Towngas Smart Energy (1083) saw its first-half net profit drop by 9 percent to HK$690 million due to a weak property market and a warmer winter, while maintaining a steady interim dividend of 5 HK cents per share.
The gas supplier, which operates in the mainland as a subsidiary of The Hong Kong and China Gas Company (0003), reported that its revenue for the six months ended June 30 increased by 9 percent to HK$11.33 billion.
Total gas sales volume slipped 2 percent to 8.54 billion cubic meters, as a warmer winter led to reduced national natural gas consumption. Furthermore, a prolonged downturn in the mainland property market led to fewer new household connections, reducing gas connection sales.
In the renewable energy business, photovoltaic electricity sales increased by 12 percent to 1.32 billion kilowatt-hours.
Meanwhile, electricity trading sales volume doubled to 7.23 billion kWh, which was attributed to artificial intelligence and cooperation with the gas division during an industry shakeout, said John Qiu Jian-hang, chief operating officer of renewable business at Towngas Smart Energy.
Operating expenses climbed 10 percent to HK$10.57 billion, primarily driven by higher costs for gas fuel, stores, and materials, the company said.
Looking ahead, executive director and chief executive Peter Wong Wai-yee said he expects downward pressure on electricity tariffs to ease in the second half of 2026, which could gradually improve industry profitability.
To offset declining power generation revenue, the company plans to add 0.8 gigawatts of new solar capacity by the end of the year.
