Key takeaway

The company's performance continued to grow steadily in 2025, and gas sales revenue grew rapidly, mainly due to the narrowing decline in retail liquid prices, the successive commissioning of the company's pipeline gas projects, and the volume growth logic brought by the steady increase in liquid sales. In the equipment field, the demand mainly for coal chemicals has remained strong since 2026, and coupled with the company's continuous promotion of equipment going overseas and gradual transformation to localization, newly signed equipment projects are sufficient. In the gas business, the company's gas investment portfolio continues to expand, with 9 newly signed projects (including on-site gas production projects), and the growth of special gases mainly helium is excellent.

Event

In 2025, the company achieved operating revenue of RMB15.083bn, up 9.96% YoY; net profit attributable to shareholders of the parent company was RMB949mn, up 2.87% YoY; and non-GAAP net profit attributable to shareholders of the parent company was RMB910mn, up 5.68% YoY.

Looking at 4Q25 alone, the company achieved operating revenue of RMB3.654bn, up 8.64% YoY; net profit attributable to shareholders of the parent company was RMB192mn, down 22.46% YoY; and non-GAAP net profit attributable to shareholders of the parent company was RMB182mn, down 22.57% YoY.

Quick Take

Performance grows steadily in 2025, and gas sales revenue grows rapidly.

Risks:

1) Risk of downward retail gas prices: The current domestic and foreign economic situation is complex, and the prosperity of the company's retail gas demand is uncertain. If the prosperity declines more than expected, coupled with the further release of the company's production capacity, it may lead to a continued decline in retail gas prices.

2) Risk of intensified competition in the gas industry: The large market space for outsourced gas, including bulk gas and retail gas, attracts new entrants. This may cause the company to be unable to fully leverage the advantages of self-made air separation equipment in certain regional markets, leading to a decline in market share.

3) Management risk: As the number of the company's gas subsidiaries and the scale of commissioned installations continue to increase, higher requirements are placed on the company's management level, and the risk of governance structure increases.

4) Risk of sluggish growth in the equipment business: As a traditional business, although the company has obvious competitive advantages, the equipment business may face the risk of decline due to the impact of the prosperity of the entire downstream heavy chemical industry.