TG Smart Energy Company Limited (Towngas Smart Energy) reported mixed first-half 2026 results:
• Revenue grew 9% year on year to HK$11.33 billion, driven by stronger energy sales and the rollout of integrated energy services. • Gas operations remained the backbone, contributing HK$10.56 billion, while renewable-energy revenue was broadly flat at HK$765 million. • Profit attributable to shareholders fell 9% to HK$690.14 million as total operating expenses climbed 10% to HK$10.57 billion, mainly on higher gas and materials costs. • Basic earnings per share declined to HK18.8 cents (1H 2025: HK21.8 cents).
Segment highlights
Gas business – Sales volume softened 2% to 8.54 billion m³ amid a sluggish mainland property market and warmer weather. – Average city-gas dollar margin improved by RMB0.02 to RMB0.59 /m³ following >90% pass-through of upstream price changes to customers. – Customer base expanded by 0.27 million to 18.66 million across 197 city-gas projects.
Renewable energy – Distributed photovoltaic capacity rose by 0.20 GW to 3 GW; PV power sales increased 12% to 1.32 billion kWh. – Energy storage assets reached 850 MWh, while electricity sales doubled to 7.23 billion kWh, supported by expanded asset-light operations. – Assets under management grew 0.66 GW to 1.5 GW.
Cash flow & balance sheet
• Operating cash flow: HK$1.29 billion (1H 2025: HK$934.55 million). • Total borrowings rose to HK$18.22 billion; 75% at fixed rates. • Cash, time and restricted deposits: HK$3.41 billion. • Net gearing stable at 34%. • Unused bank and parent-company facilities plus untapped MTN capacity totalled about HK$25.18 billion.
Costs & profitability
• Finance costs edged down 4% to HK$316.99 million after refinancing at lower rates. • Share of profits from associates and joint ventures increased 28% and 21% respectively, aided by upstream–downstream price linkage and asset-light renewable projects.
Capital & returns
• Interim dividend declared at HK5 cents per share (unchanged), payable 16 October 2026; scrip option available. • Credit ratings remain investment-grade: Moody’s Baa1 (stable), S&P BBB+ (stable), China Chengxin AAA (stable).
Strategic focus
Management reaffirmed the twin-track strategy of green energy expansion and technological innovation. The company targets an additional 0.8 GW of solar PV capacity in 2H 2026, deeper AI-driven optimisation across gas and power operations, and continued balance-sheet discipline to support sustainable growth.