Core Viewpoint - The company reported its mid-year performance for 2025, showing a revenue of 97.543 billion yuan, a year-on-year increase of 5.0%, while the net profit attributable to shareholders decreased by 4.4% to 3.161 billion yuan, with a dividend of 0.166 yuan per share, reflecting a payout ratio of 45.5% [1] Group 1: Financial Performance - In H1 2025, the company's pre-tax profit was 6.737 billion yuan, a decrease of 7.1% year-on-year, and the net profit attributable to shareholders was 3.161 billion yuan, down 4.4%, which was below expectations [2] - The natural gas sales business saw a gross profit decline of 410 million yuan year-on-year, attributed to wholesale gas price adjustments and a narrowing price difference in the gas station business model [2] - Other income decreased to 381 million yuan from 746 million yuan in H1 2024, impacted by the progress of government subsidy projects [2] Group 2: Business Segmentation - Natural gas sales revenue increased by 6.1% to 80.078 billion yuan, but pre-tax profit fell by 10.5% to 4.477 billion yuan, with pre-tax profit accounting for 66.4% of total profit, down 2.6 percentage points year-on-year [2] - Exploration and production revenue and pre-tax profit decreased by 16.3% and 64.9% respectively, with crude oil sales volume at 4.12 million barrels, a year-on-year increase of 1.9%, but average selling price down by 7.2% to 62.9 USD per barrel [2] - LNG processing and storage revenue decreased by 1.6% to 4.371 billion yuan, while pre-tax profit increased by 11.4% to 1.836 billion yuan, with total processing volume up by 1.7% to 7.9 billion cubic meters [2] Group 3: Strategic Positioning - The company benefits from strong backing by PetroChina, which holds 56.05% of its shares, providing resource security for its city gas and LPG sales businesses [3] - The company is strategically positioned to capitalize on the transfer of manufacturing industries to the central and northeastern regions of China, achieving a year-on-year increase of 2.2% in retail gas volume in H1 2025 [3] - The company has adjusted its retail gas volume growth guidance for 2025 from 8% to 5%, leading to a downward revision of net profit forecasts for 2025-2027 [3]