Hong Kong & China Gas Company Limited (HKCG, 00003) reported FY2025 results showing resilient profitability amid modest revenue slippage and continued expansion of green-energy initiatives.
Revenue & Profitability • Group revenue edged down 2.07% year on year to HK$54.33 billion. • Core operating profit increased 4.23% to HK$5.99 billion, while operating profit after tax rose 1.66% to HK$7.50 billion. • Profit attributable to shareholders was broadly stable at HK$5.69 billion, translating into basic EPS of 30.5 HK cents (-0.4% YoY). • Total operating expenses fell 2.33% to HK$46.19 billion; interest expense declined 12.65% to HK$1.97 billion.
Dividend The board proposed a final dividend of HK23 cents per share, bringing the full-year payout to HK35 cents, unchanged from FY2024. Shareholders on record as at 9 June 2026 will receive the final dividend on 18 June 2026.
Utility Operations – Hong Kong • Town‐gas sales were nearly flat at 27,181 million MJ (+0.08%). • Residential gas demand grew 2.4%, helped by cooler weather; total customers increased by 19,000 to 2.06 million. • HKCG commissioned Hong Kong’s first integrated hydrogen power generator for the 15th National Games golf venue and advanced hydrogen applications for construction site power and EV charging.
Utility Operations – Chinese Mainland • City-gas sales held steady at 36.35 billion m³. • Customer base expanded by 1.78 million to 44.27 million connections across 325 projects in 23 provinces. • Implementation of residential cost pass-throughs lifted the average city-gas dollar margin by RMB0.02 to RMB0.54 /m³.
Growth Segments • Renewable energy: Added 500 MW of distributed photovoltaic (PV) capacity, taking total grid-connected PV installations to 2.8 GW. PV generation increased 36% to 2.48 billion kWh; power trading volume reached 8.40 billion kWh. Cumulative Quasi-REITs financing for renewable assets rose to RMB3.50 billion. • Sustainable aviation fuel (SAF): EcoCeres commissioned a new Malaysian plant, doubling annual renewable-fuel capacity to 770,000 tonnes. • Green methanol: Joint venture VENEX targets 150,000-tonne capacity in Inner Mongolia by 2026 and a new 200,000-tonne plant in Foshan by 2028. • Extended businesses: Towngas Lifestyle completed US$45 million strategic financing; home-appliance “trade-in” sales on the mainland grew 18% YoY.
Balance Sheet & Liquidity • Total borrowings stood at HK$59.70 billion; 28% mature within one year. • Net current liabilities were approximately HK$14.20 billion; management cites ample banking facilities of HK$37.30 billion. • Gearing remained at 43%. Medium-term notes outstanding reached HK$28.78 billion; Towngas Smart Energy’s sustainability-linked bond and panda bond balance totalled HK$2.58 billion.
Strategic Outlook HKCG targets continued growth from its “twin-engine” model: stable utility cash flows and expanding green-fuel, renewable energy, hydrogen, SAF and smart-living platforms. Management expects China’s 15th Five-Year Plan and Hong Kong’s Northern Metropolis development to underpin demand for low-carbon energy and infrastructure solutions.
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