Towngas Smart Energy H1 profit hits $690m on margin gains

Natural gas consumption fell after a warmer winter as PV sales climbed 12% YoY.

Towngas Smart Energy Company Limited reported a profit attributable to shareholders of $690m in the first half of 2026.

Group revenue grew 9% to $11.3b, whilst the board declared an interim dividend of 5 cents per share.

In its mainland gas business, national natural gas consumption declined due to a warmer winter, whilst the property market recovery remained incomplete.

City gas dollar margin improved by $0.0233 (RMB0.02) per cubic metre to $0.686 (RMB0.59) per cubic metre, driving steady growth in overall gas business profits.

In its renewable energy business, the group added 0.2 gigawatts (GW) of distributed photovoltaic (PV) capacity, bringing cumulative PV capacity to 3GW in H1.

PV electricity sales increased 12% year on year to 1.32 billion kilowatt-hours (kWh), whilst electricity trading sales volume doubled to 7.23 billion kWh.

The group also launched an institutional REIT and a quasi-REIT, raising approximately $1.05b (RMB900m) and bringing cumulative financing to $6.4b (RMB5.5b) for investment in business-related projects.

Assets under management increased by 0.66GW to 1.5GW, with the group positioned across three growth areas: integrated PV-storage, independent energy storage, and direct green power supply.

Towngas Smart Energy said photovoltaic asset management and market-based electricity sales will become the primary drivers of future earnings growth as market-based reforms of the Chinese mainland’s electricity sector deepen further.

(HK$1 = RMB0.86)