HK & CHINA GAS(HK:00003)2023-04-24 08:46Environmental Sustainability - The company processed approximately 500,000 tons of organic waste by the end of 2022, producing 22 million cubic meters of biogas[15]. - The carbon intensity of gas production is 0.576 kg CO2 equivalent per cubic meter, a 25% reduction compared to the 2005 baseline[22]. - The group aims to reduce greenhouse gas emissions from its operations by 10% by 2025 compared to the 2020 baseline[19]. - The group aims to reduce greenhouse gas emissions from operations by 10% by 2025, equating to a reduction of 140,000 tons compared to the 2020 baseline, and to decrease emissions by 10 million tons annually through various initiatives[112]. - The company’s hydrogen energy project aims to extract hydrogen from the gas pipeline network, supporting the Hong Kong Climate Action Blueprint 2050[142]. - The company has committed to reducing methane emissions and has partnered with a university to develop a pipeline leakage measurement method, with leakage rates between 0.045% and 0.13%[192]. - The company aims to achieve carbon neutrality by 2050, aligning with national and local climate action plans[189]. - The group is actively participating in international methane reduction initiatives and has become a founding member of the Climate Governance Initiative in Hong Kong[113]. - The group has established an ESG strategy focusing on energy transition and low-carbon business development[186]. Financial Performance - The company reported a total revenue of HKD 60,953 million for the year, an increase of 14% compared to HKD 53,564 million in the previous year[92]. - Shareholders' profit attributable to the company was HKD 5,248 million, up approximately 5% from HKD 5,017 million in the prior year[101]. - Basic earnings per share increased to HKD 28.1 cents, a rise of 4% from HKD 26.9 cents in the previous year[92]. - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users[124]. - Revenue for the last quarter reached $1.5 billion, representing a 15% increase compared to the previous quarter[125]. - The company has set a future outlook with a revenue guidance of $6 billion for the upcoming fiscal year, indicating a growth of 20%[126]. - New product launches are expected to contribute an additional $300 million in revenue over the next year[125]. - The company reported a 12% increase in gross margin, reflecting improved operational efficiency[125]. - The board has approved a share buyback program worth $200 million to enhance shareholder value[126]. Customer Growth and Engagement - The number of customers increased to 1,995,082, representing a growth of about 2% from 1,964,937 in the previous year[92]. - The group’s gas sales volume reached approximately 32.1 billion cubic meters in 2022, representing a growth of about 3% compared to the previous year, with gas customers increasing to approximately 37.29 million, a growth of about 6%[104]. - The company maintained a stable employee count of 2,110, with a slight increase in the number of customers per employee to 946, up from 933[92]. - The company assisted over 50,000 customers through gas fee discount programs for eligible groups[139]. - The integrated platform of Mingqi Home reached 15 million registered members in 2022, enhancing service efficiency and user experience[176]. Innovation and Technology - The company has developed an intelligent controller that connects to existing cooking stoves and mobile phones to enhance home safety[24]. - The group continues to implement AI technology across various departments to improve efficiency and customer experience[102]. - The group introduced a new RISC-V IoT security chip named "Kwang Wah Chip," aimed at enhancing data security for smart kitchen devices, marking a significant step in digital infrastructure within the energy sector[109]. - The company launched a smart water heater series with IoT capabilities, allowing remote control and monitoring of gas and water consumption, enhancing energy efficiency[147]. - The usage rate of the AI virtual assistant Tinny increased by 68% year-on-year, improving customer service efficiency[149]. - Online sales of gas appliances grew by 83% due to the development of an AI recommendation system for customers browsing online[149]. Strategic Initiatives - The company has established a national zero-carbon technology investment fund valued at RMB 10 billion[17]. - The group launched a zero-carbon technology investment fund with IDG Capital, totaling RMB 10 billion, to support innovation in the zero-carbon technology sector[108]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of $500 million allocated for this purpose[125]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2024[126]. - The group is actively developing the "Gas + Heat" business model, targeting high-energy-consuming industrial clients and residential areas for energy planning[156]. Community Engagement and Social Responsibility - The company donated HKD 3 million worth of anti-epidemic supplies to underprivileged communities during the year[198]. - The company launched a gas voucher program worth HKD 10 million, benefiting approximately 50,000 families[198]. - The company has distributed 2.96 million mooncakes since 2001, with the 2022 initiative benefiting nearly 200 charitable organizations[196]. - The company has implemented the "Cooking Broadcast 2.0" program, which has shown positive effects on the health of elderly participants with mild cognitive impairment[197]. Market Outlook - The group anticipates optimistic growth in the gas business in Hong Kong as social activities resume and the economy recovers post-pandemic[117]. - The business outlook for 2023 is expected to improve with the resumption of social and economic activities[139]. - The group anticipates significant growth in gas sales volume and customer numbers in 2023, supported by national policies to boost domestic demand[118]. - National policies promoting the use of natural gas as a transitional energy source are expected to benefit the group's business prospects in the short and long term[160].