Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - In August, the electricity consumption growth rate in the secondary industry increased, contributing the largest increment to total electricity consumption, accounting for 59% of the total increase [3][7] - The total electricity consumption in August reached 10,154 billion kWh, a year-on-year increase of 5.0% [3][6] - The manufacturing sector saw a record monthly growth rate for the year, with high-tech and equipment manufacturing electricity consumption growing by 9.1%, surpassing the average manufacturing growth rate by approximately 4.6 percentage points [3][7] Summary by Sections 1. Electricity: August Secondary Industry Consumption Growth - The total electricity consumption in August was 10,154 billion kWh, with a year-on-year growth of 5.0% [3][6] - The first industry consumed 164 billion kWh (9.7% growth), the second industry consumed 5,981 billion kWh (5.0% growth), the third industry consumed 2,046 billion kWh (7.2% growth), and residential consumption was 1,963 billion kWh (2.4% growth) [3][8] - The secondary industry contributed the most to the total electricity consumption increase, with a significant growth in manufacturing, particularly in high-tech and equipment manufacturing [6][7] 2. Gas: Supply and Demand Stability - Global gas prices have shown narrow fluctuations, with the Henry Hub spot price at $2.90/mmBtu, a weekly increase of 0.17% [16][19] - The LNG national ex-factory price was 4,016 yuan/ton, with a slight weekly decrease of 0.07% [16][36] - The report suggests a positive outlook for city gas companies due to cost reductions and improved profitability [38] 3. Weekly Market Review - The public utility and environmental protection sectors underperformed compared to the CSI 300 index, while the electric equipment sector outperformed [40][42] 4. Company and Industry Dynamics - The report highlights recent government initiatives aimed at promoting high-quality development in energy equipment, focusing on enhancing the efficiency of energy conversion equipment and advancing renewable energy technologies [49] - Key announcements from companies include significant contract wins and strategic investments aimed at enhancing operational capabilities and market positioning [50]

Investment Rating - The report maintains a positive outlook on the power and gas sectors, recommending specific companies for investment based on their performance and market conditions [3][16][18]. Core Insights - The report highlights that in August, the total electricity consumption reached 10,154 billion kWh, marking a year-on-year growth of 5.0%. The second industry contributed the largest increase, accounting for 59% of the total electricity increment [3][8][9]. - The report notes that global gas prices are experiencing slight fluctuations, with the Henry Hub spot price at $2.90/mmBtu and the TTF spot price at €32.15/MWh as of September 26 [18][19]. - The report emphasizes the stable growth in electricity consumption driven by high temperatures and government policies aimed at boosting consumption [8][9]. Summary by Sections 1. Electricity Sector - In August, the second industry saw a significant increase in electricity consumption, with a year-on-year growth of 5.0% and contributing 59% to the total electricity increment [3][9]. - The manufacturing sector achieved a record monthly growth rate, particularly in high-tech and equipment manufacturing, which grew by 9.1% year-on-year [9][10]. - The report recommends investments in hydropower, green energy, nuclear power, and thermal power companies, citing favorable conditions for growth and profitability [16][17]. 2. Gas Sector - The report indicates that the supply-demand dynamics for gas remain stable, with slight fluctuations in global gas prices. The LNG price in Northeast Asia decreased by 2.61% to $11.20/mmBtu [18][19]. - It highlights the steady increase in U.S. natural gas inventories and the impact of mild weather on heating and cooling demands, leading to low price volatility [21][27]. - The report suggests focusing on integrated gas companies and city gas firms that are expected to benefit from cost reductions and improved profitability [41][42]. 3. Market Performance Review - The report notes that the public utility and environmental sectors underperformed compared to the Shanghai and Shenzhen 300 indices, while the power equipment sector outperformed [43][44]. 4. Company and Industry Dynamics - Recent government initiatives aim to enhance the quality of energy equipment and promote the development of renewable energy sources [52]. - The report includes updates on major companies' announcements, including contract wins and strategic investments, which are expected to positively impact their future performance [52][53]. 5. Key Company Valuation Table - The report provides a valuation table for key companies in the public utility and environmental sectors, indicating their market positions and potential for growth [54].

Investment Rating - The report maintains an "Overweight" rating for the gas industry [1] Core Insights - The gas prices across various regions remain stable due to sufficient inventory in the US, progress in European storage, and slow recovery in domestic demand [1][10] - The report highlights the gradual implementation of price adjustments in urban gas companies, leading to improved profitability and valuation recovery [38] - The report emphasizes the importance of energy independence and the potential impact of US LNG import tariffs on companies with US gas sources [54][56] Price Tracking - As of September 26, 2025, the weekly price changes for various gas prices are as follows: US HH -0.1%, European TTF +1.2%, East Asia JKM -0.6%, China LNG ex-factory -0.1%, and China LNG CIF -2.1% [10][14] - The average total supply of natural gas in the US decreased by 0.1% week-on-week to 1,117 billion cubic feet per day, while total demand increased by 2.7% to 1,013 billion cubic feet per day [16] Supply and Demand Analysis - The report indicates that US natural gas inventory is sufficient, with a week-on-week increase of 750 billion cubic feet to 35,080 billion cubic feet [16] - In Europe, natural gas consumption from January to June 2025 was 2,408 billion cubic meters, a year-on-year increase of 5.8% [19] - Domestic natural gas apparent consumption in China increased by 0.8% year-on-year to 2,832 billion cubic meters from January to August 2025 [25][34] Pricing Mechanism Progress - Nationwide price adjustments have been gradually implemented, with 65% of cities adjusting residential gas prices by an average of 0.21 yuan per cubic meter [38] - The report suggests that there is still a 10% room for price gap recovery in urban gas companies [38] Investment Recommendations - The report recommends focusing on companies that can optimize costs and benefit from the ongoing price adjustments, such as Xin'ao Energy, China Resources Gas, and Kunlun Energy [56] - It also highlights the importance of companies with quality long-term contracts and flexible scheduling, such as Jiufeng Energy and Xin'ao Shares [56] - Companies with gas production capabilities, like New Natural Gas and Blue Flame Holdings, are suggested for attention due to the increasing uncertainty in US gas imports [56]

Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - The global natural gas market is gradually stabilizing after deep adjustments, with a weak balance in supply and demand expected to continue into the second half of 2025, while international natural gas prices are anticipated to remain relatively low despite geopolitical tensions and other uncertainties [4][5][7] - Domestic natural gas production in China is steadily increasing, but there is a significant production-consumption gap, leading to a high dependence on imports, which is projected to remain a challenge [9][10] - The construction of gas storage facilities is ongoing, enhancing supply security, but the current peak shaving capacity is still insufficient [14][19] - The upstream market is dominated by major state-owned oil and gas companies, while the midstream sector is seeing the establishment of a new pipeline network, and the downstream market remains competitive with diverse players [15][18] Summary by Sections Key Points - The global natural gas market is expected to maintain a weak balance in supply and demand in the first half of 2025, with international prices showing volatility but remaining low [4][5] - Domestic consumption of natural gas in China slightly decreased in early 2025 due to warm winter conditions, leading to a decline in LNG imports [9][10] - The supply of natural gas in China is expected to be relatively sufficient in the second half of 2025, with a slight recovery in demand anticipated [14][19] Major Focus Factors - Global natural gas consumption growth is slowing, with a 1% increase expected in 2025, down from 2.8% in 2024, and regional disparities are evident [5][6] - The LNG supply is projected to grow by 5.5% in 2025, driven by new capacities coming online, particularly from the US and Qatar [6][7] - China's natural gas import dependency is around 39%, with total imports of 82.4 billion cubic meters in the first half of 2025, a decrease of 8.3% year-on-year [10][12] Conclusion - The natural gas market in China is characterized by a stable upstream and midstream structure, with ongoing improvements in pricing mechanisms and infrastructure development [27][28] - The profitability of city gas companies is under pressure due to declining demand and connection business volumes, but overall debt levels remain stable [19][21] - The report highlights the importance of ongoing policy support for price adjustments and infrastructure development to enhance the industry's resilience [18][28]

[Company Information](index=2&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This chapter outlines the company's fundamental information, including board members, committee compositions, registered office, principal place of business in Hong Kong, legal advisors, auditors, and share registrars - Board members include Executive Directors Yang Ping (Chairman), Qin Yan (President), Liu Haiyan; Non-executive Directors Ge Lu, Li Weiwei, Zhang Junzheng, Fang Xin; and Independent Non-executive Directors Huang Desheng, Yu Handu, Yang Yuchuan, Li Boen[4](index=4&type=chunk) - Key committees are the Audit and Risk Management Committee (Chairman Yu Handu), Remuneration Committee (Chairman Huang Desheng), Nomination Committee (Chairman Yang Ping), and Environmental, Social and Governance Committee (Chairman Yang Ping)[4](index=4&type=chunk) - Auditor: KPMG[5](index=5&type=chunk) [Company Profile](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E7%B0%A1%E4%BB%8B) China Resources Gas is a leading gas utility group primarily engaged in natural gas procurement, pipeline construction and operation, and integrated services, with 275 city gas projects covering 25 provinces, 20.76 billion cubic meters of gas sales, and 61.37 million customers as of H1 2025 - China Resources Gas is the urban gas distribution flagship under China Resources (Holdings) Co., Ltd., one of China's largest state-owned enterprise groups, with core businesses including natural gas procurement and sales, pipeline construction and operation, integrated services, and comprehensive energy solutions[15](index=15&type=chunk)[17](index=17&type=chunk) - Operational Highlights | Indicator | Data | | :--- | :--- | | Total City Gas Projects | 275 | | Covered Provinces | 25 | | Covered City Types | 15 provincial capitals and 76 prefecture-level cities | | Total Gas Sales | Approximately 20.76 billion cubic meters | | Number of Customers | 61.37 million households | | Pipeline Length | 330 thousand kilometers | - The company will leverage favorable operating conditions to expand through organic and inorganic growth, enhance operational efficiency, provide safe and reliable clean energy, and contribute to environmental protection and sustainable development[16](index=16&type=chunk)[20](index=20&type=chunk) [Chairman's Report and Business & Performance Review](index=7&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E8%88%87%E6%A5%AD%E5%8B%99%E5%8F%8A%E6%A5%AD%E7%B8%BE%E5%9B%9E%E9%A1%A7) This chapter reviews H1 2025 global economic uncertainties and China's economic resilience amid a weak natural gas market, detailing the Group's efforts in gas source coordination, new user development, integrated services, and energy businesses, while noting decreased revenue and profit but stable cash flow and credit ratings [Half-Year Performance](index=7&type=section&id=%E5%8D%8A%E5%B9%B4%E6%A5%AD%E7%B8%BE) In H1 2025, global economic uncertainties persisted, China's GDP grew by 5.3%, but the domestic natural gas market was weak, with apparent consumption declining by 0.9% - The World Bank projects global economic growth of approximately **2.7%** in 2025[23](index=23&type=chunk)[24](index=24&type=chunk) - China's GDP grew by **5.3%** year-on-year in H1 2025, demonstrating economic resilience[23](index=23&type=chunk)[24](index=24&type=chunk) - Affected by higher temperatures, slow manufacturing PMI recovery, rising European and US natural gas prices, and US tariffs, apparent natural gas consumption was **211.97 billion cubic meters**, a **0.9%** year-on-year decrease[23](index=23&type=chunk)[24](index=24&type=chunk) [Core Business Operations](index=9&type=section&id=%E6%A0%B8%E5%BF%83%E4%B8%9A%E5%8A%A1%E8%BF%90%E8%90%A5) This section details the Group's operations and strategies in natural gas sales, new user development, integrated services, and integrated energy businesses, noting progress in gas source coordination and new projects despite a decline in integrated services revenue and profit [Natural Gas Sales](index=9&type=section&id=%E5%A4%A9%E7%84%B6%E6%B0%A3%E9%8A%B7%E5%94%AE) In H1 2025, total natural gas sales reached 20.76 billion cubic meters, with industrial and commercial sales declining, while residential sales grew by 4.2%, and unconventional resource acquisition doubled - Natural Gas Sales Volume (H1 2025) | Category | Sales Volume (billion cubic meters) | Year-on-Year Change | Proportion | | :--- | :--- | :--- | :--- | | Total Sales | 20.76 | - | - | | Industrial Sales | 9.45 | -2.2% | 45.5% | | Commercial Sales | 4.88 | -2.6% | 23.5% | | Residential Sales | 6.00 | +4.2% | 28.9% | - Gas source coordination scale exceeded **3.5 billion cubic meters**, a **100%** year-on-year increase; **200 million cubic meters** of unconventional resources were acquired; storage capacity increased to **3.75%**[29](index=29&type=chunk)[30](index=30&type=chunk) [New User Development](index=9&type=section&id=%E6%96%B0%E7%94%A8%E6%88%B6%E9%96%8B%E7%99%BC) In H1 2025, the Group developed 831,000 new residential users, comprising 667,000 new housing connections and 164,000 existing housing connections - New Residential User Connections (H1 2025) | User Type | Quantity (thousand households) | | :--- | :--- | | Total | 831 | | New Housing Connections | 667 | | Existing Housing Connections | 164 | [Integrated Services Business](index=10&type=section&id=%E7%B6%9C%E5%90%88%E6%9C%8D%E5%8B%99%E6%A5%AD%E5%8B%99) The Group expanded "Gas Butler" and "Hundred Cities, Ten Thousand Stores" models, covering 41.85 million users, but H1 2025 integrated services revenue decreased by 18.1% to HKD 1.45 billion, with segment profit down 22.6% to HKD 590 million - Continued promotion of grid-based management, covering **41.85 million users**; established "Gas Butler" for home services, with **26.90 million users** on WeChat Work; created "Hundred Cities, Ten Thousand Stores" model[35](index=35&type=chunk)[37](index=37&type=chunk) - Established "Runran Zhenxuan" online store, revitalized offline business halls, expanded brand collaborations, and provided high-quality products and services[35](index=35&type=chunk)[37](index=37&type=chunk) - Integrated Services Financial Performance (H1 2025) | Indicator | Amount (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Revenue | 1.45 billion | -18.1% | | Segment Profit | 590 million | -22.6% | [Integrated Energy Business Development](index=10&type=section&id=%E7%B6%9C%E5%90%88%E8%83%BD%E6%BA%90%E6%A5%AD%E5%8B%99%E7%99%BC%E5%B1%95) Leveraging its city gas advantages, the Group actively expanded integrated energy businesses, including distributed PV, distributed energy, and transportation charging, with significant new project signings in H1 2025 and accelerated expansion in Hong Kong - Prioritized distributed photovoltaic, distributed energy, and charging business segments to enhance integrated energy solution capabilities[36](index=36&type=chunk)[39](index=39&type=chunk) - Integrated Energy Projects Signed (H1 2025) | Project Type | Quantity (units) | Estimated Installed Capacity | | :--- | :--- | :--- | | Distributed Photovoltaic | 71 | 63 MW | | Distributed Energy | 35 | 127 MW | | Transportation Charging | 107 | 109 MW | - Invested in **15 charging projects** in Hong Kong, with **6 operational** and **9 under construction**, promoting liquid-cooled supercharging stations and integrated solar-storage-charging applications[36](index=36&type=chunk)[40](index=40&type=chunk) [Sustainable Development](index=11&type=section&id=%E5%8F%AF%E6%8C%81%E7%BA%8C%E7%99%BC%E5%B1%95) The Group actively advanced corporate governance, established an ESG Committee on March 28, 2025, and maintained an MSCI ESG rating of A, integrating national carbon peak and neutrality goals into operations - Actively promoted board corporate governance, improved functions, clarified responsibilities, emphasized integrity and compliance, and adhered to laws, regulations, and business ethics[41](index=41&type=chunk)[43](index=43&type=chunk) - On March 28, 2025, the Board resolved to establish an Environmental, Social and Governance Committee to fully implement the ESG sustainable development management system and engage consultants for professional advice[41](index=41&type=chunk)[44](index=44&type=chunk) - Organized anti-corruption and environmental training for board members and management; MSCI maintained the company's **ESG rating at A**; integrated national 2030 carbon peak and 2060 carbon neutrality goals into daily operations[42](index=42&type=chunk)[45](index=45&type=chunk) [Financial Performance Review](index=12&type=section&id=%E8%B4%A2%E5%8A%A1%E8%A1%A8%E7%8E%B0%E5%9B%9E%E9%A1%B1) This section reviews the Group's H1 2025 financial data, including revenue, profit, cash flow, borrowings, and credit ratings, noting a decline in revenue and profit but robust operating cash flow and stable financial health [Key Financial Information](index=12&type=section&id=%E4%B8%BB%E8%A6%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) In H1 2025, Group revenue was HKD 49.79 billion, a 4.4% decrease, with connection business revenue share at 5.6%, and operating cash flow at HKD 3.01 billion, maintaining a stable A2/A-/A- credit rating - Key Financial Data (H1 2025) | Indicator | Amount (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Revenue | 49.79 billion | -4.4% | | Connection Business Revenue Share | 5.6% | Decreased from 5.8% | | Operating Cash Flow | 3.01 billion | - | - Moody's, S&P, and Fitch maintained the Group's **A2, A-, A- ratings**, ensuring lower financing costs[46](index=46&type=chunk)[49](index=49&type=chunk) [Financial Review](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) In H1 2025, the Group's unaudited consolidated revenue was HKD 49.79 billion, a 4.4% decrease, with gross profit at HKD 8.52 billion (17.1% margin), and profit attributable to owners at HKD 2.40 billion, a 30.5% decline - Consolidated Financial Performance (H1 2025) | Indicator | Amount (HKD) | H1 2024 (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Consolidated Revenue | 49.79 billion | 52.08 billion | -4.4% | | Gross Profit | 8.52 billion | 9.67 billion | -11.9% | | Gross Profit Margin | 17.1% | 18.6% | -1.5% | | Profit Attributable to Owners | 2.40 billion | 3.46 billion | -30.5% | [Cash Flow](index=13&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) In H1 2025, operating cash flow was HKD 3.01 billion, a decrease from the prior year, with HKD 2.36 billion invested in gas operations, and cash and other deposits totaling HKD 11.24 billion, 98.0% of which was RMB - Cash Flow Highlights (H1 2025) | Indicator | Amount (HKD) | H1 2024 (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 3.01 billion | 4.25 billion | -29.2% | | Capital Expenditure for Gas Operations | 2.36 billion | 2.31 billion | +2.2% | - Cash and other deposits at period-end totaled **HKD 11.24 billion** (December 31, 2024: HKD 7.53 billion), with **98.0%** denominated in RMB[52](index=52&type=chunk)[55](index=55&type=chunk) [Liquidity and Financial Resources](index=14&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%92%8C%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintains a prudent financial management policy, with total borrowings of HKD 25.95 billion (70.5% current), an asset-liability ratio of 18.7%, and available credit facilities of HKD 80.11 billion, indicating robust financial health - Total borrowings at period-end were **HKD 25.95 billion** (December 31, 2024: HKD 23.00 billion), with **70.5%** (2024: 62.0%) repayable within one year[56](index=56&type=chunk)[59](index=59&type=chunk) - RMB borrowings accounted for **99.2%**, and JPY borrowings for **0.8%**[56](index=56&type=chunk)[59](index=59&type=chunk) - The asset-liability ratio was **18.7%** (December 31, 2024: 17.4%)[56](index=56&type=chunk)[60](index=60&type=chunk) - Credit facilities totaled **HKD 80.11 billion**, including RMB 51.10 billion, USD 520 million, and HKD 20.00 billion, with **46.3%** of RMB standby facilities utilized[57](index=57&type=chunk)[61](index=61&type=chunk) - Overall financial position and liquidity are robust, with ample operating cash flow[56](index=56&type=chunk)[60](index=60&type=chunk) [Property, Plant and Equipment](index=14&type=section&id=%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended June 30, 2025, the Group's capital expenditure on property, plant and equipment was HKD 2.73 billion, primarily for construction in progress, a decrease from H1 2024 - Acquisition expenditure in H1 2025 was **HKD 2.73 billion** (H1 2024: HKD 3.20 billion), primarily for construction in progress[58](index=58&type=chunk)[63](index=63&type=chunk) [Contingent Liabilities](index=15&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[65](index=65&type=chunk)[69](index=69&type=chunk) [Asset Pledges](index=15&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had no significant asset pledges - As of June 30, 2025, the Group had no significant asset pledges[66](index=66&type=chunk)[70](index=70&type=chunk) [Financial Management and Treasury Policy](index=15&type=section&id=%E8%B2%A1%E5%8B%99%E7%AE%A1%E7%90%86%E5%92%8C%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group's treasury, managed by Hong Kong headquarters, focuses on mitigating interest rate and foreign exchange risks without engaging in speculative activities, with most assets and liabilities denominated in HKD, USD, and RMB - Financial risk management is handled by the treasury at Hong Kong headquarters, primarily managing interest rate and foreign currency exchange fluctuation risks[67](index=67&type=chunk)[71](index=71&type=chunk) - The Group's policy is not to engage in any speculative activities[67](index=67&type=chunk)[71](index=71&type=chunk) - Most assets and liabilities are denominated in HKD, USD, and RMB, and are not expected to face significant foreign exchange fluctuation risks[67](index=67&type=chunk)[72](index=72&type=chunk) [Investments and Future Outlook](index=12&type=section&id=%E6%8A%95%E8%B5%84%E4%B8%8E%E6%9C%AA%E6%9D%A5%E5%B1%95%E6%9C%9B) This section covers the Group's H1 2025 significant investments in city gas projects and pipelines, and outlines the outlook for H2, emphasizing continued core business strengthening and clean energy expansion for sustainable growth and shareholder returns [Significant Investments, Acquisitions, Disposals, and Investments in Joint Ventures & Associates](index=15&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E6%94%B6%E8%B3%BC%E5%92%8C%E5%87%BA%E5%94%AE%EF%BC%8C%E6%96%BC%E5%90%88%E8%B3%87%E5%85%AC%E5%8F%B8%E5%8F%8A%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E7%9A%84%E6%8A%95%E8%B3%87) As of June 30, 2025, the Group projected new investments of HKD 90 million in 5 city gas projects and HKD 2.36 billion for pipeline construction, aiming to expand coverage and create synergies, with no other significant transactions during the period - Expected new investments of approximately **HKD 90 million** in **5 city gas projects**[68](index=68&type=chunk)[73](index=73&type=chunk) - Invested **HKD 2.36 billion** in pipeline construction and related facilities to expand gas operations[68](index=68&type=chunk)[74](index=74&type=chunk) - Investment aims to expand the company's coverage in relevant provinces and create cluster synergies with existing city gas projects in centralized procurement, pipeline design and engineering services, and management efficiency[68](index=68&type=chunk)[73](index=73&type=chunk) [Future Significant Investments or Capital Asset Plans](index=16&type=section&id=%E6%9C%AA%E4%BE%86%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E8%A8%88%E5%8A%83) As of the report date, the Group had no actual plans to acquire any significant investments or capital assets beyond those disclosed and its ordinary course of business - Except as disclosed, as of the report date, the Group had no actual plans to acquire any significant investments or capital assets, other than in the ordinary course of business[75](index=75&type=chunk)[80](index=80&type=chunk) [Development Outlook](index=12&type=section&id=%E7%99%BC%E5%B1%95%E5%B1%95%E6%9C%9B) H2 2025 outlook anticipates global economic pressure and volatile natural gas prices, while domestic economy is expected to stabilize with industrial upgrades and green energy transition, leading to a gradual recovery in natural gas consumption - Global economic growth faces multiple pressures, with natural gas prices expected to remain volatile and market demand growth uncertain[47](index=47&type=chunk)[50](index=50&type=chunk) - Domestic economy is expected to progress steadily, with industrial structure upgrading, deepening green energy transition, and a gradual recovery in natural gas consumption[47](index=47&type=chunk)[50](index=50&type=chunk) - The Group will continue to strengthen its core business, actively respond to national clean energy development, expand integrated services and integrated energy businesses, lay a foundation for sustainable development, and enhance shareholder returns[47](index=47&type=chunk)[50](index=50&type=chunk) [Dividends and Share-Related Matters](index=16&type=section&id=%E8%82%A1%E6%81%AF%E5%8F%8A%E8%82%A1%E4%BB%BD%E7%9B%B8%E5%85%B3%E4%BA%8B%E9%A1%B9) This section covers the interim dividend declaration, share register closure, shareholder's RMB dividend election, and the terminated share repurchase award scheme with its share disposal details [Interim Dividend](index=16&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board declared an interim dividend of HKD 0.30 per share for the six months ended June 30, 2025, payable on October 31, 2025, to shareholders on record as of September 15, 2025 - H1 2025 interim dividend of **HKD 0.30 per share** (H1 2024: HKD 0.25 per share), a **20%** year-on-year increase[78](index=78&type=chunk)[83](index=83&type=chunk) - Dividends will be paid on **October 31, 2025**, with a record date of **September 15, 2025**[78](index=78&type=chunk)[83](index=83&type=chunk) [Closure of Register of Members](index=16&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98) To qualify for the interim dividend, the company's register of members will be closed from September 12 to September 15, 2025 - The register of members will be closed from **Friday, September 12, 2025**, to **Monday, September 15, 2025**[79](index=79&type=chunk)[84](index=84&type=chunk) - The deadline for transfer registration is before **4:30 p.m. on Thursday, September 11, 2025**[79](index=79&type=chunk)[84](index=84&type=chunk) [Shareholders' Election](index=17&type=section&id=%E8%82%A1%E6%9D%B1%E4%B9%8B%E9%81%B8%E6%8B%A9%E6%AC%8A) The 2025 interim dividend will be paid in HKD cash unless shareholders elect to receive RMB cash, with an exchange rate of HKD 1.0 to RMB 0.91214, and election forms due by 4:30 p.m. on October 9, 2025 - Shareholders may elect to receive the 2025 interim dividend in either **HKD cash or RMB cash**[85](index=85&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) - The RMB exchange rate is set at **HKD 1.0 to RMB 0.91214**, resulting in **RMB 0.2736408 per share**[85](index=85&type=chunk)[88](index=88&type=chunk) - Shareholders must submit the dividend currency election form before **4:30 p.m. on October 9, 2025**[85](index=85&type=chunk)[88](index=88&type=chunk) - Shareholders should note that RMB cheques cleared in Hong Kong may incur handling fees, delays, or issues with overseas encashment[86](index=86&type=chunk)[89](index=89&type=chunk) [Award Scheme](index=18&type=section&id=%E7%8D%8E%E5%8B%B5%E8%A8%88%E5%8A%83) The company's 2008 Share Repurchase Cash Award Scheme, designed to recognize employee contributions, was terminated on September 25, 2024; in H1 2025, 29,197,100 award shares were sold, leaving a balance of 14,600,284 shares - The scheme aimed to recognize employee contributions, provide incentives, retain and recruit outstanding employees, and offer direct economic benefits[90](index=90&type=chunk)[93](index=93&type=chunk) - The Board resolved to terminate the award scheme on **September 25, 2024**[96](index=96&type=chunk)[97](index=97&type=chunk) - In H1 2025, the company sold **29,197,100 award shares**[97](index=97&type=chunk)[98](index=98&type=chunk) - As of June 30, 2025, the balance of award shares was **14,600,284 shares**[98](index=98&type=chunk) [Other Matters](index=16&type=section&id=%E5%85%B6%E4%BB%96%E4%BA%8B%E9%A1%B9) This section covers post-balance sheet events, the assessment of going concern, employee remuneration policies, and acknowledgements of support from various stakeholders [Post Balance Sheet Events](index=16&type=section&id=%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) The Group had no significant post-balance sheet events from the period-end up to the date of this report - The Group had no significant post-balance sheet events from the period-end up to the date of this report[76](index=76&type=chunk)[81](index=81&type=chunk) [Going Concern](index=16&type=section&id=%E6%8C%81%E7%BA%8C%E7%87%9F%E4%B8%9A%E5%8B%99) The Board believes the Group possesses sufficient working capital for the next twelve months, supported by internal funds and a strong banking record, thus the interim financial report is prepared on a going concern basis - The Board believes the Group has sufficient working capital to meet its needs for the next **12 months**[77](index=77&type=chunk)[82](index=82&type=chunk) - The interim financial report is prepared on a going concern basis[77](index=77&type=chunk)[82](index=82&type=chunk) [Employee Remuneration](index=20&type=section&id=%E7%8D%8E%E5%8B%B5%E5%83%B1%E5%93%A1) As of June 30, 2025, the Group employed approximately 57,162 staff in Hong Kong and mainland China, with remuneration based on performance, experience, and market wages, including bonuses and awards to attract and retain talent - As of June 30, 2025, the Group employed approximately **57,162 staff**[99](index=99&type=chunk)[101](index=101&type=chunk) - Remuneration is based on employee performance, work experience, and market wage levels, with bonuses and awards distributed according to achievements and performance[99](index=99&type=chunk)[101](index=101&type=chunk) - The Group values talent and is committed to attracting, training, and retaining outstanding employees[99](index=99&type=chunk)[101](index=101&type=chunk) [Acknowledgements](index=20&type=section&id=%E8%87%B4%E8%AC%9D) The Board extends sincere gratitude to all business partners, customers, shareholders, and employees for their support and contributions to the Group's business objectives - The Board extends sincere gratitude to business partners, customers, shareholders, and all employees[100](index=100&type=chunk)[102](index=102&type=chunk) - Thanking them for their support and contributions to the Group's business objectives[100](index=100&type=chunk)[102](index=102&type=chunk) [Corporate Governance and Other Information](index=19&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This chapter details the company's corporate governance structure, directors' and major shareholders' securities interests, share repurchases, account review process, and changes in director information, affirming commitment to transparency and accountability despite two code deviations [Directors' Securities Interests](index=21&type=section&id=%E8%91%A3%E4%BA%8B%E6%89%80%E4%BD%B5%E8%AD%89%E5%88%B8%E6%AC%8A%E7%9B%8A) As of June 30, 2025, company directors and chief executives held interests in the company's and its associated corporations' shares, including specific holdings by Mr. Huang Desheng, Mr. Yang Ping, Ms. Ge Lu, Mr. Zhang Junzheng, and Mr. Fang Xin - Mr. Huang Desheng holds **160,000 shares** of the company, representing **0.0069%**[107](index=107&type=chunk) - Mr. Yang Ping holds **80,000 shares** (0.0062%) of China Resources Medical, and Ms. Ge Lu holds **66,000 shares** (0.0051%) of China Resources Medical[109](index=109&type=chunk) - Ms. Ge Lu holds **2,000 shares** (0.000062%) of China Resources Beer[109](index=109&type=chunk) - Mr. Zhang Junzheng holds **796,000 shares** (0.0154%) of China Resources Power, and Mr. Fang Xin holds **20,000 shares** (0.0004%) of China Resources Power[114](index=114&type=chunk) - Mr. Fang Xin holds **368,255 shares** (0.025%) of China Resources Materials[114](index=114&type=chunk) [Major Shareholders](index=24&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1) As of June 30, 2025, China Resources Group (Gas) Co., Ltd. was the largest shareholder with 60.84% of shares, while China Resources (Holdings) Co., Ltd. and its subsidiaries were deemed to hold 61.46% interest - China Resources Group (Gas) Co., Ltd. holds **1,407,828,991 shares**, representing **60.84%**[117](index=117&type=chunk) - China Resources (Holdings) Co., Ltd. and its wholly-owned subsidiaries (CRC Bluesky, China Resources Co., Ltd., China Resources (China) Co., Ltd.) are deemed to have an interest in **1,422,298,991 shares**, representing **61.46%**[117](index=117&type=chunk)[119](index=119&type=chunk) [Repurchase, Sale or Redemption of Listed Securities](index=25&type=section&id=%E8%B3%BC%E5%9B%9E%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, the company repurchased 273,100 shares on the Stock Exchange for HKD 5,885,666, all of which remain uncancelled, with no other listed securities repurchased, sold, or redeemed during the period - Share Repurchases on the Stock Exchange (H1 2025) | Month | Number of Shares Repurchased | Highest Price (HKD) | Lowest Price (HKD) | Total Consideration (HKD) | Transaction Fees (HKD) | Total Repurchase Amount (HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | May 2025 | 10,000 | 22.0 | 21.9 | 219,700.00 | 349.00 | 220,049.00 | | June 2025 | 263,100 | 21.5 | 21.5 | 5,656,650.00 | 8,967.00 | 5,665,617.00 | | **Total** | **273,100** | - | - | **5,876,350.00** | **9,316.00** | **5,885,666.00** | - The Board believes that share repurchases enhance the long-term value for the company and its shareholders, aligning with overall interests[122](index=122&type=chunk)[125](index=125&type=chunk) - As of June 30, 2025, the company held no treasury shares[123](index=123&type=chunk)[125](index=125&type=chunk) [Review of Accounts](index=25&type=section&id=%E8%B3%AC%E7%9B%AE%E5%AF%A9%E9%96%B1) The interim financial report for the six months ended June 30, 2025, was unaudited but reviewed by the company's Audit and Risk Management Committee, with no disagreements noted - The interim financial report was unaudited[124](index=124&type=chunk)[126](index=126&type=chunk) - It was reviewed by the company's Audit and Risk Management Committee[124](index=124&type=chunk)[126](index=126&type=chunk) - The review found no disagreements[124](index=124&type=chunk)[126](index=126&type=chunk) [Corporate Governance Structure](index=26&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E6%9E%B6%E6%9E%84) The Group is committed to maintaining a robust corporate governance structure, managed transparently and accountably, with four Board committees—Audit and Risk Management, Remuneration, Nomination, and ESG—each fulfilling specific functions to enhance efficiency and professionalism [Corporate Governance](index=26&type=section&id=%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB) The Group is dedicated to maintaining a robust and reliable corporate governance framework, ensuring transparency, openness, and accountability for shareholders, with ongoing efforts to strengthen policies and four Board committees enhancing functionality - The Group is committed to maintaining an excellent and reliable governance structure, providing a transparent, open, and accountable framework for shareholders[127](index=127&type=chunk)[130](index=130&type=chunk) - It will continue to strengthen corporate governance policies to ensure alignment with current practices and standards[127](index=127&type=chunk)[130](index=130&type=chunk) - The Board has established an Audit and Risk Management Committee, Remuneration Committee, Nomination Committee, and Corporate Governance Committee (now the ESG Committee)[127](index=127&type=chunk)[130](index=130&type=chunk) [Audit and Risk Management Committee](index=26&type=section&id=%E5%AF%A9%E6%A0%B8%E8%88%87%E9%A2%A8%E9%9A%AA%E7%AE%A1%E7%90%86%E5%A7%94%E5%93%A1%E6%9C%83) Comprising three independent non-executive directors and one non-executive director, chaired by Mr. Yu Handu, the Audit and Risk Management Committee provides independent review of financial reporting, internal controls, and risk management, having reviewed the Group's accounting principles and financial statements - The Committee comprises Mr. Yu Handu (Chairman), Mr. Fang Xin, Mr. Huang Desheng, and Mr. Yang Yuchuan[4](index=4&type=chunk)[128](index=128&type=chunk)[131](index=131&type=chunk) - Its primary responsibility is to provide an independent and objective review of the financial reporting process, internal controls, risk management, and the effectiveness of the internal audit function[128](index=128&type=chunk)[131](index=131&type=chunk) - It has reviewed accounting principles and practices with management and discussed internal controls, risk management, and financial reporting matters[128](index=128&type=chunk)[132](index=132&type=chunk) [Remuneration Committee](index=26&type=section&id=%E8%96%AA%E9%85%AC%E5%A7%94%E5%93%A1%E6%9C%83) Comprising three independent non-executive directors and one non-executive director, chaired by Mr. Huang Desheng, the Remuneration Committee advises the Board on remuneration policies and structures for directors and senior management, reviewing and approving compensation based on company objectives - The Committee comprises Mr. Huang Desheng (Chairman), Mr. Zhang Junzheng, Mr. Yu Handu, and Mr. Li Boen[4](index=4&type=chunk)[129](index=129&type=chunk)[133](index=133&type=chunk) - Its primary responsibility is to advise the Board on remuneration policies and structures for directors and senior management, and to review and approve remuneration based on company objectives[129](index=129&type=chunk)[133](index=133&type=chunk) [Nomination Committee](index=27&type=section&id=%E6%8F%90%E5%90%8D%E5%A7%94%E5%93%A1%E6%9C%83) Chaired by Mr. Yang Ping, the Nomination Committee, composed of the Board Chairman, one non-executive director, and three independent non-executive directors, assists the Board in establishing formal, prudent, and transparent procedures for new director appointments and regularly reviews Board structure - The Committee comprises Mr. Yang Ping (Chairman), Ms. Ge Lu, Mr. Huang Desheng, Mr. Yu Handu, and Mr. Yang Yuchuan[4](index=4&type=chunk)[135](index=135&type=chunk)[137](index=137&type=chunk) - Its primary purpose is to assist the Board in establishing formal, prudent, and transparent procedures for appointing new directors[135](index=135&type=chunk)[137](index=137&type=chunk) - Responsibilities include regularly reviewing the Board's structure, size, and composition, and providing recommendations for proposed changes[135](index=135&type=chunk)[137](index=137&type=chunk) [Environmental, Social and Governance Committee](index=27&type=section&id=%E7%92%B0%E5%A2%83%E3%80%81%E7%A4%BE%E6%9C%83%E5%8F%8A%E7%AE%A1%E6%B2%BB%E5%A7%94%E5%93%A1%E6%9C%83) On March 28, 2025, the Corporate Governance Committee was renamed the Environmental, Social and Governance (ESG) Committee, chaired by Mr. Yang Ping, to guide and oversee the company's ESG vision, objectives, strategies, and reporting - On **March 28, 2025**, the Corporate Governance Committee was renamed the ESG Committee, with adjusted functions and responsibilities[136](index=136&type=chunk)[138](index=138&type=chunk) - The Committee comprises Mr. Yang Ping (Chairman), Mr. Li Weiwei, Mr. Huang Desheng, Mr. Yang Yuchuan, and Mr. Li Boen[4](index=4&type=chunk)[136](index=136&type=chunk)[138](index=138&type=chunk) - Its primary functions are to assist the Board in guiding and formulating the company's ESG vision, objectives, strategies, and framework, overseeing their development and implementation, and reviewing, approving, and authorizing the release of ESG reports[136](index=136&type=chunk)[138](index=138&type=chunk) [Code Compliance](index=28&type=section&id=%E5%AE%88%E5%89%87%E9%81%B5%E5%AE%88%E6%83%85%E5%86%B5) The company adopted and complied with all applicable provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the period, with two noted deviations regarding formal appointment letters for directors and the Chairman's absence from the AGM [Compliance with Corporate Governance Code](index=28&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, except for two deviations: no formal appointment letters for directors (though rotation exists) and the Chairman's absence from the 2025 AGM due to other commitments - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules[139](index=139&type=chunk)[141](index=141&type=chunk) - Deviation from C.3.3: No formal appointment letters were issued to directors, but directors are subject to retirement by rotation and adhere to relevant duty guidelines[139](index=139&type=chunk)[141](index=141&type=chunk) - Deviation from F.1.3: The Board Chairman was unable to attend the Annual General Meeting held on **May 28, 2025**, due to other work commitments[140](index=140&type=chunk)[142](index=142&type=chunk) [Standard Code for Securities Transactions by Directors](index=29&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted the Standard Code for Securities Transactions by Directors as per Appendix C3 of the Listing Rules, and all directors confirmed compliance during the period after specific inquiry - The company has adopted the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules[143](index=143&type=chunk)[145](index=145&type=chunk) - Following specific inquiry, all directors confirmed compliance with the Standard Code during the period[143](index=143&type=chunk)[145](index=145&type=chunk) [Changes in Directors' Information](index=29&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E5%8B%95) Since the 2024 annual report, Mr. Wang Gaoqiang retired as a non-executive director on May 28, 2025; Mr. Li Xiaoshuang resigned as executive director and CFO on June 27, 2025; and Mr. Liu Haiyan was appointed executive director on September 15, 2025 - Mr. Wang Gaoqiang retired as a Non-executive Director and member of the Audit and Risk Management Committee on **May 28, 2025**[146](index=146&type=chunk) - Mr. Li Xiaoshuang resigned as an Executive Director and Chief Financial Officer on **June 27, 2025**[147](index=147&type=chunk) - Mr. Liu Haiyan was appointed as an Executive Director on **September 15, 2025**[147](index=147&type=chunk) [Financial and Business Highlights](index=28&type=section&id=%E8%B2%A1%E5%8B%99%E5%8F%8A%E6%A5%AD%E5%8B%99%E6%91%98%E8%A6%81) This chapter summarizes the Group's key financial and operational data for H1 2025 and H1 2024 in tabular format, including revenue, profit, cash flow, EPS, dividends, balance sheet items, and operational performance metrics - Financial Summary (H1 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Revenue | 49,785,016 | 52,075,587 | (4.4%) | | Gross Profit | 8,524,019 | 9,671,182 | (11.9%) | | Operating Profit | 4,296,643 | 5,820,640 | (26.2%) | | Profit for the Period | 3,359,196 | 4,493,418 | (25.2%) | | Profit Attributable to Owners of the Company | 2,402,774 | 3,456,742 | (30.5%) | | Net Cash from Operating Activities | 3,008,942 | 4,252,981 | (29.3%) | | Basic Earnings Per Share (HK cents) | 105 | 152 | (30.9%) | | Proposed/Paid Interim Dividend (HK cents) | 30 | 25 | 20% | - Financial Position Summary (June 30, 2025) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 64,949,230 | 62,932,934 | | | Interests in Joint Ventures | 17,492,282 | 17,264,301 | | | Interests in Associates | 4,550,595 | 4,417,166 | | | **Current Assets** | | | | | Bank Balances and Cash | 11,242,309 | 7,530,584 | | | Inventories | 928,039 | 1,403,794 | | | Trade and Other Receivables | 18,321,074 | 17,673,735 | | | **Current Liabilities** | | | | | Trade and Other Payables | 30,958,703 | 29,989,960 | | | Bank and Other Borrowings | 17,749,489 | 13,718,688 | | | **Total Assets** | **138,489,941** | **132,482,695** | **4.5%** | | **Total Liabilities** | **71,275,546** | **68,511,719** | | | **Total Equity** | **67,214,395** | **63,970,976** | **5.1%** | - Financial Ratios (H1 2025) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Gross Profit Margin | 17.1% | 18.6% | | Net Profit Margin (for the period) | 6.7% | 8.6% | | Net Profit Margin (attributable to shareholders) | 4.8% | 6.6% | | Capital Gearing Ratio | 27.9% | 26.4% | | Asset-Liability Ratio | 18.7% | 17.4% | | Return on Equity (annualized) | 11.1% | 16.6% | - Operational Performance Summary (H1 2025) | Indicator | June 30, 2025 | June 30, 2024 | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Number of Projects | 275 | 276 | (1) | | Connectable Households (millions) | 99.88 | 98.42 | 1.5% | | Residential User Penetration Rate | 61.4% | 59.6% | 1.8 PPT | | Pipeline Length (kilometers) | 329,661 | 316,282 | 4.2% | | Total Connected Users | 61,372,284 | 58,836,112 | 4.3% | | New Connected Households (receipts collected) | 830,759 | 1,031,384 | (19.5%) | [Independent Review Report](index=31&type=section&id=%E7%8D%A8%E7%AB%8B%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) KPMG reviewed China Resources Gas Holdings Company Limited's interim financial report for the six months ended June 30, 2025, concluding that nothing indicated the report was not prepared in all material respects in accordance with HKAS 34, though the review scope was less than an audit - The subject of review is the interim financial report of China Resources Gas Holdings Company Limited and its subsidiaries for the six months ended **June 30, 2025**[159](index=159&type=chunk)[161](index=161&type=chunk) - The review was conducted by **KPMG**[159](index=159&type=chunk)[166](index=166&type=chunk) - The review was performed in accordance with Hong Kong Standard on Review Engagements **2410**, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity"[160](index=160&type=chunk)[163](index=163&type=chunk) - The review concluded that nothing has come to attention that causes the auditors to believe the interim financial report is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard **34**, "Interim Financial Reporting"[164](index=164&type=chunk)[165](index=165&type=chunk) - The scope of a review is less than an audit, and therefore no audit opinion is expressed[160](index=160&type=chunk)[163](index=163&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=33&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the Group's consolidated profit or loss and other comprehensive income for the six months ended June 30, 2025, showing revenue of HKD 49.785 billion, gross profit of HKD 8.524 billion, and profit attributable to owners of HKD 2.403 billion, with exchange differences from translation as the main component of other comprehensive income - Profit or Loss Overview (H1 2025) | Indicator | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 49,785,016 | 52,075,587 | | Cost of Sales | (41,260,997) | (42,404,405) | | Gross Profit | 8,524,019 | 9,671,182 | | Profit Before Tax | 4,348,718 | 5,716,425 | | Profit for the Period | 3,359,196 | 4,493,418 | | Profit Attributable to Owners of the Company | 2,402,774 | 3,456,742 | | Profit Attributable to Non-controlling Interests | 956,422 | 1,036,676 | - Exchange differences arising from translation were **HKD 1,121,615 thousand** (2024: HKD (492,669) thousand)[169](index=169&type=chunk) - Total comprehensive income for the period was **HKD 4,483,355 thousand** (2024: HKD 4,001,829 thousand)[169](index=169&type=chunk) - Basic earnings per share were **HKD 1.05** (2024: HKD 1.52)[170](index=170&type=chunk) [Consolidated Statement of Financial Position](index=35&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement presents the Group's consolidated financial position as of June 30, 2025, with total assets of HKD 138.49 billion, total liabilities of HKD 71.28 billion, total equity of HKD 67.21 billion, and net current liabilities of HKD 24.64 billion - Assets and Liabilities Overview (June 30, 2025) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 64,949,230 | 62,932,934 | | Interests in Joint Ventures | 17,492,282 | 17,264,301 | | Interests in Associates | 4,550,595 | 4,417,166 | | **Current Assets** | | | | Bank Balances and Cash | 11,242,309 | 7,530,584 | | Inventories | 928,039 | 1,403,794 | | Trade and Other Receivables | 18,321,074 | 17,673,735 | | **Current Liabilities** | | | | Trade and Other Payables | 30,958,703 | 29,989,960 | | Bank and Other Borrowings | 17,749,489 | 13,718,688 | | **Total Assets** | **138,489,941** | **132,482,695** | | **Total Liabilities** | **71,275,546** | **68,511,719** | | **Total Equity** | **67,214,395** | **63,970,976** | - As of June 30, 2025, net current liabilities were **HKD (24,635,542) thousand** (December 31, 2024: HKD (24,369,132) thousand)[173](index=173&type=chunk) [Consolidated Statement of Changes in Equity](index=37&type=section&id=%E7%B6%9C%E5%90%88%E8%82%A1%E6%9C%AC%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement details the Group's consolidated changes in equity for the six months ended June 30, 2025, including profit attributable to owners of HKD 2.403 billion, total comprehensive income of HKD 3.147 billion, share repurchases, award scheme share disposals, dividends paid, and subsidiary capital reductions - Equity Changes Overview (June 30, 2025) | Indicator | June 30, 2025 (HKD thousands) | December 31, 2024 (HKD thousands) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 43,393,972 | 41,171,967 | | Non-controlling Interests | 23,820,423 | 22,799,009 | | **Total Equity** | **67,214,395** | **63,970,976** | - Profit for the period: **HKD 2,402,774 thousand**[177](index=177&type=chunk) - Total comprehensive income for the period: **HKD 3,146,646 thousand**[177](index=177&type=chunk) - Disposal of shares held under award scheme: **HKD 669,015 thousand**[177](index=177&type=chunk) - Share repurchases: **HKD (5,886) thousand**[177](index=177&type=chunk) - Dividends paid: **HKD (1,587,770) thousand**[177](index=177&type=chunk) - Movement in exchange reserve: **HKD 742,033 thousand**[177](index=177&type=chunk) [Condensed Consolidated Cash Flow Statement](index=40&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This statement presents the Group's condensed consolidated cash flows for the six months ended June 30, 2025, with net cash from operating activities of HKD 3.009 billion, net cash used in investing activities of HKD 2.148 billion, net cash from financing activities of HKD 2.557 billion, and cash and cash equivalents totaling HKD 10.664 billion at period-end - Cash Flow Overview (H1 2025) | Cash Flow Type | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 3,008,942 | 4,252,981 | | Net Cash Used in Investing Activities | (2,147,883) | (3,861,284) | | Net Cash from Financing Activities | 2,557,372 | 835,665 | | Net Increase in Cash and Cash Equivalents | 3,418,431 | 1,227,362 | | Cash and Cash Equivalents at Period-End | 10,664,163 | 11,127,977 | - Key investing activities included proceeds from redemption of other deposits of **HKD 9.768 billion**, placement of other deposits of **HKD 10.136 billion**, and payments for property, plant and equipment of **HKD 2.343 billion**[184](index=184&type=chunk) - Key financing activities included new bank and other borrowings of **HKD 11.016 billion** and repayment of bank and other borrowings of **HKD 8.474 billion**[184](index=184&type=chunk) [Notes to the Interim Financial Report](index=42&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E5%91%8A%E9%99%84%E8%A8%BB) This chapter provides detailed notes to the interim financial report, covering general information, basis of preparation, accounting policy changes, segment revenue and performance, taxation, profit for the period, dividends, EPS calculation, key balance sheet items, share capital, business combinations, fair value measurement of financial instruments, capital commitments, and related party transactions [1. General Information](index=44&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) China Resources Gas Holdings Company Limited, a Bermuda-incorporated listed company, is ultimately controlled by China Resources (Holdings) Co., Ltd., a Chinese government-owned entity, primarily engaged in gas fuel sales, connection, and integrated services in China, with its unaudited interim results reviewed by the Audit and Risk Management Committee - The company is a listed entity incorporated in Bermuda[189](index=189&type=chunk)[191](index=191&type=chunk) - Its ultimate holding company is China Resources (Holdings) Co., Ltd., owned and controlled by the Chinese government[189](index=189&type=chunk)[191](index=191&type=chunk) - Its principal activities in China include gas fuel sales and distribution, gas connection, integrated services, design and construction services, and gas station operations[190](index=190&type=chunk)[192](index=192&type=chunk) - The interim results are unaudited but have been reviewed by the company's Audit and Risk Management Committee[190](index=190&type=chunk)[192](index=192&type=chunk) [2. Basis of Preparation](index=44&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim financial report is prepared in accordance with HKAS 34 and the Listing Rules, presented on a going concern basis due to sufficient working capital, and has been reviewed by KPMG - Prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard **34**, "Interim Financial Reporting," issued by the Hong Kong Institute of Certified Public Accountants[193](index=193&type=chunk)[198](index=198&type=chunk) - The report contains condensed consolidated financial statements and selected explanatory notes, not including all information required for full financial statements[198](index=198&type=chunk) - The Board believes the Group has sufficient working capital to meet its needs for the next **twelve months**, thus prepared on a going concern basis[201](index=201&type=chunk)[202](index=202&type=chunk) - The interim financial report is unaudited but has been reviewed by **KPMG**[199](index=199&type=chunk) [3. Changes in Accounting Policies](index=46&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) The Group applied the revised HKAS 21, "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability," which had no material impact on current or prior period results or financial position, and no other new standards or interpretations have been adopted yet - Hong Kong Accounting Standard **21**, "The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability" (Revised), has been applied[203](index=203&type=chunk)[205](index=205&type=chunk) - This revision had no material impact on the Group's results or financial position for the current or prior periods[203](index=203&type=chunk)[205](index=205&type=chunk) - The Group has not yet applied any new standards or interpretations that are not yet effective[206](index=206&type=chunk) [4. Revenue and Segment Information](index=46&type=section&id=4.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%A1%9E%E8%B3%87%E6%96%99) The Group's operating segments include gas fuel sales, connection, integrated services, design, construction, and gas stations; this section provides H1 2025 revenue and performance analysis for each, showing gas fuel sales as the primary revenue source despite a decline in segment results - Operating segments include sales and distribution of gas fuel and related products, gas connection, integrated services, design and construction services, and gas stations[208](index=208&type=chunk)[209](index=209&type=chunk) - Segment Revenue and Performance (H1 2025) | Segment | External Sales (HKD thousands) | Segment Results (HKD thousands) | | :--- | :--- | :--- | | Sales and Distribution of Gas Fuel and Related Products | 44,297,836 | 4,019,596 | | Gas Connection | 2,809,546 | 844,259 | | Integrated Services | 1,445,607 | 589,103 | | Design and Construction Services | 323,240 | 29,903 | | Gas Stations | 908,787 | 78,638 | | **Total** | **49,785,016** | **5,561,499** | - Segment Revenue and Performance (H1 2024) | Segment | External Sales (HKD thousands) | Segment Results (HKD thousands) | | :--- | :--- | :--- | | Sales and Distribution of Gas Fuel and Related Products | 45,923,708 | 4,654,900 | | Gas Connection | 3,016,023 | 1,124,459 | | Integrated Services | 1,765,090 | 761,123 | | Design and Construction Services | 335,500 | 33,961 | | Gas Stations | 1,035,266 | 93,886 | | **Total** | **52,075,587** | **6,668,329** | - Sales and distribution of gas fuel and related products represent the largest asset and liability segment[217](index=217&type=chunk)[218](index=218&type=chunk) [5. Taxation](index=50&type=section&id=5.%20%E7%A8%85%E9%A0%85) Taxation in the consolidated statement of profit or loss primarily comprises China corporate income tax and deferred tax, totaling HKD 990 million in H1 2025, a decrease from HKD 1.223 billion in H1 2024, with no Hong Kong profits tax provision due to no taxable profit - Taxation Components (H1 2025) | Tax Type | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | China Corporate Income Tax | 1,006,938 | 1,357,984 | | Deferred Tax | (17,416) | (134,977) | | **Total** | **989,522** | **1,223,007** | - No provision for Hong Kong profits tax was made as the company and its Hong Kong operating subsidiaries had no assessable profits[220](index=220&type=chunk)[221](index=221&type=chunk) [6. Profit for the Period](index=51&type=section&id=6.%20%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9) This section details the components of profit for the period, including key deductions such as depreciation, amortization, and finance costs, and significant additions from various interest incomes - Key Items in Profit for the Period Calculation (H1 2025) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | **Deductions:** | | | | Depreciation of Property, Plant and Equipment | 1,570,856 | 1,548,538 | | Amortisation of Other Intangible Assets | 114,195 | 131,096 | | Amortisation of Right-of-Use Assets | 156,022 | 203,590 | | Total Finance Costs | 308,200 | 549,379 | | **Additions:** | | | | Interest Income from Bank and Other Deposits | 37,691 | 149,777 | | Interest Income from Bank and Other Deposits with Fellow Subsidiaries | 22,671 | 2,903 | | Interest Income from Joint Ventures | 29,444 | 32,741 | [7. Dividends](index=52&type=section&id=7.%20%E8%82%A1%E6%81%AF) In H1 2025, the company declared a final dividend of HKD 0.70 per share for 2024, totaling HKD 1.588 billion, and the Board declared an interim dividend of HKD 0.30 per share for H1 2025, totaling approximately HKD 690 million, an increase from HKD 0.25 per share in H1 2024 - The 2024 final dividend of **HKD 0.70 per share**, totaling **HKD 1,587,770 thousand**, was included in other payables as of **June 30, 2025**[225](index=225&type=chunk)[226](index=226&type=chunk) - The Board declared an H1 2025 interim dividend of **HKD 0.30 per share**, totaling approximately **HKD 689,906 thousand** (H1 2024: HKD 0.25 per share, totaling HKD 567,054 thousand)[228](index=228&type=chunk) - Dividends will be paid to shareholders on the company's

(Incorporated in Bermuda with limited liability) （於百慕達註冊成立之有限公司） (Stock code: 1193) （股份代號：1193） NOTIFICATION LETTER 通知信函 China Resources Gas Group Limited (the "Company") 26 September 2025 Dear Registered Shareholders. Should you have any queries relating to this notification, please call the Branch Share Registrar's telephone hotline at (852) 2980 1333 from 9:00 a.m. to 6:00 p.m., Monday to Friday (excluding public holidays). Yours faithfully, China Resources Gas Group Limited YANG Ping Chairman Note: Corp ...

(Incorporated in Bermuda with limited liability) 26 September 2025 （於百慕達註冊成立之有限公司） (Stock code: 1193) （股份代號：1193） NOTIFICATION LETTER 通知信函 Dear Non-registered Shareholder(s)(Note 1) , 本 公 司 的 本 次 公 司 通 訊 之 中 、 英 文 版 本 已 分 別 上 載 於 本 公 司 網 站 ( www.crcgas.com)及香港聯合交易所有限公司 （「聯交所」）之 網 站 (www.hkexnews.hk)（「網站版本」）。本公司建議 閣下閱覽本公司本次公司通訊的網站版本。 如 閣下因任何理由無法以電子郵件方式收取或閱覽公司通訊的網站版本，及欲索取本次及將來公司通訊的印刷本，請填妥及簽署隨附之申請表格， 並以已預付郵費的郵寄標籤寄回本公司之香港股份過戶登記分處（「股份過戶登記分處」）卓佳證券登記有限公司（地址為香港夏慤道16號遠東金融中 心17樓）（如在香港投寄毋須貼上郵票），或電郵至1193-ecom@vistra.co ...

Investment Rating - The report does not explicitly state an investment rating for the industry Core Views - The report highlights that in August 2025, the average daily power generation exceeded 30 billion kilowatt-hours for the first time, with a total industrial power generation of 936.3 billion kilowatt-hours, reflecting a year-on-year growth of 1.6% [4][7][53] - The report emphasizes the continuous improvement in the power generation structure, with significant contributions from clean energy sources such as wind and solar power, amidst ongoing dual carbon policies and the development of a new power system [8][9][12] Summary by Sections 1. Power Generation - In August 2025, the total power generation reached 936.3 billion kilowatt-hours, with a daily average of 30.2 billion kilowatt-hours, marking a 1.6% increase year-on-year [4][7] - The breakdown of power generation types shows that thermal power generation increased by 1.7%, nuclear power by 5.9%, wind power by 20.2%, and solar power by 15.9%, while hydropower decreased by 10.1% [9][12] - Wind power contributed the most to the increase in power generation, adding 12.4 billion kilowatt-hours compared to the same month last year [8][9] 2. Natural Gas - The report indicates a stable supply-demand balance in the natural gas market, with global gas prices experiencing slight fluctuations [18][19] - As of September 19, 2025, the Henry Hub spot price was $2.89/mmBtu, reflecting a weekly decrease of 1.80% [19][21] - The report suggests that the LNG prices in Northeast Asia remained stable at $11.50/mmBtu, with expectations of a further decline in prices as summer heat waves end [18][35] 3. Investment Analysis - Recommendations for investment include: - Hydropower: Favorable financial conditions due to interest rate cuts, with suggested companies being Guotou Power, Chuan Investment Energy, and Yangtze Power [16] - Green Energy: Increased stability in returns for renewable energy operators, with a focus on companies like Xintian Green Energy and Longyuan Power [16] - Nuclear Power: Continued approval of new units, with recommendations for China Nuclear Power and China General Nuclear Power [16] - Thermal Power: Improved profitability due to falling coal prices, with recommendations for Guodian Power and Huaneng International [16] - Gas Utilities: Favorable conditions for city gas companies, with recommendations for Kunlun Energy and New Hope Energy [40]

Investment Rating - The report maintains a positive outlook on the power and gas sectors, indicating a favorable investment environment for these industries [4]. Core Insights - In August, the average daily power generation exceeded 30 billion kilowatt-hours for the first time, with total industrial power generation reaching 936.3 billion kilowatt-hours, a year-on-year increase of 1.6% [9][57]. - The report highlights the continued growth of thermal power and the significant contribution of renewable energy sources, particularly wind and solar power, to the overall power generation increase [10][11]. - Global gas prices are experiencing narrow fluctuations, with a stable supply-demand balance in the market, particularly in the U.S. and Europe [20][29]. Summary by Sections 1. Power Generation - In August, the total power generation was 936.3 billion kilowatt-hours, with a daily average of 30.2 billion kilowatt-hours, marking a 1.6% increase year-on-year [9][57]. - The breakdown of power generation types shows thermal power at 6,274 billion kilowatt-hours (up 1.7%), hydropower at 1,479 billion kilowatt-hours (down 10.1%), nuclear power at 645 billion kilowatt-hours (up 5.9%), wind power at 738 billion kilowatt-hours (up 20.2%), and solar power at 538 billion kilowatt-hours (up 15.9%) [11][58]. - The report emphasizes the strong growth of renewable energy, with wind and solar power showing significant year-on-year increases of 20.2% and 15.9%, respectively [10][11]. 2. Natural Gas - As of September 19, the Henry Hub spot price was $2.89/mmBtu, reflecting a weekly decrease of 1.80%, while the TTF spot price in Europe remained stable at €32.00/MWh [20][21]. - The report notes that U.S. natural gas production remains high, contributing to a stable supply-demand balance and low price fluctuations [23][29]. - The LNG ex-factory price in China was 4,019 yuan/ton, with a weekly decrease of 0.84%, indicating a softening market due to weak domestic demand [41][44]. 3. Investment Recommendations - For hydropower, the report recommends companies like Guotou Power, Chuan Investment Energy, and Yangtze Power due to stable growth and financial benefits from interest rate cuts [18]. - In the renewable energy sector, companies such as Xintian Green Energy and Funi Co. are highlighted for their stable returns and high profitability [18]. - The report suggests focusing on integrated natural gas traders like New Hope Energy and Shenzhen Gas, as well as city gas companies benefiting from cost reductions [44].

Investment Rating - The report maintains an "Overweight" rating for the gas industry [1] Core Views - The report highlights that the U.S. is expected to experience a temperature drop, leading to reduced cooling demand, while European storage is progressing and domestic demand is slowly recovering, resulting in relatively stable gas prices across regions [1][10] - It emphasizes the ongoing price adjustments in the domestic market, with a focus on the gradual implementation of pricing reforms that enhance profitability for city gas companies [35] Price Tracking - As of September 19, 2025, the weekly price changes for various gas markets are as follows: U.S. HH -0.2%, European TTF -0.7%, East Asia JKM +0.1%, China LNG ex-factory -0.8%, and China LNG CIF +0.7%, with prices at 0.7, 2.8, 2.9, 2.7, and 2.9 CNY/m³ respectively [5][10] - The average total supply of natural gas in the U.S. decreased by 0.5% week-on-week to 1,118 billion cubic feet per day, while total demand fell by 1.1% to 985 billion cubic feet per day [14] Supply and Demand Analysis - The report indicates that the average natural gas consumption in China for the first seven months of 2025 increased by 0.3% year-on-year to 246.1 billion cubic meters, attributed to warmer winter conditions in 2024 affecting heating demand [26] - In Europe, natural gas consumption for the first half of 2025 was 240.8 billion cubic meters, reflecting a year-on-year increase of 5.8% [17] Pricing Progress - Nationwide, 65% of cities have implemented residential pricing adjustments, with an average increase of 0.21 CNY/m³, indicating a trend towards improved profitability for city gas companies [35] Investment Recommendations - The report recommends focusing on companies that can optimize costs and benefit from the ongoing pricing reforms, highlighting key companies such as New Hope Energy, China Resources Gas, and Kunlun Energy, among others [50] - It also suggests monitoring companies with quality long-term contracts and flexible scheduling capabilities, such as Jiufeng Energy and New Hope Holdings [50]