August 23 – ENN Natural Gas Co., Ltd. (stock code: 600803.SH) released its semi-annual report for 2024, demonstrating steady growth. During the reporting period, total natural gas sales rose by 5.8% year-over-year, reaching 19.115 billion cubic meters, with total revenue of 67.014 billion CNY. Thanks to outstanding operational performance and a stable financial position, the company maintained strong growth momentum despite a complex global economic environment, achieving innovative breakthroughs and producing positive free cash flow for several consecutive years, supporting a steady increase in dividends. Cash dividends from 2023 to 2025 (before tax) will not be less than 0.91 CNY, 1.03 CNY, and 1.14 CNY per share, respectively. In the first half of the year, the company repurchased 9.3513 million shares, totaling 172 million CNY.

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Innovating to Meet Customer Needs and Enable Low-Cost Energy Solutions

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At this critical juncture of energy transition, ENN NG leveraged its deep industry expertise and strategic foresight, coupled with strong leadership and relentless team efforts, to achieve comprehensive growth across its four business pillars: demand, resources, delivery network, and risk management.

For demand, the company utilized its vast customer base and deep insights into customer energy characteristics and unique needs. Through innovative service models, such as bulk purchasing and tiered plans, it developed energy products that efficiently meet diverse, green, and low-carbon energy needs. Platform transaction gas sales reached 2.705 billion cubic meters, up 21% year-over-year, with domestic platform sales volume up 51.9% to 1.741 billion cubic meters, and retail gas sales totaling 12.71 billion cubic meters, a year-on-year increase of 4.5%.

On the resource front, the company signed long-term agreements for over 10 million tons and leveraged spot purchases to manage price and demand fluctuations. Domestically, it reinforced partnerships with ecosystem partners to secure stable resources, expanded into unconventional resources like coalbed methane and shale gas to reduce gas costs, and enhance supply flexibility. By combining physical contracts with paper contracts and dynamically optimizing long-term and spot resources, ENN NG developed low-cost resource solutions to fully meet customer needs for affordable energy.

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On the infrastructure side, ENN NG continued to optimize its infrastructure layout, integrating virtual and physical resources to build a robust delivery network. The ENN Zhoushan LNG receiving terminal's four LNG storage tanks, each with a capacity of 220,000 cubic meters, completed their primary structural construction and are expected to go live in Q4 2025. Once operational, Zhoushan’s annual processing capacity will exceed 10 million tons. During the reporting period, Zhoushan handled 1.02 million tons, up 14% year-over-year, using up to 5.5 PipeChina slots, making ENN NG the top buyer in the second-tier category. Additionally, with a self-owned storage capacity exceeding 500 million cubic meters, ENN NG secured 30 million cubic meters in a ten-year agreement with PipeChina Wen 23 and 2 million cubic meters from Sinopec Huangchang. ENN NG has now extended its partnership with PipeChina to cover 16 loading points and over 200 unloading points, with 1,200 LNG tankers available for flexible deployment, reaching a daily transport capacity of over 4 million cubic meters and dispatching more than 600 trips per day, ensuring stable and flexible energy delivery.

In trading and risk management, ENN NG strengthened its risk management capabilities and system, using a combined physical and paper hedging strategy to manage risk exposure, lock in value, and increase profit margins. The industry-leading ETMO digital risk management system spans the entire trading process, achieving comprehensive smart risk management. The Tianjin International Oil and Gas Trading Center launched an innovative bulk order product for PipeChina slots, meeting diversified market needs. Through a self-developed app and web platform, ENN NG enabled seamless risk monitoring across the trading lifecycle, helping customers manage uncertainties and ensuring sustainable, low-cost gas for customers.

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Empowering Industry Upgrades through Intelligent Platforms to Reshape the Natural Gas Ecosystem

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ENN NG leverages its industry operations expertise and capabilities to address customer needs, analyze industry challenges, and establish a repository of best practices and support capabilities, continually innovating in natural gas business models. ENN NG’s self-developed smart natural gas industry platform, GreatGas network, connects the demand and supply sides, providing clients and ecosystem partners with smart capabilities and customizable, differentiated products and services. This enables optimal demand-supply matching, reduces customer gas costs, and resolves mismatches within the industry, fostering mutual growth in customer scale, smart capabilities, and innovative models to continuously expand the natural gas ecosystem.

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Upgrading ESG Vision to Drive Sustainable Development through Smart Innovation

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ENN NG actively aligns with China’s low-carbon energy transition strategy, adhering to sustainable development principles, and continually enhancing its governance framework and execution system to improve ESG performance. Under the guidance of its Board of Directors, ENN NG has embedded ESG principles into all aspects of decision-making and business operations. In environmental efforts, Phase III of the ENN Zhoushan LNG receiving terminal project included multiple ecological replenishment initiatives to protect marine biodiversity. On the social front, the company implemented a safety-first accountability system to raise employee awareness of safety and advanced the development of smart safety systems, including intelligent safety maps, strengthening its foundation for sustainable development.

During the reporting period, ENN NG comprehensively upgraded its ESG vision: ?“WISE” -- Smart Innovation for Sustainable Energy,” outlining four sustainable development directions to promote deeper integration of ESG into its business. Guided by the WISE vision, ENN NG’s ESG management and long-term investment value received high recognition from rating agencies: MSCI ESG rating improved to A, it was included in the Hang Seng A-Share Sustainable Development Enterprise Index, and its Morningstar Sustainalytics ESG risk score dropped to 22.2, ranking among the top in China’s A-share gas industry and within the top 16 in global gas utilities.

ENN NG’s international credit ratings also improved significantly, with S&P and Fitch both raising their ratings to “BBB” (stable), and Moody’s upgrading to “Baa3” (stable). These upgrades reflect rating agencies’ recognition of ENN NG’s business sustainability, financial stability, professional risk management, governance structure, and transparency, underscoring the company’s reputation and strength in international capital markets. These advancements lay a solid foundation for further expanding financing channels, reducing financing costs, and enhancing market credibility.

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