Hong Kong & China Gas Co. Ltd. · HKEX:3
Hong Kong & China Gas — The Hong Kong and China Gas Company — H1 2025 Earnings Presentation
48 slides from Hong Kong & China Gas's earnings presentation, Aug 20, 2025
Slide 1: 2025 Interim Results
The Hong Kong and China Gas Company Limited (0003.HK) 2025 Interim Results 20 August 2025 1 The Hong Kong and China Gas | 2025 Interim Results
Slide 2: 2025: Overall Operating Environment and Group Strategy
2025: Overall Operating Environment and Group Strategy Macro Environment Group Strategy Leading HK’s hydrogen energy development with Uncertainty in tariff policies affects industrial energy HKCG’s hydrogen energy edge consumption Rising city gas dollar margin and reducing operating Weak economy and
Slide 3: 1H2025: Business Highlights - Utility Business
1H2025: Business Highlights Utility Business Hong Kong Utility Mainland Utility Gas Supply Chain • Gas sales volume remained steady • Gas sales volume remained steady • Gas sourcing diversification • Orderly execution of hydrogen- • Dollar margin increased by boosted cost efficiency & powered constr
Slide 4: 1H2025: Business Highlights - Growth Business
1H2025: Business Highlights Growth Business Extended Business Renewable Energy Advanced Biofuels Green Methanol • HK, Yixing & Hangzhou • Profits sustained steady • Malaysia plant to • Partnered with Foran achieved per household growth, up 6% YoY commence trial Energy to form JV daily revenue of HK$
Slide 5: 1H2025: Overview of Business Operations
1H2025: Overview of Business Operations Utility Business Growth Business Hong Kong Mainland Extended Business Renewable Energy Green Fuels Gas Sales Volume (TJ) Gas Sales Volume (billion m³) Customer Coverage (million) Accumulated PV Advanced Biofuels 14,935 Remains 18.58 Remains Grid-connected (GW)
Slide 6: Agenda
Agenda Financial Highlights P. 7 Business Review Utility Business o Hong Kong Gas Business P. 12 o Mainland Gas Business P. 15 o Mainland Water and Environment P. 23 Growth Business o Extended Business P. 25 o Renewable Energy P. 29 o Green Fuels P. 36 ESG P. 42 Group Business Guidance P. 45 The
Slide 7: Financial Highlights
Financial Highlights The Hong Kong and China Gas | 2025 Interim Results 7
Slide 8: 1H2025 Profit from Operations
1H2025 Profit from Operations Utility Business Growth Business Others Hong Kong Mainland Extended Renewable Green Business Energy Fuels 2.15 billion 1.56 billion 0.25 billion 0.12 billion -0.19 billion 0.11 billion (1083: 0.17 billion) Advanced Biofuels: Rent: 0.20 billion -0.13 billion Green Methan
Slide 9: 2025 Interim Results
2025 Interim Results (Unit: HK$ million) 1H2024 1H2025 Change (%) Revenue 27,496 27,514 - Profit from Operations 3,885 3,996 +3 Corporate Financial Expenses (699) (912) -30 Core Operating Profit 3,186 3,084 -3* Profit Attributable to Shareholders 3,040 2,964 -3* Basic Earnings per Share (HK Cents) 1
Slide 10: Financial Position
Financial Position (Unit: HK$ billion) 31 Dec 2024 30 Jun 2025 Total Assets 158.3 162.4 Borrowings 57.4 61.0 Cash 6.4 8.4 Net Assets 68.3 68.9 Net Gearing Ratio* 43% 43% *Note: Net Debt / (Net Debt + Equity） Credit Rating: A- A1 The Hong Kong and China Gas | 2025 Interim Results 10
Slide 11: Capital Expenditure
Capital Expenditure (Unit: HK$ billion) 1H2024 1H2025 0003.HK 3.3 2.5 1083.HK 2.0 1.4 The Hong Kong and China Gas | 2025 Interim Results 11
Slide 12: Utility Business - Hong Kong Gas Business
Utility Business ——Hong Kong Gas Business The Hong Kong and China Gas | 2025 Interim Results 12
Slide 13: 1H2025 Gas Sales Volume
1H2025 Gas Sales Volume Gas Sales Volume (Unit: TJ) Changes in Gas Sales Volume (Unit: TJ) 14,935 (Remains Steady) (Equivalent to 430 Million m³of Natural Gas) Residential +209 Avg. temp. dropped by 0.8℃ Affected by less Hotels -12 Southbound tourists Residential 8,586 57% Hospitals & Social Welfare
Slide 14: Value Creation in Tough Time, Seeking Breakthrough in H2 Energy Business
Value Creation in Tough Time, Seeking Breakthrough in H2 Energy Business Commercialised Hydrogen Stable Gas Business Energy Business • Stable gas sales volume • Collaborating with the HKSAR government to • Recovery of tourism and commercial customers promulgate a development blueprint for green ener
Slide 15: Utility Business - Mainland Gas Business
Utility Business ——Mainland Gas Business The Hong Kong and China Gas | 2025 Interim Results 15
Slide 16: Stable Gas Sales Volume
Stable Gas Sales Volume Gas Sales Volume (Unit: billion m3) • Warm winter & macro pressures cut PRC NG Remains Steady usage by 0.9% YoY in 1H2025 18.63 18.58 • Steady increase of the Group’s retail gas sales Industrial 7.59 7.63 41% volume (Residential + Commercial + Industrial) Commercial 2.94 2.82
Slide 17: Rising Dollar Margin
Rising Dollar Margin Selling Price, Gas Cost and Dollar Margin (Unit: RMB/m3) 1H2024 1H2025 Changes • Dollar margin improved in 1H2025 Residential 2.78 2.82 +0.04 • Residential gas price increased Selling Commercial 3.71 3.65 -0.06 Price • Non-residential cost pass-through completed Industrial 3.57
Slide 18: Connection Business Revenue
Connection Business Revenue The national real estate market remained weak, new connections under pressure The number of household connections (Unit: thousands) User Type 1H2024 1H2025 Changes (%) • Affected by the weak real estate market, Residential 727 691 -5 new connections declined Industrial &
Slide 19: Improving Efficiency & Reducing Operating Expenses
Improving Efficiency & Reducing Operating Expenses Customer Service Efficiency Ratio (Unit: household/employee) • Optimised the personnel structure to increase 1,084 the customer service efficiency ratio 1,037 986 • Centralised operations & AI applications 911 amplified scale economies 871 809 • Ope
Slide 20: Market Expansion
Market Expansion • Deepening existing markets, advancing Jiangsu & Zhejiang Textile Industries Steam-to-gas Conversion gas-for-steam/electricity substitution • Secured 75 major clients in 1H2025, adding 240 million m³annual volume • Gas+ business rapid growth, accelerated strategic deployment in eme
Slide 21: Gas Supply Chain: Assurance of Gas Supply
Gas Supply Chain: Assurance of Gas Supply • Enhance gas supply security & cost efficiency management The Group’s total gas sales volume to sustain business growth reached 36.4 billion m³in 2024 1 Signed a 15 billion m³(1.5 billion m³/year) pipeline gas LTA with the “Three Majors” 2 Jincheng Caofeidi
Slide 22: Gas Supply Chain: Supporting The Expansion of City Gas Distribution
Gas Supply Chain: Supporting The Expansion of City Gas Distribution Steady Growth of Self-coordinating Gas Resource Volume 600 (Unit: billion m3) 60 Self-coordinating gas resource % • Group coordination target: 500 50 2025: ~6 billion m3 23% 2030: ~10 billion m3 400 40 17% 300 30 • Integrated ga
Slide 23: Utility Business - Mainland Water & Environment
Utility Business ——Mainland Water & Environment The Hong Kong and China Gas | 2025 Interim Results 23
Slide 24: Hua Yan Water Achieved Steady Growth
Hua Yan Water Achieved Steady Growth Water Volume Net Profit (Unit: billion tonnes) (Unit: HK$ million) Remains Steady +8% 0.78 0.79 252 233 • Number of customers: 3.2 million households • Gross margin from water 1H2024 1H2025 sales increased by 2% Environment (Solid Waste) (Unit: million tonnes) •
Slide 25: Growth Business - Extended Business
Growth Business ——Extended Business The Hong Kong and China Gas | 2025 Interim Results 25
Slide 26: Overview of Extended Business
Overview of Extended Business Population Coverage Customer Penetration Rate ~0.13 Billion 80 % 10 % Financial Data (HK$ Million) Total Hong Kong Mainland Revenue 2,003 894 1,109 Net Profit 258 234 24 Operational Data Smart Kitchen 0.40 0.13 0.27 (Kitchen Appliances, Million Units) Insurance Business
Slide 27: Signed US$45 Million Strategic Financing Agreement
Signed US$45 Million Strategic Financing Agreement Strategic investor influx Financing Amount: empowered resources and US$45 Million amplified market propulsion The Hong Kong and China Gas | 2025 Interim Results 27
Slide 28: Financing Milestone Accelerates Extended Business 2.0
Financing Milestone Accelerates Extended Business 2.0 • Forge long-term strategic • Insurance brokerage platform live • Enhanced AIoT platform enabled cooperation with major developers following acquisition close intelligent interconnections Henderson Land Development Integrated New World Develo
Slide 29: Growth Business - Renewable Energy
Growth Business ——Renewable Energy The Hong Kong and China Gas | 2025 Interim Results 29
Slide 30: Sustained Growth in Profit
Sustained Growth in Profit Operational Data 1H2024 1H2025 Changes PV Grid-connected (GW) 2.1 2.6 +0.5 Power Generation Volume (billion kWh) 0.82 1.18 +44% Gross Margin per kWh (RMB/kWh) 0.30 0.26 -0.04 Financial Data (RMB million) BU Profit Contribution 223.2 230.1 +3% PV Business Net Profit 151.8 1
Slide 31: PV: Accelerating PV Grid Connection and Power Generation
PV: Accelerating PV Grid Connection and Power Generation PV Business Net Profit (Unit: RMB million) +11% The gross margin per kWh declined by 1 RMB0.04/kWh due to policy impacts 168.9 151.8 Achieved additional 280 MW grid 2 connection, maintaining a return rate of 9% Intelligent operation and mainte
Slide 32: Energy Storage: Accelerating Contract Execution and Grid Connection
Energy Storage: Accelerating Contract Execution and Grid Connection Energy storage investment under AuM model, delivering full lifecycle services 1 including development, construction, and O&M Energy storage contracted volume 2 secured 775 MWh in 1H2025; 1 GWh annual target on track Energy storage g
Slide 33: Power Trading: Synergy-Driven, AI-Intensified EaaS
Power Trading: Synergy-Driven, AI-Intensified Rooftop PV Electricity market liberalisation creates opportunities for EaaS; + 1 accelerating electricity sales and AI algorithms deployment Energy Storage The electricity trading volume reached + Industrial customers EaaS 2 3.64 billion kWh, with approx
Slide 34: AuM: Expand Financing Channels & Secure Capital Sources
AuM: Expand Financing Channels & Secure Capital Sources 560 MW AuM capacity achieved, leading 1 industry in both power generation efficiency and cost management Two tranches of quasi-REITs (200 MW) 2 secured cumulative financing of approximately RMB1 billion Secured cumulative financing of 3 approxi
Slide 35: Navigate Challenges & Seize Opportunities
Navigate Challenges & Seize Opportunities Renewable Energy Becoming Navigate Challenges & Main Source of Power Generation Seize Opportunities Power Generation Structure Forecast 1. Leverage “High-Return” Advantage (Unit: trillion kWh) • Intensified focus on “Zero-Carbon Parks” customer 20 cultivatio
Slide 36: Growth Business - Green Fuels
Growth Business ——Green Fuels The Hong Kong and China Gas | 2025 Interim Results 36
Slide 37: Marine: Green Methanol - Business Development Strategies
Marine: Green Methanol - Business Development Strategies Inner Mongolia’s production plant upgrade to produce green methanol Production Capacity Current • Comprehensive transition to green production: 0.3 million tonnes (by 2028) Northeast Asia • First ISCC EU commercial production in China • Acquir
Slide 38: Marine: Green Methanol - Marine Fuel Market Prospects
Marine: Green Methanol - Marine Fuel Market Exhibits Enormous Development Prospects Green Methanol Will Become The Primary International Marine Transportation Low-carbon Marine Fuel (Unit: million tonnes) Emissions Reduction is Beneficial to The average demand for methanol in the The Green Methanol
Slide 39: Land: Established HK H2 Business, Pilots Progressing Orderly
Land: Established HK H₂ Business, Pilots Progressing Orderly H2 Power Generation System 1st Demonstration project: Hydrogen Powered PADEL+ in Sai Kung: Green Construction Site commenced operations in 2024 to be completed in Nov 2025 Charging Station Daily Active Sites: 1,400 Zero Demand: 200 tonnes/
Slide 40: Air: EcoCeres Results Performance
Air: EcoCeres Results Performance Production Prices Rebound (Unit: thousand tonnes) 1H2025 2H2025 (E) Changes 1H2025 result affected by SAF/HVO pricing headwinds, mitigated by June uptick SAF 113 165 +52 Steady Output & Market-driven Adjustments HVO 50 33 -17 Production remained steady, Market-respo
Slide 41: Air: Signed a Multi-year Agreement to Supply BA with SAF
Air: Signed a Multi-year Agreement to Supply BA with SAF Secured BA Supply Agreement Now British Airways Joins EcoCeres EcoCeres deepened strategic cooperation with BA and signed a multi-year agreement to supply BA with SAF To Lead The Future Of Sustainable Air Travel With Long-Term SAF Partnership
Slide 42: ESG
ESG The Hong Kong and China Gas | 2025 Interim Results 42
Slide 43: 1H2025: ESG Performance
1H2025: ESG Performance 2024 2025 A AA 3.4 3.5 Hang Seng Corporate Sustainability Index Series AA+ AA+ Ranked first among gas utilities 71 71 Selected for inclusion in the Sustainability Yearbook (China Edition) for three consecutive years 香港中华煤气 | 2025年中期业绩 43
Slide 44: TERA-Award
TERA-Award The 4th TERA-Award Smart Energy Innovation Competition (2024) • 785 submissions from 76 countries and regions in 2024 • Ceremony held at University of Cambridge • A British startup (Barocal) won the Gold Award 香港中华煤气 | 2025年中期业绩 44
Slide 45: Group Business Guidance
Group Business Guidance The Hong Kong and China Gas | 2025 Interim Results 45
Slide 46: 2025 Business Guidance
2025 Business Guidance Utility Business Growth Business Hong Kong Mainland Extended Business Renewable Energy Green Fuels Gas Sales Volume (TJ) Gas Sales Volume (billion m³) Customer Coverage (million) Accumulated PV Advanced Biofuels Remains Grid-connected (GW) (million tonnes) 27,200 36.6 +0.5% 46
Slide 47: Thank You
THANK YOU The Hong Kong and China Gas | 2025 Interim Results 47
Slide 48: Disclaimer
Disclaimer This presentation and corresponding discussion may contain certain forward-looking statements, including statements regarding our intent, belief or current expectations with respect to The Hong Kong and China Gas’s businesses and operations, market conditions, results of operation and fin
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