The 2026 Government Work Report included the terms "future energy" and "green fuels" in top-level design for the first time, setting a new direction for high-quality energy development during the 15th Five-Year Plan period. Data from the National Energy Administration shows that in 2025, China added 452 million kilowatts of renewable energy capacity, a year-on-year increase of 21%, with the cumulative installed capacity historically surpassing that of thermal power. This energy revolution, commencing with the 15th Five-Year Plan, is shifting from scale expansion to a qualitative leap. At this critical juncture, TG SMART ENERGY (01083) delivered a resilient 2025 performance report, benefiting from its early strategic positioning in the renewable energy sector. The financial report indicates that despite macroeconomic fluctuations and short-term market volatilities, the company's renewable energy business achieved a net profit of HK$413 million, continuously solidifying its role as a core second growth engine. During the period, the company recorded total revenue of HK$20.912 billion, with profit attributable to shareholders reaching HK$1.585 billion.
Facing pressure on connection businesses due to real estate market adjustments, as well as temporary impacts on gas sales margins from warm winter conditions and gas price fluctuations, TG SMART ENERGY successfully stabilized its fundamental operations by strengthening lean operations, optimizing its asset structure, and accelerating the deployment of integrated energy services. This demonstrated exceptional cost control and risk resilience. Particularly commendable is the company's maintenance of a stable full-year dividend per share of HK19 cents, with a final dividend of HK14 cents. This fully reflects management's confidence in long-term profitability and healthy cash flow, consistently rewarding shareholder trust with tangible returns.
The synergistic "gas-electricity" model in renewables has proven effective, and a closed-loop for capital operations has taken shape. With clear guidance from early 15th Five-Year Plan policies and dual drivers of policy and capital, energy enterprises possessing technical accumulation and implementation capabilities are entering a development window. Leveraging its dual-drive strategy of "Gas + New Energy," TG SMART ENERGY has built a differentiated competitive edge in the renewable energy sector. It was noted that during the reporting period, the company used quasi-REITs as a breakthrough to accelerate the formation of a complete asset management闭环 encompassing "resource acquisition - management efficiency improvement - capital exit." This not only validated the feasibility of its industry-finance integration model but also established its leading advantage within the sector.
In November 2025, the company successfully issued RMB812 million in Series 3 "Zero-Carbon Wisdom" quasi-REITs on the Shenzhen Stock Exchange, with the priority tranche coupon rate as low as 2.3%, attracting strong subscription from diversified investors including commercial banks, leading securities firms, and foreign institutions. This was the third such issuance in less than a year, following the launch of the market's first integrated photovoltaic-storage carbon neutrality quasi-REIT at the end of 2024. Consequently, the company has utilized over 30% of its RMB5 billion shelf registration facility, with cumulative financing nearing RMB1.8 billion. These moves signify that TG SMART ENERGY has thoroughly overcome the bottleneck in securitizing commercial and industrial distributed photovoltaic assets, transforming previously non-standard assets, characterized by wide distribution and complex rights confirmation, into standardized, regular financing instruments.
By achieving a self-balancing investment and financing cash flow, the company successfully reduced its reliance on traditional capital-intensive investment models, reserving a continuous stream of green momentum for the scaled expansion of its renewable energy business. Furthermore, utilizing its robust service network and management platform, it provides full-cycle operation, maintenance, and management services for the securitized asset projects, generating stable and considerable asset management income annually, which is set to become a core component of business growth.
The company is also actively deploying its "gas-electricity synergy" strategy to build differentiated competitive barriers. Unlike pure renewable energy players, TG SMART ENERGY is committed to providing diversified integrated energy services. During the reporting period, its electricity retail business expanded rapidly, with license coverage extending to key economic provinces such as Jiangsu, Guangdong, Shandong, and Anhui. Leveraging the customer base cultivated over years in the gas business, the company achieved precise targeting and efficient conversion for electricity trading. Its electricity sales licenses now cover 9 provinces, with gas-electricity synergy contracts exceeding 3 billion kWh and total signed volume reaching 15.7 billion kWh. This "gas-leads-to-electricity" model significantly reduces customer acquisition costs and marginal trust costs, while also seizing channel advantages in the deepening electricity market reform. It transforms traditional gas customer relationships into a highly sticky integrated energy service ecosystem, establishing a moat that is difficult to replicate.
Notably, the company's internal technological capabilities have become a solid foundation for its scale expansion. Relying on its self-developed high-precision algorithm models and the "Carbon Star Cloud" smart management platform, TG SMART ENERGY has successfully built an AI-powered closed-loop management system covering the entire asset lifecycle. Digital means are integrated throughout, from precise resource assessment in the early project stages, through intelligent operation and dispatch in the mid-stage, to energy efficiency optimization and iteration later. This not only significantly enhances the operational efficiency and safety stability of distributed photovoltaic assets but also transforms previously non-standardized commercial and industrial rooftop resources into quantifiable, predictable high-quality asset packages. It is precisely this dual-drive of "technology + data" that provides standardized replication capability during rapid expansion, ensuring excellent marginal benefits even as managed asset scale grows exponentially, truly achieving high-quality development where technological soft power leverages hard assets.
Gas business volume and price rose together, with the "ballast" role continuously strengthening. In the energy transition process, natural gas, as a clean and efficient peaking energy source, has not seen its strategic position weakened; instead, it plays a more important synergistic role in the new energy system. TG SMART ENERGY's traditional gas business demonstrated strong resilience against industry headwinds: annual gas sales volume grew against the trend, and terminal gross spreads continued to recover. Although a warm winter and weak macroeconomic demand led to stagnant overall industry consumption, the company accurately captured incremental demand in emerging sectors, effectively offsetting declines in traditional segments and driving steady growth in gas sales volume, showcasing strong market acumen and customer structure adjustment capabilities.
Concurrently, the company持续推进顺价和气源统筹工作, increasing the price spread by RMB0.02 to RMB0.58 per cubic meter. This deeply reflects the company's refined operational capabilities in gas procurement cost control and the transmission of terminal pricing strategies. Furthermore, the company did not merely adapt passively to the market but proactively deepened its engagement with existing customers, vigorously promoting integrated energy substitution solutions like "gas replacing steam, gas replacing electricity." By enhancing the energy consumption value per customer, it further solidified an earnings moat capable of weathering cycles.
Regarding supply security and cost control, TG SMART ENERGY has built a highly flexible resource barrier, accelerating its transformation from a单纯的 resource purchaser to a comprehensive energy operator with strong dispatch capabilities. It was noted that the company has fully executed long-term agreements with the "Big Three" national oil companies, locking in a base gas volume of 1.5 billion cubic meters per year, thereby securing its supply foundation. On this basis, by optimizing imported LNG procurement structures and flexibly调度 domestic resources, it achieved a dynamic balance of "long-term contracts stabilizing the base, spot purchases seeking flexibility," effectively hedging against international energy price volatility risks.
More critically, the company has significantly enhanced its resource autonomy, building working gas storage capacity of 220 million cubic meters, markedly strengthening its seasonal peak-shaving and emergency supply guarantee capabilities. Through continuous integration of resources across the industrial chain, the company coordinated and ensured supply of 6.4 billion cubic meters per year for enterprises in 2025. This three-dimensional resource portfolio—"external long-term contracts + internal own storage + global spot market adjustment"—not only ensures cost controllability and absolute supply security for the gas business but also provides solid confidence for stable operation under extreme market conditions.
Simultaneously, the company's "Gas Plus" business initiatives gained momentum. Focusing on deep user-side demand, it actively expanded into new areas like energy hosting and industrial energy efficiency. By embedding digital capabilities into the entire energy consumption management process, it achieved a value extension from "gas supply" to "energy efficiency services," laying a technological foundation for building differentiated competitive advantages.
In summary, TG SMART ENERGY's 2025 performance is not merely a presentation of robust financial data but a vivid illustration of the company's strategic transformation moving from "quantitative change" to "qualitative change." Facing industry cycle fluctuations and challenges, the company did not simply pursue scale expansion. Instead,凭借其在可再生能源领域的前瞻性布局, it successfully constructed a more resilient business structure. Aligned with the new direction of high-quality energy development in the "15th Five-Year Plan" period, the company has successfully established a良性生态 where the "city gas fundamental business" and the "renewable energy growth pole" mutually support each other.
On one hand, the city gas business, with its deep resource barriers and refined operations, continuously provides stable cash flow as a "ballast," ensuring the company navigates energy price volatility with ease. On the other hand, the renewable energy business, through the innovative model of "capital closed-loop + gas-electricity synergy + technology enablement," has broken the bottleneck of traditional heavy-asset expansion, achieving a high-quality leap in scale. The successful issuance of quasi-REITs and the implementation of AI-powered full-lifecycle management particularly signify that TG SMART ENERGY has explored a replicable, sustainable green energy development path. This strategic resolve is especially valuable in the current complex market environment.
Citic Securities pointed out that although leading city gas enterprises are expected to face profit pressure from gas price impacts in 2026, the decline is projected to be moderate. Considering the gas price shock, the PE ratios of leading city gas companies have returned to historical averages, and their dividend yields are attractive, offering strong defensive allocation value. Businesses possessing midstream pipeline networks or those that have locked in low-cost gas sources at receiving terminals are likely to benefit from rising upstream gas prices, effectively hedging their downstream city gas operations. This industry perspective accurately confirms the significant defensive attributes and allocation value of TG SMART ENERGY as a national leader, given its locked-in long-term contract gas sources and立体化 resource portfolio in the current market environment.
Looking ahead, as the national top-level design for "future energy" is further implemented, TG SMART ENERGY will continue to deepen its dual-drive strategy of "Gas + Renewable Energy." The company will link capital and industry with a more open approach and optimize energy allocation with smarter technology, striving to become a benchmark enterprise leading China's energy structure transition. On the journey towards carbon neutrality, TG SMART ENERGY, with its identifiable growth trajectory and innovative capabilities, is working with all stakeholders to chart the grand blueprint for a zero-carbon future.