ENN Natural Gas (600803) H1 2025 earnings summary

Executive summary

• Total gas sales volume rose 6.4% year-over-year to 20.33 bcm, with retail gas up 1.9% and platform trading gas up 54.6%.

• Core profit increased 1.4% year-over-year to RMB2,736 million, while operating cash flow grew 15.7% to RMB5,573 million.

• The company maintained a strong financial position, with net gearing ratio reduced to 21.2%.

• Shareholder returns improved, with a 2025 cash dividend per share not less than RMB1.14 and a payout ratio of at least 50% of core profit from 2026 to 2028.

• Received an MSCI AAA ESG rating, the first and only Chinese public utility to do so.

Financial highlights

• Total revenue for H1 2025 was RMB66,015 million, down 1.5% year-over-year.

• Net profit attributable to shareholders was RMB2,408 million, down 4.8% year-over-year, while core profit rose 1.4% to RMB2,736 million.

• Operating cash flow increased 15.7% to RMB5,573 million.

• Gross profit remained stable at RMB9,857 million; gross margin was 14.4%.

• Free cash flow increased, supported by higher operating cash flow and prudent investment strategies.

Outlook and guidance

• Annual cash dividend payout ratio set at not less than 50% of core profit from 2026 to 2028.

• Pursuing Hong Kong listing via subsidiary privatization to enhance market competitiveness.

• Focus on expanding customer base, optimizing resource structure, and digital transformation.

• Continued investment in integrated energy, smart home, and clean energy R&D.