The Hong Kong and China Gas Company (3) investor relations material

Executive summary

• Revenue rose 7% year-over-year to HK$29.53 billion, with profit attributable to shareholders up 23% to HK$3.64 billion and basic EPS up 23% to 19.5 HK cents.

• Core operating profit increased 22% to HK$3.96 billion, and after-tax operating profit grew 19% to HK$4.75 billion.

• Utility businesses remained resilient amid energy market volatility, while growth businesses in green fuels, renewable energy, and extended services delivered strong momentum and capacity expansion.

• Hong Kong gas sales declined 3.5% year-over-year due to high temperatures and outbound tourism, but commercial consumption increased modestly.

• Strategic restructuring, capital discipline, and stable interim dividend at 12 HK cents per share supported business expansion and value creation.

Financial highlights

• Revenue increased 7% year-over-year to HK$29.53 billion; operating profit after tax rose 19% to HK$4.75 billion.

• Core operating profit up 22% to HK$3.96 billion; basic EPS up 23% to 19.5 HK cents.

• Interim dividend maintained at 12.0 HK cents per share; payout totaled HK$2.24 billion.

• Total operating expenses rose 10% year-over-year, mainly due to higher gas fuel and material costs.

• Net cash from operating activities was HK$5.45 billion; net cash used in investing and financing activities totaled HK$4.00 billion.

Outlook and guidance

• Full-year Hong Kong gas sales expected to remain stable or decline slightly; tariff adjustment from August 2026 to support business.

• Mainland gas consumption growth likely under pressure; focus on diversified gas sources, digital transformation, and efficiency.

• Renewable energy segment targets 0.8 GW–1 GW new grid-connected capacity in H2 2026; expects recovery in per-kWh profitability.

• Growth businesses to expand, with advanced biofuels annual production capacity at 770,000 tonnes and PV grid-connected capacity targeted to rise.

• City gas dollar margin expected to improve by RMB0.01/m³.