Zhongyu Energy (3633) investor relations material

Executive summary

• Turnover for the six months ended 30th June 2026 decreased by 7.7% year-over-year to HK$6,066.7 million, mainly due to lower sales of gas and gas pipeline construction revenue.

• Profit attributable to owners fell 7.9% year-over-year to HK$226.2 million, with basic EPS at HK8.27 cents, down from HK8.89 cents.

• Non-HKFRS profit attributable to owners rose 28.2% to HK$153.4 million, and non-HKFRS EPS increased to HK5.60 cents.

• Net asset value per share increased 10.1% to HK$2.94 as of 30th June 2026.

Financial highlights

• Gross profit margin improved to 12.8% from 12.0% year-over-year, driven by higher margins in gas sales and pipeline construction.

• Non-HKFRS EBITDA remained stable at HK$785 million.

• Net profit margin held steady at 3.7%.

• Finance costs decreased 16.7% to HK$173.8 million due to lower effective interest rates.

• Income tax expenses dropped 14.6% to HK$130.1 million.

Outlook and guidance

• The group will focus on core city gas business, expand smart energy and biomass, and pursue digital transformation.

• Plans include leveraging cost pass-through, expanding rural and night economy markets, and enhancing value-added services with AI-powered products.

• Smart energy business to accelerate biomass expansion domestically and internationally, with a focus on technology and supply chain advantages.

• ESG and green financing initiatives will be deepened, with emphasis on safety, digitalization, and talent development.