China Resources Gas Group (1193) H2 2025 earnings summary

Executive summary

• Navigated a challenging environment in 2025, including a warm winter, tariff policies, and weak manufacturing PMI, resulting in pressured performance.

• Revenue declined by 4.8% year-over-year to HK$97.73 billion, while profit attributable to owners dropped 13.2% to HK$3.55 billion.

• Gross gas sales volume increased 0.7% to 40.18 billion m³, with industrial gas sales up 0.3% and residential gas sales up 4.9%.

• Comprehensive services revenue reached HK$4 billion, with segment profit up 0.9%.

• Maintained a stable gross profit margin of 17.8% and operating cash flow of HK$6.58 billion.

Financial highlights

• Turnover/revenue declined 4.8% to HK$97.73 billion; profit attributable to shareholders fell 13.2% to HK$3.55 billion.

• Gas sales volume rose 0.7% year-over-year to 40.18 billion m³, outpacing national growth.

• Free cash flow increased 12.3% to HK$2.9 billion; capital expenditure decreased 16.9% to HK$3.67 billion.

• Basic EPS: HK$1.55 (down from HK$1.80 in 2024).

• Final dividend per share: HK$0.65; total for the year: HK$0.95 (unchanged year-over-year).

Outlook and guidance

• 2026 guidance targets low-to-mid single-digit gas sales volume growth and double-digit growth in comprehensive and integrated energy services.

• Recurring CAPEX planned at HK$3.0–4.0 billion; strategic CAPEX not to exceed HK$0.5 billion.

• Plans to consolidate core city gas business and accelerate diversified energy services.

• Focus on digital transformation, operational efficiency, and expanding integrated energy business.

• Strategic emphasis on green development, carbon reduction, and value chain extension.