Zhengzhou Gas profits rise 55pc despite thinner margins on LPG

Growth Enterprise Market-listed Zhengzhou Gas yesterday said net profit for last year rose 55.93 per cent to 37.32 million yuan (about HK$35.16 million).

The Henan province-based firm - Zhengzhou city's only natural gas distributor - sold 88.83 million cubic metres of natural gas last year, up 17.6 per cent year on year.

Natural gas sales of 133.38 million yuan, with a gross profit margin of more than 20 per cent, accounted for 46.6 per cent of total sales.

Despite a 13.74 per cent year-on-year increase in liquefied petroleum gas (LPG) sales to 35.9 million yuan, the operation was unprofitable amid stiff competition, said financial controller Qiao Hong. The profit margin slipped 19 per cent last year, but the company had no plans to dispose of the operation as it had a social responsibility to maintain LPG sales, she said.

Fee income from connecting households to the company's network grew 69.68 per cent last year to 81.21 million yuan.

Total turnover rose 25.67 per cent to 282.15 million yuan. Earnings per share increased 37.5 per cent to 4.4 fen and a final dividend of 1.4 fen was recommended.