Towngas Smart Energy (1083) investor relations material

Executive summary

• Gas sales volume remained steady at 8,746 million m³ in 1H2025, with city gas dollar margin rising to 0.57 RMB/m³ and customer base reaching 18.02 million.

• Renewable energy segment net profit grew 5% year-over-year to HK$172 million, with PV power generation up 44% to 1.18 billion kWh and grid-connected capacity at 2.6 GW.

• Operating profit rose 2% to HK$719 million, and profit attributable to shareholders increased 2% to HK$758 million compared to 1H2024.

• Interim dividend of HK5 cents per share declared, with a scrip option for shareholders.

• Group strategy focused on expanding gas resources, asset-light renewable investments, and digital empowerment for efficiency.

Financial highlights

• Revenue decreased 1% year-over-year to HK$10,437 million in 1H2025.

• Core operating profit increased 2% to HK$719 million; basic EPS declined to 21.8 HK cents.

• Interim dividend maintained at 5 HK cents per share.

• Total assets grew to HK$55.2 billion, with net assets at HK$26.6 billion as of 30 June 2025.

• Net gearing ratio stable at 36%; credit ratings remain BBB+ (S&P), Baa1 (Moody’s), AAA (CCXI).

Outlook and guidance

• 2025 guidance targets gas sales volume of 17.3 billion m³ (+1%) and 18.27 million customers (+0.63 million).

• City gas dollar margin expected to remain at 0.57 RMB/m³.

• Renewable energy aims for 2.9 GW PV grid-connected capacity and 2.58 billion kWh power generation (+40%).

• The group will focus on prudent financial management, digital transformation, and expanding integrated energy services.

• Renewable energy is projected to remain a key profit driver, with ongoing investment in technology and energy storage.