Towngas Smart Energy Company (1083) investor relations material

Executive summary

• Revenue rose 9% year-over-year to HK$11,328 million in H1 2026, demonstrating operational resilience amid a volatile global economy.

• Profit attributable to shareholders declined 9% to HK$690 million, with basic EPS down 14% to HK18.8 cents.

• Interim dividend maintained at HK5 cents per share, with a scrip option available.

• The Group advanced its green energy and technological innovation strategy, expanding renewable energy and integrated energy services.

• Gas sales volume declined 2% to 8.54 billion m³, mainly due to a mild winter and weak real estate market.

Financial highlights

• Operating profit decreased 3% year-over-year to HK$992 million; core operating profit fell 4%.

• Gas sales volume was 8.54 billion cubic metres, down 2% year-over-year; number of city-gas customers rose to 18.66 million.

• Photovoltaic power generation increased 12% year-over-year to 1.32 billion kWh; cumulative PV grid connection reached 3 GW.

• Total borrowings increased to HK$18.22 billion; cash and cash equivalents improved to HK$3.41 billion.

• Interim dividend maintained at 5 HK cents per share.

Outlook and guidance

• Plans to add 0.8 GW of new grid-connected solar PV capacity in H2 2026, targeting 3.8 GW total.

• Full-year gas sales volume expected to rise 1% to 17.54 billion m³; city gas dollar margin to increase by 0.01 RMB/m³.

• Per-kWh profitability in renewables expected to improve as midday valley pricing pressure eases.

• Focus on digital transformation, AI integration, and sustainable profit growth.

• Electricity trading volume projected to reach 15.0 billion kWh (+78%).