China Gas (00003) Executive Director Wong Wai Yi stated that the Hong Kong business is currently facing pricing pressures and has submitted a proposal to the government regarding gas price adjustments to initiate communication. It is expected that the rate increase will be lower than double digits, which is deemed a reasonable level. The exact rate increase and implementation timeline are pending government announcement.
The last gas price adjustment was made two years ago. Wong mentioned that the Hong Kong business is quite sensitive to temperature changes. With the temperature in Hong Kong rising by 3 degrees in the first half of the year, for every 1-degree increase in temperature, gas sales volume decreases by 2.5%. Consequently, the overall gas sales volume in Hong Kong declined by 2% in the first quarter of the year, and a further decline is anticipated for the first half of the year, with a stabilization expected for the entire year.
Wong also indicated that there would be no bonus shares distributed in the short term unless the profit increase exceeds 10%, as there are currently no signs of the possibility of distributing bonus shares.
The company’s Chief Financial Officer, Yang Leiming, disclosed that the capital expenditure last year amounted to 10.2 billion yuan and is projected to be 7.5 billion yuan in 2024, with the primary investments focusing on new energy initiatives.