Jy Gas (1407) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 15.1% YoY to RMB403.5 million; net profit declined 51.5% to RMB25.2 million, reflecting lower gas sales and weaker higher-margin construction and appliance businesses.

• PNG remained the principal business, with sales volume down 11.7% YoY; the revised dividend policy targets distributions of at least 50% of annual net profit, subject to approvals and discretion.

Financial highlights

• Revenue was RMB403.5 million, down 15.1% YoY; gross profit was RMB64.9 million, down 35.6%, and gross margin fell to 16.1% from 21.2%.

• Operating profit declined to RMB34.3 million from RMB72.7 million; profit before tax was RMB36.1 million versus RMB71.9 million.

• Net profit was RMB25.2 million versus RMB52.0 million; net profit margin was 6.3% versus 10.9%.

• Profit attributable to owners fell 51.8% to RMB24.5 million; basic and diluted EPS was RMB0.06 versus RMB0.15.

• Administrative expenses declined 22.6% to RMB26.3 million, mainly as 2022 included RMB17.1 million of listing expenses; 2023 also included RMB6.1 million higher professional fees and RMB3.5 million higher repairs and maintenance costs.

Outlook and guidance

• Strategy prioritizes safe operations, stronger inspection and emergency-response systems, and technology and equipment upgrades to protect operations and market opportunities.

• Plans include continuing government-subsidised clean-energy construction projects to expand gas access for rural residents and enterprises in Gaomi City.

• Outlook is supported by clean-energy policies and the expected continued development of the natural gas industry; no quantitative earnings guidance was stated.