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	1.131B
	Market Cap	72.570B
	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 30-06-2025 amounted to RMB 2.43 billion, a decrease of 5.6% compared with previous corresponding period. Basic earnings per share was RMB 2.1858. A dividend of HKD 0.65 per share was declared. Turnover amounted to RMB 55.67 billion, an increase of 2.0% over the same period last year, gross profit margin down 0.2% to 11.6%. (Announcement Date: 27 Aug 2025) Business Review - For the six months ended June 30, 2025 In the first half of 2025, amid a complex and volatile international landscape, proactive and effective domestic macro policies supported the economy in navigating external pressures and maintaining a steady, positive trajectory. The comprehensive rollout of key policies such as the implementation of major national strategies and the enhancement of security capacity in key areas, and the introduction of equipment upgrades and consumer goods trade-in programs, along with the deepening of reforms in the energy sector, have fostered a favourable environment for the Group’s business expansion and enhancement of competitiveness. In the first half of the year, the Group actively pursued its strategic positioning of“leveraging intelligent innovation services to become a multi-value service provider anchored in natural gas operations”. The Group continued to expand customer base and integrate high-quality resources to strengthen the foundation of its natural gas operations. Retail gas sales volume reached 12,953 million cubic meters, representing a year-on-year increase of 1.9%. Seizing opportunities brought by power sector reforms, the Group’s integrated energy business achieved a steady growth, with its gross profit up by 2.1% year-on-year. Through product innovation and service upgrades, smart home business recorded an increase of 4.9% in gross profit. The Group continuously advanced business transformation, gross profit contribution from the integrated energy and smart home businesses increased by 1.4% to 39.6%. Core profit from domestic businesses continued to grow steadily. Meanwhile, the Group continued to optimise its domestic and overseas debt structure, bringing interest-bearing liabilities down to RMB18,739 million.Overall financing cost further decreased, providing stronger financial support for business development. Natural Gas Business: Sustained growth through our commitment in scale-driven profit In the first half of 2025, the natural gas market exhibited an overall surplus in supply. From January to June, China’s apparent natural gas consumption reached 211.97 billion cubic meters, representing a year-on-year slight decline of 0.9%. In response to the current supply-demand dynamics, the Group adhered to a scale-driven profitability strategy, with continued focus on expanding its customer base, optimising resource allocation, and enhancing operational efficiency, thereby reinforcing the foundation of natural gas business. During the period, the Group dynamically identified customer needs and implemented differentiated development strategies, driving continued growth in customer scale. For industrial customers, the focus remained on reducing costs and improving efficiency, as well as stabilising their gas demand. Energy-saving upgrades were promoted in the food processing and glass sectors, and through energy substitution—including steam, liquefied petroleum gas (LPG), biomass, electricity and other energy sources—newly added industrial customers contributed to a total designed daily capacity of 4.682 million cubic meters. For commercial customers, we addressed key pain points in gas safety by leveraging the government’s“bottle-to-piped-gas conversion”policy. Utilising big data, we accurately identified business opportunities, with a strategic focus on penetrating high-potential scenarios such as street-facing storefronts. Through process optimisation, we ensured rapid delivery, resulting in newly added gas supply of a total designed daily capacity of 1.604 million cubic meters. For residential households, in response to national housing policy requirements, the Group implemented multiple initiatives to develop 174,000 existing households, effectively mitigating the impact of downturn in the new housing market, bringing a total of 692,000 newly installed households. At the same time, we actively promoted residential price alignment. Four enterprises successfully completed gas cost pass-through during the first half of the year, bringing the cumulative gas price adjustment rate to 64%. Leveraging a large customer base and stable gas demand, the Group further advanced the optimisation of its resource structure. The Group reinforced its foundational resource bases from the three major oil companies, achieving a year-on-year increase of 1.3 billion cubic meters in contract volumes. Notably, long-term supply from Sinopec was secured for the first time, making a significant step forward in enhancing the Group’s resource security. By coordinating resource allocation and optimisation, and substitution of high-cost resources, the Group effectively enhanced the overall structural efficiency. Amid rising correlation between upstream resources and oil and gas indices, a combined strategy of hedging and physical contracts was implemented to manage price volatility and stabilise the natural gas business profitability. Meanwhile, to further mitigate foreign exchange risks in procurement, the Group had signed forward foreign exchange contracts with several financial institutions to stabilise procurement costs. As of 30 June 2025, the Group had hedged a total of USD624 million. The hedging ratio against its trade exposure reached 25.6%. Leveraging digital and intelligent technologies rooted in industry practices, the Company built an intelligent model to drive operational transformation. Intelligent station models enabled real-time monitoring, ensuring safe operations. The intelligent maintenance model enabled condition assessment of pressure-regulating facilities, facilitating a shift from traditional scheduled maintenance to predictive maintenance, thereby improving efficiency and reducing operational costs. The intelligent metering models accurately identified metering anomalies and gas leakage points, enabling simultaneous reduction in gas loss and a comprehensive enhancement of safety assurance. For the six months ended 30 June 2025, the Group recorded retail gas volume of 12,953 million cubic meters, representing a year-on-year increase of 1.9%. Revenue increased by 1.2% year-on-year to RMB30,432 million, while gross profit decreased by 1.5% to RMB3,092 million. Wholesale of gas business helps to strengthen the overall natural gas value chain, enhance supply reliability, and improve market reach. During the period, revenue from the wholesale of gas business maintained a steady growth trend, up by 17.2% year-on-year to RMB14,467 million. The business scale continued to expand; however, due to ample supply and a sluggish macroeconomic environment, wholesale prices came under pressure, resulting in a decline in gross profit and a loss of RMB15 million. The construction and installation business continued to be affected by the downward pressure in the real estate sector, the revenue and gross profit declined by 7.9% and 0.5% year-on-year to RMB1,710 million and RMB820 million, respectively. Integrated Energy Business: Steady growth in integrated energy by accelerating our electricity power business In the first half of 2025, market-oriented reforms in the power sector accelerated, and the Emissions Trading System continued to improve. The National Development and Reform Commission and the National Energy Administration jointly issued key documents, including the“Notice on Accelerating the Construction of the Power Spot Market”and the“Basic Rules for the Power Ancillary Services Market”, marking the initial establishment of a unified national regulatory framework for the electricity market. These developments injected strong momentum into China’s green economic transformation and further expanded the scope of the carbon markets.Meanwhile, with the impending implementation of the European Union’s new battery regulation and Carbon Border Adjustment Mechanism, customer demand for green, economical, and efficient energy-carbon solutions became increasingly urgent. The Group seized policy opportunities by leveraging its broad base of enterprise customers across its operating regions and accessible markets, guided by the proactive implementation of its integrated energy strategy. Through tailored solutions and the deployment of its comprehensive“Source-Grid- Load-Storage-Sales”model, the Group expanded services to customers in industrial parks, factories, and the building sector, achieving steady growth in its integrated energy business. By continuously gaining insights into diverse needs and refining replicable business models, the Group accelerated scalable development. In the first half of 2025, in response to the low-carbon power demands of small and micro industrial parks comprising enterprises characterised by specialisation, refinement and innovation, the Group acquired customers through the“Source-Grid-Load-Storage-Sales”model. Newly connected photovoltaic capacity reached 324.46MW (with a cumulative operational capacity of 988.98MW). Newly connected energy storage capacity amounted to 45.75MWh (with a cumulative operational capacity of 140.75MWh). Focusing on the low-cost and clean energy needs of large-scale, high-energy-consuming industrial parks, the Group acquired customers through its“Grid”platform and implemented four new projects by substituting low-cost thermal energy sources. In response to energy efficiency upgrade demands from factory and construction customers, the Group introduced an innovative“equipment retrofit + intelligent control”model, resulting in newly commissioned capacity of 228.02MW for customers in sectors such as textile dyeing, food processing, pharmaceuticals, hotels and commercial complexes. At the same time, the Group enhanced the quality and efficiency of its integrated energy project delivery, achieving a total of 583.65MW in newly commissioned capacity. During the period, the Group proactively optimised its project structure and expedited the delivery of new projects, bringing its cumulative operating installed capacity to reach 13.92GW. Nonetheless, impacted by factors such as the macroeconomic environment and fluctuations in customer demand, the Group recorded integrated energy sales of 19,764 million kWh, which remained flat year-on-year. Coupled with factors such as the decline in energy price and the optimisation of the customer settlement model, revenue from the integrated energy business amounted to RMB6,908 million, representing a 16.0% year-on-year decline. Despite facing the aforementioned challenges, the Group applied intelligent technologies to systematically enhance efficiency in areas such as photovoltaic and energy storage operations, thermal source optimisation, pipeline loss management, and precision metering, thereby driving gross profit margin up to 15.8%, and gross profit up by 2.1% year-on-year to RMB1,090 million. Smart Home Business§: Upgrade products and services to unlock the full value of household customers In the first half of 2025, the General Office of the State Council released the“Special Action Plan for Boosting Consumption”, aiming to expand domestic demand through multiple measures such as increasing income, reducing burdens, improving supply quality, and optimising the consumption environment. This led to a real growth of 5.3% in per capita consumer spending nationwide. Leveraging a customer base of 32.07 million households, the Group accurately identified customer needs, strengthened supply capabilities, and innovated products and services to drive the development of its smart home business. As a result, the comprehensive customer penetration rate reached 10.4%, and the average transaction value rose to RMB649 per household. In terms of basic products and services, the Group focused on quality demands to upgrade stove functionalities, and introduced service models such as“365-day replacement guarantee”and“4-hour service response”, leading to a 60.0% increase in sales volume of self-owned brand, Gratle. For intelligent products and services, offerings such as the safety guardian have effectively integrated products with services. As a result, the contracted amount for safety guardian reached RMB553 million in the first half of the year, and the business begun to demonstrate early signs of achieving scaled growth. Regarding premium products and services, the Group leveraged AI-driven solution generation capabilities and external ecosystem partnership resources to expand diversified models such as kitchen renovation and home services. It also accelerated the export of its smart home business model capabilities, achieving expansion into markets beyond its concession areas. For the six months ended 30 June 2025, the Group’s smart home business recorded revenue and gross profit of RMB2,156 million and RMB1,470 million, representing year-on-year increases of 3.7% and 4.9%, respectively.The Group will continue to upgrade its products and services to precisely respond to household customer needs, converting customer value into business growth. Business Outlook - For the six months ended June 30, 2025 In the second half of 2025, amid a complex and ever-changing external environment, policy direction is expected to remain anchored in stability. Existing policies will continue to exert force to reinforce the economic foundation;coordinated measures across consumption, investment, and foreign trade—the three key growth drivers—will accelerate policy implementation; and the development of a unified national market will further facilitate supply- demand circulation and stimulate momentum for industrial upgrading. Anchored in the dual-core strategy of“demand-driven and intelligence-powered,”the Group will leverage its customer base of 32.07 million households, 290,000 enterprise customers, and potential growth segments to build sustainable growth capabilities. In the natural gas business, efforts will focus on deepening engagement with existing residential customers, expanding efforts with commercial customers, and developing customised solutions for large industrial users. At the same time, the Group will optimise its resource structure and enhance operational efficiency through intelligent empowerment, reinforcing the foundational strategy of“scale-driven profitability”. In the integrated energy business, the Group will seize opportunities arising from the energy-carbon transition, rapidly developing its electricity power segment through a holistic“Source-Grid-Load-Storage-Sales”model. In the smart home business, it will analyse layered customer needs to accelerate coverage of foundational products and upgrade quality services, cultivating a new engine for growth. The Group will continue to create customer value, enhance shareholder returns, and contribute to social well-being through intelligent upgrades. Source: ENN Energy (02688) Interim Results Announcement

	Related Stocks
	06661	HUZHOU GAS