Hong Kong & China Gas Co. Ltd. · HKEX:3
Hong Kong & China Gas — The Hong Kong and China Gas Company — H1 2026 Earnings Presentation
48 slides from Hong Kong & China Gas's earnings presentation, Aug 18, 2026
Slide 1: The Hong Kong and China Gas Company Limited 2026 Interim Results
The Hong Kong and China Gas Company Limited (0003.HK) 2026 Interim Results 18 August 2026 The Hong Kong and China Gas | 2026 Interim Results 1
Slide 2: Stable Utility Business & Maturing Growth Business
Stable Utility Business & Maturing Growth Business Restructuring to Unlock Value • Dual growth drivers: Utility & Growth Business • Green Fuels deployed across “marine, land and air” • Successfully attracted investors to facilitate business expansion Diversified Layout; Scaled-up Development • Green
Slide 3: 1H2026 Business Highlights: Utility Business
1H2026 Business Highlights Utility Business Hong Kong Mainland Mainland Water Gas Business Gas Business and Environment • Gas sales volume dropped by • Diversified sourcing optimised gas • Water and solid waste volumes 3.5% YoY amid high temperature supply costs increased by 2% and 5% respectively,
Slide 4: 1H2026 Business Highlights: Growth Business
1H2026 Business Highlights Growth Business Advanced Green Renewable Extended Biofuels Methanol Energy Business • Market demand unfolded, • Sales volume: ~3,200 • Completed 0.24 GW of • Deepened community sales volume doubled YoY tonnes AuM, bringing cumulative service network and • Zhangjiagang plan
Slide 5: 1H2026 Overview of Business Operations
1H2026 Overview of Business Operations Utility Business Growth Business Hong Kong Mainland Green Fuels Renewable Energy Extended Business Gas Sales Volume (TJ) Gas Sales Volume (billion m³) Advanced Biofuels Accumulated PV Customer Coverage*(million) * 14,414 -3.5% 18.60 Remains (thousand tonnes) Gr
Slide 6: Agenda
Agenda Financial Highlights P. 7 Business Review ▪ Utility Business o Hong Kong Gas Business P. 12 o Mainland Gas Business P. 16 o Mainland Water and Environment P. 22 ▪ Growth Business o Green Fuels P. 24 o Renewable Energy P. 30 o Extended Business P. 33 ESG & TERA-Award P. 36 The Hong Kong and Ch
Slide 7: Financial Highlights
Financial Highlights The Hong Kong and China Gas | 2026 Interim Results 7
Slide 8: 2026 Interim Operating Profit after Tax
2026 Interim Operating Profit after Tax (Unit: HK$ million) Utility Business Growth Business Others Hong Kong Mainland Extended Renewable Green Rental、 Business Energy Fuels Telecommu- nications 2,046 1,686 269 52 542 151 (Towngas: 1,405) (Towngas Lifestyle: 307) (1083.HK: 80) (EcoCeres: 634） (Rent:
Slide 9: 2026 Interim Results
2026 Interim Results (Unit: HK$ million) 1H2025 1H2026 Change (%) Revenue 27,514 29,526 +7 Operating Profit after Tax 3,996 4,746 +19 Corporate Financial Expenses (763) (789) -3 Core Operating Profit 3,233 3,957 +22 Profit Attributable to Shareholders 2,964 3,640 +23 Basic Earnings per Share (HK Cen
Slide 10: Financial Position
Financial Position (Unit: HK$ billion) Dec 2025 Jun 2026 Total Assets 163.6 168.0 Net Assets 71.4 72.7 Total Borrowings 59.7 62.5 Less: Cash 6.6 8.5 Net Borrowings 53.1 54.0 Net Gearing Ratio* 43% 43% *Note: Net Debt / (Net Debt + Net Assets） Credit Rating: A- A1 The Hong Kong and China Gas | 2026 I
Slide 11: Financial Prudence & Capital Discipline
Financial Prudence & Capital Discipline (Unit: HK$ billion) 1H2025 1H2026 0003.HK 2.5 2.0 (Including 1083.HK) 1083.HK 1.4 0.8* *Note: Renewable Energy capital expenditure totalled HK$0.3 billion, supported by AuM financing to meet funding requirements The Hong Kong and China Gas | 2026 Interim Resul
Slide 12: Utility Business — Hong Kong Gas Business
Utility Business ——Hong Kong Gas Business The Hong Kong and China Gas | 2026 Interim Results 12
Slide 13: Gas Sales Volume Driven by High Temperature and Northbound Consumption
Gas Sales Volume Driven by High Temperature and Northbound Consumption Gas Sales Volume (Unit: TJ) Changes in Gas Sales Volume (Unit: TJ) 14,414 (-3.5%)* (Equivalent to ~0.4 Billion m³of Natural Gas) Residential -544 Catering +22 Residential 8,042 56% Hotels +2 Commercial Hospitals & Social Welfare
Slide 14: Stable Gas Business
Stable Gas Business Northern Metropolis Stable Profit Performance Development Accelerated • Adjusted basic tariff (+HK1.25 cents) and monthly • Planned population: 1.5 million maintenance charge (+HK$1). Incremental revenue: ~HK$0.4 billion • Gas sales volume: ~5,500 TJ (~160 million m³) • Visitor a
Slide 15: Hydrogen Business Established; Pilots Progressing Orderly in 2H2026
Hydrogen Business Established; Pilots Progressing Orderly in 2H2026 Commercialised Hydrogen Energy Business Green Fuel Used in Construction Sites • Hydrogen extraction from pipelines – safe and convenient: • 10 hydrogen projects currently under development daily supply capacity of 30 tonnes • Includ
Slide 16: Utility Business — Mainland Gas Business
Utility Business ——Mainland Gas Business The Hong Kong and China Gas | 2026 Interim Results 16
Slide 17: Stable Gas Sales Volume
Stable Gas Sales Volume Gas Sales Volume (Unit: billion m3) Remains • PRC NG usage dropped by 2.4% YoY in 1H2026 Steady 18.58 18.60 • Notable impact due to mild winter: average winter Residential 4.74 4.81 26% temperature increased by 1.5°C, second-highest on record Commercial 2.82 2.73 15% • Affect
Slide 18: Steadily Rising Dollar Margin
Steadily Rising Dollar Margin Selling Price, Gas Cost and City Gas Dollar Margin (Unit: RMB/m3) 1H2025 1H2026 Changes Residential 2.82 2.83 +0.01 • Dollar margin improved Selling Commercial 3.65 3.65 - Price • Dynamic sourcing countered market fluctuations, Industrial 3.53 3.51 -0.02 optimised costs
Slide 19: Connection Business Revenue
Connection Business Revenue PRC real estate market remained weak, new connections under pressure The number of residential connections • Affected by weak PRC real estate market, (Unit: thousands) new connections declined 1H2025 1H2026 Changes (%) • Expanded coverage on resettlement housing 691 499 -
Slide 20: Advancing “Gas+” Energy Efficiency Business Expansion
Advancing “Gas+” Energy Efficiency Business Expansion (Unit: RMB) “Gas+” featured extensive application Captured Incremental C&I Gas Demand scenarios and vast market potential and Integrated Energy Revenue Pharmaceuti- • Advancing gas-for-steam/electricity substitution. Secured 98 Food Chemicals cal
Slide 21: Gas Supply Chain: Assurance of Gas Supply
Gas Supply Chain: Assurance of Gas Supply • Enhance gas supply security & cost efficiency management to sustain business growth • Total gas sales volume reached 36.35 billion m³in 2025, including coordinated gas volume of 4.64 billion m³ (accounting for 13%). Cost saving: ~RMB0.4 billion Jincheng •
Slide 22: Utility Business — Mainland Water & Environment
Utility Business ——Mainland Water & Environment The Hong Kong and China Gas | 2026 Interim Results 22
Slide 23: Water and Environmental Business Sustains Growth
Water and Environmental Business Sustains Growth Water Volume Net Profit (Unit: billion tonnes) (Unit: HK$ billion) +2% 0.80 +12% • Growth in water and solid waste volume boosted 0.79 0.28 net profit 0.25 • Expanded value-added services including operation trusteeship via asset-light model 1H2025 1H
Slide 24: Growth Business — Green Fuels
Growth Business ——Green Fuels The Hong Kong and China Gas | 2026 Interim Results 24
Slide 25: Ramp Up under SAF Mandates; Robust European HVO Demand
Ramp Up under SAF Mandates; Robust European HVO Demand SAF Mandates Market Demand4 ~15 ~45 (million tonnes) 2025 2030 Market Size5 SAF (USD billion) 2025: 2% 2025: 2% 164 to to 2030: 6%1 2030: 10%2 33 29% 2025 2030 HVO 2030 Transport-sector • Market demand growth is expected to outpace new productio
Slide 26: SAR Government Driving Industry Growth
SAR Government Driving Industry Growth • Constructed the Group’s third Created an Integrated “End-to-End” Model production base in Dongguan • Planned production capacity: Greater Bay Area Dongguan Hong Kong 450,000 tonnes Waste-based Feedstock Refining Production Blending, Refueling Collection and T
Slide 27: Strong Progress in Customer Acquisition
Strong Progress in Customer Acquisition • Under the extended agreement, EcoCeres’ • Schedule to supply SAF to Viva Energy SAF is expected to help British Airways avoid Australia for storage and distribution through approximately 198,000 tonnes of lifecycle Viva Energy’s Pinkenba fuel terminal in car
Slide 28: Data Centres Fuel Supply
Data Centres Fuel Supply • Partnered with GDS to launch China’s first • Partnered with Singapore Bridge Data Centres HVO pilot for data centres, pioneering a new to complete Southeast Asia’s first HVO-powered low-carbon computing pathway data centres backup fuel pilot The Hong Kong and China Gas | 2
Slide 29: Green Methanol Deployment in the GBA & Belt and Road
Green Methanol Deployment in the GBA & Belt and Road, Expanding Global New Energy Footprint Mainland Expanding Cooperation • Participated in the Ministry of Transport’s sustainable transport Northeast Asia certification system, becoming one of the first certified enterprises • Invited to the UN High
Slide 30: Growth Business — Renewable Energy
Growth Business ——Renewable Energy The Hong Kong and China Gas | 2026 Interim Results 30
Slide 31: Consolidated Leading Position in C&I PV
Consolidated Leading Position in C&I PV • Covered 128 zero-carbon industrial parks • Invested and managed PV installed capacity of 3 GW • Invested and managed energy storage installed capacity of 0.85 GWh • 3,500 industrial electricity customers with electricity sales of 7.2 billion kWh in 1H2026 Re
Slide 32: Capital Recycling via AuM for New Project Investment
Capital Recycling via AuM for New Project Investment Issued 4 tranches of Quasi-REITs and 1 tranche of inter-institutional REIT, totalling 581 MW Cumulative AuM Scale (GW) 1.5 Average Equity Disposal Ratio 70% Cumulative AuM Financing (RMB Billion) 5.5 Note： 1. Retained AuM asset management rights w
Slide 33: Growth Business — Extended Business
Growth Business ——Extended Business The Hong Kong and China Gas | 2026 Interim Results 33
Slide 34: Continuous Business Growth of Towngas Lifestyle
Continuous Business Growth of Towngas Lifestyle Population Customer Customer Coverage Coverage Penetration Rate ~0.13 Billion 47.03 Million 80 % 15 % Financial Data (HK$ million) Total Hong Kong Mainland Revenue 2,200 (+11%) 1,030 1,170 Gross Profit Margin 37% 44% 30% Net Profit 307 (+19%) 263 44 Re
Slide 35: Continuous Upgrading Lifestyle Service Solution Provider
Continuous Upgrading Lifestyle Service Solution Provider Kitchen Appliance New Businesses Hong Kong (Unit: HK$) • Retail revenue increased by 19% to 0.77 billion • Offered elderly home-care products and services • Adopted bundled sales strategy for gas appliances and white • Launched custom cabinetr
Slide 36: ESG & TERA-Award
ESG & TERA-Award The Hong Kong and China Gas | 2026 Interim Results 36
Slide 37: Industry-leading ESG Performance
Industry-leading ESG Performance 2025 2026 AA AA Hang Seng Corporate Sustainability Index Series AAA AAA Selected as a constituent of the Dow Jones Best-in-Class 71 71 Asia Pacific Index for 4 consecutive years The Hong Kong and China Gas | 2026 Interim Results 37
Slide 38: TERA-Award Smart Energy Innovation Competition
TERA-Award Smart Energy Innovation Competition Past 4 Editions The 5th Edition Collaborated international partnerships 2,600+ Strategic collaborations TERA-Award pipeline of startup projects 935 935 Total submissions 785 450 79 Countries and regions participated 275 208 Select around 5-10 high-quali
Slide 39: 2026: Group Challenges and Opportunities; Full-year Business Guidance
2026: • Group Challenges and Opportunities • Full-year Business Guidance The Hong Kong and China Gas | 2026 Interim Results 39
Slide 40: Hong Kong Business: Challenges and Opportunities
Hong Kong Business Challenges Opportunities HKSAR Government exploring new energy solutions • Hydrogen development for construction site Global warming • Ensure low-carbon feedstock for gas production Successfully adjusted basic tariff every time Rolling out kitchen appliance cooperation with Declin
Slide 41: Mainland Gas Business: Challenges and Opportunities
Mainland Gas Business Challenges Opportunities Seizing opportunities under the 15th Five-Year Plan, fostering cross-segment synergy, scaling up Global warming “Gas+” energy efficiency businesses and engaging in local urban “green transition” National initiative to expand domestic demand and upgrade
Slide 42: Mainland Water and Environment Business: Challenges and Opportunities
Mainland Water and Environment Business Challenges Opportunities Gas Business & Green Fuels Business leverage Slowing urban development, synergies to develop organic waste recycling limited incremental growth solutions Smart transformation towards “dark factories”. Offering water quality testing ser
Slide 43: Renewable Energy Business: Challenges and Opportunities
Renewable Energy Business Challenges Opportunities Implementation of “midday off- Electricity prices stabilised; policies drive full peak tariff” drives down returns industrial PV rollout with reinvestment financed of existing PV assets via AuM Abolition of TOU tariffs affects Capturing trillion-yua
Slide 44: Extended Business: Challenges and Opportunities
Extended Business Challenges Opportunities National policies continue to drive consumption: Sluggish domestic demand housing quality upgrades, government-subsidized recovery; muted retail growth trade-in programs, AI+ consumption, and the silver economy Sustained downturn in real estate Unified bran
Slide 45: Green Fuels: Challenges and Opportunities
Green Fuels Challenges Opportunities EU has established mandatory sustainable fuel Pending implementation of IMO volume targets regulations Capture 15th Five-Year Plan opportunities for SAF Diversified and evolving market & green methanol technologies • Engage with government & industry alliances to
Slide 46: 2026 Full-year Business Guidance
2026 Full-year Business Guidance Utility Business Growth Business Hong Kong Mainland Green Fuels Renewable Energy Extended Business Gas Sales Volume (TJ) Gas Sales Volume (billion m³) Advanced Biofuels Accumulated PV Customer Coverage (million) (thousand tonnes) Grid-connected (GW) 26,563 -2.3% 36.5
Slide 47: Thank You
THANK YOU The Hong Kong and China Gas | 2026 Interim Results 47
Slide 48: 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 The Hong Kong and China Gas’s businesses and operations, market conditions, results of operation and fin
The Hong Kong and China Gas Company — H1 2026 Earnings Presentation on 6ix