CHINA RES GAS(01193)2022-04-20 11:30Financial Performance - In 2021, the total gas sales volume reached approximately 34.1 billion cubic meters, representing a year-on-year increase of 17.4%[24]. - The turnover for the year was HK$78.175 billion, reflecting a year-on-year growth of 39.9%[24]. - Profit attributable to owners of the Group was HK$6.395 billion, marking a year-on-year increase of 24.2%[24]. - The proposed final dividend is 112 HK cents, with a total dividend of 127 HK cents for the year, an increase of 36.6% from 93 HK cents in 2020[24]. - The overall gross profit margin decreased to 23.4%, down 3.5 percentage points from the previous year, primarily due to an increase in revenue share from gas fuel sales and distribution[48]. - The Group's operating cash flow for 2021 was HK$8.390 billion, representing a year-on-year decrease of 2.62%[48]. - The Group's turnover surged by 39.9% to HK$78.18 billion for the year ended December 31, 2021, with profit attributable to equity holders increasing by 24.2% to HK$6.40 billion[58]. - The profit for the year rose by 22.9% to HK$10,475,175, up from HK$8,439,832 in 2020, while profit attributable to the Company's equity holders increased by 24.2% to HK$6,395,368[80]. - The Group's total assets grew by 13.1% to HK$106,136,308 from HK$93,870,809 in 2020[82]. - Basic earnings per share increased by 22.1% to HK$2.82, compared to HK$2.31 in the previous year[80]. Market Expansion and Development - The total number of city gas projects reached 266, distributed across 22 provinces, including 14 provincial capitals and 3 direct municipalities[6]. - The natural gas market in China is still in a significant development phase, providing opportunities for the Group's expansion[8]. - The Group aims to consolidate its core advantages in the city gas market of large and developed regions[26]. - The Group signed 11 new projects and registered 23 projects, expanding its concession area by 24,000 square kilometers[34]. - The Group's gas sales volume potential in newly added areas is estimated at 6.7 billion cubic meters[34]. - The Group developed 39,000 new industrial and commercial users and 3.524 million new residential users during the year, including 2.9572 million new house connections[33]. - The proportion of permanent urban residents in China increased to 64.7% by the end of 2021, providing a stable market development opportunity for the Group[31]. - The Group's focus on "coal-to-gas conversion" led to the development of 122,500 rural users during the year[33]. Operational Efficiency and Strategic Focus - The Group's strategic focus includes both organic growth and quality external acquisitions to enhance operational efficiency[24]. - The implementation of benchmarking initiatives across all business sectors aims to enhance operational efficiency and achieve sustainable organic growth[60]. - The management team is dedicated to improving operational efficiency to achieve sustainable growth and better respond to local demands[61]. - The Group's systematic review of business processes is expected to continuously enhance operational efficiency across city gas projects[63]. - The Group's supply chain management was further streamlined with a rigorous tender system covering construction projects[63]. - The Group aims to enhance its integrated service business, which is expected to enter a rapid development phase in the future[40]. Corporate Governance and Management - The Company has adopted the mandatory provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules[121]. - The Board consists of two Executive Directors, four Non-executive Directors, and four Independent Non-executive Directors, with one member possessing the required professional accounting experience[126]. - The Company complied with the mandatory provisions of the Code throughout the year, except for deviations from provisions D.1.4 and E.1.2[125]. - The Company has maintained a credible framework of corporate governance to ensure transparency and accountability to shareholders[120]. - The Company emphasizes the importance of independent reviews in its governance structure, with all committees comprising independent non-executive directors[147]. - The Company Secretary, Mr. Lo Chi Lik Peter, has been in continuous practice as a solicitor since 1976 and was appointed on September 1, 2017[180]. - The Company has a commitment to effective communication with shareholders and investors to enhance understanding of its business performance and strategies[186]. Environmental and Social Responsibility - The Chinese government's policies are expected to boost the share of clean energy in the energy consumption mix, supporting the Group's long-term development[23]. - The Group's carbon dioxide emissions per RMB10,000 production value decreased by 3.7% in 2021, while comprehensive energy consumption per RMB10,000 revenue reduced by 6.8%[77]. - Charitable donations by the Group totaled HK$6.158 million in 2021, with cumulative volunteer services amounting to 98,000 persons/times[78]. - The Group's environmental policies and performance are outlined in the CEO's Report[191]. Financial Risk Management - The financial risk management is primarily focused on managing exposure to fluctuations in interest rates and foreign currency exchange rates[95]. - The Group has obtained sufficient uncommitted short-term facilities from banks for liquidity management[89]. - The Group's treasury policies do not engage in speculative activities[95]. - The Group's credit rating was raised to A2 by Moody's, while Standard & Poor's and Fitch maintained a rating of A-, reflecting strong market recognition of the Group's financial performance[52].