Huzhou Gas (6661) H1 2024 earnings summary

Executive summary

• H1 revenue rose 2.88% to RMB1,192.0m; gross profit increased 28.99% to RMB151.3m, mainly on lower gas procurement costs.

• Profit attributable to owners grew 8.72% to RMB58.6m; gas sales volume increased 12.12% to 297.0m m³.

Financial highlights

• Revenue was RMB1,192.0m versus RMB1,158.6m; cost of sales was RMB1,040.7m versus RMB1,041.2m.

• Profit before tax rose to RMB115.9m from RMB100.0m; profit for the period was RMB88.7m versus RMB75.8m.

• Basic EPS was RMB0.29 versus RMB0.27; finance costs fell to RMB1.6m from RMB1.9m.

• Net cash from operating activities was RMB93.4m; cash and cash equivalents reached RMB918.4m at 30 June 2024.

Segment performance

• PNG revenue increased to RMB1,038.3m from RMB1,022.2m; industrial and commercial gas volume grew by 21.8m m³ YoY.

• LNG revenue rose to RMB32.3m from RMB6.6m, supported by competitive market-based purchase pricing and higher demand.

• Construction and installation revenue fell to RMB95.7m from RMB103.4m amid fewer projects and real estate weakness.

• Distributed photovoltaic revenue rose to RMB6.0m from RMB3.0m; household gas appliance revenue fell 26.90% to RMB10.6m.

• Operations served 299,000 residential and 3,581 industrial and commercial users across a 1,671.2 km pipeline network.