ENN Energy (2688) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 rose 2.0% year-over-year to RMB55.67 bn, driven by wholesale gas volume expansion.

• Core profit reached RMB3.22 bn, with domestic core profit up 0.7% year-over-year to RMB3.1 bn.

• Profit attributable to shareholders declined 5.6% year-over-year to RMB2.43 bn, mainly due to fair value losses on financial assets and margin pressure.

• Interim dividend declared at HK$0.65 per share, with a payout ratio of approximately 21%.

• Gross profit was RMB6.46 bn, with a stable gross margin of 11.6%.

Financial highlights

• Retail gas sales volume increased 1.9% year-over-year to 12.95 bn m³, with 692,000 new residential customers added.

• Gross profit from integrated energy and smart home businesses rose to 39.6% of total gross profit.

• Basic earnings per share was RMB2.19, down 4.4% year-over-year.

• Net cash generated from operating activities was RMB2,645 mn.

• Free cash flow for 1H2025 stood at RMB578 mn after accounting for maturing bank acceptance bills.

Outlook and guidance

• Focus on evolving customer needs for cost control, green solutions, and quality services amid a complex macro environment.

• Continued expansion in integrated energy and smart home businesses, leveraging digital and intelligent capabilities.

• Integrated energy business to accelerate electricity power segment growth via the "Source-Grid-Load-Storage-Sales" model.

• Smart home business to expand foundational products and upgrade services for new growth.

• Plans to deepen engagement with residential and commercial customers, optimize resource structure, and accelerate integrated energy and smart home business growth.