China Oil And Gas Group (603) investor relations material

Executive summary

• Revenue for the first half of 2026 was HK$7,854 million, down 1% year-over-year, with gross profit rising to HK$1,093 million and gross margin improving to 14% from 12%.

• Profit attributable to owners was HK$196 million, a 22% decrease compared to the same period last year, mainly due to higher administrative and finance costs and increased other losses.

• The Group maintained stable operations and liquidity amid economic restructuring, energy market volatility, and digital transformation, focusing on core gas business, digital intelligence, and customer engagement.

Financial highlights

• Revenue: HK$7,854 million (down 1% year-over-year); gross profit: HK$1,093 million (up 11%); gross margin: 14%.

• Profit attributable to owners: HK$196 million (down 22% year-over-year).

• Administrative expenses: HK$270 million (up 34%, mainly due to R&D); selling and distribution costs: up 14%.

• Finance costs: HK$239 million (up from HK$213 million); weighted average cost of debt: 4.5%.

• No interim dividend declared for the period.

Outlook and guidance

• The Group will focus on strengthening its core gas business, accelerating digital transformation, and deepening customer engagement.

• Plans include upgrading pipeline networks, enhancing safety, leveraging AI for operational efficiency, and expanding integrated energy services.

• The overseas oil and gas segment will leverage high oil prices, pursue reserve replacement, and capitalize on new LNG projects for synergistic growth.

• Integrated energy and value-added services will be expanded, focusing on customer-centric solutions.