Towngas Smart Energy reported a profit increase last year amid a slowing economy, as the subsidiary of Hong Kong’s sole gas provider reaped the benefits from its investments in renewable energy in mainland China.

Net profit rose 2 per cent from a year earlier to HK$1.6 billion (US$206 million), the company said in a Hong Kong stock exchange filing on Friday. Revenue increased 7.4 per cent from 2023 to HK$21.3 billion last year.

Its core operating profit surged 34.5 per cent to HK$1.6 billion, benefiting from the strong performance of its renewable energy business and the steady profit growth in its gas business owing to the “favourable cost pass-through outcomes”, the company said. Full-year net profit for the renewable energy business soared fivefold to HK$479 million, it said.

“We are delighted [that] the company has achieved such great performance under the current operating environment,” CEO Peter Wong Wai-yee said during an earnings call. “We expect our renewable energy business to be developed in an orderly manner with double digits increase going forward.”

The company declared a final dividend of HK$0.16 per share and a one-off special dividend of HK$0.03 per share “in light of encouraging performance of the renewable energy business”, it said. That represents an increase of 18.8 per cent compared with last year.