Huzhou Gas (6661) H2 2023 earnings summary

Executive summary

• FY2023 natural gas sales volume rose 2.42% YoY to 575.94 million m³; revenue fell 5.58% to RMB2,435.57 million, while profit attributable to owners increased 6.48% to RMB110.84 million.

• Lower natural gas procurement prices lifted gross profit to RMB266.93 million from RMB114.46 million, more than offsetting reduced fiscal subsidies and lower non-residential gas selling prices.

Financial highlights

• Revenue decreased 5.58% YoY to RMB2,435.57 million; gross profit increased to RMB266.93 million from RMB114.46 million.

• Profit before tax rose to RMB216.31 million from RMB170.90 million; profit for the year was RMB164.30 million versus RMB129.25 million.

• Profit attributable to owners increased 6.48% to RMB110.84 million from RMB104.09 million; basic EPS was RMB0.55 versus RMB0.60.

• Other income and gains declined to RMB48.95 million from RMB146.20 million, mainly due to lower fiscal subsidies received.

Outlook and guidance

• Strategy prioritizes an integrated gas, heat, cold and electricity model, expansion of the “1+3+N” industrial framework, and continued development of production, supply, storage and sales capabilities.

• Development priorities include clean-energy supply, customer-specific energy solutions, energy conservation and emissions reduction, and coordinated use of multiple energy sources.