Tian Lun Gas Holdings Limited released its unaudited 2026 interim report, revealing mixed performance across core operations, tighter margins and active capital management initiatives.
Revenue and Profitability • Group revenue in the six months to 30 June 2026 rose 2.1% year-on-year to RMB4.33 billion, supported by higher wholesale gas sales. • Gross profit declined 24.3% to RMB387.76 million as the gross margin compressed to 9.0%, mainly due to a 61.7% slide in engineering construction and services revenue. • Profit attributable to shareholders fell 73.4% to RMB31.98 million; basic EPS dropped to RMB0.0332 from RMB0.1241. • Core profit (excluding fair-value and impairment items) totalled RMB96.77 million.
Segment Performance • Gas retail revenue increased 1.9% to RMB2.61 billion on sales of 892.7 million m³ (+1.5%). – Residential volume: 313.6 million m³ (+2.6%). – Industrial & commercial volume: 558.9 million m³ (+3.0%). – Transportation volume: 20.1 million m³ (-35.6%). • Gas wholesale revenue jumped 22.3% to RMB1.32 billion as volume expanded 16.7% to 453.4 million m³. • Comprehensive services revenue inched up 1.8% to RMB235 million, while gross profit improved 9.9% to RMB125 million. • Engineering construction and services revenue contracted to RMB118.87 million, reflecting weakness in the domestic property sector.
Operational Metrics • Total pipeline gas customers reached 6.02 million (+1.5% versus June 2025). • Medium- and high-pressure pipeline length increased 1.9% to 9,763 km. • Capital expenditure for the period was RMB138 million, funded by internal cash flow and bank borrowings.
Financial Position • Cash and cash equivalents stood at RMB736.57 million; net operating cash outflow was RMB98.98 million. • Total borrowings were RMB6.95 billion; 74% classified as non-current. The liability-to-asset ratio was 60.0%. • Net finance expenses fell 24.7% to RMB143.08 million, aided by lower average funding costs and reduced foreign-currency exposure (FX loans now 5.5% of total).
Capital Management • The Company repurchased 6.62 million shares on the Hong Kong Stock Exchange during the half, spending approximately HK$19.7 million; 6.62 million shares were subsequently cancelled. • Post-period, on 28 July 2026, the Board granted 12.82 million existing shares as awards to two executive directors; vesting is subject to performance and service conditions.
Dividend • The Board declared an interim dividend of RMB0.0348 per share (2025 interim: RMB0.0460), to be paid on or about 30 November 2026 to shareholders on record 30 October 2026.
Strategic Outlook Management will focus on “stabilising existing volume, expanding incremental demand, optimising gas sourcing and ensuring price pass-through.” Priorities include: 1. Deepening industrial and commercial client development to bolster gas sales. 2. Enhancing multi-source gas procurement and pipeline inter-connectivity to reinforce supply security. 3. Scaling the higher-margin comprehensive services segment, particularly safety inspections and customised gas pipeline modifications.
No material contingent liabilities were reported, and the Group confirmed no significant post-balance-sheet events other than the announced share awards.