Zhongyu Energy (3633) H2 2025 earnings summary

Executive summary

• Net profit attributable to owners rose 68.9% year-over-year to HK$247.3 million, driven by quality management, cost reductions, and digital transformation.

• Turnover decreased 7.6% year-over-year to HK$12.44 billion, mainly due to lower revenue from integrated energy and gas segments.

• The company maintained stable city gas operations, expanded its biomass zero-carbon business, and enhanced digital and intelligent management.

• Final dividend proposed at HK3 cents per share, a 50% increase year-over-year.

• Completed its first international LNG trade, expanding energy trading capabilities.

Financial highlights

• Gross profit margin of the smart energy business surged 78.4% year-over-year to 16.4%, while overall gross profit margin remained stable at 13.1%.

• Non-HKFRS EBITDA fell 8.1% to HK$1.58 billion.

• Net profit margin improved to 2.0% from 1.1% year-over-year.

• Earnings per share increased 71.0% year-over-year to 8.98 HK cents.

• Proposed final dividend up 50% to 3.00 HK cents per share.

Outlook and guidance

• Plans to consolidate the core city gas business through refined management and digital integration, while expanding utility concession projects and scaling up biomass zero-carbon projects.

• Intends to optimize gas supply structure, enhance risk management, and expand international LNG and gas storage trading.

• Will drive innovation in value-added services, new retail, and cross-regional partnerships.

• Focus on customer service, risk management, and green finance to support sustainable growth.

• Leverages AI and digital tools for operational efficiency and customer experience.