Ge Long Hui·2025-08-20 10:43Core Viewpoint - Hong Kong and China Gas Company Limited reported a stable performance in its mid-year results, with a slight increase in operational profit and a focus on expanding its renewable energy and hydrogen business segments [1][3][4]. Financial Performance - The group's revenue reached HKD 27.514 billion, with a 3% increase in post-tax operating profit to HKD 3.996 billion [1]. - Shareholders' profit decreased by 3% to HKD 2.964 billion after accounting for non-operating gains and losses [1]. - Core business profit, excluding foreign exchange losses, increased by 4% [1]. Hong Kong Utility Business - The average temperature in Hong Kong was lower than the previous year, leading to an increase in residential gas sales [3]. - The overall gas sales volume in Hong Kong remained stable, supported by the recovery of the tourism sector and the completion of gas application facilities in various commercial and public venues [3]. - The company is advancing its hydrogen commercialization efforts, including hydrogen supply for construction sites and charging projects, which are expected to drive future profit growth [3]. Mainland China Utility Business - Despite challenges such as tariff issues and a warm winter, the urban gas sales volume remained stable [3]. - The gas business profit was stable, with the comprehensive price difference for urban gas increasing by 4 cents RMB per cubic meter to RMB 0.54 per cubic meter [3]. Renewable Energy Business - The core profit of Honghua Smart Energy, a subsidiary, grew by 2% to HKD 719 million, with cumulative photovoltaic grid connection reaching 2.6 GW and commercial energy storage at 260 MWh as of June 30, 2025 [3]. - The company is promoting an integrated decarbonization business model combining photovoltaic, energy storage, and electricity sales to enhance profitability [3]. Green Methanol and Sustainable Aviation Fuel Initiatives - The green methanol business made significant progress with a joint venture established with Foshan Energy to produce 200,000 tons annually, expected to commence production in the second half of 2027 [4]. - The company is collaborating with the Hong Kong government and industry partners to develop a green shipping fuel hub and is expanding its sustainable aviation fuel (SAF) market presence, including a long-term supply agreement with British Airways [4]. Business Expansion and Innovation - The company successfully merged its Hong Kong and mainland operations and is leveraging its 45 million user base to introduce innovative products, achieving significant performance growth and securing USD 45 million in financing [4]. - The company is actively restructuring its core business to enhance quality and efficiency amid ongoing global economic challenges [4]. Dividend - The company maintained an interim dividend of HKD 0.12 per share [5].