The Hong Kong and China Gas Company (3) H2 2025 earnings summary

Executive summary

• Revenue decreased by 2% year-over-year to HK$54,326 million, while profit from operations rose 2% to HK$7,501 million and core operating profit increased 4% to HK$6.0 billion; profit attributable to shareholders remained steady at HK$5,688 million.

• Strategic focus on green energy led to robust growth in renewable energy, sustainable aviation fuel, green methanol, and hydrogen energy businesses.

• Utility businesses in Hong Kong and mainland China maintained stable gas sales volumes, with residential gas consumption rising 2.4% in Hong Kong.

• The Group expanded its customer base to 46 million households and enhanced smart living services, covering 130 million people.

• ESG performance recognized with over 30 awards and upgrades in major sustainability indices.

Financial highlights

• Total assets grew to HK$163.6 billion, net assets to HK$71.4 billion, and borrowings to HK$59.7 billion.

• Net gearing ratio stable at 42.7%–43% as of 31 December 2025.

• Capital expenditure for 2025 was HK$5.1 billion for 0003.HK and HK$2.4 billion for 1083.HK.

• Profit from operations by segment: Hong Kong HK$3,640m (+2%), Mainland HK$3,041m (-2%), Growth Business HK$278m (+48%), Renewable Energy HK$-158m (loss reduction).

• Total operating expenses decreased by 2% to HK$46,194 million; interest expense fell 13% to HK$1,972 million.

Outlook and guidance

• 2026 guidance: steady gas sales in Hong Kong (27,181 TJ), Mainland gas sales up 1% to 36.55 billion m³, PV grid-connected capacity to reach 3.8 GW (+1.0 GW), and electricity trading volume to rise 78% to 15.0 billion kWh.

• City gas dollar margin expected to improve by RMB0.02/m³.

• Green methanol production capacity to expand to 150,000 tonnes.

• The Group expects continued policy support for green and low-carbon energy, with opportunities from the 15th Five-Year Plan and zero-carbon industrial parks.

• Utility business will remain a profit stabilizer, while green fuel and renewable energy segments are positioned as future growth engines.