Hong Kong – Zhongyu Energy has reported a resilient set of results for the year ended 31 December 2025. Despite a softer revenue line, the city-gas operator lifted profitability and announced a higher dividend.

Revenue and Earnings • Turnover slipped 7.6 % year on year to HK$12.44 billion, reflecting weaker contributions from gas sales and a sharp contraction in smart-energy activities. • Profit attributable to owners surged 68.9 % to HK$0.25 billion, driven by a HK$152.64 million foreign-exchange gain and a 37 % drop in finance costs to HK$0.40 billion. • Basic earnings per share rose to HK8.98 cents from HK5.25 cents. Net profit margin improved to 2.0 % (2024: 1.1 %).

Segment Performance • Sales of gas remained the core business, contributing 82.9 % of total revenue at HK$10.32 billion, down 3.9 %. Piped-gas volumes were broadly flat at 3.17 billion m³ (+0.8 %). • Gas pipeline construction revenue declined 16.8 % to HK$0.84 billion, reflecting a continued slowdown in China’s property market and fewer new residential connections (-18.3 %). • Smart-energy revenue contracted 42.2 % to HK$0.67 billion as resources shifted toward the newly prioritised biomass “zero-carbon coupling” strategy. • Value-added services grew 23.5 % to HK$0.45 billion, supported by sales of Zhongyu-branded kitchen appliances and property sales. • CNG/LNG vehicle filling-station revenue fell 19.9 % to HK$0.17 billion amid a 15.2 % drop in sales volume and lower average selling prices.

Margins and Cash Flow • Overall gross margin held steady at 13.1 %; gas pipeline construction margin widened to 75.0 %, offsetting softer smart-energy performance in absolute terms. • Non-HKFRS EBITDA slipped 8.1 % to HK$1.58 billion. • Net operating cash inflow, coupled with foreign-exchange gains and lower borrowing costs, supported earnings. • Net debt increased to HK$12.14 billion, pushing the net-gearing ratio to 1.46 (2024: 1.35). The current ratio eased to 0.5 (2024: 0.7) following a rise in short-term borrowings.

Operational Highlights • The Group operated 74 city-gas concessions across 11 provinces, serving 5.40 million residential users (+4.0 %), 4,975 industrial and 30,365 commercial customers. • Residential connection penetration edged up to 71.8 %. • LNG wholesale volumes leapt 65.6 % to 0.65 billion m³, offsetting a 39.5 % slide in piped-gas wholesale sales. • Integrated-energy projects in operation totalled 237, with sales of 1.40 billion kWh (-42.7 %).

Dividend The Board proposed a final dividend of HK3.00 cents per share, 50 % above last year’s HK2.00 cents. Subject to shareholder approval, the dividend is scheduled for payment on or about 30 July 2026, with a record date of 9 July 2026.

Strategic Outlook Management plans to reinforce the core city-gas franchise, optimise gas-sourcing and digitalise pipeline operations while accelerating expansion along the biomass energy value chain. Key 2026 initiatives include scaling zero-carbon projects, advancing AI-driven network management and tightening financial discipline to support sustainable, green growth.