嘉兴燃气(09908) - 2025 - 中期业绩

Financial Summary Key Financial Indicators Jiaxing Gas Group's H1 2025 performance shows year-on-year declines in revenue, gross profit, and profit attributable to owners of the parent, with basic earnings per share and interim dividends also decreasing | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 1,461.5 | 1,516.5 | -3.63% | | Gross Profit | 118.1 | 124.3 | -4.99% | | Profit attributable to owners of the Company | 75.3 | 89.1 | -15.49% | | Basic EPS (RMB) | 0.55 | 0.65 | -15.38% | | Interim Dividend (per share, pre-tax) | 0.15 | 0.20 | -25.00% | Interim Condensed Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue was RMB 1,461.5 million, with profit for the period at RMB 81.9 million, both lower than the prior year, and net other comprehensive income was negative | Indicator | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 1,461,481 | 1,516,524 | | Cost of sales | (1,343,411) | (1,392,191) | | Gross Profit | 118,070 | 124,333 | | Other income and gains | 11,831 | 8,470 | | Profit before tax | 102,178 | 109,768 | | Income tax expense | (20,291) | (13,054) | | Profit for the period | 81,887 | 96,714 | | Profit attributable to owners of the parent | 75,284 | 89,146 | | Profit attributable to non-controlling interests | 6,603 | 7,568 | | Basic EPS (RMB) | 0.55 | 0.65 | - Net other comprehensive income for the period was RMB (22) thousand, compared to RMB 199 thousand in the prior year, mainly due to fair value changes and exchange differences[7] Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets were RMB 3,128.3 million, with net assets at RMB 1,227.6 million, showing significant growth in non-current assets and liabilities, and a shift from negative to positive net current assets | Indicator | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 2,089,759 | 1,881,807 | | Total current assets | 1,038,523 | 1,102,042 | | Total current liabilities | 851,844 | 1,195,846 | | Total non-current liabilities | 1,048,831 | 602,410 | | Net assets | 1,227,607 | 1,185,593 | | Equity attributable to owners of the parent | 1,171,524 | 1,130,702 | - Net current assets improved from negative RMB 93.8 million as of December 31, 2024, to RMB 186.7 million as of June 30, 2025, indicating improved liquidity[10] Notes to the Interim Condensed Consolidated Financial Information Company Information Jiaxing Gas Group primarily sells piped natural gas, LNG, and LPG in Jiaxing, China, and provides construction and installation services, with no controlling shareholder as of June 30, 2025 - The Group's principal businesses include the sale of piped natural gas, LNG, and LPG in Jiaxing, provision of construction and installation services, natural gas transportation, steam and building materials sales, and property leasing[11] - As of June 30, 2025, parties acting in concert held approximately 32.72% of the Company's shares, and Jiaxing City Urban Investment Development Group Co., Ltd. held approximately 23.76%, with no controlling shareholder[12] Basis of Preparation and Changes in Accounting Policies The interim financial information is prepared in accordance with IAS 34 and consistent with 2024 annual financial statements, with no material impact from the newly adopted IAS 21 (amendment) - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the 2024 annual consolidated financial statements[14] - The newly adopted International Accounting Standard 21 (amendment) "Lack of Exchangeability" has no impact on the interim condensed consolidated financial information, as the Group's transaction and functional currencies are exchangeable[16] Operating Segment Information The Group operates as a single reportable segment, focusing on gas sales, construction, and related services in Jiaxing, China, and despite higher winter sales, management does not consider the business highly seasonal - The Group has only one reportable operating segment, with principal businesses including gas sales, construction and installation services, and other activities in Jiaxing, China[17] - Revenue from external customers in Mainland China was RMB 1,461,481 thousand (H1 2024: RMB 1,516,524 thousand)[19] - Sales revenue is typically higher in winter due to increased heating gas consumption, but management does not consider the Group's business to be "highly seasonal"[20] Revenue Analysis Total Group revenue for H1 2025 was RMB 1,461.5 million, a decrease from the prior year, with sales of goods remaining the primary source, dominated by piped natural gas and LNG, while entrusted agency and labor services revenue grew significantly | Revenue Source | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of goods | 1,343,817 | 1,434,300 | | Provision of construction services | 51,934 | 49,303 | | Provision of installation and management services | 20,302 | 23,463 | | Provision of gas transportation services | 4,776 | 1,016 | | Provision of entrusted agency services | 27,889 | 1,115 | | Provision of labor services | 6,129 | – | | Total (net of government surcharges) | 1,461,481 | 1,516,524 | - Sales of piped natural gas and LNG are the primary sources of goods sales revenue, amounting to RMB 817,850 thousand and RMB 418,763 thousand, respectively[21] - Revenue from provision of entrusted agency services significantly increased from RMB 1,115 thousand to RMB 27,889 thousand, and provision of labor services revenue increased from zero to RMB 6,129 thousand[21] Composition of Profit Before Tax Profit before tax is influenced by cost of goods sold, cost of services, depreciation, and net impairment of financial and contract assets, with trade receivables impairment shifting from loss to gain in H1 2025 | Item | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 1,286,230 | 1,348,174 | | Cost of services provided | 57,181 | 44,017 | | Depreciation of property, plant and equipment | 34,162 | 36,554 | | Depreciation of right-of-use assets | 7,690 | 6,508 | | Impairment of trade receivables | (12,546) (gain) | 15,227 (loss) | Income Tax Income tax expense significantly increased to RMB 20.3 million in H1 2025, primarily due to deferred tax shifting from a gain to an expense, with a 25% corporate income tax rate in Mainland China and preferential rates for small-profit enterprises | Tax Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | PRC income tax for the period | 6,965 | 15,500 | | Deferred tax | 13,326 | (2,446) | | Total tax expense for the period | 20,291 | 13,054 | - The statutory corporate income tax rate in Mainland China is 25%, with eligible small-profit enterprises enjoying a preferential rate of 20%[24] Dividends The Board resolved to declare an interim dividend of RMB 0.15 per share (pre-tax) for H1 2025, a decrease from RMB 0.20 per share in the prior year | Dividend Type | H1 2025 (RMB thousand) | H1 2024 (RMB thousand) | | :--- | :--- | :--- | | Proposed interim dividend | 20,677 | 27,569 | | Interim dividend per ordinary share (pre-tax) | RMB 0.15 | RMB 0.20 | Earnings Per Share Basic earnings per share for H1 2025 was RMB 0.55, lower than RMB 0.65 in the prior year, primarily due to a decrease in profit attributable to owners of the parent | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the parent (RMB thousand) | 75,284 | 89,146 | | Weighted average number of ordinary shares in issue during the period (shares) | 137,844,500 | 137,844,500 | | Basic and diluted EPS (RMB) | 0.55 | 0.65 | Property, Plant and Equipment The carrying amount of property, plant and equipment increased to RMB 775.2 million as of June 30, 2025, mainly due to additions of RMB 143.7 million during the period | Item | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Carrying amount at beginning of period | 670,467 | 652,926 | | Additions | 143,745 | 135,043 | | Depreciation expense | (34,162) | (72,391) | | Carrying amount at end of period | 775,216 | 670,467 | Trade and Bills Receivables Total trade and bills receivables (net of impairment) decreased significantly to RMB 198.4 million as of June 30, 2025, from year-end 2024, primarily due to a reduction in trade receivables | Item | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 215,716 | 391,944 | | Bills receivables | 5,535 | 2,673 | | Impairment | (22,878) | (35,424) | | Total | 198,373 | 359,193 | - The largest portion of trade and bills receivables, RMB 171,132 thousand, is due within one year[32] Trade and Bills Payables Total trade and bills payables decreased to RMB 644.0 million as of June 30, 2025, from year-end 2024 | Item | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 314,416 | 374,528 | | Bills payables | 329,620 | 354,847 | | Total | 644,036 | 729,375 | - The vast majority of trade and bills payables, RMB 642,167 thousand, are due within one year[33] Interest-bearing Bank Borrowings Total interest-bearing bank borrowings increased to RMB 603.7 million as of June 30, 2025, with a significant rise in non-current borrowings, reflecting growth in long-term financing | Borrowing Type | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current portion total | 27,290 | 212,440 | | Non-current portion total | 576,390 | 140,460 | | Total | 603,680 | 352,900 | - Non-current bank borrowings significantly increased, with borrowings repayable over five years rising from zero to RMB 423,440 thousand, indicating a change in borrowing term structure[35] - A supplementary loan agreement signed in April 2025 adjusted the interest rate for some borrowings from LPR+0.05% to LPR[34] Share Capital As of June 30, 2025, the company's ordinary share capital remained unchanged at 137,844,500 shares with a par value of RMB 137,845 thousand | Item | Number of Shares | Par Value (RMB thousand) | | :--- | :--- | :--- | | Ordinary shares as of June 30, 2025 | 137,844,500 | 137,845 | Capital Commitments As of June 30, 2025, contracted but unprovided capital commitments for property, plant and equipment were RMB 2,302 thousand, largely consistent with year-end 2024 | Item | June 30, 2025 (RMB thousand) | Dec 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Contracted but not provided for: property, plant and equipment | 2,302 | 2,235 | Management Discussion and Analysis Industry Overview China's economy grew 5.3% in H1 2025, but natural gas consumption declined 0.9% due to rising international prices, warmer weather, and real estate adjustments, while new energy policies aim for industry standardization and sustainability - In H1 2025, China's GDP grew by 5.3% year-on-year, but apparent natural gas consumption decreased by 0.9%, mainly due to rising international gas prices, warmer weather, real estate market adjustments, and improved industrial energy efficiency[37] - The "Energy Law of the People's Republic of China," effective January 1, 2025, requires gas enterprises to ensure safe supply, disclose information, participate in technological innovation, and implement energy storage and emergency requirements[38] - The National Development and Reform Commission issued several policy drafts, including requirements for urban gas operators to establish gas storage capacity of no less than 5% of annual consumption, promote independent operation of oil and gas pipeline facilities, and improve provincial natural gas pipeline transportation pricing mechanisms to form a "national network"[38] Performance Review As Jiaxing's largest urban gas operator, Jiaxing Gas Group saw total gas sales volume decrease by 3.45% in H1 2025 due to major customer capacity adjustments, though new industrial and commercial user development remained robust, while joint venture Hangjiaxin's gross profit was impacted by international LNG price fluctuations - As of the end of the period, the Group provided gas supply services to approximately 502,000 residential users and 2,623 industrial and commercial users[39] - Total gas sales volume for the period was 392 million cubic meters, a 3.45% decrease compared to H1 2024, primarily due to reduced gas demand from major customer capacity adjustments[39] - Joint venture Hangjiaxin's gross profit could not be maintained at a similar level to H1 2024 due to fluctuations in international LNG sales prices, preventing it from benefiting from lower procurement prices as before[40] Development Strategy and Outlook Facing a complex economic environment, the Group will actively adapt to the market, strengthen reform and innovation, optimize resource allocation, analyze market demand and prices, and promote natural gas's green and low-carbon transition in industrial and transportation sectors for sustainable development - The Group will actively adapt to the market environment, strengthen reform and innovation, optimize resource allocation, assess market demand and prices, and the balance between resources and market, to coordinate and match overall resources effectively[41] - Guided by energy structure adjustment goals, the Group will actively promote the green and low-carbon transition of natural gas in industrial sectors and its efficient utilization in transportation, focusing on growth areas to achieve sustainable development[41] Financial Overview This section details the reasons for changes in the Group's key financial indicators for H1 2025, including revenue, gross profit, other income and gains, finance costs, income tax expense, and the decrease in profit attributable to owners of the parent Revenue H1 2025 revenue was RMB 1,461.5 million, a 3.63% year-on-year decrease, mainly due to reduced gas demand from major customer capacity adjustments and a slight decline in natural gas sales unit price - Revenue decreased by 3.63% to RMB 1,461.5 million, primarily due to reduced gas demand from major customer capacity adjustments and a slight decrease in the natural gas sales unit price[42] Gross Profit H1 2025 gross profit was RMB 118.1 million, a 4.99% year-on-year decrease, mainly affected by lower natural gas sales volume and unit price - Gross profit decreased by 4.99% to RMB 118.1 million, mainly because both natural gas sales volume and unit price were slightly lower than in H1 2024[43] Other Income and Gains H1 2025 other income and gains increased by 38.82% to RMB 11.8 million, primarily due to increased subsidies for renovation of old residential gas facilities and gas pipeline network upgrades - Other income and gains increased by 38.82% to RMB 11.8 million, mainly due to an increase of RMB 3.5 million in subsidies for renovation of old residential gas facilities and gas pipeline network and equipment upgrades[44] Finance Costs H1 2025 finance costs increased by 20.31% to RMB 7.7 million, primarily due to increased interest expense on borrowings - Finance costs increased by 20.31% to RMB 7.7 million, primarily due to increased interest expense on borrowings[45] Income Tax Expense H1 2025 income tax expense increased to RMB 20.3 million, with an effective tax rate of 23.79% - Income tax expense increased to RMB 20.3 million, with an effective tax rate of 23.79%[46] Profit Attributable to Owners of the Parent H1 2025 profit attributable to owners of the parent was RMB 75.3 million, a 15.49% year-on-year decrease, mainly due to a significant 65.15% drop in profit from associates and joint ventures, particularly Hangjiaxin's gross profit affected by international natural gas price fluctuations - Profit attributable to owners of the parent decreased by 15.49% to RMB 75.3 million, mainly due to a RMB 31.6 million decrease (65.15% decline) in profit from associates and joint ventures[47] - The decrease in profit from associates and joint ventures is primarily attributed to the improved supply-demand situation for international natural gas, leading to a downward shift in price fluctuation range, which prevented Hangjiaxin from benefiting from lower procurement prices as in the prior year[47] Liquidity, Financial Position and Capital Structure As of June 30, 2025, the Group's current assets were RMB 1,038.5 million, with cash and bank balances at RMB 404.8 million. The current ratio improved to 1.22, and the gearing ratio was 60.76%. The capital gearing ratio significantly increased to 21.10% due to higher utilized bank borrowings | Indicator | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Current Assets (RMB million) | 1,038.5 | 1,102.0 | | Cash and Bank Balances (RMB million) | 404.8 | 297.4 | | Current Ratio | 1.22 | 0.92 | | Gearing Ratio | 60.76% | 60.27% | | Utilized Bank Loans (RMB million) | 603.7 | 352.9 | | Capital Gearing Ratio | 21.10% | 9.92% | - Utilized bank loans amounted to RMB 603.7 million, bearing interest at annual rates of 2.88%-3.62%, of which RMB 576.4 million were non-current borrowings[49] - As of June 30, 2025, the unused bank credit facilities amounted to RMB 949.9 million[49] Exchange Rate Fluctuation Risk The Group's primary business is RMB-denominated, with foreign exchange risk mainly arising from joint venture Hangjiaxin's USD-denominated LNG transactions, which mitigates risk through resale of long-term purchase contracts - The Group's foreign exchange risk primarily stems from joint venture Hangjiaxin's USD-denominated buying and selling of LNG, where exchange rate fluctuations impact its profit[51] - Hangjiaxin mitigates adverse impacts from international energy price fluctuations and exchange rate changes by reselling a certain proportion of its purchases under long-term purchase and sales contracts[51] Contingent Liabilities, Financial Guarantee Liabilities and Pledges of Assets As of June 30, 2025, the Group had no significant contingent liabilities, financial guarantee liabilities, or pledges of assets, with prior bank loan guarantees for joint venture Hangjiaxin terminated in June 2023 - As of June 30, 2025, the Group had no significant contingent liabilities[53] - As of June 30, 2025, the Group had no financial guarantee liabilities (December 31, 2024: nil)[54] - Previous bank loan guarantees provided for joint venture Hangjiaxin were terminated in June 2023, now secured by Hangjiaxin's own property, plant and equipment[52] Material Acquisitions and Disposals In January 2025, the Group, through its wholly-owned subsidiary Jiaran Construction, acquired a 13.5% equity interest in Xingzhou Jiayuan for RMB 89.0 million, which, combined with a 2024 acquisition, constitutes a discloseable transaction - On January 17, 2025, Jiaran Construction acquired a 13.5% equity interest in Yancheng Xingzhou Jiayuan Real Estate Development Co., Ltd. for RMB 89.0 million[56] - The 2025 acquisition, combined with the 2024 acquisition (6.5% equity interest), constitutes a discloseable transaction, as the aggregate percentage ratio exceeds 5% but is below 25%[56] Human Resources and Staff Remuneration As of June 30, 2025, the Group had 397 employees, with total staff costs of approximately RMB 30.1 million, and is committed to enhancing employee professionalism and quality through training and competitive compensation | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Number of Employees | 397 employees | 399 employees | | Total Staff Costs (RMB million) | 30.1 | 34.4 | - The Group enhances employee professionalism and overall quality through targeted training courses and industry information dissemination, while offering competitive remuneration packages[57] Events After the Reporting Period No significant events occurred from the end of the reporting period up to the date of this announcement - No significant events have occurred from the end of the period up to the date of this announcement[58] Corporate Governance and Other Information Material Litigation During the reporting period and up to the date of the announcement, the Company was not involved in any material litigation or arbitration - During the period, the Company was not involved in any material litigation or arbitration[59] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[60] Compliance with Corporate Governance Code The Company adopted the Corporate Governance Code in Appendix C1 of the Listing Rules and complied with all provisions during the period, except for C.2.1 (Chairman and CEO roles not separated) and F.1.1 (no formal dividend policy), with the Board deeming the current structure and policies appropriate - The Company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules and complied with all code provisions during the period, except for provisions C.2.1 and F.1.1[61] - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Sun Lianqing, which the Board believes does not disrupt the balance of power and enables quick and efficient decision-making[62] - The Company has not adopted a formal dividend policy, as the Board believes it is not appropriate at this stage, and will review it periodically for consideration at an opportune time[63] Standard Code for Securities Transactions The Company adopted a code of conduct for securities transactions by directors and supervisors, no less exacting than the Standard Code in Appendix C3 of the Listing Rules, and all directors and supervisors confirmed compliance during the period - The Company has adopted a code of conduct for directors and supervisors dealing in the Company's securities, with terms no less exacting than the Standard Code set out in Appendix C3 of the Listing Rules[65] - Following enquiry, all directors and supervisors confirmed compliance with the code of conduct throughout the period[65] Interim Dividend The Board approved an H1 2025 interim dividend of RMB 0.15 per share (pre-tax), totaling approximately RMB 20.7 million, payable around October 10, 2025, with H-share dividends paid in HKD and subject to corporate or individual income tax withholding - The Board has approved the declaration of an interim dividend of RMB 0.15 per share (pre-tax) for H1 2025, totaling approximately RMB 20,676,675, expected to be paid on October 10, 2025[66] - Dividends for H-share shareholders will be paid in HKD, with an exchange rate of HKD to RMB 1:0.912136, equivalent to HKD 0.1644 per share (pre-tax)[67] - The Company will withhold and pay 10% corporate income tax for non-resident enterprise H-share shareholders and 10% or 20% individual income tax for individual H-share shareholders based on tax treaties[68][69] Closure of Register of Members To determine H-share shareholders' entitlement to the 2025 interim dividend, the H-share register of members will be closed from September 19 to September 24, 2025 (both dates inclusive) | Event | Date and Time | | :--- | :--- | | Latest time for lodging transfer documents for registration | September 18, 2025 (Thursday) 4:30 p.m. | | Closure of H Share Register of Members (both dates inclusive) | September 19, 2025 (Friday) to September 24, 2025 (Wednesday) | | Record Date | September 24, 2025 (Wednesday) | Audit Committee and Review of Interim Financial Statements The Audit Committee reviewed the Group's accounting principles, policies, and unaudited interim results for the period, finding them prepared in compliance with applicable accounting standards and regulations, with no objections - The Audit Committee has reviewed the accounting principles and policies adopted by the Group and the unaudited interim results for the period, deeming them prepared in compliance with applicable accounting standards and regulations, with sufficient disclosure, and no objections to the accounting treatments adopted[73] Publication of Interim Results and 2025 Interim Report This announcement has been published on the Company's and HKEX websites, and the interim report will be dispatched to shareholders in due course - This announcement has been published on the Company's website (http://www.jxrqgs.com) and the HKEX website (http://www.hkexnews.hk)[74](index=74&type=chunk) - The Company's interim report for the period will be dispatched to shareholders in due course in accordance with the Listing Rules[74]