China Resources Gas Group (1193) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was HK$49.79 billion, down 4.4% year-over-year, with profit attributable to owners at HK$2.40 billion, a 30.5% decrease; gross profit was HK$8.52 billion with a margin of 17.1%.

• Net cash from operating activities was HK$3.01 billion, and cash and bank balances rose 49.3% to HK$11.24 billion at period end.

• Interim dividend declared at HK$0.30 per share, up 20% from the prior year.

• The Group maintained a strong focus on shareholder value, high-quality development, and operational efficiency.

• Results were pressured by warm winter, tariffs, weak manufacturing PMI, and property sector adjustments.

Financial highlights

• Turnover decreased to HK$49.79B from HK$52.08B year-over-year; gross profit margin declined to 17.1% from 18.6%.

• Profit attributable to shareholders fell to HK$2.40B from HK$3.46B year-over-year; basic EPS was HK$1.05, down 30.9%.

• Gas sales volume slightly declined by 0.69% to 20.76B m³, outperforming the national average.

• Net cash flow from operating activities was HK$3.01B, down from HK$4.25B year-over-year.

• Return on equity (annualised) was 11.1%, compared to 16.6% a year earlier.

Outlook and guidance

• 2025 gas sales volume expected to see low single-digit growth; new residential connections targeted at 2.1–2.2 million.

• Unit gas margin to increase by RMB0.01/m³ YoY.

• Comprehensive services sales to grow low to mid-single digits; integrated energy sales to grow double digits.

• Global natural gas prices expected to remain volatile in 2H2025, with domestic demand anticipated to gradually rebound.

• Full-year dividend will not decrease.