Zhongyu Energy reports mixed H1 2025 as profit rises despite turnover dip

Zhongyu Energy Holdings Limited announced its unaudited interim results for the six months ended June 30, 2025, with turnover decreasing by 9.4% to HK$6.575bn from HK$7.255bn in the prior year. Despite this, profit attributable to owners of the company increased by 2.7% to HK$245.51m (2024: HK$239.077m), resulting in basic and diluted earnings per share of HK8.89 cents, up from HK8.57 cents. The net profit margin improved to 3.7% (2024: 3.3%).

The decline in turnover was primarily due to decreases in revenue from gas pipeline construction and smart energy, exacerbated by RMB depreciation against HK$. Gas sales remained the primary revenue source, contributing 85.5% of total turnover. The Group also reported a significant net foreign exchange gain of HK$126.756m, contrasting with a loss of HK$57.176m in 2024, driven by the appreciation of RMB against US$ and HK$ bank borrowings.

Finance costs saw a 24.8% reduction to HK$208.493m due to a decrement in effective interest rates. The Group's total assets grew by 0.6% to HK$26.377bn. Net current liabilities increased to HK$4.914bn, largely due to an increase in borrowings repayable within one year. The net gearing ratio stood at approximately 1.47 (2024: 1.35).