Symbol

ENN ENERGY(02688) Company Profile

		Company Profile
	Stock Name	ENN Energy
	Listing Date	2002-06-03
	Sector	Utilities
	Chairman	WANG Yusuo
	Par Value	0.1
	Total Issued Capital	1.132B
	Market Cap	55.551B
	Principal Activities The Group is principally engaged in investing in, constructing, operating, and managing gas pipeline infrastructure, as well as the sales and distribution of piped gas, LNG and other multi-energy products. The Group also provides commercial & industrial customers with intelligent services related to low-carbon integrated solutions and has developed diversified value added business meeting the needs of residential customers. Latest Results The Group's profit attributable to shareholders for the 6 months ended 30-06-2026 amounted to RMB 2.67 billion, an increase of 9.8% compared with previous corresponding period. Basic earnings per share was RMB 2.3987. A dividend of HKD 0.68 per share was declared. Turnover amounted to RMB 57.02 billion, an increase of 2.4% over the same period last year, gross profit margin up 0.1% to 11.7%. (Announcement Date: 28 Aug 2026) Business Review - For the six months ended June 30, 2026 Natural Gas Business: Scale-driven profitability and an optimised resource mix to consolidate the foundation of the natural gas business In the first half of 2026, international natural gas prices experienced notable periodic volatility amid geopolitical disruptions. Fluctuations in external gas supply, coupled with changes in the market environment, further heightened customers’demands for stable gas supply and lower gas costs. In response to the prevailing supply- demand landscape and evolving customer needs, the Group adhered to its scale-driven profitability strategy, with continued focus on expanding its customer base, optimising its resource structure and enhancing operational capabilities, thereby achieving steady growth in both gas sales volume and returns. During the period, the Group implemented precise measures targeting the differentiated gas consumption needs of various customer segments, steadily expanding its gas customer base. For industrial customers, the Group deeply integrated into our customers’production processes to lower their energy costs. Key accounts were provided with exclusive services from dedicated account managers, optimising gas supply structures and implementing flexible pricing policies, with newly added industrial customers contributing a designed daily capacity of 5.30 million cubic meters in the first half of the year. For commercial customers, the Group focused on their needs for stable and safe gas usage and, leveraging its intelligence-enabled capabilities in customer insight, solution design and rapid development, achieved newly installed designed daily capacity of 1.10 million cubic meters from commercial customers in the first half of the year. For residential households, the Group further tapped the potential of the existing market and completed connections for 175,000 residential households during the period. This effectively mitigated the impact of the property market downturn, bringing the total number of residential users to 502,000 households. Driven by the active promotion of residential price pass-through, the cumulative volume of residential gas that has successfully implemented the price adjustments since the end of last year has reached 74.8% as of the date of this announcement. On the resource procurement side, the Group capitalised on its growing customer base to optimise its supply structure in close alignment with market demand. Through the consolidation of its primary gas sources, the Group further reinforced supply security. By dynamically securing market resources, the Group effectively improved its overall supply capability. At the same time, the Group adopted a risk control model combining physical contracts with derivative hedging to mitigate price volatility and enhance earnings stability. In the face of an increasingly complex international oil and gas market, the Group will continue to adhere to the principles of cost leadership and risk control, increase the proportion of cost–controllable gas sources and optimise its supply portfolio. This will help strengthen procurement cost management, lock in cost baseline, and mitigate the impact of price fluctuations, while anchoring downstream price transmission and enhancing synergy between resource coordination and end-user pricing. On the operations side, the Group leveraged intelligent technologies to accelerate the accumulation of industry expertise, implementing digital and intelligent applications such as intelligent equipment fault diagnosis, automated odorisation and smart truck unloading, and steadily advancing the upgrade of stations towards minimal- staffing and unmanned operations. In collaboration with Tsinghua University, the Group developed a model for predicting the performance degradation of pressure regulators, enabling full life-cycle online monitoring of the operating condition of pressure-regulating equipment across all regions and a reasonable reduction in the frequency of tertiary preventive maintenance, thereby improving operational efficiency and lowering maintenance costs while safeguarding safe operations. For the six months ended 30 June 2026, the Group’s retail gas sales volume reached 13,054 million cubic meters, representing a year-on-year increase of 0.8%. Revenue increased by 2.9% year-on-year to RMB31,320 million and gross profit increased by 10.4% year-on-year to RMB3,415 million. The wholesale of gas business plays a vital role in optimising the overall natural gas value chain, while enhancing supply reliability and expanding market coverage. During the period, revenue from the wholesale of gas business maintained a steady growth trend, up by 12.8% year-on-year to RMB16,313 million, while its gross profit increased by RMB473 million year-on- year. The construction and installation business continued to be affected by the downward pressure in the real estate sector, with revenue and gross profit declining by 26.7% and 31.8% year-on-year to RMB1,253 million and RMB559 million, respectively. Integrated Energy Business: Focusing on electricity to scale up the integrated energy business In the first half of 2026, market-oriented power reforms advanced further, while compliance management in the national carbon market became increasingly institutionalised. The State intensively introduced a series of policies covering the development of a unified national electricity market, the direct connection of green electricity, and the expansion of trading in the national carbon market. It also coordinated supporting measures such as capacity price compensation for energy storage, virtual power plants market participation, and industrial energy conservation and carbon reduction initiatives, resulting in continuous optimisation of institutional environment for a green and low-carbon transition. Meanwhile, the European Union’s Carbon Border Adjustment Mechanism (CBAM) formally entered into its charging phase, significantly increasing low-carbon energy demand among export-oriented manufacturers. Seizing these policy opportunities and leveraging our integrated energy philosophy, the Group steadily expanded its integrated energy business with electricity at the core, focusing on three types of target customers: industrial parks, factories and buildings. The Group remained customer-centric, tailoring differentiated energy solutions across sectors. For industrial customers, the Group analysed specific production process characteristics to deploy load-solar-storage coordination, intelligent production scheduling and integrated power consumption and procurement, effectively lowering customers’overall energy costs. For building-sector customers, the Group met multifaceted needs for operational comfort, energy cost reduction and green certification by coordinating flexible loads with distributed energy resources, overlaid with diversified market-oriented power purchasing strategies. For industrial park customers, the Group synchronised multi-energy loads and resources to support the development of national-level zero-carbon parks. In the first half of the year, the Group continued to expand its electricity business—driven by customer needs, powered by intelligent technology, and anchored in value-driven trading—thereby solidifying its foundation for demand connectivity and ecosystem integration. Through customer expansion, ecosystem aggregation and resource integration, the Group drove the large-scale expansion of its electricity business, adding 430MW of new installed capacity during the period. This included 189MW of newly grid-connected photovoltaic capacity and 68MWh of newly grid-connected energy storage capacity. In the first half of the year, electricity sales volume reached 1,006 million kWh, representing a year-on-year increase of 40.5%. During the period, the Group accelerated the commissioning of new projects, bringing its cumulative operational installed capacity to 14.7GW. Affected by factors such as the macroeconomic environment and changes in customer loads, sales volume of integrated energy amounted to 18,440 million kWh, representing a year-on-year decrease of 6.7%. Together with factors such as the optimisation of the customer settlement model, revenue amounted to RMB6,312 million, representing a year-on-year decrease of 8.6%, and gross profit amounted to RMB948 million, representing a year-on-year decrease of 13.0%. Smart Home Business: Continuously upgrading products and services to optimise the structure of the smart home business In the first half of 2026, household consumption continued to shift towards high-quality living, driving a steady rise in demand for home improvements such as whole-home smart retrofitting and residential environment renewal. The“Notice on the Implementation of Large-scale Equipment Upgrades and Consumer Goods Trade-in Programmes in 2026”provided dedicated subsidies for home furnishings, appliances, and overall residential renovations, strongly accelerating the replacement of ageing household equipment. Concurrently, the“Implementation Opinions on Accelerating the Development of‘Artificial Intelligence + Consumption’”promoted the integration of AI technologies into daily household scenarios, creating a favourable policy environment for the innovative implementation of whole-home smart controls and digital home supporting services. Leveraging its base of 33.26 million residential customers, the Group focused on family quality needs and continued to pioneer diversified and differentiated products and services to accelerate the growth of its smart home business. Regarding core products and services, the Group focused on elevating residential living quality, consistently enriching its product matrix around key scenarios such as“household safety, smart kitchens and residential environment”. In the first half of the year, the Group leveraged intelligent tools such as home safety inspection to gain deep insights into genuine customer needs, proactively capturing opportunities in the smart kitchen segment.By deploying an integrated“product + service”model, the Group enhanced customer experience, expanded the market influence of its proprietary brands, and successfully unlocked greater value within kitchen scenarios. Sales volume of its self-owned brand gas appliances reached 250,000 units, representing a year-on-year increase of 37.6%, while kitchen renovation services covered 68,000 households, representing a year-on-year increase of 23.6%. In terms of intelligent products and services, the Group focused on residential customers’demands for safety and convenience, iteratively optimising its intelligent product packages based on proven market experience to replicate and promote them at scale. In the first half of the year, the contracted amount of intelligent products reached RMB570 million, representing a year-on-year increase of 3.4%. With the growing deployment of intelligent products and continuous growth of recurring service renewals, a sustainable, long-tail revenue operating model is steadily taking shape. Regarding premium products and services, the Group expanded into diversified scenarios, including advanced kitchen renovations, household water purification and at-home services, while developing integrated solutions and elevating its service system to better satisfy customers’needs for quality living. For the six months ended 30 June 2026, the Group’s smart home business recorded revenue and gross profit of RMB1,823 million and RMB1,275 million respectively. Affected by the downturn in the real estate sector, smart home revenue from newly added customers declined, resulting in decreases of 15.4% and 13.3% in the overall revenue and gross profit of the smart home business, respectively. Existing customers accounted for 52% of its revenue, reflecting the continuous optimisation of the value contribution structure within the smart home business. Business Outlook - For the six months ended June 30, 2026 In the second half of 2026, amid an uncertain external environment, China will implement proactive fiscal policies and moderately ample monetary policies while stepping up counter-cyclical adjustments. The nation will intensify efforts to expand domestic demand and optimise supply, thereby promoting sustained, high quality economic development and laying a solid foundation for the“15th Five-Year Plan”. Supported by these policies, consumer market vitality is steadily rebounding, the green and low-carbon energy transition continues to accelerate, and artificial intelligence is increasingly empowering the real economy, unlocking opportunities for business transformation and upgrading.In response to evolving customer needs, the Group will continue to enhance its capabilities and drive the intelligent upgrade of its business models, ensuring sustained and healthy development. In the natural gas business, the Group will apply intelligence to coordinate demand, resources and facilities, pursue scale-driven profitability, continue to expand its customer base, optimise its resource structure and enhance operational capabilities, thereby consolidating the foundation of the natural gas business. Centred on electricity, the integrated energy business will aggregate customer loads, cultivate smart capabilities, and scale up its electricity business. This approach will fully unlock the value of both customers and assets, leveraging scale-driven development to drive the overall optimisation of business structure. Based on the demand side, the smart home business is fully committed to building a household consumption intelligence platform centred on customer demand analysis. By leveraging smart household consumption to guide precise corporate production, the Group effectively instils sovereignty and promotes sustainable development. Source: ENN Energy (02688) Interim Results Announcement

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