CHINA GAS HOLDINGS (384) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2025 was HK$34.48 billion, down 1.8% year-over-year; profit attributable to owners fell 24.2% to HK$1.33 billion; basic EPS was HK24.73 cents, down 24.4%.

• Free cash flow increased 17.2% to HK$2.60 billion; interim dividend maintained at HK15.0 cents per share.

• ESG ratings improved, with MSCI upgraded to A and other ratings also rising.

• The Group maintained a prudent investment approach, focusing on digital transformation, safety, and expansion in integrated energy and value-added services.

Financial highlights

• Gross profit was HK$5.51 billion, down 6.0% year-over-year; gross margin was 16.0% (2024: 16.7%).

• Natural gas revenue was HK$20.4 billion, up 3.8%; LPG revenue fell 12.3% to HK$8.38 billion; value-added services revenue was HK$2.02 billion, up 0.3%.

• Operating profit from LPG surged 125.6% despite a 4.5% drop in sales volume and 12.3% revenue decline.

• Net cash flow from operating activities was HK$3.13 billion; bank balances and cash at period end were HK$12.91 billion.

• Earnings per share were HK24.73 cents, a 24.4% decrease year-over-year.

Outlook and guidance

• Dollar margin for city & township gas expected at 0.55 RMB/m³; sales volume growth projected at 0–2%.

• Residential new connections targeted at 1.0–1.2 million households for the full year.

• Value-added services operating profit expected to grow 10%+; C&I BTM energy storage in operation to reach 800 MWh.

• The Group will leverage digital transformation and policy opportunities for sustainable, high-quality growth.

• Focus remains on payment collection, margin expansion, cost control, and workforce upskilling.