[True Insight Hong Kong Stock Update] Binhai Investment (02886.HK) Announces Full-Year 2025 Results: Profit Grows by 12%, Dividend Increases Steadily

Hong Kong, March 20, 2026 – One of China's leading clean energy operators, Binhai Investment Limited $BINHAI INV (02886.HK)$ announced the group’s audited annual results for the year ended December 31, 2025. Amid a complex and volatile macro environment, the gas industry undergoing profound transformation, and slowing terminal gas demand, the group achieved revenue of approximately RMB 5.606 billion, gross profit of approximately RMB 520 million, and profit attributable to owners of the company of about RMB 206 million, representing a 12% year-on-year increase, with basic earnings per share at approximately RMB 15.0 fen.

The board recommends a dividend of 8.36 Hong Kong cents per share (2024: 7.6 Hong Kong cents), achieving a payout ratio of approximately 51%. It also reiterated that during the period from 2025 to 2027, it plans to increase the dividend per share annually by no less than 10%, continuously enhancing shareholder returns alongside profit growth.

Business Highlights Review

In 2025, China's economy maintained moderate growth under policy support. The country's apparent natural gas consumption increased slightly by 0.1% year-on-year to approximately 4,265.5 billion cubic meters in total. The industry steadily advanced amid adjustments in demand structure and the transition towards green and low-carbon development. The group adhered to its core operating strategy of 'safety as the foundation, quality improvement in three key areas, focused efforts on tackling challenges, and steady progress.' It actively promoted the coordinated development of various businesses, maintaining a robust overall operational posture and significantly enhancing its development resilience.

Piped natural gas sales business – accounting for approximately 94% of total revenue

The group continuously improved the integration of upstream resources with downstream markets. On the upstream resource side, it implemented a diversified gas procurement strategy. In addition to signing regular annual procurement contracts, it actively collaborated with social resources to ensure sufficient and stable gas supply at controlled costs. On the downstream market side, it actively explored new user demands for gas usage, achieving significant results in terminal market expansion. It successfully secured gas supply projects such as Beifang Glass, Phase I of the Yunhai project, and Zhaoyuan Thermal Power Plant. Total gas sales reached approximately 2.44 billion cubic meters, of which piped natural gas sales were about 1.79 billion cubic meters, an increase of 4.5% compared to last year, demonstrating strong growth resilience. The ratio of industrial and commercial users to residential users in gas sales was 82:18, showcasing a clear advantage in customer structure. The group’s piped natural gas sales revenue was RMB 5.254 billion, a decrease of approximately 2.2% compared to the same period last year.

Natural gas pipeline transportation services – accounting for approximately 1% of total revenue

During the year, the overall gas usage by pipeline customers remained stable. The group's agency transportation volume was approximately 650 million cubic meters, a decrease of 19% compared to last year. Pipeline transportation revenue fell by approximately 17% to about RMB 50 million.

Engineering construction and natural gas pipeline installation services – accounting for approximately 4% of total revenue

Affected by the ongoing adjustments in the real estate market, the scale of new users slowed down, with growth decreasing by one percentage point compared to 2024. However, the group seized the opportunity presented by policies for renovating old communities. During the year, it developed 120 new industrial users, 723 commercial users, and 45,000 residential users, bringing the cumulative number of users to approximately 2.484 million, an increase of about 2% year-on-year. Revenue from this business during the year was approximately RMB 224 million.

Value-added services – accounting for approximately 1% of total revenue

The group actively expanded its value-added service offerings. During the year, it iterated and upgraded the product categories under its self-owned brand 'Taiyuejia,' introducing kitchen beautification services. At the same time, it continuously innovated and broadened service boundaries by launching the Taiyuejia e-commerce platform and initiating live-streaming e-commerce. Through innovative cooperation and promotion models and precise marketing, both the scale and profitability of the business achieved dual growth. During the year, it achieved a turnover of RMB 76.15 million, an increase of 14.5% year-on-year, and segment profit was RMB 50.46 million, up 12.8% year-on-year. Since the inception of this business, the compound annual growth rate over nearly five years has been 34%. Value-added services have become one of the group's important profit growth engines. During the year, the group also entered into a strategic cooperation agreement with its major shareholder, TEDA Holdings' affiliate, Tianjin TEDA Urban Renewal Co., Ltd., focusing on the standards and connotations of 'good housing' construction to initiate cross-regional expansion and cooperation.

The group is accelerating the implementation of integrated energy projects, and has successively established strategic cooperation with Tianjin Huade Smart Technology Group Co., Ltd., the People's Government of Deqing County in Zhejiang Province, and Zhejiang Taineng Smart Power Co., Ltd. this year to explore the development of integrated energy, assisting the group's accelerated transformation into an integrated energy supplier. The group also continues to expand diversified financing channels, optimize its financing structure, and focus on reducing overall financing costs, with financing costs for 2025 decreasing by RMB 52.987 million compared to the same period last year. During the year, the group’s wholly-owned subsidiary secured medium-term working capital loans from multiple banks at interest rates significantly lower than the one-year Loan Prime Rate (LPR). Additionally, it received favorable financing support such as RMB credit lines from Sinopec Finance Tianjin Branch, a subsidiary of the shareholder China Petrochemical Corporation, laying a solid financial foundation for the group's future strategic development.

Outlook

The Organization for Economic Cooperation and Development (OECD) forecasts China’s economic growth rate for 2026 to be 4.4%. Under the continued advancement of the 'dual carbon' goals and green low-carbon transition policies, the bridging and supporting role of natural gas in the energy mix will become increasingly prominent, bringing long-term development opportunities to the industry. The group will seize policy and energy transition opportunities, focusing on three key directions: 'consolidating the basic operations of city gas, vigorously developing value-added services, and accelerating the transformation into an integrated energy supplier.' It will extend the supply chain, improve the industrial chain, promote intelligent upgrades and technological empowerment, and build a solid foundation for long-term, healthy, and stable development.

In the natural gas business, the group will continue to optimize the gas source structure based on the volume and pricing policies of natural gas procurement contracts, improve comprehensive procurement costs, actively promote the implementation of price adjustment mechanisms for residential users, and continuously restore gross margin levels. Meanwhile, it will consolidate the advantages of customer gas structures, increase gas sales to industrial clients, and ensure the profitability of the natural gas sales business. As the group’s business structure continues to improve, the impact of slowing growth in engineering construction and installation businesses on overall profitability is gradually diminishing. However, the group will still capitalize on urban renewal and old community renovation opportunities, actively intensifying market development efforts and expanding its customer base.

In terms of value-added services, the group aims to become a 'comprehensive urban lifestyle service provider integrating gas services, home services, and social services.' Leveraging its own brand building, it adheres to a combination of deepening its existing regions and expanding to new areas. Through online e-commerce platforms and offline experience stores, it continuously extends the service chain, enriches product and service scenarios, fully unleashes the growth potential of value-added services, and accelerates the expansion of business scale and market share, striving to become a core pillar of the profit structure as soon as possible.

The group will also accelerate its transformation into an integrated energy service provider, relying on its industrial client resources and existing pipeline network advantages to offer customized energy management solutions to clients, promoting the implementation of demonstration projects, and establishing important milestones for its transition into an integrated energy service provider. On the basis of steady growth in core businesses, the group will continue to practice the concept of green development and actively implement the national 'dual carbon' strategic goals. By continuously improving energy efficiency, optimizing supply chain management, deepening energy conservation and emission reduction measures, and accelerating the innovation and application of low-carbon technologies, the group will comprehensively enhance its sustainable development capabilities. While creating long-term and stable value returns for shareholders, it will actively fulfill its social responsibilities and strive to contribute greater efforts to society and the ecological environment.

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