Huzhou Gas (6661) H1 2023 earnings summary

Executive summary

• H1 revenue fell 8.49% YoY to RMB1,158.6m; gross profit recovered to RMB117.3m from a RMB6.4m loss, while profit attributable to owners rose 3.65% to RMB53.9m.

• Gas sales volume decreased 2.32% YoY to 264.9m m³.

Financial highlights

• Profit before tax increased 36.43% YoY to RMB100.0m; profit for the period was RMB75.8m versus RMB54.7m.

• Other income and gains fell to RMB22.3m from RMB115.8m, mainly reflecting lower fiscal subsidies; finance costs rose to RMB1.9m from RMB0.5m as bank borrowings increased.

• Operating cash flow was RMB73.6m, compared with a RMB34.4m outflow in H1 2022; cash and cash equivalents were RMB1,003.6m at 30 June 2023.

Outlook and guidance

• H2 priorities include strengthening gas supply, safety and service assurance, and developing a “1+3+N” business pattern spanning pipeline gas, smart-city energy management, smart enterprise and home businesses, and related extensions.

• Plans include expanding gas, heat, cooling and electricity offerings to develop an urban green-energy management business.