Zhongyu Energy (3633) H2 2024 earnings summary

Executive summary

• Achieved turnover of HKD 13.47 bn in 2024, down 1.3% year-over-year, with smart energy revenue growing 22.2% and gas business turnover declining.

• Profit attributable to owners dropped 40.7% year-over-year to HKD 146.38 mn, with EPS down to 5.25 HK cents.

• Smart energy segment became a new growth engine, accounting for 9% of turnover, up from 7% in 2023.

• Resumed dividend payments, proposing a final dividend of 2.0 HK cents per share.

• Advanced “dual-wheel drive” strategy, focusing on city gas, smart energy, and zero-carbon business.

Financial highlights

• Total assets stood at HKD 26.22 bn, with total equity at HKD 8.38 bn and a debt ratio of 68.0%.

• Cash and cash equivalents increased 8.4% year-over-year to HKD 1.65 bn.

• Non-HKFRS EBITDA was HKD 1,721.6 mn, down 8.7% year-over-year.

• Gross profit margin was 13.1% (2023: 14.0%); net profit margin was 1.1% (2023: 1.8%).

• Basic and diluted EPS: HK5.25 cents (2023: HK8.74 cents).

Outlook and guidance

• Continues “Dual-Wheel Drive” strategy, focusing on urban gas and smart energy transformation.

• 2025 focus on biomass and zero-carbon coupling in smart energy, leveraging city gas user base.

• Plans to deepen digitalization, AI integration, and ESG practices to drive operational efficiency.

• Strategic emphasis on zero-carbon integrated operations, with biomass gasification as a core technology.

• Expects further reduction in financing costs in 2025 due to refinancing activities.