SL Gemini Energy (2481) H1 2023 earnings summary

Executive summary

• H1 2023 revenue rose 11.4% YoY to RMB710.8m; profit attributable to owners increased 138.9% to RMB79.3m.

• Six concession projects supported heat services across 41.9m sq.m.; Xinmi was nearing readiness for the 2023/24 heating season.

Financial highlights

• Gross profit rose 40.9% to RMB194.6m; operating profit reached RMB161.1m versus RMB107.4m.

• Profit for the period climbed 127.1% to RMB113.3m; profit before tax was RMB148.4m versus RMB69.2m.

• Revenue grew 11.4% to RMB710.8m while cost of sales increased 3.2% to RMB516.2m.

• A RMB21.1m impairment reversal, versus a RMB4.0m provision in H1 2022, contributed to profit growth.

• Finance costs fell to RMB25.3m from RMB51.2m; net finance costs were RMB15.6m versus RMB38.6m.

Outlook and guidance

• Xinmi heat services were expected to begin around November 2023, adding the sixth operating concession and increasing H2 customer heat fees.

• Plans include expanding within concession areas, enhancing service capacity and pursuing projects in other heat markets.