Jy Gas (1407) investor relations material

Executive summary

• H1 revenue fell 9.5% to RMB163.0m; profit attributable to owners declined 33.0% to RMB8.8m as lower PNG prices, higher procurement costs and weaker ancillary businesses weighed on results.

• PNG volume remained stable at 45.4m m³, but gross margin fell to 13.4% from 15.9%; no interim dividend was declared.

Financial highlights

• Revenue was RMB163.0m, down 9.5% YoY; gross profit fell 23.9% to RMB21.8m and gross margin declined to 13.4% from 15.9%.

• Net profit was RMB9.0m versus RMB13.4m; profit attributable to owners was RMB8.8m versus RMB13.1m. Operating profit was RMB14.4m versus RMB19.7m.

• Basic and diluted EPS were RMB0.02 versus RMB0.03; no dilutive instruments were outstanding.

• Administrative expenses declined 13.5% to RMB9.8m; other income rose 49.6% to RMB2.7m, mainly from rental income.

• Income tax expense was RMB3.9m, down 21.4% YoY; the effective tax rate was 30.2% versus 27.1%.

Outlook and guidance

• National and Shandong clean-energy policies, including the 15th Five-Year Energy Development Plan and 2026 action plan, were viewed as supportive of longer-term natural gas demand.

• Priorities include strengthening the gas supply network, investing in safety, improving technical capabilities and training personnel and customers in gas safety.

• Plans include pursuing clean-energy and energy-storage opportunities; cash and operating cash generation were expected to meet working-capital needs.