Core Viewpoint - Recent performance reports from certain Hong Kong utility companies, particularly China Gas, have led to significant declines in their stock prices due to decreased revenue and profit, raising market concerns about their profitability [1][4]. Group 1: China Gas Performance - For the six months ending September 30, 2025, China Gas reported revenue of HKD 34.481 billion, a year-on-year decrease of 1.8%, and a net profit of HKD 1.334 billion, down 24.2% [4]. - The company has established a comprehensive energy supply structure, primarily focusing on pipeline natural gas, liquefied petroleum gas, and smart energy services [4]. - The domestic natural gas consumption faced challenges, with a slight decline of 0.2% year-on-year to 317.75 billion cubic meters from January to September [4]. - China Gas connected 676,300 new residential users during the first half of the fiscal year, a decrease of approximately 25.2% compared to the previous year [5]. Group 2: China Water Performance - China Water reported revenue of HKD 5.183 billion for the six months ending September 30, 2025, down 12.9% from HKD 5.953 billion in the same period last year [7][10]. - The company's profit attributable to shareholders was HKD 571 million, a decrease from HKD 756 million year-on-year [7]. - The decline in revenue was attributed to a strategic shift towards optimizing project management and prioritizing high-return projects, leading to a slowdown in construction activities [10]. - The urban water supply segment generated revenue of HKD 3.271 billion, down 13.1% year-on-year, while the pipeline drinking water supply segment saw a revenue drop of 28.3% [10][11].