Towngas Smart Energy Company (1083) investor relations material

Executive summary

• Revenue declined 2% year-over-year to HK$20,912 million, with operating profit down 6% and profit attributable to shareholders down 1% to HK$1,585 million.

• Gas sales volume grew 1% to 17.37 billion m³, while renewable energy power generation rose 36% to 2.48 billion kWh and PV grid-connected capacity increased by 500 MW to 2.8 GW.

• City gas dollar margin improved by RMB0.02/m³, reaching RMB0.58/m³.

• The company maintained its annual dividend at 19 HK cents per share, with a final dividend of HK14 cents proposed.

Financial highlights

• Gas business net profit decreased 4% to HK$1,763 million; renewable energy net profit fell 14% to HK$413 million.

• Core operating profit slipped 2% to HK$1,573 million.

• Net assets increased to HK$28.2 billion, with total assets at HK$55.2 billion.

• Net gearing ratio improved to 34% from 36%.

• Capital expenditure reduced to HK$2.4 billion, with AuM financing covering renewable energy capex.

• Basic EPS down 6% to 44.5 HK cents.

• Total operating expenses increased 1% to HK$19,527 million.

• Net other gains rose 117% to HK$390 million, mainly due to restructuring gains and lower impairments.

• Finance costs decreased 11% to HK$648 million due to lower capital expenditure and favorable loan rates.

Outlook and guidance

• 2026 guidance targets 1% growth in gas sales volume to 17.54 billion m³ and 1 GW increase in PV grid-connected capacity.

• Power generation volume expected to rise 29% to 3.2 billion kWh; electricity trading volume to surge 78% to 15.0 billion kWh.

• City gas dollar margin projected to improve by RMB0.01/m³.

• Focus on expanding AuM cooperation, gas-electricity synergy, and AI-driven efficiency.

• Dual-wheel drive strategy to ensure steady gas operations and vigorous renewable energy growth.