Huzhou Gas (6661) H1 2026 earnings summary

Executive summary

• H1 revenue rose 4.24% YoY to RMB1,136.6m, while gross profit fell 12.81% to RMB121.2m and attributable profit declined 16.57% to RMB43.8m.

• Weaker pipeline construction and installation activity amid real-estate market adjustments weighed on gross profit and earnings; PNG and LNG sales expanded.

• Served 350,600 residential and 3,967 industrial and commercial users; gas sales volume was 300.0m m³ and operated pipeline network length was 1,814.95 km.

Financial highlights

• Revenue was RMB1,136.6m versus RMB1,090.4m YoY; cost of sales rose to RMB1,015.4m from RMB951.3m.

• Gross profit was RMB121.2m versus RMB139.0m; profit before tax was RMB87.7m versus RMB105.4m, and profit for the period was RMB67.7m versus RMB82.4m.

• Attributable profit was RMB43.8m versus RMB52.5m; basic EPS was RMB0.22 versus RMB0.26.

• Income tax expense fell 13.42% to RMB20.0m, while the effective tax rate rose to 22.81% from 21.92%; finance costs declined 9.09% to RMB1.0m.

• Net cash from operating activities was RMB62.9m versus RMB77.4m; cash and cash equivalents rose to RMB365.8m from RMB309.4m at year-end 2025.

Outlook and guidance

• Strategy targets a transition from gas supplier to regional integrated green-energy services provider, with gas as the core and pan-energy, new energy and value-added services as growth engines.

• New-energy plans include light-asset photovoltaic O&M, energy-saving retrofits, carbon management and integrated energy services; Smart Cloud supports intelligent risk alerts and closed-loop safety management.

• Priorities include secure energy supply, green and low-carbon transition, revenue-mix optimization and refined customer services; no numerical financial guidance was stated.