HK & CHINA GAS(HK:00003)2022-04-20 09:16Environmental Sustainability and Carbon Management - The Hong Kong and China Gas Company Limited aims to achieve carbon neutrality by 2050 through energy transformation and innovation, including renewable energy development and carbon management initiatives [13]. - The company has set a new target to reduce greenhouse gas emissions by 10% by 2025 compared to the 2020 baseline, equating to a reduction of 10 million tons annually [16]. - The carbon intensity of gas production in Hong Kong decreased by 23% compared to 2005, with emissions at 0.588 kg CO2 equivalent per GJ of gas produced [18]. - The group aims to focus on clean energy development, particularly natural gas, and accelerate the development of renewable energy production and utilization [32]. - The group established a zero-carbon technology investment fund with a total scale of RMB 10 billion, with the first phase raising RMB 5 billion to invest in renewable energy, energy storage, and smart grid technologies [32]. - The company is exploring the feasibility of extracting hydrogen from gas for applications such as hydrogen fuel cells in buses, with hydrogen content in supplied gas at 49% [17]. - The company is committed to providing carbon management services to industrial and commercial customers to achieve their carbon reduction goals [54]. - The company is actively enhancing R&D in energy management technologies and zero-carbon solutions, focusing on renewable energy and advanced energy storage systems [58]. - The company aims to develop 200 zero-carbon smart parks equipped with photovoltaic systems by 2025, focusing on regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area [57]. - The company has established a carbon asset management company to assist clients in achieving carbon reduction goals through carbon measurement, trading, and management services [56]. Financial Performance and Revenue Growth - The operating revenue for 2021 was HKD 53,564 million, representing a 31% increase from HKD 40,927 million in 2020 [25]. - The group’s net profit attributable to shareholders after one-time provisions was HKD 5.01 billion, down HKD 990 million, or 16.5% year-on-year, with earnings per share of HKD 0.269 [32]. - The company reported a significant increase in revenue, achieving a total of HKD 21 billion for the year, representing a growth of 10% compared to the previous year [46]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 8% to 12% [46]. - The company reported a total revenue of HKD 53,563.7 million for the year ended December 31, 2021, compared to HKD 40,927.0 million in 2020, representing a growth of 30.0% [160]. - The profit before tax for the same period was HKD 8,380.7 million, down from HKD 8,925.6 million in 2020, indicating a decrease of 6.1% [160]. - The company declared a final dividend of HKD 0.23 per share, following an interim dividend of HKD 0.12 per share, totaling HKD 6,531.0 million in dividends for 2021 [160]. Customer Growth and Market Expansion - The total number of customers as of December 31, 2021, reached 1,964,937, an increase of 1% from 1,943,777 in 2020 [25]. - The number of gas customers increased to approximately 35.03 million, marking a growth of 10% [36]. - The company is expanding its market presence in Southeast Asia, targeting a 20% increase in market share within the next two years [46]. - The company completed an investment in Shanghai Gas, holding a 25% direct stake, which serves 6.4 million customers, increasing the group's total customer base to over 41 million [75]. - The number of new customers increased by 21,160, bringing the total to over 196,000 households, a rise of 1.1% from the end of 2020 [82]. Community Engagement and Social Responsibility - The company provided over 592,700 volunteer service hours and supported 830 families with meal packages through its community care initiatives [18]. - The company organized community care activities, distributing 18,960 fresh meal packages to 830 needy families during the pandemic [124]. - The company has been recognized with multiple service awards, including the "Star Diamond Service Award" for public utilities, reflecting its commitment to service excellence [94]. - The company expresses gratitude for the support received during the pandemic and is actively involved in related relief efforts [41]. - Since 2013, the company has donated educational supplies worth over RMB 4.5 million to 43 schools across 14 provinces, benefiting over 9,000 students [133]. Innovation and Technology Development - The company hosted the first TERA-Award competition to explore innovative solutions in smart energy, attracting over 200 entries from 23 countries and regions [20]. - The company is leveraging cloud computing, SaaS, and smart IoT systems in collaboration with Tencent to build a smart energy platform [54]. - The company launched a new series of smart home products, including gas alarms and home water purification systems, in 2021 [75]. - The company is considering strategic acquisitions to enhance its service offerings, with potential targets identified in the renewable energy sector [46]. - The company is actively pursuing market expansion in various provinces, including Hebei and Henan, to enhance its operational footprint [145]. Operational Efficiency and Cost Management - The company plans to enhance operational efficiency, targeting a 5% reduction in operational costs through process optimization [46]. - The company achieved a gas pipeline leakage rate per 100 kilometers that decreased by 28.8% compared to the previous year [21]. - The company has implemented a comprehensive quality management system to monitor all critical production, storage, and distribution facilities [147]. - The company emphasizes employee training and has established emergency response plans, conducting regular simulation exercises [147]. - The company is focused on reducing risks associated with third-party damage to critical infrastructure and ensuring business continuity [147]. Governance and Compliance - The group strictly adheres to local laws and regulations in Hong Kong and mainland China, including compliance with the Gas Safety Ordinance [163]. - The company has implemented a zero-tolerance policy towards corruption and related fraudulent activities, in compliance with the Prevention of Bribery Ordinance [162]. - The board is committed to good corporate governance, emphasizing accountability and transparency to meet stakeholder needs [195]. - The company has confirmed ISO14064 greenhouse gas quantification and verification certification with key suppliers, enhancing its environmental credentials [140]. - The company has established various urban gas projects across multiple provinces, including Guangdong and Hainan, to expand its market presence [142].