China Resources Gas Group Limited · HKEX:1193
China Resources Gas — H1 2023 Earnings Presentation
41 slides from China Resources Gas's earnings presentation, Aug 25, 2023
Slide 1: CR Gas 2023 Interim Results Announcement
CR Gas 2023 Interim Results Announcement August 25, 2023
Slide 2: CR Gas 2023 Interim Results Presentation
CR Gas 2023 Interim Results Presentation August 25, 2023
Slide 3: Contents
目录 C ONTENTS 1 Results Highlights 2 Company Development Financial & Operational 3 Highlights www.islide.cc Speaker name and title
Slide 4: 1H2023 Segment Results Highlights
Results Highlights 1H2023 Segment Results Highlights Core City Gas Business Comprehensive Services Integrated Energy Gas Sales Volume Turnover Project in operations 19.84B m3 +6.9% HK$1.47B +7.7% 142 projects +62 Unit Gas Margin Gross Profit Energy Sales RMB0.5 /m3 +0.05/m3 HK$0.81B +5.2% 0.96B kWh
Slide 5: 1H2023 Key Results Summary
Results Highlights 1H2023 Key Results Summary 1H2023, China’s economy started to recover, CR Gas recorded a rapid growth in the key financial and operational indicators. Gas sales volume grew at 6.9%, profit attributable to shareholders increased 16.4%, an interim dividend of HK$0.15/share was propo
Slide 6: Sustainable Growth in Gas Sales Volume
Results Highlights Sustainable Growth in Gas Sales Volume 1H2023, gas sales volume of CR Gas was 19.84 billion m3, an increase of 6.9%. Residential, industrial and commercial gas sales volume increased 12.0%, 4.9% and 6.9% respectively. Gas Sales Volume 19.84B m 3 Gas Sales Volume Mix +12.0% +4.9% +
Slide 7: Recovery in Gas Sales Earnings
Results Highlights Recovery in Gas Sales Earnings 1H2023, gas sales revenue further increased to 87.5%. Although the upstream pipeline gas price still stood at a high level, CR Gas has made every effort to pass through the cost increased, unit gas margin managed to increase to RMB0.5/m3, gas sales c
Slide 8: Rapid Growth in Connected Customers
Results Highlights Rapid Growth in Connected Customers 1H2023, newly connected households were 1.342 million, 84.2% was new building connection, cumulative connected customers increased to 55.85 million. Continuous growth in connected customers provide a huge market potentials to CR Gas’s Comprehens
Slide 9: Significant Profitability Improvement
Results Highlights Significant Profitability Improvement 1H2023, net profit for the period reached HK$4.56 billion, an increase of 16.0%. Profit attributable to shareholders increased 16.4% to HK$3.55 billion. Profit from Attributable Operation HK$ 5.60 B Net Profit HK$ 4.56 B Profit HK$ 3.55 B Excl
Slide 10: Sufficient Financial Liquidity
Results Highlights Sufficient Financial Liquidity 1H2023, HK$4.47 billion was spent on CAPEX. Cashflow from operation recovered substantially to HK$4.76 billion. Bank and cash balance was HK$18.60 billion, maintained sufficient financial liquidity. Capital Cashflow from Bank & Cash Expenditure HK$ 4
Slide 11: Strong Financial Flexibility
Results Highlights Strong Financial Flexibility 3 major international credit agencies re-affirmed CR Gas a leading credit rating. In 1H2023, financing cost was 2.6% p.a. which is the best in the industry and debt ratio was 38.0% which keep strong financial flexibility. Maintain Leading Credit Rating
Slide 12: Contents
目录 C ONTENTS 1 Results Highlights 2 Company Development Financial & Operational 3 Highlights www.islide.cc Speaker name and title
Slide 13: ESG Management Improvement
Development ESG Management Improvement Actively follow the National energy transform direction, promote clean energy applications and the reduction of CO2 emission indices. 1H 2023, an “A” MSCI ESG rating was maintained and CR Gas was selected in “China ESG Listed Companies Leading 100 Index”, and g
Slide 14: Operational Safety Enhancement
Development Operational Safety Enhancement Participate in formulating 3 policies of national pipeline retrofitting of the Ministry of Emergency Management to provide technology support of the natural gas operational safety management and to ensure operational safety of the network. RMB5.42 billion h
Slide 15: "1+2+N" Business Development Strategy
Development “1+2+N”Business Development Strategy With the National energy transform direction, CR Gas has formulated the “1+2+N” business development strategy for the expansion plan during the 14th 5 year Plan period. CR Gas will leverage on the core city gas “CG” development, actively expand the co
Slide 16: Market Coverage Expansion
Development C G 1 C S 2 I E N Market Coverage Expansion Pan-China strategy of project locations; projects can easily secure gas sources as most of them are located closely to the main gas supply pipelines and in the fast economic developing regions. 1H2023, CR Gas has 275 city gas projects connectin
Slide 17: City Gas Core Business Expansion
Development C G 1 C S 2 I E N City Gas Core Business Expansion 1H2023, 3 and 2 projects were signed and registered respectively at group level. CR Gas has completed financial statement consolidation of 10 high quality projects since the start of the 13th 5-year plan period. Chongqing Gas was consoli
Slide 18: Upstream Gas Supply Security Enrichment
Development C G 1 C S 2 I E N Upstream Gas Supply Security Enrichment On 21 June 2023, Rudong LNG receiving terminal commenced construction, it will be fully compatible with CR Gas’s major city gas market and expand its industry influence. Annual gas supply contract coverage increased to 99.3%, Gas
Slide 19: Exploring Organic Market Potentials
Development C G 1 C S 2 I E N Exploring Organic Market Potentials Taking the opportunity of the Nation’s “Urban Village Renovation in Super and Super-Large City” policy, accelerate the development of household users, promote industrial energy saving technical transformation, together with the safe r
Slide 20: New Customer Services Model
Development C G 1 C S 2 I E N New Customer Services Model Promote brand new customer services model, continuous to execute the grid based management, over 30 million users have been covered in 1H2023. Establish the image of “Gas Butler”, change the customer experience from the customer center to gas
Slide 21: Smart Customer Services System
Development C G 1 C S 2 I E N Smart Customer Services System Establish a smart services system through online platform such as WeChat Business, unified national service phone number 95777, official account to manage content disclosure and empower gas concierge to better service the customers. By int
Slide 22: Smart Kitchen Assembly Solution
Development C G 1 C S 2 I E N Smart Kitchen Assembly Solution CR Gas has 53.921 million household customers. Of which, 39.039 million household customers are located in affluent 3rd-tier or above cities. CR Gas provides customers a one-stop assembly solution for a smart kitchen with an emphasis on s
Slide 23: Rapid Growth in Comprehensive Services
Development C G 1 C S 2 I E N Rapid Growth in Comprehensive Services Continuous growth in kitchen electricity-gas-heat and insurance agent products, turnover per household from comprehensive services business (CSB) increased to RMB50.6. Turnover from CSB increased 7.7% from HK$1.37 billion to HK$1.4
Slide 24: Focus on Distributed and Refueling Business
Development C G 1 C S 2 I E N Focus on Distributed and Refueling Business Leverage on the competitiveness of the core city gas distribution business and the large customer resources, CR Gas can identify quality distributed photovoltaic and distributed energy projects and continues to enhance the int
Slide 25: New Major Integrated Energy Projects
Development C G 1 C S 2 I E N New Major Integrated Energy Projects In Nantong Jiangsu develop Yongjin distributed photovoltaic project, project investment was RMB85.97 million, 20MW installed capacity, annual electricity sold is 20.66 million kWh, expected turnover is RMB9.91 million. In Chongqing S
Slide 26: Light Asset Operation by Incremental Distribution Network
Light Asset Operation by Incremental Development C G 1 C S 2 I E N Distribution Network Leverage on the “3 combined power network” resources advantage of Xiangyang integrated energy company to co-develop the distributed photovoltaic project with Dongfeng light truck smart factory. Invested by third
Slide 27: Fast Growing Integrated Energy Business
Development C G 1 C S 2 I E N Fast Growing Integrated Energy Business Leverage on the customer resources in the operation area, CR Gas focuses on developing quality integrated energy projects. 42 projects were signed in 1H2023 with estimated investment of HK$460 million. There are total of 244 proje
Slide 28: Actively Develop EV Charging Market
Development C G 1 C S 2 I E N Actively Develop EV Charging Market Professional EV charging companies have been set up in Nanjing and Hangzhou, etc. to expand and secure the public transport depots and explore the possibilities of social and new type depots utilizing the existing resources and compet
Slide 29: Accelerate New Businesses Development
Development C G 1 C S 2 I E N Accelerate New Businesses Development Actively explore the new businesses opportunities such as the hydrogen energy industry, energy user storage and carbon trading, pilot “氢进万家”project in Shandong, research and study of hydrogen and combined hydrogen pipeline, hydrogen
Slide 30: Contents
目录 C ONTENTS 1 Results Highlights 2 Company Development Financial & Operational 3 Highlights www.islide.cc Speaker name and title
Slide 31: Key Financial Information
Highlights Key Financial Information 30 June 2022 30 June 2023 As at Increase/(Decrease) (HK$’000) (HK$’000) Turnover 48,100,627 48,369,601 0.6% Gross profit 8,826,983 8,818,865 (0.1%) Profit from operation (1) 4,789,717 5,597,876 16.9% Profit for the period 3,929,277 4,557,546 16.0% Profit attribut
Slide 32: Key Financial Information
Highlights Key Financial Information 31 December 2022 30 June 2023 As at (HK$’000) (HK$’000) Increase/(Decrease) Total assets 112,303,585 135,830,556 21.0% Bank balance and cash 6,437,479 18,600,688 188.9% Total bank, note and other borrowings (1) 22,462,820 35,350,471 57.4% Net borrowings 16,025,34
Slide 33: Key Financial Information
Highlights Key Financial Information As at 30 June 2022 30 June 2023 Increase/(Decrease) Gross profit margin 18.4% 18.2% (0.2PPT) Net profit margin 8.2% 9.4% +1.2PPT Net profit margin attributable to the owner of the 6.3% 7.3% +1.0PPT Company Debt to capitalization ratio (2) 29.9% (1) 38.0% +8.1PPT
Slide 34: Key Financial Information: Revenue Mix
Highlights Key Financial Information Revenue Mix Revenue Growth +3.5% -22.7% +7.7% -5.6% 85.0%87.5% 40.88 42.32 11.4%8.8% 5.50 4.25 2.8% 3.0% 0.7% 0.7% 1.37 1.47 0.35 0.33 燃气收入 Gas Sales 接驳费收入 Connection Fee 综合服务收入 Comprehensive 工程设计收入 Service Design&Construction 燃气收入 Gas Sales 接驳费收入 Connection 综合服务
Slide 35: Key Financial Information: Costs
Highlights Key Financial Information Total Costs Finance Costs 4,863.1 4,663.6 433.9 10.1% 9.7% 0.9% 223.8 0.5% 1H2022 1H2023 1H2022 1H2023 HK$ Million 总费用率 As a% of revenue HK$ Million 财务费用率 As a% of revenue Selling & Distribution Expenses Administrative Expenses 2,879.2 1,617.1 2,812.1 1,560.6 3.3
Slide 36: Capital Structure
Highlights Capital Structure Equity & Borrowings HK$’000 % 38.0% Total equity 57,779,114 62.0% 62.0% Total bank & other borrowings 35,350,471 38.0% Total capital 93,129,585 100.0% 股本总值 借贷总额 Equity Borrowings Long & Short Term Borrowings HK$’000 % 14.0% Less than 1 year 13,656,573 38.6% 38.6% 1-2 yea
Slide 37: Key Operational Information
Highlights Key Operational Information 30 June 2022 30 June 2023 Change Number of projects 268 275 7 Connectable householders (million) 86.78 95.32 9.8% Connectable population (million) 286.37 324.09 13.2% Penetration rate of residential household 56.1% 58.4% +2.3PPT Gross gas sales volume (million
Slide 38: Key Operational Information
Highlights Key Operational Information 30 June 2022 30 June 2023 Change Total length of pipeline (km) 255,144 298,482 43,338 Connected customers 48,827,701 55,850,146 7,022,445 Residential 48,420,825 55,383,608 6,962,783 Industrial 30,443 39,338 8,895 Commercial 376,433 427,200 50,767 Average reside
Slide 39: Sustainable Scale and Earnings Growth
Sustainable Scale and Earnings Growth 1 City Gas Distribution 2 Comprehensive Service & Integrated Energy N New Businesses ◼ Provide end users with kitchen appliances; ◼ Gas distribution to residential and C&I ◼ Vehicle electricity charging insurance and household safety ◼ CNG/LNG gas station ◼ Hydr
Slide 40: Disclaimer and Contact
Disclaimer and Contact: This presentation and subsequent discussion may contain certain forward-looking statements, including statements regarding our intent, belief or current expectations with respect to China Resources Gas (CR Gas)’s businesses and operations, market conditions, results of operat
Slide 41: CR Gas 2023 Interim Results Announcement
CR Gas 2023 Interim Results Announcement August 25, 2023
China Resources Gas Group — H1 2023 Earnings Presentation on 6ix