CF Energy Announces Financial Results for the Three-Month and Six-Month Periods Ended June 30, 2026

TORONTO, ON / ACCESS Newswire / August 26, 2026 / 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 six-month periods ended June 30, 2026.

The unaudited 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 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, 2026 ("Q2 2026")

Continuing Operations

Revenue in Q2 2026 was RMB107.8 million (approx. CAD21.7 million), an increase of RMB9.4 million (approx. CAD2.6 million), or 10%, from RMB98.4 million (approx. CAD19.1 million) for the three-month period ended June 30, 2025 ("Q2 2025").

The increase in overall revenue in Q2 2026 was mainly attributed to the increase in revenue from residential customers of gas distribution utility sector. The positive effect of Hainan Free Port's opening-up policy continued to lead to an increase in both sales volume of gas supply to residential customers and the pipeline installation and connection revenue from residential customers from the first quarter of 2026 and carried forward to Q2 2026.

The increase in installation pipeline revenue for new customers of the Haitang Bay Smart Energy project in the integrated smart energy segment also contributed to the increase in revenue in Q2 2026.

Gross profit in Q2 2026 was RMB26.0 million (approx. CAD5.2 million), an increase of RMB0.4 million (CAD0.2 million) or 1% from RMB25.6 million (approx. CAD5.0 million) in Q2 2025. Overall gross margin in Q2 2026 was 26.0%, an increase of 0.4 percentage points from 25.6% in Q2 2025.

The overall decrease in gross profit margin in Q2 2026 as compared to Q2 2025 was mainly attributable to the offsetting effect of the benefit of reducing costs due to the centralization of procurement of materials for pipeline installation connection projects and the increase in unit price of pipeline installation and connection for residential customers by providing auxiliary services at minimal cost which partially offset the overall increase in material cost and labor cost since late December 2025.

Net profit in Q2 2026 was RMB0.3 million (approx. CAD0.1 million), a decrease of RMB0.7 million (CAD0.1 million) or 70% from RMB1.0 million (approx. CAD0.2 million) in Q2 2025.

EBITDA (non-GAAP) in Q2 2026 was RMB19.3 million (approx. CAD3.9 million), a decrease of RMB1.8 million (approx. CAD0.2 million), or 8%, from RMB21.1 million (approx. CAD4.1 million) in Q2 2025.

Both basic and diluted earnings per share ("EPS") in Q2 2026 from continuing operations was RMB0.02 (CAD0.00) per share, a decrease of RMB0.02 (CAD0.01), as compared to RMB0.04 CAD0.01) per share in Q2 2025.

Results for the six-month period ended June 30, 2026 ("1H 2026")

Continuing Operations

Revenue in 1H 2026 was RMB221.5 million (approx. CAD44.5 million), an increase of RMB18.0 million (approx. CAD5.0 million), or 9%, from RMB203.5 million (approx. CAD39.5 million) for the six-month period ended June 30, 2025 ("1H 2025").

The increase in overall revenue in 1H 2026 was attributed to the increase in revenue in Q2 2026 as mentioned above but offset by the decrease in the EV battery swap revenue in the smart mobility segment which was caused by a trend in switching of travel habits by tourists from taking taxis to renting Uber services when travelling in the Sanya City.

Gross profit in 1H 2026 was RMB56.3 million (approx. CAD11.3 million), an increase of RMB6.2 million (CAD1.6 million) or 12% from RMB50.1 million (approx. CAD9.7 million) in 1H 2025. Overall gross margin in 1H 2026 was 25.4%, an increase of 0.8 percentage points from 24.6% in 1H 2025.

Net profit in 1H 2026 was RMB5.7 million (approx. CAD1.1 million), an increase of RMB3.1 million (CAD0.6 million) or 118% from RMB2.6 million (approx. CAD0.5 million) in 1H 2025.

EBITDA (non-GAAP) in 1H 2026 was RMB43.3 million (approx. CAD8.7 million), an increase of RMB0.3 million (approx. CAD0.3 million), or 1%, from RMB43.0 million (approx. CAD8.4 million) in 1H 2025.

Both basic and diluted earnings per share ("EPS") from continuing operations was RMB0.12 (CAD0.02) per share in 1H 2026, an increase of RMB0.03 (CAD0.00), as compared to RMB0.09 (CAD0.02) per share in 1H 2025.

Company Outlook

The global energy landscape is undergoing a fundamental transformation with accelerating efforts in electrification and digitalization of the industry. In the short-term, the global energy markets will remain volatile due to geopolitical uncertainties and supply chain disruptions while demand for electricity consumption continues to rise driven by the rapid growth of data centers, artificial intelligence applications and etc. The natural gas industry faces a variety of challenges ranging from regulatory impacts to market dynamics, but it continues to play a critical role as a transition fuel, supporting the integration of renewable energy, distributed energy resources, and digital energy management systems as they are becoming key components of modern energy infrastructure.

At the same time, the continued development of the Hainan Free Trade Port has significantly enhanced the economic vitality of the region, particularly in Sanya. The increase in tourism and commercial activity has driven higher for energy consumption, which also led to steady growth in the Company's natural gas supply business. The Company envisions that Sanya will expand its infrastructure including hospitality, retail, and transportation which will create additional opportunities for energy consumption and integrated energy services.

Distributed Smart Energy Ecosystem - Progress to Date:

CF Energy has continued its strategic transformation from a traditional natural gas company into a comprehensive energy solutions provider, focusing on incorporating its smart energy system and 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 flagships of standalone distributed energy system with advanced grid technologies that enable real-time monitoring and responsive energy distribution based on demand and supply conditions. The Haitang Bay integrated smart energy system has enhanced energy efficiency and system flexibility through the application of ice storage for peak load shifting.

In parallel, the Company has 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 swap station network in Sanya and Beihai have been contributing to the optimization of the power grid as they reduce strain on the electrical grid and avoid demand spikes.

Distributed Smart Energy Ecosystem -Current Initiatives:

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 management and storage technologies. This will serve as the core infrastructure for enabling virtual power plant (VPP) capabilities. Through the deployment of IoT-enabled devices and data acquisition systems, the Company will be able to 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 will form the operational backbone of the Company's virtual power plant strategy.

Distributed Smart Energy Ecosystem - Outlook and Strategic Direction:

The Company will continue its development in energy management driven by electrification, increasing renewable penetration, and rising demand for power grid stability. The Company aims to aggregate and optimize the distributed energy assets including centralized cooling system, battery swap stations, and energy storage system into a platform which enables the development of virtual power plant with active end user participation. This will provide support in power grid stability via peak shaving, load balancing, and frequency regulation.

In addition, 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.

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
Yongqiang.shan@changfengenergy.cn

Charles Wang
Secretary of the Board
zhaoyu.wang@changfengenergy.cn

Frederick Wong
Director of the Board
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 Accountings 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.

SOURCE: CF Energy Corp.