This presentation and subsequent discussion may contain certain forwardlooking statements. These forward-looking statements reflect the company s

Transcription

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2 This presentation and subsequent discussion may contain certain forwardlooking statements. These forward-looking statements reflect the company s view on some future events and involve known and unknown risks and uncertainties and other factors which may cause actual performance and development differ materially. Past performance cannot be relied on as a guide for future performance. 2

3 1. Business Environment 2. Company Overview 3. Financial and Operational Performance 4. Future Outlook 3 3

4 o A change of central government o A decelerating GDP growth (Q2 2013: 7.5%) o A sign of property market recovery o A weak manufacturing & export o A frightening PM2.5 smog o A most depressed commodity market o A nationwide natural gas price reform o Inflation harnessed (Jul 2013: 2.7%) o Unemployment becomes a concern (Jul 2013:4.4%) 4

5 o Urbanization continues on o A rising cost of labour & an appreciating RMB ( %) o A persisting liquidity crunch o An over production capacity situation o A westward-shift in economic development o A high level directive to suppress bribery 5

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7 Heilongjiang projects covering Jilin Liaoning Hebei provincial regions Piped city-gas Shandong Anhui Jiangsu City-gas Midstream Sichuan Chongqing Hunan Zhejiang Jiangxi Fujiang 11 new city-gas (2013) As at July 2013 Guangxi Guangdong 7

8 City-gas 11 projects Feicheng 肥城 6 Chaozhou Fengxi 潮州楓溪 Maanshan Zhengpugang 馬鞍山鄭浦港 Gas consumption in 5 years time: 1,185Mn m 3 Total investment: 7 Bozhou 亳州市 8 Cangzhou Yanshan 滄州鹽山縣 Mianzhu 綿竹 9 Cangzhou Cang County 滄州滄縣 Boxing 博興 Wuhu Fanchang 蕪湖繁昌縣 10 Cangzhou Mengcun 滄州孟村 11 Dafeng 大豐市 RMB1,364Mn 3 Sichuan Henan 7 Shaanxi Anhui 2 Hubei 5 Chongqing Guangxi Hunan Hebei Jiangxi 6 Guangdong Shandong Heilongjiang Jilin Liaoning 11 Jiangsu Zhejiang Fujian Hainan 8

9 H Injection from HKCG New Existing H H2013: Jinan Jihua & Shandong Jihua combined. 2012: include Liaoning Wafangdian midstream project 9

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11 o Strong profit growth of 49% to HK$533Mn o Excluding exchange gain profit grew by 23% o Increase in average gas selling price and volume help gas revenue growth of 24% over last year o Gas sales volume grew by 13% to 2.9Bn m³ o 84 JVs in total, 11 city-gas projects added 11

12 (HK$Mn) 1H12 1H13 Change Gas Sales Connection Fees 1, , % +12% Turnover 2,437 2, % Profit attributable to shareholders % Basic EPS (HK cents) % 12

13 (HK$Mn) 2012Y.E. 1H13 Change Total Assets 21,255 23, % Total Liabilities 9,968 10,668 +7% Total Equity 11,287 12, % Gearing Ratio * 18.6% 17.7% Note: * Definition of Gearing Ratio: Net Debt excluding HKCG loans ( ND ) to equity attributable to shareholders plus ND 13

14 1H12: HK$ 4.7Bn 5% 14% 81% Piped-gas Connection Fee Others 1H13: HK$ 5.4Bn 4% 14% 82% (HK$Mn) 1H12 1H13 Change Total Turnover 4,747 5, % JV profit contribution % Profit margin ratio 10.1% 10.6% Exchange difference (17) 74 NA Administration expenses (42) (56) +33% Financial cost (62) (62) - Profit attributable to shareholders % Improvement in margin *All JVs shared equity basis 14

15 Gas Sales Volume (Bn m³) (Bn m³) 1H12 1H13 Change Industrial % Commercial % Residential % Total % *All JVs (100%) H12 1H13 15

16 All Equity Basis Volume (Mn m 3 ) 1H12 1H13 Change Subsidiaries % JCEs & Associates 1,322 1, % Chengdu JV % Total 2,595 2, % Excluding Chengdu 1,986 2, % 16

17 Net Profit (HK$Mn) HKCG became a major shareholder in H13 17

18 Mainland Utilities o Effective July 10 o Affect non-residential consumption o Gate-prices split into EVP and AVP o o EVP: current gate-price +Rmb0.4/m³ AVP: current gate-price +Rmb1.28/m³ o EVP volume = gas volume consumed in 2012 o 69% JVs affected o Action taken: work closely with local governments for pass-through keep the C&I customers communicated C&I meter readings taken on July financial impact is not significant EVP: Existing Volume Price, 存量氣價 AVP: Additional Volume Price, 增量氣價 18

19 Market Capitalization (HK$Bn) Historical high on 3 June 2013 HK$21.4Bn Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug *Bloomberg 19

20 Gas Sales Volume Mix (%) No. of Customers Residential Commercial Industrial 26% 26% 56% 57% 18% 17% (Mn) 10 8 Customers No. (LHS) Gas Volume/Employee No. (RHS) ( 000 m³) H12 1H H12 1H * All JVs (100%) 20

21 16 January 2013 No. of share placed Net Proceeds raised Over-subscription 21

22 1 January July % 62.31% 31.66% 20% 5.87% 7.95% 6.03% Commonwealth Bank of Australia Enerchina (622 HK) Institutional & Retail Investors Hong Kong & China Gas (3 HK) Commonwealth Bank of Australia Institutional & Retail Investors Hong Kong & China Gas (3 HK) 22

23 Henderson Land Development Company Ltd (12 HK) & Dr. Lee Shau Kee Hong Kong and China Gas Company Ltd (3 HK) 41.50% Towngas China Company Limited ( TCCL ) (1083 HK) 62.31% 23

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25 300 Bn m vs 2010 Power Generation & Chemical Engineering 108% Total City-gas & Industrial 117% 114% (Source:BP / Guangdong Oil & Gas Association ) 25

26 o o o Increasing natural gas supplies: - W2E2 - W2E3 - Myanmar pipeline - Russia Eastern Pipeline China remains a manufacturing country Increase in urbanization rate: 47.5% Urbanization rate: 53.4% 57% 70% Year: o Increasing housing supply: Subsidized home Mn Mn o No significant change in connection fee policy 26

27 Mainland China Energy Update An Immense National Grid A Heilongjiang A Jilin Xinjiang 1 Inner Mongolia Beijing Liaoning A 6 NG Source Commissioning Year Capacity West to East Bn m 3 West to East Bn m 3 Central Asia >55 Bn m 3 Sichuan to East Bn m 3 Myanmar to China 3Q Bn m 3 Russia to China 2018 (expected) 38 Bn m 3 HKCG Shanxi LCBM 2009 Shanxi LCBM West to East Bn m 3 Existing LNG Terminal 44M tonnes Hebei Shanxi Ningxia Shandong Qinghai Gansu Jiangsu Shaanxi Henan 4 Anhui Hubei Sichuan Zhejiang Chongqing Hunan Jiangxi Guizhou Fujian Guangdong 5 Guangxi Yunnan Hong Kong LNG Terminal under construction 30M tonnes Hainan LNG Terminal under planning 65M tonnes 27

28 Mainland Utilities Heilongjiang Jilin Beijing Liaoning o Target: 10 new projects / year Inner Mongolia Hebei o Penetration into neighboring cities Sichuan Yunnan Shaanxi Henan Hubei Chongqing Hunan Guizhou Shandong Jiangsu Anhui Zhejiang Fujian Jiangxi Guangxi Guangdong o Focusing in new territories: Inner Mongolia Guizhou Guangxi Hong Kong Yunnan Hainan 28

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