Binhai Investment Company Limited (Binhai) is principally engaged in the sales of piped
natural gas, construction and gas pipeline installation service and gas passing through
service. The natural gas business of Binhai Investment and its subsidiaries is distributed in
seven provinces and two cities across the country, with a total of 40 gas project companies.
At present, the largest shareholder of Binhai Investment is Tianjin TEDA Investment Holding
Company, holding 40.00% of Binhai’s shares, and the second largest shareholder is Sinopec
Great Wall Gas Investment Company, holding 29.99% of Binhai’s shares.
Suffer from rising purchase cost of natural gas in 2022, 1H margins under pressure
In FY2022, total revenue of Binhai amounted to HK$6102 million (FY2021: HK$4843 million),
representing an increase of 26.0% YoY. Profit attributable to equity owners of the Company
was HK$326 million (FY2021: HK$400 million), representing a decrease of 18.5% YoY. Profit
attributable to equity owners of the company excluding the net foreign exchange loss
recognized (FY2022: net exchange loss of HK$84 million) in profit or loss amounted to
HK$410 million, representing an increase of 9% YoY. The number of regular customers from
the construction and installation of gas engineering works of the company increased by 106
thousand, down by 35% YoY, and the aggregate number of customers amounted to 2299
thousand. The recorded sales volume of piped natural gas was 2.03 billion cubic metres, up
by 3% YoY, among which the sales volume of pipeline gas amounted for 1.44 billion cubic
metres, up by 15% YoY, and achieved 0.59 billion cubic metres of natural gas pipeline
transmission for the year, down by 17% YoY. Gross profit was HK$727 million (FY2021:
HK$855 million) and the gross profit margin was 11.9% (FY2021: 17.7%). The decrease in
gross profit margin was mainly due to the increase in purchase cost of natural gas.