ENN Energy (2688) H1 2026 earnings summary

Executive summary

• Revenue rose 2.4% year-over-year to RMB57,021 million, with gross profit up 3.1% to RMB6,655 million and profit attributable to owners increasing 9.8% to RMB2,667 million; basic EPS up 9.6% to RMB2.40.

• Achieved profit growth by increasing sales volume and diversifying energy products and services, despite a volatile environment with energy supply disruptions and slower consumer spending.

• The customer base expanded to 33.26 million residential and 328,000 C/I customers, supporting operational resilience amid market volatility.

• Operating cash flow increased 16.4% year-over-year to RMB3,078 million, and the net gearing ratio improved to 19.1%.

• Core profit declined 1.5% year-over-year to RMB3,175 million, reflecting adjustments for non-recurring items.

Financial highlights

• Revenue rose 2.4% year-over-year to RMB57.02 bn in 1H2026.

• Gross profit increased 3.1% year-over-year to RMB6.66 bn; gross margin improved to 11.7%.

• EBITDA grew 7.8% year-over-year to RMB6.22 bn; core profit reached RMB3.18 bn.

• Profit attributable to owners rose 9.8% year-over-year to RMB2.67 bn; basic EPS up 9.6% to RMB2.40.

• Free cash flow was RMB730 mn; interim dividend proposed at HK$0.68 per share, up 4.6% year-over-year.

Outlook and guidance

• 2026 guidance projects retail gas sales volume to be flat or slightly up year-over-year.

• CAPEX expected at approximately RMB6.0 bn; free cash flow to remain broadly flat year-over-year.

• Dividend for 2026 expected to be no less than HK$3.00 per share.

• The group will focus on intelligent upgrades, scale-driven profitability in natural gas, and expansion of the electricity-centered integrated energy business.

• Smart home business will leverage customer demand analysis to drive product and service innovation.