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2024 Annual Results 27 March 2025 Win-win Situation with Customers Growing Profit by Increasing Sales Volume Value Creation through Diverse Energy Products and Services
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2 Business Highlights Core profit reached RMB6.95 bn, core profit from domestic businesses increased by 10.2% yoy to RMB6.71 bn Retail gas sales volume increased by 4.2% yoy to 26.20 bn m³ with the newly installed designed daily capacity of 15.10 mn m³ for C/I customers, and newly developed 1.62 mn residential household customers IE sales volume increased by 19.8% yoy to 41.57 bn kWh, gross profit including JVs and associates increased by 19.9% Gross profit of value added business increased by 18.0% yoy to RMB2.97 bn, gross profit including JVs and associates increased by 24.1% Free cash flow increased by RMB630 mn yoy to RMB3.73 bn. Dividend for the year of HK$3 per share with dividend payout ratio of 45%
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Digital Safety Infrastructure in All Scenarios Implementing Full-Cycle Digital Safety Across Construction and Operations All Scenarios Digital Intelligence Safety Infrastructure for Inherent Security ENN Energy enhances inherent safety through digital intelligent risk management in all scenarios, enabling full-process safety monitoring and early warning. It maintains rigorous staff safety training and hazard identification programmes to ensure secure and efficient operations Eliminating Deficiencies, Strengthening Foundations, Fulfilling Safety Responsibilities 3
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Customer-Centric, Intelligence-Driven, Service Transformation Enhance customer satisfaction through proactive services and in-depth understanding of customers' needs Online Contracting AI Robot Customer Service Intelligent Dispatch for Rapid On-Site Service Product After-Sales Service System Dedicated Account Managers Engineering Optimisation for Rapid Gas Supply Proactive Service through Algorithms Comprehensive Complaint Handling System Online Gas Agreement Signing Achieves Zero Customer Visits to Service Hall Hotline Self- Service Intelligence for Instant Query Resolution Upgrade Intelligent Resource and Allocate Function for Rapid Customer Response Full Lifecycle Product Management: Installation, Maintenance & Repair Services Dedicated Account Managers Ensure Timely Customer Needs Response Intelligent Technology Integrate with Engineering Services for Rapid Gas Supply Predicting Customer Needs through Intelligent Algorithms Optimising Processes through 100% Customer Feedback Collection (12345, Douyin, etc.) for Swift Resolution Residential Household Customers Commercial and Industrial Customers 4 620k Online Gas Contracts Signed in Nov-Dec 2024 Intelligent Customer Service: 8.83 mn Person-times Intelligent Dispatch Rate Reaches 84% Managing 300+ Product Categories 600+ Dedicated Account Managers Next-Day Gas Supply for Commercial Clients Proactively push message over 30 mn+ instances Timely resolution rate of Customer Issue Improved
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Launched Decarbonisation Action 2024: Driving Corporate Performance on Emission Reduction ESG Intelligence Platform Upgraded, Pioneering Emission Reduction & Data Security Governance Strengthened Governance Framework with 50% Growth in Female Board Representation Through Collaboration with Ecological Partners, Continuously Enhancing our Capabilities Good Ratings Rating Score AA 64 B 24.7 A+ Green Finance Framework Verified by an External Authoritative Second Party Completed the UNGC Accelerator Programme of SDG Ambition Rating performance continues to maintain industry leading position 5 +1 Deepening ESG Practices to Drive Corporate Sustainability Embedding ESG Strategy to Shape Ecological Blueprint - 2 Highly Recognized by Capital Market Selected into the "Sustainability Yearbook (China Edition) 2024" by S&P Global Top 5% in the industry Best progressive enterprise in the industry
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Content 1. Financial Review 2. Business Overview 3. Outlook
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Item 1H2024 2023 Change Revenue 113,858 -3.5% Gross profit 14,338 -6.5% Profit attributable to shareholders 6,816 -12.2% Core profit△ 7,586 -8.4% - From domestic businesses 6,091 10.2% - From wholesale of gas (overseas sales) 1,495 -83.9% Free cash flow# 3,104 20.3% 7 Implementing Multiple Measures for Steady Business Growth △ Core profit =Profit attributable to owners of the Company but stripping out other gains and losses (excluding net settlement amount realised from commodity derivative financial instruments, net compensation income and gain on repurchase of senior notes), relevant deferred tax arose from net unrealised (loss) gain of commodity derivative financial instruments and share-based payment expenses # Free cash flow: including net realized gains on derivative financial instruments RMB mn 2024 109,853 13,405 5,987 6,952 6,712 240 3,734 Profit from wholesale of gas (overseas sales) declined due to the decrease in international gas prices and overseas business strategic adjustments. We achieved a 10.2% core profit growth in domestic businesses with intelligent innovation services
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Continuously Optimising Profitability, Advancing Business Upgrades Maintained a steady growth in retail gas, IE, and value added business with increasing contribution from transformation businesses, further improving profit stability and visibility 18% 22% 42% 46% 13% 17%8% 1% 19% 14% 0% 20% 40% 60% 80% 100% FY2023 FY2024 VAB Retail Gas IE Wholesale of gas Construction & Installation VAB Gross profit IE Business Gross profit Gross Profit Mix GP Contribution from Sustained Businesses Kept Rising *Including JV & ASSO, IE Business Gross profit increased by 19.9% yoy, VAB Gross profit Increased by 24.1% yoy 8 RMB 2.22 bn * RMB 2.97 bn *
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0 20 40 60 80 100 120 4,740 4,810 5,168 2,010 2,140 1,544 770 490 155 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 FY2022 FY2023 FY2024 Gas project IE Business Newly-acquired projects Prudent Investment Strategy and Robust Cash Flow Position Disciplined investments and agile capital management drive resilient cash flow and sustainable growth (RMB mn) +547 -499 -6,867 +3,734 10,553 FY24 Operating Cash Flow Dividend from JVs, Associated Companies & Others CAPEX FY24 Free cash flow Working Capital Management Capital Expenditure Cash Flow (RMB mn) 7,520 7,440 6,867 Net Finance expenses Working capital improvement of RMB 665 mn (RMB mn) 9 Payables Management 665 mn Receivables Collection Inventory * *Digital and intelligent transformation & building-related capital expenditure totals RMB 530 million
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12,234 11,839 FY2023 FY2024 Net Debt With decreasing net gearing ratio and debt level, credit ratings assigned to the company by S&P , Moody's, and Fitch, are BBB+(Stable)、Baa1(Stable)、BBB+(Stable), respectively Healthy Debt Structure, Strong Credit Ratings Interest-bearing Liabilities Net Gearing & Net Debt Debt Maturity Profile Debt Structure Foreign Exchange Risk Exposure Management (In terms of currency) 13,156 13,068 8,767 6,464 FY2023 FY2024 Short-term Debts Long-term Debts 21,923 19,532 3,936 3,484 6,464 3,567 1,085 996 - 2,000 4,000 6,000 8,000 2025 2026 2027 2028 and after Bonds Bank borrowings and other loans Ned Gearing Ratio 25.3% 23.2% 62.0% 38.0% RMB Debts and Loans USD Bonds 78.9% 21.1% Hedged Unhedged In relation to long-term USD denominated debt 10 (RMB mn) (RMB mn) (RMB mn)
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Content 1. Financial Review 2. Business Overview 3. Outlook
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7,877 8,886 0 2,000 4,000 6,000 8,000 10,000 FY2023 FY2024 Dollar margin increased by RMB 0.04/m³ to RMB 0.54/m³ 19,485 20,480 5,348 5,467 311 253 0 5,000 10,000 15,000 20,000 25,000 30,000 FY2023 FY2024 C/I Residential Gas refueling stations +5.1% RMB mn Focus on customer needs and keep expanding gas volume scale to drive profit growth *Including JV & ASSO 25,144 26,200 Mn m³ Retail Gas Volume Incremental Profits Retail Gas Gross Profit* 12 Natural Gas Business IE Business VA Business Achieving Scale-Driven Profits Through Demand-driven Approach
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Industrial customers: delivering customised solutions aligned with client requirements and production processes Safety-first approach: government-enterprise partnership drives 'bottled-to-piped gas' conversion Flexible pricing & external partnerships: streamlined deliveryprocess for rapid development Commercial customers: leveraging policy support to unlock existing volume and deliver long-tail value In-depth customer insights, leveraging intelligence to accumulate experiences, and utilising resource advantages to tailor strategies for enterprises, enabling sustainable customer exploration Alternative Energy Price Fluctuation Intelligent model A client switched to natural gas, generating 300 mn m³ incremental volume Intelligent Allocation Guidance: daily capacity of 12-14 mn m³ Installed: daily capacity of 15.10 mn m³ Newly Installed Designed Daily Capacity for C/I Customers Newly installed capacity for industrials Newly installed capacity for commercials Guidance：1.4-1.6 mn Achieved：1.62 mn Newly Developed Residential Households Intensively exploring existing residential customers within concession area 13 Completed residential gas cost pass-through for 101 projects, cumulatively adjusted gas price for 63% of the household customers to market rates. Demand Resource Portfolio Leveraging production processes: capitalising on incremental opportunities from 'electricity-to-gas' and 'oil-to-gas' policies; Flexibly adjusting volume and pricing strategies in response to demand changes, while maximising economies of scale; Accumulating industry expertise: utilising intelligent models to address customer needs; Natural Gas Business IE Business VA Business Implementing Differentiated Customer Development Strategies to Drive Sustained Growth in Natural Gas Business
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Proactively securing contracts with the three major oil companies to ensure long-term and stable supply Consistent access to PetroChina’s long-term agreement resources for effectively reducing procurement costs Steadily Increase Basic Volumes from the Three Major Oil Companies 1.16 mn tons/year of overseas long-term contracts Consistently reducing third-party supplies by strengthening collaborations with provincial gas supply companies and Kunlun Energy group Securing storage capacity, pipeline access, and Sinopec's 'Worry-Free Storage’ products to ensure gas supply during extreme weather Build a Resilient Resource Portfolio Securing customers' medium-to- long-term demand Rigorously implementing spot- futures integration to enhance resource price stability, and fulfilling customers' needs for long-term price stability Implement Hedging Strategies to Mitigate Price Volatility Changes in Procurement Costs Lowered to （FY2023） （FY2024） Diversifying Resource Portfolio with Multi-Strategy Approach to Reduce Procurement Costs Supported by the long-term and stable supply from the three major oil companies, build a resilient resource portfolio, and deploy financial hedging tools to optimise procurement costs 14 Natural Gas Business IE Business VA Business
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Based on customers’needs and leveraging on dynamic allocation of resources and facilities to achieve cross-regional resource matching from three major oil companies, unconventional gas and overseas Aggregating Customer Demand and Leveraging Intelligent Facility-Resource Integration to Enable Cross-Regional Matching 15 • National grid AAA shipper qualification with cross-regional pipeline capacity matching capabilities • Precisely identifying customers' needs • Flexibly combining contracted gas, unconventional gas and overseas resources Customer base & upstream partnerships, enabling national matching via national pipeline network and proprietary pipelines Intelligent Model • Dynamic capacity matching: Zhoushan & national grid terminals • Optimising resource costs through spot- futures hedging Qidong Ningbo Zhoushan Shaanxi Shanxi Zhejiang An hui Binhai Jiangxi Shanxi- Shaanxi Coalbed Methane Sichuan gas Shanxi-Shaanxi Resources Sichuan-Chongqing Resources Zhejiang Energy coal-based gas LNG Regasification Zhoushan Cargo Jiang su Rudong LNG Third Party Stable Supply Low Price Volatility Tolerance Large-Scale Gas Consumption High Peak- Shaving Coefficient A Client in Anhui Province Natural Gas Business IE Business VA Business Zhejiang Energy coal- based gas
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• 24/7 intelligent monitoring and inspection: transitioning from scheduled to predictive maintenance for enhanced safety and cost reduction 16 Utilising Intelligence for Efficient and Secure Operations Enhancing safety and reducing operational costs through IoT infrastructure and intelligent model • Developing intelligent transmission models with systematic operational expertise: implement real-time monitoring and risk identification across construction, operations and dispatchng for quality and efficiency enhancement …… Reducing Operational Costs through Intelligent Model Plants and Stations Pipeline Enhancing Operational Efficiency through Intelligent Model Voltage Regulating Equipment Construction Intelligent Transmission and Distribution Model Intelligent Metering Model Metering risk identification model for leak detection and loss prevention Pipeline network load forecasting with production, transmission and peak-shaving planning AI-powered quality management in engineering construction …… Intelligent upgrade for unmanned/minimal staffing operations Intergrated intelligent risk Identification and inspection Intelligent assessment for predictive maintenance 1,000 km Upgraded 67 stations Evaluated 260 thousand sets Reduced losses by over 20mn m³ 7 pilot cases Digital intelligence enhancing quality and safety Natural Gas Business IE Business VA Business
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17 Implementing Integrated Energy Concept to Promote the Steady Growth of Integrated Energy Business IE sales volume reached 41.57 bn kWh, a 19.8% y-o-y increase Maximum Capacity Cumulative Installed Capacity 356Cumulative Projects in Operation 2023：11.6 GW 60 2023：34.70 bn kWh Sales Volume Cumulative Installed Capacity in FY2024 Maximum Supply Capacity in FY2024 IE Sales Volume in FY2024 Newly Added Projects in Operation 2023：55.73 bn kWh Natural Gas Business IE Business VA Business
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18 Penetrating into Industrial Production Processes and Leveraging Integrated Energy Usage & Supply and Intelligent Solutions for Rapid Business Expansion Based on energy usage patterns and demand across production processes, delivering integrated energy-carbon solutions with combined resources, efficient equipment and intelligent control products 7.44 GW 0.66 GW Cumulative Installed Capacity Installed Capacity in FY2024 Key Strategies Intelligent Matching of Production Processes (Dye Vats) and Energy Supply Characteristics (Temperature Control)“ “ Case study: integrated online-offline solution Direct-Fired Dye Vat Upgrade + Setting Machine Waste Heat Utilisation + Intelligent Control Products Direct-fired heater Intelligent Control Products Dye Vat Upgrades Tield rate 5%↑ Secondary energy conservation 6%↓ Energy savings of 20%+ Cost reduction of 10%+ Carbon reduction of 60%+ Integration of Production Processes Digital Intelligent System Enables Precise Matching Production Energy Services Penatrate into Production Processes Installed Capacity of Factory Expand in Multiple Industries Demand-Driven Supply, Intelligent Supply-Demand Coordination Based on energy usage patterns and demand across production processes, delivering integrated energy-carbon solutions with combined resources, efficient equipment and intelligent control products Implementing integrated solutions for textile printing and dyeing clients - from dye vat upgrades to waste heat utilisation in setting machines - while expanding into food, glass and battery industries Equipment Upgrades + Intelligent Control Products: Digital Intelligent Systems Enable Precise Matching Solutions Dye vat contracts in 2024: 727 signed, 215 implemented, with market potential of 8,000-10,000 units Natural Gas Business IE Business VA Business
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19 Promoting smart HVAC controls and other digital intelligent products, expanding scale through customer exploration within the concession area and collaborations with enterprises outside the concession area 2.60 GW 0.54 GW Key Strategies Human-Centric Approach: Intelligent Matching of Environmental Comfort and Energy-Carbon Systems“ “ Case study: energy efficiency upgrade for existing cooling systems + intelligent control products Multi- System Coordination Installed Capacity of Building Multi- Dimensional Expansion Energy Station Facility Upgrades Fulfilling building customers' health and comfort needs, leveraging intelligent control products for coordinated expansion across HVAC, water heating, lighting and fresh air systems To achieve scale expansion through customer exploration within the concession area and collaborations with enterprises outside the concession area for ecological and channel development Room Temperature-HVAC System Co-optimisation Algorithm Enables Dynamic Adjustment and Intelligent Optimisation Matching Intelligent Matching 、、 Brightness Humidity Temperature Building Environment Energy Services 、、 Lighting AC Heating Integrated Multi- System Solutions • HVAC • Water Heating • Lighting • Lift… Single Building clients • Commercial complex • Hotel • Office building • Hospital… Building Complex Clients • Hotel complex • Commercial complex Chiller Unit + Pump Frequency Conversion Energy Saving Upgrade Intelligent Control Products 137 HVAC project contracts signed for public buildings in FY2024 Market potential exceeding 10,000 projects Natural Gas Business IE Business VA Business Fulfilling Building Customers' Quality and Comfort Requirements, Driving Business Growth through Digital Intelligence Cumulative Installed Capacity Installed Capacity in FY2024 Solutions
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Integrating energy-resource systems to implement 'load-source-grid-storage-sales' IE micro-grid models, actively securing small and micro industrial park projects Tapping into existing customers, improving quality and efficiency, and optimising and supply-demand system matching. Capturing customers through IE micro-grid and driving the acquisition of traditional industrial parks 3.29 GW 0.53 GW Key Strategies Implementing 'Load-Source-Grid-Storage-Sales' Integrated Solutions to Secure Small and Micro-Industrial Park Projects Installed Capacity of Industrial Park Approaching by grid: implementing integrated load-PV-storage solutions Multi-product value creation for end-users Executing long-term power sales agreements, spot market and green energy trading to unlock load and resource value Optimising Energy Supply Systems to Secure Traditional Industrial Park Projects Tapping into existing customers and improving operational efficiency, expanding existing park value through integrated solutions + intelligence Proactively securing and optimising large park projects: reducing investment intensity for better returns Energy storage 80 MWh Photovoltaic 236 MW FY2024 “Load-Source-Grid-Storage-Sales”Integration Existing customers developed 8 FY2024 Newly added parks 5 Signed 0.84 GW of capacity for small and micro industrial park projects in FY2024 Market potential exceeding 500 GW for PV-storage-grid and multi-product solutions Natural Gas Business IE Business VA Business 20 Source PV Wind power Air compressor Boiler Load Power distribution Grid Energy storageCharging piles Storage Cooling Heat pump Load Compressor PV Storage Electricity Heat/water/waste air Factory Building • Electricity trading /green electricity • Waste heat recovery • Carbon solutions…… • Lighting energy saving • Aircon energy saving • Maintenance…… Network optimisationDiverse products Cumulative Installed Capacity Installed Capacity in FY2024 Contructing Integrated Capabilities of Load-Source-Grid-Storage-Sales to Secure Various Industrial Park Projects New grid connection
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21 Unlocking Intelligent Value and Continuous Lean Operations Continuous innovation in intelligent products supports lean operations for cost reduction and efficiency enhancement Intelligent PV Cleaning Improved Efficiency of PV and Energy Storage Systems Pipeline Loss Management Heating Cost Reduction Inverter Fault Diagnosis Component Shading Optimisation Energy Storage Operation Strategy Optimisation Intelligent Steam Theft identification Intelligent Leakage Detection Intelligent Abnormal Meter Detection Steam Usage Fluctuation Warning Temperature-Adaptive Regulation Intelligent Heat Source Replacement Intelligent Hydraulic Balancing Intelligent Heat Theft Prevention Resource Optimisation Surplus Energy Monitoring Surplus Energy Development Solutions Surplus Energy Utilisation Dispatch Surplus Energy Settlement Hot Grid Optimisation Simulation Intelligent Room Temperature Control IE Micro-grid of Load-PV-Storage Intergration PV power generation efficiency up 2.1% Energy storage system efficiency up 1.5% Thermal pipeline loss down 1.3% Heating gas unit consumption down 5% Resource Insight and Intelligent Dispatching Energy cost reduced Natural Gas Business IE Business VA Business
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22 RMB 612 /household Value added business achieves steady growth in average transaction value per customer, with rapid expansion in intelligent products and quality life business Upward Potential In Penetration Rate Rapid Growth In Contracted Amount Gross Profit Breakthrough Achieved Strengthening Core Products Expanding Offering of Intelligent Products Upgrading Quality Services yoy Growth of 474% yoy Growth of 1087% RMB 476 /household FY2023 Average Transaction Value Per Customer Natural Gas Business IE Business VA Business Leverage Intelligence to Tap into Customers’Needs to Achieve Rapid Growth in Value Added Business FY2024 Average Transaction Value Per Customer
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23 Stabilising Core Products, Integrating Service & Value Creation, and Boosting Product Sales of Self-owned brand Analysing evolving needs in household kitchen scenarios, precisely identifying customer needs, and building product ecosystem to meet customers' requirements Kitchen Appliances Sales Of which, Self-owned brand Sales FY2023: 321 thousand units Accelerate Sales of Self- operated Brands Explore Existing Household Customers • Refine the network, establish community stores, integrate resources such as gas services, community group buying, on-site promotion in residential areas, and community operation, driving value creation through services. • Formulate standardised processes for rapid expansion 293 thousand units FY2023: 181 thousand units Optimise the Services for Newly Acquired Real Estate Customers • Transition from volume-driven value creation to quality optimisition, and value creation per household maximisation • Draw on proven models to accelerate deployment of concealed installations and gas appliances in property delivery scenarios Expand Sales Beyond the Concession Area • Utilise mature experience to support partners outside concession area in team building • Provide support for rapid expansion through means such as marketing strategy training and product support • Expand service items and improve the security and maintenance system to meet customer needs • Leverage policies on urban renewal and old community renovation to introduce differentiated product strategies • Optimise the existing product structure, supplement product series to meet customers' diversified needs 63 FY2023: 18 No. Of partners outside Concession area Natural Gas Business IE Business VA Business 31.38 mn Natural gas business customers | VAB customers | 7.51mn + 47 mn + Accessible Customers Outside Concession Area 477 thousand units
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Rapid Development of Intelligent Products to Achieve Sustained Service Revenue Connecting intelligent products with intelligent operations centres to form a portfolio of intelligent products for safety monitoring and proactive response, expanding beyond traditional gas appliances to achieve sustained service revenue Real-Time Risk Identification Convenient Application Dynamic Monitoring Proactive Response User-Side Intelligent Operations Centre Customer Needs Enable intelligent interconnectivity and interaction across devices to achieve two- way data transmission Intelligent operations centre delivers AI-driven feedback services to end-users via data transmission, establishing a closed-loop system Continuously innovate intelligent products and services, while optimising interactive interfaces to elevate user experience Data Transmission Service Closed - Loop Intelligent Operations Solutions 24 72% 28% % of Service Revenue Natural Gas Business IE Business VA Business
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Understanding Quality Lifestyle Needs, and Leveraging Intelligence to Explore New Value Added Business Models Exploring quality lifestyle models including kitchen renovation, home services, instant retail, setting up a new landscape for value added business Using photos/property websites to match layouts and determine user kitchen plans AI-Powered Property Layout Recognition AI-Assisted Decoration Style Confirmation Confirm the user's decoration style through the sample pictures selected by the user AI-Generated Intelligent Solutions AI-Enabled Before-After Comparison Provide users with appropriate products and quotations Provide renderings to facilitate users to compare before and after Utilising Intelligent Tools to Deliver All-Scenario Visualised Solutions for Users Water purification products Kitchen Renovation Daily necessities Customisation Elder-friendly Modifications Quality Home Living Water Purification Products Revenue RMB70 mn Community Convenience StoreFamily Health … Innovative Home Delivery Services Model Instant Retail Services at Service Halls Creating exclusive e-city e-home membership cards to meet diverse home service needs Basic benefits include air tickets, gas services, appliance repair and cleaning Value-added benefits cover insurance, health services and regional specialities Building a new service ecosystem: adding product zones to transform natural gas customers into lifestyle-product users 25 Natural Gas Business IE Business VA Business
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Content 1. Financial Review 2. Business Overview 3. Outlook
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Complex Domestic and Global Landscape Coupled with Macroeconomic Uncertainties In 2025, the global environment becomes more complex and uncertain, while the cyclical and structural problems in the domestic economy persist Domestic International Cyclical Correction in the Real Estate Sector Insufficient Domestic Demand Export Growth Under Pressure …… Sustained China-US Trade War Uncertain US Interest Rate Cut Expectations Persisted International Geopolitical Tensions …… Volatile International Energy Prices Domestic Enterprise Cost Increase 27
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28 Committing to Strategic Upgrade: Focus on Customer-Centric Approach and Leverage on Intelligence for Sustained Business Growth Positioning Upgrade Business Upgrade Model Upgrade Leveraging Intelligent Innovation Services to Become a Multi- Value Service Provider Anchored in Natural Gas Operations Natural Gas Sales Demand expansion Lower Cost | Intelligence Security … Gas-based, multi-product value creation e City e Home Platform Household Customers 31.38 mn Corporate customers 270 thousand+ Resource Product Manufacturer GovernmentInvestment & Financing Institutions Service Provider Tech Provider Equipment Supplier ··· ··· To develop a long-term sustainability with the foundation of 31.38 mn to hundred million residential household customers and 270,000 to million C/I customer, accumulated industry expertise, driven by demand and intelligence-powered innovation Customer Needs Innovative Model Intelligence Application • Huge customer base • Segment customers, use intelligence to analyse customer intentions, and guide the solutions • Continuous innovation in products and services: leveraging digital intelligence to accumulate expertise and develop intelligent capabilities • Partnering to deploy capabilities in meeting customer needs • Applying intelligence in safety management, lean operations, business models and product development to achieve inherent safety, cost efficiency and product sales growth
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29 2025 Key Initiatives • Deepening production process integration to uncover gas volume growth opportunities, accelerating industrial customer expansion through innovative resource models • Leveraging government's “bottled-to-piped-gas conversion” policy to ensure safe operations while developing commercial & welfare clients at scale Understanding Customer Needs for Steady Incremental Growth Optimising Cost Structures through Resource-Facility Integration Leveraging Intelligent Capabilities for Efficient and Safe Operations Implementing corporate strategy of expanding volume scale and business innovation for steady growth • Enhancing intelligent monitoring and inspection capabilities through IoT infrastructure development, continuously iterating intelligent models to improve operational efficiency • Optimising resource-facility capabilities based on customer needs to maintain competitive cost structures • Sustaining prudent hedging strategies for dynamic management of volatile resource costs Natural Gas Sales Integrated Energy Value Added Business • Intelligently aggregate household profiles to precisely identify household intentions and enhance professional service capabilities. Role-based intelligence helps households to select the best services, realising a smart living style of households • In alignment with government and customer requirements for gas safety, facilitate the deployment and refurbishment of essential gas infrastructure • From a kitchen scenario, to drive sales growth through offerings including kitchen refurbishment, appliance upgrades, smart kitchen connectivity, and bespoke culinary services Create an Intelligence Entity for Households, Unlock Future Potential Precisely Identify Customers' Needs and Expand the Fundamental Business Explore Innovative Products to Enhance Quality Services • Deepening production process integration: replicating printing and dyeing textile industry's online-offline model to expand into food, chemical and other sectors Matching Production Processes to Enhance Factory Energy Efficiency and Product Quality • Leveraging digital intelligence: deepening demand exploration among existing public building customers and expanding beyond the concession areas through collaborations with hotels and commercial complexes Customer-Centric Approach: Delivering Precise Energy-Carbon Services for Public Building Customers • Continuing to secure small and micro-industrial parks with integrated load-source-grid-storage-sales solutions • Tapping into opportunities in existing industrial parks to provide low-carbon, high-efficiency energy-carbon services Implementing Load-Source-Grid-Storage-Sales Model to Serve Industrial Park Clients • Leverage "safety" to extend AI product portfolios with smart interactions across gas, electricity and water, enriching product lines and enabling business model innovation • Harness intelligence to interpret customer needs, exploring new services: home service cards, home health, kitchen renovation
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