Towngas Smart Energy Company Limited · HKEX:1083
Towngas Smart Energy — FY2024 Earnings Presentation
31 slides from Towngas Smart Energy's earnings presentation, Mar 14, 2025
Slide 1: Towngas Smart Energy FY2024 Annual Results
Towngas Smart Energy Company Limited (1083.HK) FY2024 Annual Results 14 March 2025 1
Slide 2: 2024: Overall Operating Environment
2024: Overall Operating Environment Macro Operating Environment Environment Geopolitics affecting supply chains & tariffs Growing gas demand & improving dollar margin Ongoing effort to cultivate customer relationship, Sluggish macro economy expand Gas+ and extended businesses Enhanced capital return
Slide 3: 2024 Business Highlights
2024 Business Highlights Core operating profit increased by 35% Bring in partners to help strengthening AuM growth Energy & carbon management services profit on fast-track with over RMB100 million Several enterprises led the consolidation under the “One City, One Enterprise” policy Extended business
Slide 4: 2024: Business Operations Overview
2024: Business Operations Overview Gas Business Renewable Energy Gas Sales Volume: Accumulated PV Grid-connected: 17.2 billion m 3 +5 % 2.3 GW +0.5 GW Customers: Power Generation Volume: 17.64 million +0.87 million 1.83 billion kWh +95 % City Gas Dollar Margin: Electricity Trading Volume: 0.56 RMB/m
Slide 5: Agenda
AGENDA Financial Highlights P. 6 Business Review Gas Business P. 11 Renewable Energy P. 19 ESG P. 26 Group Business Guidance P. 28 5
Slide 6: Financial Highlights
3 33 2S ER Towngas Smart Energy Financial Highlights
Slide 7: 2024 Annual Results
2024 Annual Results (Unit: HK$ million) 2023 2024 Changes (%) Revenue 19,842 21,314 +7 Operating Profit (RMB million) 1,746 2,135 +22 Operating Profit 1,934 2,319 +20 Gas Business Net Profit 1,856 1,840 -1 Renewable Energy Business Net Profit 78 479 +514 Corporate Financial Expenses (597) (566) +5 C
Slide 8: Dividends
Dividends In 2024, the core operating profit increased by 35%, with a total dividend payout of 19 HK cents, including a final dividend and a one-off special dividend Final Dividend Special Dividend 16 HK cents 3 HK cents 8 Towngas Smart Energy | 2024 Annual Results
Slide 9: Financial Position
Financial Position (Unit: HK$ billion) 2023 2024 Total Assets 53.5 53.0 Net Assets 25.2 25.8 Cash 4.2 2.7 Borrowings 18.3 17.3 Net Gearing Ratio* 36% 36% *Note: Net Debt / (Net Debt + Equity） Credit Rating: BBB+ Baa1 AAA 9 Towngas Smart Energy | 2024 Annual Results
Slide 10: Capital Expenditure & Efficiency Management
Capital Expenditure & Efficiency Management Capital Expenditure (Unit: HK$ billion) 2023 2024 2025E - Gas Business 2.7 2.1 2.1 - Renewable Energy Business 3.9 1.2 1.1 Capital Expenditure 6.6 3.3 3.2 Efficiency Management Key Priorities Achievements Cost reduction & • Integrated management, reduced a
Slide 11: Business Review
Business Review Gas Business Renewable Energy 11
Slide 12: Continuous Growth in Gas Volume
Continuous Growth in Gas Volume Gas Sales Volume (Unit: billion m3) • Continuous growth in residential customers drove an increase in gas volume +5% 17.20 16.46 • Promoted “cylinder to pipeline” and Gas+ business to increase commercial gas volume 8.54 Industrial 8.33 50% • The “New Trio” and high-te
Slide 13: Steadily Rising Dollar Margin
Steadily Rising Dollar Margin Average Selling Price, Gas Cost and Dollar Margin (Unit: RMB/m3) 2023 2024 Changes • Cost pass-through basically completed for non-residential Residential 2.78 2.80 +0.02 Selling • 75% of the enterprises completed residential Commercial 3.61 3.59 -0.02 Price cost pass-t
Slide 14: Connection Business Revenue
Connection Business Revenue National real estate market remained weak, new connections under pressure • The “cylinder to pipeline” for commercial customers Number of household connections decreased YoY and the development of industrial customers have (Unit: thousands) driven increased in connections
Slide 15: Gas Supply Chain - Ensurance of Gas Supply
Gas Supply Chain - Ensurance of Gas Supply • Stringent gas supply ensurance & cost reduction management are the primary objectives to help sustaining business growth and staying competitive Caofeidian • LTA for pipeline gas with total gas volume of 15 billion m³ collaborating with the “Three Majors”
Slide 16: Gas Supply Chain: Supporting The Expansion of City Gas Distribution
Gas Supply Chain: Supporting The Expansion of City Gas Distribution Steady Growth of Self-coordinating Gas Source Volume (Unit: billion m3) 600 60 Self-coordinating gas source % • Group coordination target: ~50 billion m3 500 50 • 2025: ~6 billion m3 22% 23% • 2030: ~10 billion m3 400 22% 40 22% 22%
Slide 17: Gas+: Strategic Ascension
Gas+: Strategic Ascension Focus on energy management outsourcing services for Energy Sales Volume public institutions; and expand asset-light energy services (Unit: billion kWh) Business 1.16 Strategy +22% The state is promoting the industrial equipment upgrade to develop energy conservation busines
Slide 18: Long-term Prospects for China's Natural Gas Are Highly Promising
Long-term Prospects for China’s Natural Gas Are Highly Promising Market Size Expected to Seizing Development Opportunities Expand Continuously • The state encourages natural gas to play an active role in (Unit: billion m3) the development of a new energy ecosystem; with a priority of integrating its
Slide 19: Business Review
Business Review Gas Business Renewable Energy 19
Slide 20: Renewable Energy: Profit Growth on Fast-track
Renewable Energy: Profit Growth on Fast-track Operational Data 2023 2024 Changes (%) Grid-connected (GW) 1.8 2.3 +0.5 GW Power Generation Volume (billion kWh) 0.94 1.83 +95 Gross Margin (RMB/kWh) 0.346 0.294 -0.052 RMB/kWh Financial Data (RMB million) BU Profit Contribution 198 589 +197 PV Business
Slide 21: Power Generation Volume Doubled
Power Generation Volume Doubled （Unit: billion kWh ） +95% 1.83 Industry-leading grid-connected scale 1 and growth rate The grid-connection completed in 2023 laid down a strong foundation and help 0.94 2 contributing to rapid power generation growth in 2024 Decreased sunlight hours led to a 3 5% decr
Slide 22: Energy & Carbon Management Services: Profit over RMB100 Million
Energy & Carbon Management Services: Profit over RMB100 Million (Unit: RMB million) Electricity trading volume surged to +209% 1 8.4 billion kWh, contributing a profit 102 of RMB77 million Over 400 MWh of C&I energy storage 2 contracts signed, contributing a technical service fee of RMB21 million 33
Slide 23: Successful Issuance of Quasi-REITs
Successful Issuance of Quasi-REITs • Successfully issued the first tranche of RMB515 million with interest rate of 2.3%, below the group’s average borrowing rate of 3.7% • First quasi-REITs targeting PV and energy storage • The strong market interest was reflected in the program’s oversubscription,
Slide 24: AuM Provides Funding for PV & Energy Storage Investments
AuM Provides Funding for PV & Energy Storage Investments Financing Investment Construction Management Sale PV & Energy Storage Asset AuM Financing AuM Transaction Investment and Construction Management • AuM financing: • PV grid- RMB1.5 billion • AuM scale: 450MW • Newly PV grid-connected: 0.5GW con
Slide 25: The Renewable Energy Business Offers Immense Growth Potential
The Renewable Energy Business Offers Immense Growth Potential Renewable Energy Becoming Address Challenges & Main Source of Power Generation Seize Opportunities 1. Maintain High Returns through Power Generation Structure Forecast (Unit: trillion kWh) “Cost Reduction & Efficiency Improvement” 20 • Cu
Slide 26: ESG
ESG 3 33 2S ER Towngas Smart Energy 26
Slide 27: 2024 ESG Performance
2024 ESG Performance Industry Award ESG Rating • Towngas Smart Energy received Distinction Award • Ranked “Top 1%” of Chinese companies in the gas in HKMA Sustainability Award industry in the S&P Corporate Sustainability Assessment • Reincluded as a constituent stock of the FTSE4Good Index Series 20
Slide 28: Group Business Guidance
3 33 2S ER Towngas Smart Energy Group Business Guidance
Slide 29: 2025 Business Guidance
2025 Business Guidance Gas Business Renewable Energy Gas Sales Volume: Accumulated PV Grid-connected: 18.0 billion m 3 +4 % - 5 % 2.9 GW +0.6 GW Customers: Power Generation Volume: 18.27 million +0.63 million 2.58 billion kWh +40 % City Gas Dollar Margin: Electricity Trading Volume: 0.57 RMB/m 3 +0.
Slide 30: Thank You
3 33 2S ER Towngas Smart Energy THANK YOU
Slide 31: Disclaimer
Disclaimer This presentation and corresponding discussion may contain certain forward-looking statements, including statements regarding our intent, belief or current expectations with respect to Towngas Smart Energy’s businesses and operations, market conditions, results of operation and financial
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