] - The interim results for the first half may not be indicative of the operating performance for the entire financial year[20] 5. Operating Segment Information The Group operates in city gas, natural gas trading and distribution, and integrated clean and new energy segments, with significant revenue growth in natural gas trading and distribution in H1 2025 - The Group's operating segments include city gas operations, natural gas trading and distribution, and the development and operation of integrated clean energy and new energy[21][24] | Segment | H1 2025 Revenue (RMB thousand) | H1 2024 Revenue (RMB thousand) | H1 2025 Profit/(Loss) (RMB thousand) | H1 2024 Profit (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | City Gas Operations | 440,969 | 480,643 | 120,113 | 121,110 | | Natural Gas Trading and Distribution | 570,184 | 310,536 | (3,378) | 1,807 | | Clean Energy and New Energy | 8,424 | 1,220 | 5,132 | 1,071 | | Total | 1,019,577 | 792,399 | 121,867 | 123,988 | 6. Revenue Total revenue for H1 2025 reached RMB 1,019.6 million, a 28.7% year-on-year increase, primarily driven by an 83.6% surge in natural gas trading and distribution revenue | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | City Gas Operations | 440,969 | 480,643 | | Natural Gas Trading and Distribution | 570,184 | 310,536 | | Development and Operation of Integrated Clean Energy and New Energy | 8,424 | 1,220 | | Total | 1,019,577 | 792,399 | - Total revenue for H1 2025 increased by 28.7% year-on-year, primarily due to increased revenue from the natural gas trading and distribution business[27] 7. Other Income and Gains, Net Net other income and gains for H1 2025 significantly increased to RMB 9.5 million from RMB 4.2 million, primarily due to growth in other income | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank Interest Income | 1,368 | 1,330 | | Government Grants and Subsidies | 70 | 165 | | Net Exchange Differences | (195) | (1,536) | | Other | 8,241 | 4,288 | | Total | 9,484 | 4,247 | - Net other income and gains increased by 123.3% year-on-year, primarily driven by significant growth in the 'other' category[29] 8. Finance Costs Finance costs decreased by 22.0% to RMB 45.5 million in H1 2025, mainly due to reduced interest expenses on bank borrowings and loans from the controlling company | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Expense on Bank Borrowings | 24,079 | 30,836 | | Interest Expense on Other Borrowings | 303 | 2,055 | | Interest Expense on Convertible Bonds and Corporate Bonds | 13,854 | 14,986 | | Interest Expense on Loans from Controlling Company | 7,275 | 10,039 | | Interest Expense on Lease Liabilities | 36 | 397 | | Total | 45,547 | 58,313 | - Finance costs decreased by 22.0% year-on-year, mainly due to reduced interest expenses on bank borrowings and loans from the controlling company[30] 9. Profit Before Tax Profit before tax was achieved after deducting cost of inventories sold, depreciation, amortization, and employee benefits, with a significant increase in net reversal of impairment losses on financial assets to RMB 8.0 million | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of Inventories Sold | 988,085 | 746,078 | | Depreciation of Property, Plant and Equipment | 25,009 | 31,823 | | Amortization of Operating Rights | 8,765 | 9,024 | | Total Employee Benefit Expenses | 29,619 | 38,354 | | Reversal of Impairment Losses on Financial Assets, Net | (8,038) | (1,581) | | Reversal of Impairment Losses on Property, Plant and Equipment | (446) | (5,626) | - Net reversal of impairment losses on financial assets increased from RMB (1,581) thousand in H1 2024 to RMB (8,038) thousand in H1 2025, indicating an increase in impairment reversals[31] 10. Income Tax Income tax expense for H1 2025 was RMB 15.2 million, primarily comprising current tax for PRC subsidiaries and withholding tax on dividends from PRC subsidiaries | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Current – Mainland China | 7,610 | 5,392 | | Withholding Tax on Dividends Distributed by PRC Subsidiaries | 10,000 | 8,000 | | Deferred | (2,446) | (2,242) | | Total Tax Expense for the Period | 15,164 | 11,150 | - Income tax expense for H1 2025 increased by 36.0% year-on-year, mainly due to higher current tax in mainland China and increased withholding tax on dividends[34] 11. Dividends The Board does not recommend declaring an interim dividend for the first half of 2025 - The Board does not recommend declaring an interim dividend for the six months ended June 30, 2025[35] 12. Earnings Per Share Attributable to Owners of the Company Basic earnings per share for H1 2025 slightly increased to RMB 0.23 cents, with unconverted convertible bonds having no dilutive effect on basic EPS | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | RMB 52,206,000 | RMB 50,266,000 | | Weighted Average Number of Ordinary Shares in Issue | 22,736,114,715 shares | 22,736,114,715 shares | | Basic Earnings Per Share | RMB 0.23 cents | RMB 0.22 cents | - Unconverted convertible bonds have no dilutive effect on the presented basic earnings per share amount[36] 13. Trade Receivables As of June 30, 2025, total trade receivables increased by RMB 12.4 million to RMB 85.9 million, correlating with revenue growth | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Receivables | 215,811 | 203,652 | | Impairment | (129,917) | (130,200) | | Total | 85,894 | 73,452 | - As of June 30, 2025, total trade receivables increased by 17.0% to RMB 85.9 million, related to revenue growth[37] | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Unbilled and Billed within 3 Months | 36,193 | 32,716 | | 4 to 6 Months | 4,791 | 3,647 | | 7 to 12 Months | 13,479 | 19,591 | | Over 1 Year | 31,431 | 17,498 | 14. Trade and Bills Payables As of June 30, 2025, total trade and bills payables were RMB 113.3 million, remaining largely consistent with the end of 2024 | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 Months | 31,345 | 31,609 | | 4 to 6 Months | 10,987 | 11,412 | | 7 to 12 Months | 15,301 | 7,255 | | Over 1 Year | 52,922 | 51,952 | | Unbilled | 2,764 | 5,210 | | Total | 113,319 | 107,438 | - As of June 30, 2025, total trade and bills payables were RMB 113.3 million, a slight increase from the end of 2024[38] 15. Events After the Reporting Period Post-reporting period, on July 29, 2025, the Group established a 51%-owned joint venture with Beijing ENN New Energy Investment Co., Ltd., with a capital injection of RMB 40.8 million, to engage in integrated energy services - On July 29, 2025, the Group established a 51%-owned joint venture with Beijing ENN New Energy Investment Co., Ltd., a wholly-owned subsidiary of ENN Energy Holdings Limited[39] - The joint venture was capitalized with RMB 40,800,000 to engage in integrated energy services, investment, construction, and operation of integrated energy facilities, and smart energy management platforms[39] 16. Capital Commitments As of June 30, 2025, the Group's capital commitments primarily for property, plant, and equipment totaled RMB 1.8 million, a significant decrease from the end of 2024 | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Property, Plant and Equipment | 1,814 | – | | Equity Interest in an Entity | – | 25,088 | | Total | 1,814 | 25,088 | - As of June 30, 2025, total capital commitments were RMB 1.8 million, a significant 92.8% decrease from the end of 2024, primarily due to the completion of equity investment commitments from 2024 year-end[40] 17. Comparative Amounts The Group has changed the presentation currency of its consolidated financial statements from HKD to RMB, with comparative figures retrospectively restated - The Group has changed the presentation currency of its consolidated financial statements from HKD to RMB, with comparative figures retrospectively accounted for and restated[41] Management Discussion and Analysis This section provides an overview of the industry, a detailed business review, future outlook, and an in-depth analysis of the Group's financial performance and position Industry Overview In H1 2025, global natural gas supply-demand remained fragile, domestic market was weak with a 0.9% decline in apparent consumption, while China promotes energy structure optimization and higher new energy power generation targets - In H1 2025, global natural gas supply-demand remained fragile, the domestic natural gas market was weak, and national apparent consumption decreased by 0.9% year-on-year[42] - The Chinese government is committed to green and low-carbon transition, optimizing the energy structure, highlighting natural gas as a 'transition energy', and targeting non-fossil energy power generation capacity to reach approximately 60% by 2025[43] - As a key participant in the energy system, the Group continuously strengthens resource supply, enhances the efficiency of the entire natural gas industry chain, and actively expands into clean and low-carbon sectors[44] Business Review In H1 2025, the Group's total gas sales volume grew 23.3% to 324.9 million cubic meters, revenue increased 28.7%, but gross margin declined, as it optimized city gas and accelerated new energy deployment | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Gas Sales Volume | 324.9 million cubic meters | 263.4 million cubic meters | 23.3% | | Revenue | RMB 1,019.6 million | RMB 792.4 million | 28.7% | | Gross Profit | RMB 12.3 million | RMB 15.2 million | (18.8%) | | Gross Margin | 1.2% | 1.9% | Decrease of 0.7 percentage points | | Profit for the Period | RMB 47.8 million | RMB 37.8 million | 26.5% | - The increase in profit for the period was primarily due to a decrease in administrative expenses and finance costs[45] - The Group's natural gas projects primarily cover 7 provinces and autonomous regions in China[45] Development and Operation of City Gas Business - City gas business revenue was RMB 441.0 million, a 8.2% year-on-year decrease, with connection revenue falling 19.3% to RMB 26.7 million, mainly due to reduced industrial user connection services[48] - During the period, 14,386 new gas pipeline users were connected, bringing the cumulative user count to 583,755[48] | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Natural Gas Sales Volume | 131.7 million cubic meters | 141.9 million cubic meters | (7.2%) | | - Residential Users | 51.4 million cubic meters | 50.3 million cubic meters | 2.2% | | - Non-residential Users | 80.3 million cubic meters | 91.6 million cubic meters | (12.3%) | LNG and CNG Trading and Distribution Business - Total trade volume in H1 2025 was 192.3 million cubic meters, a 67.4% year-on-year increase, with segment sales of RMB 570.2 million, mainly due to the Group's enhanced market development in Zhejiang and Guangdong provinces for trading and distribution businesses[49] - The Group entered into a master agreement with a wholly-owned subsidiary of its controlling shareholder, Beijing Gas Group, to ensure natural gas supply from January 1, 2024, to December 31, 2026[50] LNG Receiving Terminal Project - The Group holds a 29% equity interest in PetroChina Jingtang, an LNG receiving terminal that serves as a major winter peak-shaving and supply station for the Beijing-Tianjin-Hebei region[51] - In H1 2025, PetroChina Jingtang's total LNG receiving volume reached 2,959.9 million cubic meters, a 10.9% year-on-year decrease, primarily due to reduced gas demand in Beijing[51] Development and Operation of Integrated Clean Energy and New Energy Business - The Group actively explores transformation, accelerating its new energy business layout in energy storage, distributed energy, and multi-energy complementarity through acquisitions, self-construction, and joint ventures[52][56] - The Group holds a 49% equity interest in Beijing Unite Energy Engineering Technology Co., Ltd., which primarily engages in planning, design, and consulting for gas, heating, integrated energy utilization, and new energy power generation projects[53] - The Beiqijia Business Park Energy Center project generated RMB 6.7 million in revenue (458.3% year-on-year increase) and RMB 2.0 million in segment profit (81.8% year-on-year increase) for the Group's integrated clean energy and new energy business[54] - The Yangzhou Wutingqiao Cylinder Liner Co., Ltd. user-side energy storage system project officially commenced operations in Q4 2024, with other energy storage businesses also starting operations in various regions[55] Future Outlook For H2 2025, China's economy is expected to moderately recover, with deepening green and low-carbon energy transition, as the Group aims to strengthen natural gas, accelerate new energy, and transform into an integrated clean energy provider - In H2 2025, China's economy is expected to moderately recover, with deepening green and low-carbon energy transition and a continuous increase in clean energy's share[57] - The Group will actively respond to the 'Dual Carbon' strategy, consolidate its natural gas business advantages, accelerate new energy deployment, and transform into an integrated clean energy service provider[57] - In natural gas, the Group will strengthen synergy with its controlling shareholder to expand full industry chain advantages; in integrated energy, it will further improve new energy business layout and accelerate the transition of old and new growth drivers[57] Financial Performance Analysis This section details H1 2025 financial performance, including revenue growth, gross profit decline, reduced administrative and finance costs, and increased impairment reversals, collectively leading to a slight rise in profit attributable to owners Revenue - Revenue for H1 2025 was RMB 1,019.6 million, an increase of 28.7% compared to H1 2024, primarily due to increased revenue from natural gas trading and distribution[58] Gross Profit and Gross Margin | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 12.3 | 15.2 | (18.8%) | | Gross Margin | 1.2% | 1.9% | Decrease of 0.7 percentage points | - The decline in gross margin was primarily due to rising cost of sales caused by continuous adjustments in upstream prices[59] EBITDA | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | EBITDA | 147.3 | 153.3 | (3.9%) | - EBITDA remained largely stable[60] Other Income and Gains, Net | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Other Income and Gains, Net | 9.5 | 4.2 | 5.3 | Administrative Expenses | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 52.3 | 66.5 | (14.2) | - The decrease in administrative expenses was due to the Group's continuous implementation of cost reduction and efficiency improvement measures and enhanced operational efficiency[62] Reversal of Impairment Losses on Financial Assets, Net | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Reversal of Impairment Losses on Financial Assets, Net | 8.0 | 1.6 | 6.4 | - The increase in impairment reversals was due to the recovery of previously recognized impairment losses on financial assets during the period[63] Other Expenses, Net | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Other Expenses, Net | 0.8 | 1.5 | (0.7) | Finance Costs | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 45.5 | 58.3 | (22.0%) | - The decrease in finance costs was due to the Group's continuous implementation of cost reduction and efficiency improvement measures and enhanced operational efficiency[65] Income Tax | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Income Tax Expense | 15.2 | 11.2 | - Income tax expense primarily refers to current tax of RMB 7.6 million for PRC subsidiaries and withholding tax of RMB 10.0 million on dividends distributed by PRC subsidiaries[66] Profit Attributable to Owners of the Company | Metric | H1 2025 (RMB million) | H1 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 52.2 | 50.3 | 3.8% | - Profit attributable to owners of the Company remained largely stable compared to H1 2024[67] Changes in Key Items of Condensed Consolidated Statement of Financial Position This section analyzes balance sheet changes, including increased non-current assets due to associate investments, higher trade receivables and lower prepayments in current assets, and reduced other payables in current liabilities Non-current Assets - The balance of property, plant and equipment decreased by RMB 30.9 million compared to the end of 2024, mainly due to depreciation provisions in H1 2025[68] - The net carrying amount of investments in associates increased compared to December 31, 2024, primarily due to the share of profit from associate PetroChina Jingtang during the period[69] Current Assets - The balance of trade receivables increased by RMB 12.4 million compared to December 31, 2024, related to revenue growth[70] - The balance of prepayments, deposits and other receivables decreased by RMB 86.0 million compared to December 31, 2024, mainly due to collections during the period[70] - Cash and cash equivalents balance was RMB 364.7 million, largely consistent with the balance as of December 31, 2024[71] Non-current Liabilities - The balance of non-current liabilities remained largely consistent with the balance as of December 31, 2024[72] Current Liabilities - The balance of other payables and accrued expenses decreased compared to December 31, 2024, mainly due to enhanced management by the Group during the period[73] - The balance of bank and other borrowings remained largely consistent with the balance as of December 31, 2024, primarily comprising shareholder loans from the controlling company and certain RMB bank borrowings[73] - Convertible bonds refer to those issued by the Company to Beijing Gas Company Limited with a total principal amount of HKD 300 million, maturing on December 28, 2025[73] Capital Structure and Financial Resources The Group maintains a sound financial policy, financing through equity, bank borrowings, and convertible bonds, with net current liabilities of RMB 2,038.6 million, a debt-to-asset ratio of 66.1%, and a net debt-to-equity ratio of 130.2% as of June 30, 2025 | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 364.7 | 360.3 | 1.2% | | Net Current Liabilities | (2,038.6) | (1,975.0) | (3.2%) | | Current Ratio | 0.29 | 0.31 | (6.5%) | | Debt-to-Asset Ratio | 66.1% | 66.7% | (0.6 percentage points) | | Leverage Ratio | 52.2% | 52.4% | (0.2 percentage points) | | Net Debt-to-Equity Ratio | 130.2% | 133.3% | (3.1 percentage points) | - Since 2023, the Group has leveraged the advantage of low-cost RMB financing to replace HKD and USD borrowings, securing RMB bank borrowings equivalent to HKD 1,000 million at lower interest rates in H1 2025[76] - The Group will continue to explore various financing options to enhance its financing portfolio and improve financial independence, with no financial instruments entered into for hedging purposes during the period[76] Employee Information As of June 30, 2025, the Group had 574 employees, with compensation based on market conditions and individual performance, including medical insurance and discretionary bonuses - As of June 30, 2025, the Group had 574 employees, an increase of 10 from December 31, 2024[77] - Employee compensation is determined based on market conditions and individual performance, including medical insurance and discretionary bonuses[77] Tax Relief The Company is unaware of any tax relief or exemptions granted to its shareholders for holding the Company's securities - The Company is unaware of any tax relief or exemptions granted to its shareholders for holding the Company's securities[78] Pledge of the Group's Assets As of June 30, 2025, the Group's assets pledged include property, plant and equipment, equity interests in subsidiaries, investment properties, and collection rights for natural gas sales receivables - As of June 30, 2025, the Group's assets pledged include certain property, plant and equipment, equity interests in subsidiaries, investment properties, and collection rights for receivables from natural gas sales by a subsidiary[79][80][86] Exchange Rate Fluctuation Risk Most of the Company's monetary assets and liabilities are denominated in RMB, limiting significant foreign currency risk, with no current hedging policy but ongoing monitoring by the Board to mitigate currency risks - Most of the Company's monetary assets and liabilities are denominated in RMB, thus not facing significant foreign currency risk[81] - Currently, the Group has no foreign currency hedging policy, but the Directors will continue to monitor relevant foreign exchange risks and take appropriate measures to mitigate currency risks[81] Contingent Liabilities As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[82] Events After the Reporting Period Details of material events after the reporting period are disclosed in Note 15 of this interim results announcement, with no other material events - Details of material events after the reporting period are contained in Note 15 of this interim results announcement, with no other material events[83] Dividends The Board does not recommend declaring an interim dividend for the first half of 2025 - The Board does not recommend declaring an interim dividend for the first half of 2025[84] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures Except as disclosed in this announcement, the Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures in H1 2025 - Except as disclosed in this announcement, the Group had no material acquisitions or disposals of subsidiaries, associates, and joint ventures for the six months ended June 30, 2025[85] Material Investments and Future Plans for Material Investments or Capital Assets The Group entered into a joint venture cooperation agreement with Beijing ENN New Energy Investment Co., Ltd. on May 19, 2025, to engage in integrated energy services, with future plans to identify potential investment opportunities and conduct feasibility studies - On May 19, 2025, the Group entered into a joint venture cooperation agreement with Beijing ENN New Energy Investment Co., Ltd. to engage in integrated energy services[87] - Feasibility studies will be conducted and implementation plans developed to identify potential investment opportunities, funded by internal resources[87] Corporate Governance and Other Information The Group is committed to high corporate governance standards, complying with Listing Rules, with the Audit Committee reviewing interim financial statements, no listed securities transactions, and the Board appointing a lead independent non-executive director Audit Committee Review - The Board's Audit Committee has reviewed the Company's H1 2025 condensed consolidated financial statements and unaudited consolidated interim results, deeming appropriate accounting policies adopted and sufficient disclosures made[88] Purchase, Sale or Redemption of the Company's Listed Securities - In H1 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and as of June 30, 2025, the Company held no treasury shares[89] Corporate Governance - The Board is committed to upholding high standards of corporate governance and complied with the Corporate Governance Code set out in Appendix C1 of the Listing Rules during H1 2025[90][91] - All Directors complied with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules throughout H1 2025[92] Directors - The Board appointed Mr. Xu Jianwen, an independent non-executive Director, as the Lead Independent Non-executive Director, effective August 28, 2025, to act as an intermediary between other Directors and shareholders[93] Publication of Results Announcement and Interim Report - This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and uploaded to the aforementioned websites in due course[94]