TORONTO, Nov. 27, 2025 (GLOBE NEWSWIRE) -- CF Energy Corp. (TSX-V: 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 nine-month periods ended September 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 September 30, 2025 ("Q3 2025")
Continuing Operations
| In millions | Q3 2025 | Q3 2024 | Change | - | Q3 2025 | Q3 2024 | Change | |||||||
| (except for % figures) | RMB | RMB | RMB | CAD | CAD | CAD | ||||||||
| Continuing Operations | ||||||||||||||
| Revenue | 88.5 | 126.9 | (38.4 | - | -30 | - | 17.2 | 24.0 | (6.8 | - | ||||
| Gross Profit | 27.4 | 33.3 | (5.9 | - | -18 | - | 5.3 | 6.3 | (1.0 | - | ||||
| Gross Profit Margin | 31.0% | 26.2% | 4.8% | |||||||||||
| Net Profit | 3.8 | 4.3 | (0.5 | - | -11 | - | 0.7 | 0.8 | (0.1 | - | ||||
| EBITDA | 23.2 | 24.9 | (1.7 | - | -7 | - | 4.5 | 4.7 | (0.2 | - | ||||
Revenue in Q3 2025 was RMB88.5 million (approx. CAD17.2 million), a decrease of RMB38.4 million (approx. CAD6.8 million), or 30%, from RMB126.9 million (approx. CAD24.0 million) for the three-month period ended September 30, 2024 ("Q3 2024").
Revenue in Q3 2024 included revenue from an urban gas pipeline facility renovation project, which was not repeated in Q3 2025. Excluding such revenue, revenue in Q3 2025 decreased RMB12.7 million (approx. CAD2.4 million), or 12.5% from RMB101.2 million (approx. CAD19.6 million) in Q3 2024 on a comparable basis. The decrease was mainly attributed to the continuous unfavorable factors and sentiment in the property market in the PRC that hindered the growth of China's real estate market in recent years, which in turn affects the business growth of city natural gas operators in Sanya City.
Gross profit in Q3 2025 was RMB27.4 million (approx. CAD5.3 million), a decrease of RMB5.9 million (CAD1.0 million) or 18% from RMB33.3 million (approx. CAD6.3 million) in Q3 2024. Overall gross margin in Q3 2025 was 31.0%, an increase of 4.8 percentage points from 26.2% in Q3 2024.
Revenue from the urban gas pipeline facility renovation project in Q3 2024 was recognized at relatively competitive prices as compared to other residential projects which had a dilutive effect on the overall gross profit margin in Q3 2024. Excluding such effect, the gross profit margin in Q3 2024 was 29.2% on a comparable basis. The increase in gross profit margin in Q3 2025 reduced from 4.8 to 1.8 percentage points based on the comparable gross profit margin in Q3 2024.
The overall increase in gross profit margin in Q3 2025 as compared to the comparable gross profit margin in Q3 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 Q3 2025, narrow of the negative margin of the Integrated Smart Energy segment in Q3 2025 and reduction in costs due to centralization of procurement of materials for residential pipeline installation connection projects in Q3 2025, which was offset by the increase in the purchase price of pipeline gas resulting from the renewal of the three-year gas purchase contracts during the period.
Net profit in Q3 2025 was RMB3.8 million (approx. CAD0.7 million), a decrease of RMB0.5 million (approx. CAD0.1 million) from RMB4.3 million (approx. CAD0.8 million) in Q3 2024.
Basic earnings per share ("EPS") in Q3 2025 from continuing operations was RMB0.07 (CAD0.01) per share, a decrease of RMB0.03 (CAD0.01), as compared to RMB0.10 (CAD0.02) per share in Q3 2024.
EBITDA (non-GAAP) in Q3 2025 was RMB23.2 million (approx. CAD4.5 million), a decrease of RMB1.7 million (approx. CAD0.2 million), or 7%, from RMB24.9 million (approx. CAD4.7 million) in Q3 2024.
Results for the nine-month period ended September 30, 2025 (the "Nine Months in 2025")
Continuing Operations
| In millions | 1-9 2025 | 1-9 2024 | Change | - | 1-9 2025 | 1-9 2024 | Change | |||||||
| (except for % figures) | RMB | RMB | RMB | CAD | CAD | CAD | ||||||||
| Continuing Operations | ||||||||||||||
| Revenue | 292.0 | 376.4 | (84.4 | - | -22 | - | 56.6 | 71.1 | (14.5 | - | ||||
| Gross Profit | 77.6 | 81.6 | (4.0 | - | -5 | - | 15.0 | 15.4 | (0.4 | - | ||||
| Gross Profit Margin | 26.6% | 21.7% | 4.9% | |||||||||||
| Net Profit | 6.4 | 5.8 | 0.6 | 10 | - | 1.2 | 1.1 | 0.1 | ||||||
| Adjusted net Profit [non-GAAP] | 6.2 | 5.8 | 0.4 | 6 | - | 1.2 | 1.1 | 0.1 | ||||||
| EBITDA | 66.2 | 63.6 | 2.6 | 4 | - | 12.8 | 12.0 | 0.8 | ||||||
| Adjusted EBITDA [non-GAAP] | 66.0 | 63.6 | 2.4 | 4 | - | 12.8 | 12.0 | 0.8 | ||||||
Revenue for Nine Months in 2025 was RMB292.0 million (approx. CAD56.6 million), a decrease of RMB84.4 million (approx. CAD14.5 million), or 22%, from RMB376.4 million (approx. CAD71.1 million) for the nine-month period ended September 30, 2024 (the "Nine Months in 2024").
Revenue for the Nine Months in 2024 included revenue from the urban gas pipeline facility renovation project in Q3 2024 and a bulk sale of pipeline gas to two gas suppliers of power plants in the first half of 2024. Excluding these sales, revenue for the Nine Months in 2025 decreased RMB3.7 million (approx. CAD0.7 million), or 1.2% from RMB295.7 million (approx. CAD57.3 million) for the Nine Months in 2024 on a comparable basis. The decrease was mainly attributed to the continuous unfavorable factors and sentiment in the property market in the PRC that hindered the growth of China's real estate market in recent years, which in turn affects the business growth of city natural gas operators in Sanya City.
Gross profit for the Nine Months in 2025 was RMB77.6 million (approx. CAD15.0 million), a decrease of RMB4.0 million (CAD0.4 million) or 5% from RMB81.6 million (approx. CAD15.4 million) for the Nine Months in 2024. Overall gross margin for the Nine Months in 2025 was 26.6%, an increase of 4.9 percentage points from 21.7% for the Nine Months in 2024.
Revenue from the urban gas pipeline facility renovation project for the Nine Months in 2024 and bulk sales in the first half of 2024 were recognized at relatively competitive prices as compared to other residential projects and other commercial customers of gas sales respectively, which had a dilutive effect on the overall gross profit margin for the Nine Months in 2024. Excluding such effect, the gross profit margin for the Nine Months in 2024 was 26.2% on a comparable basis which remained constant as compared to 26.6% for the Nine Months in 2025.
| In millions | 1-9 2025 | 1-9 2024 | Change | - | 1-9 2025 | 1-9 2024 | Change | |||||||
| (except for % figures) | RMB | RMB | RMB | CAD | CAD | CAD | ||||||||
| Continuing Operations | ||||||||||||||
| Net profit for the period | 6.4 | 5.8 | 0.6 | 10 | - | 1.2 | 1.1 | 0.1 | ||||||
| Non-recurring items | ||||||||||||||
| Government financial assistance | (0.2 | - | - | (0.2 | - | 100 | - | (0.0 | - | - | (0.0 | - | ||
| Adjusted net profit for the period (non-GAAP) | 6.2 | 5.8 | 0.4 | 6 | - | 1.2 | 1.1 | 0.1 | ||||||
Net profit for Nine Months in 2025 was RMB6.4 million (approx. CAD1.2 million), an increase of RMB0.6 million (approx. CAD0.1 million), or 10% from RMB5.8 million (approx. CAD1.1 million) for Nine Months in 2024. After excluding a non-recurring government financial assistance of RMB0.2 million (approx. CAD0.0 million), the adjusted net profit for the Nine Months in 2025 (non-GAAP) was RMB6.2 million (approx. CAD1.2 million), an increase of RMB0.4 million (approx. CAD0.1 million), or 6% from RMB5.8 million (approx. CAD1.1 million) for the Nine Months in 2024 on a comparable basis.
Basic earnings per share ("EPS") for the Nine Months in 2025 from continuing operations was RMB0.16 (CAD0.03) per share, a decrease of RMB0.02 (CAD0.00), as compared to RMB0.18 (CAD0.03) per share for the Nine Months in 2024.
| In millions | 1-9 2025 | 1-9 2024 | Change | - | 1-9 2025 | 1-9 2024 | Change | |||||||
| (except for % figures) | RMB | RMB | RMB | CAD | CAD | CAD | ||||||||
| Continuing Operations | ||||||||||||||
| EBITDA for the period | 66.2 | 63.6 | 2.6 | 4 | - | 12.8 | 12.0 | 0.8 | ||||||
| Non-recurring items | ||||||||||||||
| Government financial assistance | (0.2 | - | - | (0.2 | - | 100 | - | (0.0 | - | - | (0.0 | - | ||
| Adjusted EBITDA for the period (non-GAAP) | 66.0 | 63.6 | 2.4 | 4 | - | 12.8 | 12.0 | 0.8 | ||||||
EBITDA (non-GAAP) for the Nine Months in 2025 was RMB66.2 million (approx. CAD12.8 million), an increase of RMB2.6 million (approx. CAD0.8 million), or 4%, from RMB63.6 million (approx. CAD12.0 million) for the Nine Months in 2024. After excluding the non-recurring government financial assistance of RMB0.2 million (approx. CAD0.0 million), the adjusted EBITDA for the Nine Months in 2025 (non-GAAP) was RMB66.0 million (approx. CAD12.8 million), an increase of RMB2.4 million (approx. CAD0.8 million), or 4% from RMB63.6 million (approx. CAD12.0 million) for the Nine Months in 2024.
Company Outlook
While the Company is ambitious in its goal to become the largest clean energy service solutions provider and carbon asset management company in Hainan, we recognize the economic and political instability in the world and will be cautious in our investments in the next few years. That being said, the need for CF Energy to become a clean energy service solutions provider rather than just a natural gas distributor is more important than ever. The natural gas industry faces a variety of challenges ranging from regulatory impacts to market dynamics, and in the competitive and shifting landscape, we must evolve to embrace the changes and plan ahead.
Distributed Smart Energy Ecosystem - What We Achieved:
CF Energy Corp. has developed from a traditional natural gas company into a comprehensive energy solutions provider that aims to incorporate its smart energy system and battery swapping network via energy storage technology to create a highly integrated and efficient framework for sustainable energy management.
CF Energy's Haitang Bay integrated smart energy project and Meishan project are examples of standalone distributed energy system with advanced grid technologies that enable real-time monitoring and responsive energy distribution based on demand and supply conditions. Through ice storage technology, the Haitang Bay integrated smart energy system was founded.
We have entered the field of electrochemical energy storage for cost reduction and energy conservation through the mode of battery swapping in new energy vehicles. The battery pack also serves as a power storage unit, if scaled to a network, can also be considered a distributed energy system. Incorporating battery storage into an energy system provides flexibility and enhances system stability. Strategically placed storage systems, both at utility-scale and distributed sites, ensure energy availability across the network, especially in remote or critical areas. The CF Energy battery swap station network in Sanya already successfully provides an energy storage and distribution network for the EV taxis in Sanya city.
Combining deep cultivation in the energy storage field of ice and electrochemical energy storage technology, vigorously expanding cooperation with companies in the industry, relying on the customer base of the natural gas company, further promoting the application of industrial and commercial energy storage.
Distributed Smart Energy Ecosystem - What We Are Currently Doing:
The company is working with partners in the IoT (Internet of Things), and cloud services field to create an efficient EMS (energy management system) that connects the standalone distributed smart energy systems with various energy storage technologies (including battery storage). - IoT Devices and Sensors are deployed across all components of the energy system-solar panels, energy storage units, battery swapping stations, and consumer endpoints. They collect real-time data on energy production, storage levels, battery health, and consumption patterns. Using historical data and machine learning models, the EMS can predict demand spikes, potential system disruptions, and optimal energy production schedules. This helps in preemptive management, reducing wastage, and increasing system reliability.
This interconnected ecosystem facilitates a sustainable, resilient, and efficient energy landscape, capable of reducing carbon footprints and promoting the use of clean energy technologies. Integrated software and management platforms monitor and control the flow of energy throughout the ecosystem. They optimize when to store energy, when to release it, and how to efficiently distribute it across various needs. CF Energy's integrated system operates on a cycle of data-driven decision-making where sensors collect data, the EMS analyzes and makes decisions, and commands are sent to adjust production, storage, or distribution. This smart, interconnected ecosystem not only supports current energy needs but also scales to meet future demands and technological advancements.
By adopting an open market model, we aim to further attract upstream/midstream clean energy enterprises and improve the design, implementation, and operation of regional energy management roles. Further improve the integration of relevant supply chains, from the production end of upstream related equipment to equipment integrators, and finally in the development of relevant software and equipment operation and maintenance, forming a closed-loop chain involving production, sales, and maintenance.
Distributed Smart Energy Ecosystem - Vision Moving Forward:
In the past five years, the Company has successfully established itself in the district energy and renewable energy space. The Haitang Bay smart energy centralized cooling project was the Company's first venture into energy management services and despite setbacks during COVID-19, the project is now successfully in operation, reducing the overall carbon footprint of the Haitang Bay area. CF Energy is also one of the few companies in China to successfully operate battery swap station networks. Our goal for entering the battery swap business has always been in testing viability in district energy storage via station and battery packs. CF Energy's stations also incorporate solar panel installation to optimize the energy usage of the stations.
The Company envisions the smart energy centralized cooling for hotels, battery swap stations, and operates as a virtual power plant with active end user participation. The combined energy capacity from the cooling system, battery swap stations, and possibly additional storage units, can act as a virtual power plant, providing grid services such as peak shaving, load balancing, and frequency regulation.
The Company is working to integrate a demand response system where hotels and other end users can opt-in to adjust their energy usage during peak periods in response to incentives. For example, shifting non-essential power usage to off-peak hours. EV owners can charge their vehicles during off-peak hours to benefit from lower rates and reduce grid strain during high-demand periods. Alternatively, V2G (Vehicle to Grid) concept allows EVs to return energy to the grid during peak times, effectively using the vehicle's battery as a grid resource. Furthermore, utilizing a platform for energy trading that allows surplus energy (from renewable sources and stored energy) to be sold back to the grid or shared among participants will add additional revenue stream and encouraging sustainable practices. The integration must connect all components through a smart grid that enables two-way communication between the energy providers and consumers. This integration allows for real-time monitoring, control, and optimization of energy flows.
The traditional core business of CF Energy will also be integrated into this system, utilize the flexibility and high-energy density of natural gas to balance and support the renewable components of the system, especially during peak demands or intermittent renewable supply. The combined heat and power (CHP) design is already a part of the Haitang Bay project, with the aim to simultaneously generate electricity and thermal energy from natural gas. The electricity can support the grid or local energy needs, while the thermal energy is used directly for hotel heating or to augment the centralized cooling system via absorption chillers.
Using natural gas turbines or engines to provide additional power generation capacity, especially during periods when renewable energy sources are insufficient. This can ensure continuous operation of critical infrastructure without interruption.
By integrating these elements, CF Energy works to establish the model of a distributed energy system that can effectively operate as a centralized cooling and heating provider for end consumers, a battery swap station network, and a virtual power plant, all while engaging end users to participate actively in energy management. This not only enhances energy efficiency and sustainability but also creates a cooperative ecosystem that benefits all participants economically and environmentally.
About CF Energy Corp. (Previously known as: Changfeng Energy Inc.)
CF Energy Corp. is a Canadian public company currently traded on the Toronto Venture Exchange ("TSX-V") under the stock symbol "CFY". It is an integrated energy provider and natural gas distribution company (or natural gas utility) in the PRC. CF Energy strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC.
CONTACT INFORMATION
Yongqiang (Shawn) Shan
Chief Financial Officer
647-313-0066
Yongqiang.shan@changfengenergy.cn
Charles Wang
Secretary of the Board
647-313-0066
zhaoyu.wang@changfengenergy.cn
Frederick Wong
Director of the Board
647-313-0066
fred.wong@changfengenergy.cn
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements and forward-looking information (collectively, "Forward-Looking Statements"). All statements, other than statements of historical fact, included or incorporated by reference in this document are Forward-Looking Statements, including statements regarding activities, events or developments that the Company expects or anticipates may occur in the future (including, without limitation, no significant adjustments to the gas selling price and charges for related services imposed by the relevant PRC government, the tourism industry continues to recover from COVID-19 impact and no delay in the development of the electric vehicle battery swap stations, the Haitang Bay Integrated Smart Energy Project or the Meishan Project). These Forward-Looking Statements can be identified by the use of forward-looking words such as "will", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue" or similar words or the negative thereof. No assurance can be given that the plans, intentions or expectations or assumptions upon which these Forward-Looking Statements are based will prove to be correct and such Forward-Looking Statements included in this news release should not be unduly relied upon. Although management believes that the expectations represented in such Forward-Looking Statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such Forward-Looking Statements are not a guarantee of performance and involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such Forward-Looking Statements. These factors include, without limitation, no significant and continuing adverse changes in general economic conditions or conditions in the financial, tourism, and gas distribution and electric vehicle markets or delays in the development of key projects. Readers are cautioned that all Forward-Looking Statements involve risks and uncertainties, including those risks and uncertainties detailed in the Company's filings with applicable Canadian securities regulatory authorities, copies of which are available at www.sedar.com. The Company urges readers to carefully consider those factors. The Forward-Looking Statements included in this news release are made as of the date of this document and the Company disclaims any intention or obligation to update or revise any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. This news release contains future oriented financial information and financial outlook information (collectively, "FOFI") (including, without limitation, statements regarding expected average production), and are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraph. The FOFI has been prepared by management to provide an outlook of the Company's activities and results, and such information may not be appropriate for other purposes. The Company and management believe that the FOFI has been prepared on a reasonable basis, reflecting management's reasonable estimates and judgments, however, actual results of operations of the Company and the resulting financial results may vary from the amounts set forth herein. Any FOFI speaks only as of the date on which it is made, and the Company disclaims any intent or obligation to update any FOFI, whether as a result of new information, future events or results or otherwise, unless required by applicable laws.
Non-GAAP Financial Measures
This news release contains financial terms that are non-GAAP financial measures, such as EBITDA, Adjusted EBITDA and Adjusted Net Profit. These financial measures, together with measures prepared in accordance with IFRS Accounting Standards, provide useful information to investors and shareholders, as management uses them to evaluate the operating performance of the Company. The Company's determination of these non-GAAP measures may differ from other reporting issuers, and therefore are unlikely to be comparable to similar measures presented by other companies. Further, these non-GAAP measures should not be considered in isolation or as a substitute for measures of performance or cash flows prepared in accordance with IFRS Accounting Standards. These financial measures are included because management uses this information to analyze operating performance and liquidity. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
