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	66.496B
	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 year ended 31-12-2025 amounted to RMB 5.90 billion, a decrease of 1.4% compared with previous corresponding period. Basic earnings per share was RMB 5.3126. A dividend of HKD 2.35 per share was declared. Turnover amounted to RMB 111.91 billion, an increase of 1.9% over the same period last year, gross profit margin down 0.3% to 11.9%. (Announcement Date: 27 Mar 2026) Business Review - For the year ended December 31, 2025 In 2025, notwithstanding a complex and challenging internal and external environment, the national economy maintained overall stability, while new productive forces grew steadily. The government strengthened policies to expand domestic demand, and electricity market reform progressed rapidly. These trends encouraged commercial and industrial (“C/I”) customers to pursue lowcarbon and costeffective solutions, while residential customers prioritised safety and quality, creating new growth opportunities for the Company. The Group remained customercentric and deepened the application of intelligent innovation, achieving sustained expansion of its customer base, further optimisation of its profit structure, and building solid momentum for sustainable development. Natural Gas Sales Business: Leveraging Scale-driven Profitability, Expanding Customer Base In 2025, amid the macro-environment of a slowdown in the growth rate of apparent natural gas consumption, the Group adhered to the strategy of“Scale-driven Profitability”, focusing on customers’core needs for safe, stable, and costefficient gas usage. By deepening customer value and fully leveraging the advantages of our extensive customer base and business scale, we continued to strengthen resource capabilities, optimise the volumeprice matching mechanism, and enhance flexible spatial and temporal dispatch. These efforts supported the steady expansion of our business scale. During the year, the Group achieved retail natural gas sales of 26,606 million cubic meters, increased by 1.5% year-on-year. The Group tailored solutions for C/I customers based on their respective industry characteristics, energy consumption patterns and alternative energy trends, precisely identifying their differentiated needs. For industrial customers, focusing on their core demands for stable energy supply, low-carbon transition and cost efficiency, the Group leveraged its upstream resource advantages and adopted flexible pricing strategies to unlock incremental volume from key accounts. Meanwhile, we continued to advance our technological expertise in industrial energy conservation, accelerating the energy transition through initiatives such as“electricity-to-gas”and“coal-to-gas”. In doing so, we helped customers achieve their energy-saving and carbon-reduction goals while driving large-scale market development. For commercial customers, centring on their demand for safe and convenient energy supply, the Group explored potential opportunities in areas not yet covered by natural gas. Seizing the policy opportunities of the government’s“bottletopipeline”programme, the Group fully applied intelligent tools for opportunity identification, demand analysis and solution design, which significantly improved market development efficiency, leading to notable growth in customers from accommodation and catering segments. For residential customers, amid downward pressure in the real estate market, the Group launched targeted programmes to unlock demand from existing households.It also actively responded to the national policy direction of rationalising residential gas pricing and steadily promoted the price adjustment processes. By the end of 2025, 71.6% of residential gas volumes had completed gas price adjustment. In 2025, the Group’s newly added C/I customers contributed an installed designed daily capacity of 13.44 million cubic metres, bringing the cumulative installed designed daily capacity for C/I customers to 229 million cubic metres. During the year, the Group developed 45,000 new C/I customers, increasing the total number of C/I customers to 316,000. In the residential segment, the Group completed construction and installation for 1.38 million new households, raising the total number of residential households to 32.76 million. The expanding customer base had not only injected steady growth momentum into the natural gas business, but also created greater scope for resource optimisation and infrastructure efficiency enhancement, laying a solid foundation for the development of the integrated energy and smart home businesses. On the resource procurement front, the Company leveraged its expanding customer base, adhered to a demand- driven supply model, and continuously optimised its gas supply structure. In 2025, the Group further consolidated cooperation with the three major oil companies, secured Sinopec’s long-term resources, and strengthened the contracted volume base from them. Meanwhile, the Group enhanced its dynamic resource allocation capabilities by securing supplies through market-based procurement and peak-shaving optimisation.By combining hedging strategies with physical operations, the Group effectively mitigated price volatility, and enhanced the profit stability of the natural gas business. On the infrastructure operations front, the Group deepened the use of intelligent applications, accumulated industry best practices and upgraded its operating models. During the year, we accelerated the automation of our stations to achieve unmanned and less-manned operations, piloted intelligent pipeline inspection, and promoted the transformation of maintenance from traditional scheduled maintenance to predictive maintenance. Meanwhile, leveraging intelligent metering models, we further strengthened gas leak detection and loss control, achieving a steady improvement in operational capabilities. In 2025, revenue and gross profit from the retail gas business declined by 0.8% and 1.6% year-on-year to RMB60,248 million and RMB6,127 million, respectively. The wholesale of gas volume lifted revenue by 20.7% to RMB30,350 million. Nevertheless, its gross margin was under pressure due to price volatility, reaching RMB51 million, representing a year-on-year decrease of 45.7%. Revenue and gross profit from construction and installation business, weighed down by the real estate downturn, decreased 17.9% and 12.3% year-on-year to RMB3,360 million and RMB1,662 million, respectively. Integrated Energy Business: Implementing the“Load-Source-Grid-Storage-Carbon”Model, Optimising Business Structure In 2025, the reform of the electric power system advanced at an accelerated pace across the board. With the intensive introduction of policies, including the“Guiding Opinions on Improving the National Unified Electricity Market System”, the“Circular on Orderly Promoting the Direct Connection of Green Power”, and relevant policies on the integration of source-grid-load-storage, the development of a national unified electricity market system has been accelerated. New energy participates in market-based transactions in an all- round way, while the development of zero-carbon parks and the integration of source-grid-load-storage have also received strong support. Leveraging the Group’s existing base of 316,000 C/I customers and its extensive customer-access network, the Group has gained in-depth insights into diverse customer energy needs and innovated its business models to expand its customer base. For industrial customers, the Group adhered to the“Technologies + Energy and Carbon + Intelligence”development approach, focusing on typical application scenarios including textile finishing and food drying, and building replicable business expansion models. For construction customers, the Group addressed their core needs for comfort, green energy use and efficiency, and promoted integrated solutions featuring efficient facility retrofits and intelligent control, covering projects in hotels, schools, and mixed-use complexes. For industrial park customers, focusing on the requirements of green and low-carbon development, the Group integrated high-quality resources to provide integrated energy supply solutions, secured seven new industrial park projects during the year. In 2025, the Group fully implemented the“Load- Source-Grid-Storage-Carbon”integrated development model. While expanding customer base, the Group continued to strengthen supply-side construction, enhanced operational efficiency on the network side, and accelerated deployment of energy storage facilities. During the year, newly added projects contributed a total of 980 MW of installed capacity, including 630 MW of newly grid-connected photovoltaic capacity, increased by 167% year-on-year, and 144 MWh of newly grid-connected energy storage capacity, increased by 80% year-on-year. By the end of 2025, total installed capacity reached 14.3 GW. Affected by macroeconomic environment and business mix, integrated energy sales reached 40,106 million kWh, decreased by 3.5% year-on-year. Coupled with factors such as lower energy prices and optimised customer settlement models, revenue from the integrated energy business amounted to RMB13,276 million, down 13.1% year-on-year. Leveraging its accumulated intelligent capabilities and advancing quality and efficiency initiatives, including systematic energy-saving retrofits, precision metering, and pipeline loss management, the Group continued to unlock operational value. As a result, profitability of the integrated energy business rose steadily in 2025, with gross profit reaching RMB2,338 million, up 5.3% year-on-year, and gross margin improving from 14.5% to 17.6%. Smart Home Business: Achieving Stable Growth of Business through Intelligent and Innovative Services In 2025, quality living has become a driving force for household consumption. National policies promoting home appliance replacement and the renovation of old communities bolstered domestic demand. Green and smart consumption, together with the silver economy, flourished, driving upgrades in home appliance, elderly- friendly renovations, and improvements in household energy solutions. Leveraging a customer base of 32.76 million households, the Company focused on quality living needs, established a diversified product and service system, and deeply tapped into long-term household value. The comprehensive customer penetration rate reached 22.8%, with average transaction value rising to RMB626 per household. In terms of core products and services, and underpinned by the essential living needs of residential customers, the Group had established a foundational product portfolio centred on kitchen appliances, heating solutions, home security and aesthetic home improvements. In 2025, we strengthened our service capabilities by introducing service models such as“365-day replacement guarantee”and“4-hour service response”. As a result, the Group achieved a 63.9% year-on-year increase in sales of its self-owned brand, Gratle. Leveraging AI technology, we upgraded our kitchen renovation services, serving 110,000 households, representing a year- on-year increase of 34.1%. By exploring the heating needs of residents in the Changjiang River region and enriching our integrated home heating solutions, provided heating services to 130,000 households. The Group had continuously upgraded its core product and service systems, steadily enhanced market penetration, and fostered the sustainable development of its smart home business. In terms of intelligent products and services, the Company focused on the safety and convenience needs of residential customers, deepened intelligent applications, enriched its product portfolio, and implemented key measures to drive contract signings and ensure delivery. During the year, the total contract value of intelligent products reached RMB1,430 million, representing a year-on-year increase of 73.6%. Sales of AI safety valves reached 320,000 units, up 103.8% year-on-year. Following the adoption and application of intelligent products, the long-term value of intelligent services has become increasingly evident. In terms of model innovation, the Company focused on enhancing household safety and service experience, launching the innovative“Home Safety Pass”business model. Through Home Safety Pass inspections, new customer connections were established, serving as a platform for household demand insights and gradually forming the foundation of household intelligence. Business scenarios expanded from intelligent gas usage to safety and catering, driving the continuous upgrading and sustainable development of the smart home business. In 2025, the smart home business achieved revenue and gross profit of RMB4,671 million and RMB3,114 million, respectively, representing year-on-year increases of 1.7% and 4.8%. Business Outlook - For the year ended December 31, 2025 Looking ahead to 2026, amid slowing global economic growth and ongoing geopolitical uncertainties, the Company will continue to closely monitor macroeconomic developments, further strengthen its risk management frameworks, and proactively navigate market volatility through prudent operational strategies and agile adaptability. Meanwhile, 2026 marks the start of China’s“15th Five-Year Plan”period, providing strong policy momentum for high quality development. Equipment renewal programmes, infrastructure upgrades, and reforms in the energy and carbon markets will bring strategic opportunities for energy supply and the application of intelligent technologies. Coupled with sustained pro-consumption policies, the shift of household demand towards diversification and quality upgrading has injected new impetus into the Group’s business growth. Against this backdrop of both opportunities and challenges, the Group will leverage its solid customer base of 32.76 million residential customers and 316,000 C/I customers. Remaining demand-driven and digital- intelligence-led, we will unswervingly advance strategic upgrades and develop the three core businesses of natural gas, integrated energy and smart home to satisfy customers’differentiated needs. In respect of the natural gas business, we will uphold the strategy of“Scale-driven Profitability”and focus on the diversified needs of large group customers, industrial energy-saving retrofits, as well as small and medium C/I customers.We have also optimised resource portfolio and reduced procurement costs. Through intelligent applications, we have achieved precise matching of natural gas supply and demand, continuously expanded our customer base, and consolidated the foundation of our natural gas business. For the integrated energy business, we will seize the opportunities arising from power market reforms, implement the“Load-Source-Grid-Storage-Carbon”integrated model to accelerate the development of the power business, and continuously optimise the structure of our integrated energy business. In relation to the smart home business, based on the e-City e-Home platform, we will keep refining our household demand recognition models and expanding from gas usage scenarios to food services, elderly-friendly solutions and other areas. Through platform-led targeted supply from internal and external ecosystems, we will better meet families’demand for quality living with smart solutions, thereby upgrading our smart home business. Building on this foundation, the Group will continue to strengthen business resilience, accelerate the deployment of intelligent applications, and nimbly seize opportunities amid market changes, while relentlessly striving to deliver sustainable growth and enhance shareholder value! Source: ENN Energy (02688) Annual Results Announcement

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