CF Energy Announces Financial Results For the Three-month and Six-month periods ended June 30, 2025

TORONTO, Aug. 28, 2025 (GLOBE NEWSWIRE) -- CF Energy Corp. (TSXV:CFY) ("CF Energy" or the "Company", together with its subsidiaries, the "Group"), an energy provider in the People's Republic of China (the "PRC" or "China"), announces that the Company has filed its unaudited interim consolidated financial results for the three-month and six-month periods ended June 30, 2025.  

The unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis ("MD&A") can be downloaded from www.sedarplus.com or from the Company's website at www.cfenergy.com.

The unaudited condensed interim consolidated financial statements have been prepared in conformity with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB") (collectively, "IFRS Accounting Standards"). This news release contains financial terms that are non-IFRS Accounting Standards ("non-GAAP") financial measures.

Results for the three-month period ended June 30, 2025 ("Q2 2025")

Continuing Operations

In millions

Q2 2025

Q2 Q2024

Change

%

Q2 2025

Q2 Q2024

Change

(except for % figures)

RMB

RMB

RMB

 

CAD

CAD

CAD

Continuing Operations

 

 

 

 

 

 

 

Revenue

98.4

100.4

(2.0)

-2%

19.1

18.9

0.2

Gross Profit

25.6

15.6

10.0

64%

5.0

2.9

2.0

Gross Profit Margin

26.0%

15.5%

10.5%

 

 

 

 

Net Profit (Loss)

1.0

(8.4)

9.4

112%

0.2

(1.6)

1.8

Adjusted net Profit (Loss) [non-GAAP]

1.0

(8.4)

9.4

112%

0.2

(1.6)

1.8

EBITDA

21.1

9.1

11.9

130%

4.1

1.7

2.4

Adjusted EBITDA [non-GAAP]

21.1

9.1

11.9

130%

4.1

1.7

2.4

 Revenue in Q2 2025 was RMB98.4 million (approx. CAD19.1 million), a decrease of RMB2.0 million (approx. CAD0.2 million), or 2%, from RMB100.4 million (approx. CAD18.9 million) for the three-month period ended June 30, 2024 ("Q2 2024").

Revenue decreased in Q2 2025 reflected the bulk sales of pipeline gas to a gas supplier of a power plant in Q2 2024 which was not repeated in Q2 2025. Excluding such bulk sales in Q2 2024, revenue in Q2 2025 remained at a similar level as that for Q2 2024.

Gross profit in Q2 2025 was RMB25.6 million (approx. CAD5.0 million), an increase of RMB10.0 million (CAD2.0 million) or 64% from RMB15.6 million (approx. CAD2.9 million) in Q2 2024.   Overall gross margin in Q2 2025 was 26.0%, an increase of 10.5 percentage points from 15.5% in Q2 2024.  

Bulk sales in Q2 2024 were sold at relatively competitive prices with a very low gross profit margin which had a dilutive effect on the overall gross profit margin in Q2 2024. Excluding the bulk sales referred to above, the gross profit margin in Q2 2024 was 18.1% on a comparable basis. The increase in gross profit margin in Q2 2025 reduced from 10.5 to 7.9 percentage points based on the comparable gross profit margin in Q2 2024.

The overall increase in gross profit margin in Q2 2025 as compared to the comparable gross profit margin in Q2 2024 was mainly attributable to the favorable effects of increase in unit selling price of residential pipeline installation connection projects due to the provision of auxiliary services at a low cost which boosted the profit margin of pipeline installation connection sub-segment in Q2 2025 and the narrowing of the negative margin of the Integrated Smart Energy segment in Q2 2025, which was offset by the increase in the purchase price of pipeline gas and low profit margin from urban gas pipeline facility renovation project with local government.

Net profit in Q2 2025 was RMB1.0 million (approx. CAD0.2 million), an increase of RMB9.4 million (approx. CAD1.8 million) from a net loss of RMB8.4 million (approx. CAD1.6 million) in Q2 2024. No adjustment item was identified in the net profit of Q2 2025 and 2024.

Basic earnings per share ("EPS") in Q2 2025 from continuing operations was RMB0.04 (CAD0.01) per share, an increase of RMB0.13 (CAD0.03), as compared to a loss per share of RMB0.09 (CAD0.02) per share in Q2 2024.

EBITDA (non-GAAP) in Q1 2025 was RMB21.1 million (approx. CAD4.1 million), an increase of RMB11.9 million (approx. CAD2.4 million), or 130%, from RMB9.1 million (approx. CAD1.7 million) in Q2 2024. No adjustment item was identified in the EBITDA of Q2 2025 and 2024.

Results for the six-month period ended June 30, 2025 ("1H 2025")

Continuing Operations

In millions

1H 2025

1H 2024

Change

%

1H 2025

1H 2024

Change

(except for % figures)

RMB

RMB

RMB

 

CAD

CAD

CAD

Continuing Operations