Towngas Smart Energy Company Limited · HKEX:1083
Towngas Smart Energy — H1 2022 Earnings Presentation
35 slides from Towngas Smart Energy's earnings presentation, Aug 16, 2022
Slide 1: FY2022 Interim Results
FY2022 Interim Results 16 August 2022
Slide 2: Situation and Deployment
Situation and Deployment Fluctuation in Geopolitical Tensions Smart Energy Fuel Prices Carbon Neutrality Increasing Importance of Mitigate The Impact of Driving The Development of Energy Self-sufficiency Price Fluctuation Smart Energy Platform Towngas Smart Energy Limited | FY2022 Interim Results 2
Slide 3: FY2022 Business Highlights
FY2022 Business Highlights City-gas Renewable Energy Renewable Business Gas Sales Volume: 7.54 billion m 3 Accumulative 4% vs 1H 2021 47 Zero Carbon Industrial Parks Total No. of City-gas Project: 178 2 projects 1H 2022 0.78 GW Contracted Total Number of Customers: 15.5 million GW Under 410,000 1H 2
Slide 4: From City-gas to Integrated Energy
From City-gas to Integrated Energy Gas Supply Smart Energy Residential “Gas+” 15.32 million customers Residential C&I District Heating + Renewable Photovoltaics Digitalisation C&I Energy Carbon Management Green Power 180,000 customers 15.5 million customers ENERGY EVOLUTION Towngas Smart Energy Limi
Slide 5: Customer-centric Solutions For All Commercial & Industrial Scenarios
Customer-centric Solutions For All Commercial & Industrial Scenarios Over 400,000* Demands from C&I Customers Smart Energy Platform AE Paper- Hotel School Hospital Property Steel Chemical Food Electronic making Hot Clean Steam High-Efficiency Combined Green Power Carbon Electricity Carbon Air Air En
Slide 6: ESG
S223 AREA SER Aol Towngas Smart Energy Company Limited ESG
Slide 7: Fulfill Global Requirements and Promote Green Financing
Fulfill Global Requirements and Promote Green Financing Significant Improvement for Two Ratings Board Gender Elevated ESG Committee Diversified to Board Level 36.4 (High Risk) > 29.1 (Medium Risk） 19 > 43 Voluntary compliance before law enforcement and participated in industry alliance Rating improv
Slide 8: Agenda
AGENDA Financial Highlights P. 10 Business Review City Gas P. 13 Smart Energy o “Gas+” Heating P.20 o Renewable Energy P.24 Business Guidance P. 33
Slide 9: Financial Highlights
ell ant lan jwngas SI ergy Company Limited FINANCIAL HIGHLIGHTS
Slide 10: Stable Performance With Resilient Growth
Stable Performance With Resilient Growth (Unit: HK$ million) 1H 2022 1H 2021 Changes Revenue Piped Gas & Energy Sales 8,637 6,514 33% Connection Fees 1,194 904 32% Extended Businesses 329 355 7% 10,160 7,773 31% Profit Attributable to Shareholders 1,042 778 34% Basic Earnings Per Share (HK Cen
Slide 11: Healthy Financial Position
Healthy Financial Position (Unit: HK$ billion) 30 Jun 2022 31 Dec 2021 Total Assets 52.8 54.2 Net Assets 24.7 25.2 Cash & Bank Balances 3.9 4.1 Total Borrowings 19.0 19.5 Net Gearing 38.0% 37.9% “BBB+” “Baa1” Towngas Smart Energy Limited | FY2022 Interim Results 11
Slide 12: Business Review
BUSINESS REVIEW Gas Business Smart Energy o “Gas+” Heating o Renewable Energy
Slide 13: Steady Growth Amid Lockdown from COVID-19
Steady Growth Amid Lockdown from COVID-19 Total Volume of City-gas 城市燃气项目 客户数 Customers Gas Sales* Projects 7.54 billion m3 178 projects 15.5 million 4% 2 projects 1H 2022 410,000 1H 2022 vs 1H 2021 *Excluding Shanghai Gas Towngas Smart Energy Limited | FY2022 Interim Results 13
Slide 14: Gas Sales Volume by Sectors
Gas Sales Volume by Sectors Gas Sales Volume Gas Sales Mix 4% (Unit: Billion m3) 1H 2022 7.26 7.54 Wholesale Distributed 0.16 13% Energy 0.17 Distributed 1.0 14% Wholesale 1.02 Energy 2% 1H 2021 2% 3.72 Industrial 3.59 Industrial 50% 50% 21% 23% Commercial 0.92 0.93 Residential Residential 1.56 1.73
Slide 15: Dollar Margin Rebound Despite of Upstream Price Hike
Dollar Margin Rebound Despite of Upstream Price Hike 2021 – 1H 2022 (Unit: RMB/m3) Dollar Margin Changes For C&I, cost pass through or winter 0.55 0.48 0.50 price extend into summer months For residential, working on tariff increase and government subsidy Gas cost improvement by sourcing third
Slide 16: Gas Sources Mix
Upstream Strategy Cost saving of RMB200 million resulted from non-“Big-Three” supply collaborated with HKCG Group on upstream development Enhance strategic cooperation to ensure stable gas supply and improve cost structure In 1H 2022, HKCG Group: 2% Direct Gas About 300 million m³ through Shen
Slide 17: Upstream Strategy: Direct Gas Sources
Upstream Strategy: Direct Gas Sources 2025 Target Domestic Direct Gas Sources Caofeidian 1 bn m³/annum 4 LNG Terminal (Commissioned by end of 2022) Capitalised on Shanxi Liquefaction Coalbed bn m³/annum Methane (LCBM), Ningxia Gas-to-Coal + Liquefaction Plant ,Sichuan Shale Gas Ningxia Liquefaction
Slide 18: Update on Shanghai Gas
Update on Shanghai Gas 1 Lockdown from COVID-19 severely affect the economy First LNG shipment from Shanghai Gas unloaded at Hang Jiaxin LNG Terminal in July 2022 2 Shanghai Gas 1H 2022 results fully consolidated by Shenergy 3 “Step 2” target to be completed by 2022 year end 4 Cooperation on
Slide 19: Business Review: Gas+ Heating
BUSINESS REVIEW Gas Business Smart Energy o “Gas+” Heating o Renewable Energy
Slide 20: Promising Market for Heating Business
Promising Market for Heating Business Providing gas based heating solutions Rapid growth in heating business “Gas+” 14% 145 Heating No. of heating 127 CCHP projects Residential Individual Power Hot water Station Cooling 12% Gas Commercial 25.8 28.9 District Gas sales volume Power (million m³) Statio
Slide 21: Gas+ Heating Business Projects
“Gas+” Heating Business Projects Industrial Parks – Commercial & Industrial – Residential – District Heating Integrated Energy Supply Household Heating Providing safe, reliable, low-carbon and clean energy Applying various heating technologies to provide Providing one-stop heating service for the ne
Slide 22: Upgrading Regional Integrated Energy
Upgrading Regional Integrated Energy Taking advantage of the favourable layout of regional integrated energy to develop PV + energy & carbon service business based on local conditions and the adoption of a balanced energy mix Xuzhou Industrial Park Tongling Economic Development Zone Lishui Industr
Slide 23: Business Review: Renewable Energy
BUSINESS REVIEW Gas Business Smart Energy o “Gas+” Heating o Renewable Energy
Slide 24: Renewable Energy Performance Overview
Renewable Energy Performance Overview Swift onboarding of industrial parks, quick building of rooftop PV, strengthening the ability to provide energy and carbon services, creating demonstration projects and speedy replication and promotion Rooftop PV Value Added Services Building Demonstration Sit
Slide 25: Accelerating the Development of Industrial Parks and Rooftop PV
Accelerating the Development of Industrial Parks and Rooftop PV Developing rooftop PV with our “zero-carbon industrial park” strategy has shown great efficiency with higher return, enabling us to catch up industrial leaders quickly Expanding our business footprints Batch development of PV in indus
Slide 26: Strengthening Carbon Management Services
Strengthening Carbon Management Services Developing comprehensive carbon management service capabilities to meet customers’ “3060”needs, adding great value to our PV projects, and aiming to improve investment return significantly 1 Carbon Consultation 2 Carbon Solutions 3 Carbon Trading Monitoring
Slide 27: Rapid Expansion of Green Power Trading
Rapid Expansion of Green Power Trading Seizing the opening up of green power trading opportunity, to build up differentiated power sales advantages and to leverage our huge customer base and platform analysing capability to quickly convert customers Current Market Differentiated Advantages = Situa
Slide 28: Smart Energy Platform Launched
Smart Energy Platform Launched Operating in demonstration industrial parks and projects, providing digital smart services to meet the huge demands of PV, energy storage, charging, and energy & carbon management Towngas - Tencent Partnership Digital Smart Services Year 2025 PV, Storage And Market S
Slide 29: Building Zero-carbon Industrial Park Models
Building Zero-carbon Industrial Park Models Focusing on district carbon reduction planning, digital platform and large-scale rooftop PV as phase I, building low-carbon factory model at the same time for quick replication at Phase 2 Low-carbon Innovative 1 Scaled PV 2 3 Pilot Projects Factories Hai
Slide 30: Creating and Promoting Low-carbon Prototypes
Creating and Promoting Low-carbon Prototypes Building low-carbon prototypes and rapidly promoting them in each industrial park, allowing high returns on PV investment added by energy & carbon services Guangzhou Xinhao Precision – Futian District Government – Changzhou Trina Solar – Danyang Tiangon
Slide 31: Serving Group Customers & Setting Industry Benchmarks
Serving Group Customers & Setting Industry Benchmarks Providing integrated energy and carbon management services to industry leaders to enhance ESG, showing strong advantages and rapid growth in business Sharp Increase In Demand Cooperation with Industry Leaders Our Strengths Provided comprehensiv
Slide 32: Business Guidance
S223 AREA SER Aol Towngas Smart Energy Company Limited Business Guidance
Slide 33: 2022 Business Guidance
2022 Business Guidance City-gas Renewable Energy Gas Sales Volume: 8-10% growth 80 established zero-carbon (Excluding Shanghai Gas) industrial parks Grid-connected industrial distributed Dollar Margin: RMB 0.51-0.52 /m3 PV:1GW (including under construction) Total Number of new connections:
Slide 34: Thank You
ell ant lan jwngas SI ergy Company Limited THANK YOU
Slide 35: 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 Towngas Smart Energy’s businesses and operations, market conditions, results of operation and financial
Towngas Smart Energy Company — H1 2022 Earnings Presentation on 6ix