Zhongyu Energy (3633) investor relations material

Executive summary

• Turnover for the six months ended 30 June 2025 decreased by 9.4% year-over-year to HK$6,575.5 million, mainly due to lower revenue from gas pipeline construction and smart energy.

• Profit attributable to owners rose 2.7% year-over-year to HK$245.5 million, with basic EPS up 3.7% to HK8.89 cents.

• Gross profit margin declined to 12.0% from 14.0% year-over-year, mainly due to lower margin in CNG/LNG vehicle filling stations.

• Net profit margin improved to 3.7% from 3.3% year-over-year.

• The Group continued to expand integrated energy projects, reaching 262 projects, up 21.3% year-over-year.

Financial highlights

• Sales of gas accounted for 85.5% of turnover, down 4.1% year-over-year; gas pipeline construction revenue fell 34.5%, and smart energy revenue dropped 39.4%.

• Value-added services revenue declined 10.7% to HK$151.4 million; CNG/LNG vehicle filling stations revenue decreased 4.2% to HK$92.0 million.

• Gross profit was HK$789.2 million, down from HK$1,014.3 million year-over-year.

• Other net gains of HK$123.1 million were recognized, mainly from foreign exchange gains.

• Finance costs fell 24.8% to HK$208.5 million due to lower effective interest rates.

Outlook and guidance

• Focus on stable operations, cost optimization, and digital transformation in the second half of 2025.

• Plans include expanding city gas, smart energy, and value-added services, with emphasis on green finance and ESG initiatives.

• The Group will explore international LNG trading and new value-added services, including gas pipeline beautification and insurance.

• Transformation strategy centers on zero-carbon coupling with biomass as the core, aiming for sustainable growth.

• Emphasis on digital intelligence, operational management, and expanding franchised projects.