11 Sep 2024
1H24 revenue was up by 20.8% YoY to Rmb12.1bn, mainly due to 1) 33.9% YoY increase in NG sales, which accounted for 73% of total revenue (1H23: 66%), on the back of a 42.3% YoY increase in NG transmission/sales volume, partially offset by 2) 4.6% YoY decline in wind and solar power sales, which accounted for 27% of total revenue (1H23: 34%), on the back of a drop in utilization hours. Overall GPM was down 3.9ppt YoY to 16.8% on higher sales proportion from lower margin NG segment. Admin cost ratio was down by 0.1ppt YoY to 2.5%, and R&D expense was down 12% YoY to Rmb161m amid decrease in D&A expenses. Finance costs up 15% YoY to Rmb614m due to transfer of Tangshan LNG Project Phase 1 and its outbound pipelines into fixed assets. As a result, 1H24 NP down slightly by 0.6% YoY to Rmb1,430m, which accounted for 61% (1H23: 63%, 1H21: 71%) of our new FY24 forecast. Since IPO, no interim dividend was announced.