Ge Long Hui·2025-12-06 12:21Core Viewpoint - China Gas reported a slight decline in revenue and a significant drop in net profit for the first half of the 2025/26 fiscal year, indicating challenges in the current economic environment and its impact on gas sales [1] Revenue and Profit - The company achieved a revenue of HKD 34.48 billion, a year-on-year decrease of 1.8% [1] - The net profit attributable to shareholders was HKD 1.334 billion, down 24.2% year-on-year [1] - The interim dividend per share remained unchanged at HKD 0.15 [1] Sales Volume and Segments - Total gas sales volume increased by 1.7%, with residential pricing adjustments continuing [1] - Revenue from natural gas sales was HKD 20.38 billion, up 3.8% year-on-year [1] - Revenue from engineering design and installation decreased by 5.2% to HKD 3.16 billion [1] - Revenue from liquefied petroleum gas sales fell by 12.3% to HKD 8.38 billion [1] - Value-added services revenue was HKD 2.02 billion, a slight increase of 0.3% [1] Pricing and Margins - As of September 2025, the cumulative residential gas pricing adjustment ratio reached approximately 74%, up from 68% in March [2] - Residential gas prices increased from HKD 2.56 per cubic meter in the 2021/22 fiscal year to HKD 2.87 per cubic meter in the 2025/26 fiscal year [2] - The average procurement price was HKD 2.63 per cubic meter, unchanged year-on-year, with an average gross margin of HKD 0.58 per cubic meter, a slight decrease of HKD 0.01 [2] Connection Projects and Value-Added Services - The company added approximately 676,300 new residential connections, a decrease of 25.2% year-on-year, with a full-year guidance of 1-1.2 million new connections [3] - Value-added services generated approximately HKD 1.015 billion in segment revenue, accounting for 30.0% of total revenue, with a year-on-year increase of 1.3% [3] Financing and Cash Flow - The company optimized its debt structure, reducing the proportion of foreign currency loans to 0.4%, and lowered the average financing cost from 3.84% to 3.39% [3] - Free cash flow reached HKD 2.6 billion, a year-on-year increase of approximately 17% [3] - The anticipated decrease in new connections is expected to slow capital expenditures, potentially improving free cash flow further [3]