Group 1 - The company achieved an operating income of 889 million yuan in the first half of 2025, representing a year-on-year growth of 4.49%, with a net profit attributable to shareholders of 24.71 million yuan [1] - The company aims to become a leading clean energy supply service enterprise by integrating traditional gas business with new energy initiatives [1] - The main revenue source during the reporting period was from urban gas business, with efforts focused on expanding downstream markets and enhancing service quality [1] Group 2 - The company is actively developing LNG and integrated energy businesses, enhancing competitiveness by acquiring quality resources and aligning with market demands [2] - In the integrated energy sector, the company plans to deepen cooperation with users and accelerate the layout of multi-energy complementary businesses [2] - The company is exploring the transformation and upgrade of traditional CNG refueling stations to a comprehensive energy station model, with steady progress in preliminary work for related projects [2]

Group 1 - The company plans to amend its Articles of Association and change its registered address, which requires approval from the shareholders' meeting [1] - The company has appointed Zhao Rui as the secretary of the board, effective from the date of the board's approval until the end of the current board's term [3][5] - The company will hold its third extraordinary general meeting of shareholders on July 25, 2025, to review proposals submitted by the board [6][12] Group 2 - The company anticipates a loss for the first half of 2025, primarily due to a decrease in performance in the urban gas business segment compared to the same period last year [22][23] - The financial data for the performance forecast has not been audited by a registered accountant [22] - The company will provide detailed financial data in its half-year report, which will be disclosed through designated media [24]

Core Viewpoint - The tracking rating report indicates that Anhui Natural Gas has a strong competitive advantage in the natural gas pipeline construction and operation sector in Anhui Province, holding approximately 55% of the total pipeline mileage in the region [1][10][11]. Financial Performance - Anhui Natural Gas reported revenues of 59.27 billion yuan in 2022, 61.04 billion yuan in 2023, and 57.99 billion yuan in 2024, with a decline of 5% in 2024 primarily due to reduced gas prices and adjustments in transportation fees [12][13]. - The company’s operating cash flow remains stable, supported by a solid financial structure and moderate financial leverage [2][3]. Business Operations - The company operates three main business segments: long-distance pipelines, CNG/LNG, and urban gas distribution, with long-distance pipeline business contributing the largest share of revenue [12][15]. - As of March 2025, the company has constructed 26 long-distance pipelines totaling 1,740.5 kilometers, enhancing its supply capacity to 16 cities in Anhui [10][17]. Market Environment - The natural gas market in Anhui is experiencing rapid growth, with consumption increasing from 7.2 billion cubic meters in 2021 to an estimated 11.37 billion cubic meters in 2024, driven by economic development and government policies promoting gas usage [9][11]. - The company faces challenges from government price controls and competition in the downstream market as the natural gas sector undergoes market reforms [2][11]. Future Outlook - The company is expected to maintain its credit quality in the coming months, with potential for upgrades if significant assets are injected or market share improves [2][3]. - The ongoing expansion of the natural gas infrastructure in Anhui, supported by government initiatives, is likely to provide a favorable environment for the company's growth [11][12].