BINHAI INV (02886) released its interim results for the six months ending June 30, 2026, on August 24, showing continued steady growth across its business. During the period, the company generated approximately RMB 2.94 billion in revenue, marking an 8% year-on-year increase, while gross profit rose 3% to RMB 296 million. Net profit for the period reached RMB 184 million, up 12.24%, with profit attributable to shareholders climbing 12.5% to RMB 180 million. Basic earnings per share grew 13% to RMB 0.1316, reflecting a solid overall performance trajectory.

The core gas operations stood out as the primary growth engine, with pipeline natural gas sales revenue reaching approximately RMB 2.805 billion, a 10.3% increase that accounted for over 95% of total group revenue. Segment profit for this division surged 18.9% to roughly RMB 209 million, with profit growth outpacing revenue gains and demonstrating strong pricing power and operational efficiency in the core business.

Despite a 2.4% decline in China's apparent natural gas consumption during the first half, the company leveraged its diversified gas source advantages and efficient operational strategies to achieve total natural gas sales of 1.204 billion cubic meters, up 5.6% year-on-year. Pipeline gas sales specifically reached 920 million cubic meters, an 11.2% increase. Meanwhile, value-added services revenue grew 11.6% to about RMB 38.99 million, with gross profit jumping 18.9% to RMB 28.02 million, lifting the segment's comprehensive gross margin to 71.9% as the company expands growth avenues beyond traditional gas distribution.

The company continues to advance its business structure optimization and value-added service development. According to the report, BINHAI INV has consolidated gas appliance sales, small-scale installation, maintenance, and insurance agency operations into four major categories: smart home solutions, home services, extended maintenance, and insurance business development. This integrated one-stop service model aims to enhance customer value and boost contributions from non-gas segments.

Financial management also improved significantly, with the company reducing its financing rate to 4.0%—40 basis points lower than at the end of 2025—and cutting financing costs by approximately 24% from RMB 42.19 million to RMB 32.06 million year-on-year, positively impacting profit performance.

Looking ahead to the second half, the group remains focused on three core strategic priorities: consolidating its urban gas business foundation, vigorously developing value-added services, and accelerating its transformation into a comprehensive energy supplier. With continued capital investment and business expansion, BINHAI INV aims to strengthen operational resilience and lay the groundwork for medium-to-long-term growth, ultimately delivering long-term value to shareholders.

Overall, BINHAI INV's first-half performance featured steady revenue growth, outstanding core gas operations, and double-digit net profit expansion. As gas sales volumes scale up, value-added services continue to develop, and financing costs decline, the company's profitability is well-positioned for sustained support, making the stability of its earnings growth a key point to watch.