Towngas Smart Energy (01083) reported resilient top-line growth for the six months ended 30 June 2026, navigating a softer mainland gas market with cost pass-through measures and expanding its renewable portfolio.
Revenue and Profitability • Revenue increased 9.00% year on year to HK$11.33 billion, supported by higher piped-gas sales (HK$9.82 billion, +10.87%). • Core operating profit eased 4.00% to HK$690 million, while profit attributable to shareholders declined 8.99% to HK$690 million, reflecting lower non-operating gains versus 2025. • Basic earnings per share fell to HK18.8 cents (1H25: HK21.8 cents). The board declared an unchanged interim dividend of HK5 cents per share.
Segment Performance Gas Business – Gas revenue rose 9.16% to HK$10.56 billion despite a 2% drop in total gas sales volume to 8.54 billion cubic metres, as 90% of residential and all industrial/commercial customers adopted the pass-through pricing mechanism. – Average city-gas dollar margin improved by RMB0.02 to RMB0.59 per cubic metre. – Customer base expanded by 0.64 million to 18.66 million households across 197 city-gas projects.
Renewable Energy – New distributed photovoltaic capacity of 0.20 GW lifted cumulative installations to 3.00 GW. – PV power sales grew 12% to 1.32 billion kWh; electricity trading volume doubled to 7.23 billion kWh. – Assets under Management increased by 0.66 GW to 1.50 GW. – Two REIT products raised approximately RMB900 million, taking cumulative renewable financing to RMB5.50 billion.
Cash Flow and Balance Sheet • Cash, time and restricted deposits stood at HK$3.41 billion (31 Dec 2025: HK$2.56 billion). • Total borrowings, including convertible bonds, were HK$18.22 billion; 75% are RMB-denominated and 75% fixed-rate. • Net gearing remained stable at 34%. • Unused medium-term note capacity and bank facilities total HK$25.18 billion. • Credit ratings: Moody’s Baa1 (stable), S&P BBB+ (stable), China Chengxin International AAA (stable).
Operational Highlights • Gas+ strategy drove 810 million kWh of integrated energy sales and 70 million cubic metres of incremental gas volume. • Biomethane integration reached 27.50 million cubic metres across eight projects, with the Dafeng plant listed on China’s voluntary carbon market. • Zero-carbon smart industrial parks numbered 128 in 24 provinces; energy storage assets reached 850 MWh.
Governance and ESG • MSCI ESG rating upgraded to AA. • Dr. Christine Loh appointed Chairperson of the ESG Committee; regular board-level ESG training initiated.
Outlook Management expects China’s 15th Five-Year Plan and ongoing power-sector reforms to underpin growth in integrated gas-and-renewable offerings. The company targets an additional 0.80 GW of solar PV grid-connections in 2H26 while deepening AI-enabled energy management and maintaining disciplined capital deployment.