The listing platform in Hong Kong provides international capital attention and diversified financing channels for the company, and also provides solid financial support and market recognition for the independent and rapid development of Beijing Blue Sky and the expansion of new energy business.

In recent years, Beijing Blue Sky has undergone changes in management, and the new management team has brought new strategic vision and execution.

In the latest performance announcement, the company has clarified the strategic direction of transforming to new energy, which not only conforms to the global trend of energy development, but also responds to the call of the Chinese government to promote green and low-carbon development.

I. Financial Performance and Business Growth

First of all, it should be made clear that as Beijing Blue Sky's transformation strategy gradually becomes clear, the company's operations and performance are in an important transitional period.

The latest interim performance announcement shows that as of June 30, 2024, Beijing Blue Sky's net income attributable to the parent company has achieved significant growth, reaching approximately HKD 55.31 million, a year-on-year increase of approximately 71.2%, with earnings per share of 0.24 HK cents, a year-on-year increase of approximately 71.4%.

In addition, the scale of net assets and book cash continues to rise, reaching HKD 1.65 billion and HKD 0.515 billion respectively, a year-on-year increase of 1.5% and 28.2%, reflecting the improvement of the company's operating efficiency and the stability of its financial condition.

(Source: Company Announcement)

In particular, the company has effectively reduced financing costs by optimizing its financing structure, providing strong support for performance growth.

Although the transformation of the new energy track has just begun, it is clear that the company's potential has not been fully realized.

From the latest financial report, the company's performance is solid and clear, and the transformation of revenue from the new energy division has achieved a "from 0 to 1" status, demonstrating a positive development trend.

Second, the Sinopec Beijing-Tangshan project provides performance guarantees and synergies.

BG Blue Sky holds 29% equity in Sinopec Beijing-Tangshan, and the LNG receiving station of Sinopec Beijing-Tangshan serves as an important facility for winter peak shaving and supply guarantee in the Beijing-Tianjin-Hebei region, ensuring the energy supply of the region and bringing stable sources of income to the company.

According to the announcement, the total LNG unloading volume of the Sinopec Beijing-Tangshan project in the first half of 2024 reached 3,320.3 million cubic meters, a year-on-year increase of 7.2%. This growth provides strong support for the company's financial condition in the first half of the year, contributing approximately 0.17 billion Hong Kong dollars in investment income from joint ventures to the company, a year-on-year increase of 25%.

In the future, the scarce and high-quality Sinopec Jing Tang LNG project will be able to bring stable investment returns and financial contribution to Beijing Blue Sky.

From a business development perspective, the strategic position and operating capabilities of the Sinopec Jing Tang LNG receiving station not only provide a solid foundation for the company in terms of natural gas supply and energy security, but also form a good synergy with the company's new energy strategy.

The development prospects of the new energy and energy storage business.

Beijing Blue Sky's layout in the new energy and energy storage business demonstrates the company's keen insight and forward-looking approach to future market opportunities.

In the short term, the acquisition of assets related to the Beiqijia Business Park Energy Center project by Beijing Blue Sky has already generated revenue of 1.3 million Hong Kong dollars and a profit of 1.2 million Hong Kong dollars in just two months. This indicates that if this performance is calculated for the whole year, the revenue and profit will be even more considerable.

Achieving such results may indicate the company's high success rate and rapid growth potential in the new energy field.

The future focus of the company still lies in the new energy and energy storage business. For example, the acquisition of 49% equity in Beijing Uni-Tech was completed in July 2024. Beijing Uni-Tech is a company mainly engaged in gas, heating, comprehensive energy utilization, and new energy power project planning, design, and consulting. The acquisition of Beijing Uni-Tech will not only contribute incremental profits to the company's performance report in the second half of the year, but also help the company accelerate the development of renewable energy business and expand the clean energy sector.

Another example is the official start of construction of the Yangzhou Wutingqiao Cylinder Liner Limited Company User-Side Energy Storage System project (referred to as the "Yangzhou project") announced by the company in June. The project is currently in the civil construction phase and is expected to be officially put into operation within the year. At that time, the Yangzhou project is expected to achieve a historic breakthrough in the company's revenue from energy storage business.

The energy storage market in China continues to maintain a rapid development momentum, benefiting from multiple factors such as policy support, technological innovation, and market demand growth. The domestic energy storage industry has ushered in new development. As of the first half of 2024, the cumulative installed capacity of newly built and operational energy storage projects nationwide has reached 44.44 million kW/99.06 million kWh, an increase of over 40% compared to the end of 2023.

With the rapid development of renewable energy and the deep application of smart grid technology, the commercial energy storage market is experiencing new opportunities for development. The diversified application scenarios of energy storage technology, including industrial manufacturing, commercial buildings, data centers, and electric vehicle charging stations, provide ample innovation space and market opportunities for companies.

Therefore, the company's energy storage business is expected to achieve breakthroughs in multiple fields in the future, injecting new momentum into the company's long-term development.

IV. Conclusion

It is worth noting that, supported by Beijing Ent and its parent group Beijing Gas Group, Bg Blue Sky has achieved initial results in the transition to new energy through management changes and strategic adjustments.

Looking at the financial performance of the company, it remains robust. With the smooth development of new energy and energy storage business and the continuous exploration of the market, the potential of the new energy business is expected to be continuously unleashed.

As one of the only listed platforms of Beijing Gas Group on the Hong Kong stock market, Bg Blue Sky will have the opportunity to continue to leverage the power of the capital market and the opportunities for industrial development, quickly join the industry growth period and innovation wave, promote the company to achieve leapfrog development, and continuously consolidate its long-term asset value that can generate sustainable cash flow.