香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任 何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 YUAN HENG GAS HOLDINGS LIMITED 元 亨 燃 氣 控 股 有 限 公 司 （ 於百 慕 達 註 冊 成 立 之 有 限 公 司 ） （股份代號：332） 股東週年大會通告 茲通告元亨燃氣控股有限公司（「本公司」）將於二零二五年九月二十九日（星期一） 中午十二時正假座香港灣仔軒尼詩道15號溫莎公爵社會服務大廈1樓103室舉行股 東週年大會（「大會」），藉以處理下列事項： 普通事項 1 1. 省覽、考慮及採納截至二零二五年三月三十一日止年度之經審核綜合財務報表、 董事會報告書及核數師報告書； 2. (a) 重選王建清先生為本公司執行董事； (b) 重選梁海明博士為本公司獨立非執行董事； (c) 重選林穎女士為本公司獨立非執行董事；及 (d) 授權本公司董事會（「董事會」）釐定本公司董事（「董事」）酬金； 3. 委任栢淳會計師事務所有限公司為本公司核數師，並授權董事會釐定彼等之 酬 ...

元 亨 燃 氣 控 股 有 限 公 司 香港交易及結算所有限公司及香港聯合交易所有限公司對本通函之內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示概不對因本通函全部或任何部份內容而產生或因倚賴該等內容而引致之 任何損失承擔任何責任。 YUAN HENG GAS HOLDINGS LIMITED 此乃要件 請即處理 閣下如對本通函任何方面或應採取之行動有任何疑問，應諮詢 閣下之股票經紀或其他註冊證券交易商、 銀行經理、律師、專業會計師或其他專業顧問。 閣下如已售出或轉讓名下之所有元亨燃氣控股有限公司股份，應立即將本通函及隨附之代表委任表格送 交買主或承讓人，或送交經手買賣或轉讓之銀行、股票經紀或其他代理商，以便轉交買主或承讓人。 | 預期時間表 | | 1 | | --- | --- | --- | | 釋義 | | 2 | | 董事會函件 | | | | 1. 緒言 | | 4 | | 2. 建議重選董事 | | 5 | | 3. 發行及購回股份之一般授權 | | 7 | | 4. 增加法定股本 | | 8 | | 5. 以投票方式進行表決 | | 9 | | 6. 股東週年大會 | | 9 | ...

2024/25 環 境、社 會 及 管 治 報告 願景 成為中國領先可持續發展的 清潔能源集團公司，能源界 一流的生產商、供貨商、服 務商 本報告涵蓋本集團於2024年4月1日至2025年3月31日期間有關ESG 方面的承諾、管治方針、成就和改進空間。 為增強報告可比性及前瞻性，部分內容往前後年度適度延伸。 使命 回報股東、回報員工、回報 社會 | 目錄 | | --- | | 關於本報告 | 2 | | --- | --- | | ESG管治 | 5 | | 以人為本 | 8 | | 綠色營運 | 21 | | 負責任供應鏈 | 32 | | 產品責任 | 35 | | 商業道德 | 40 | | 社區承諾 | 42 | | 法律及法規 | 43 | | 關鍵績效指標總覽 | 45 | | 聯交所ESG報告內容索引 | 48 | Chairman 關於本報告 本報告為元亨燃氣控股有限公司（「元亨燃氣」或「本公司」）及其附屬公司（「本集團」或「我們」）（股票代碼： 0332）欣然呈列第九份環境、社會及管治（「ESG」）報告（「本報告」），旨在向各持份者匯報截至2025年3月31日 止財政年度（「報告期」或「2 ...

[Chairman Statement](index=3&type=section&id=Chairman%20Statement) [Chairman Statement](index=3&type=section&id=Chairman%20Statement) The company faced a challenging fiscal year 2025 with sharply declining revenue due to increased LNG supply and is currently undergoing business and debt restructuring | Metric | FY2025 | FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Operating Turnover | Approx. RMB 808 million | Approx. RMB 4.97 billion | -83.7% | | Loss after tax | Approx. RMB 1.993 billion | Approx. RMB 522 million | Loss widened by 281.8% | - The performance decline was primarily caused by increased imported LNG supply, which intensified market competition and led to a significant drop in LNG selling prices[4](index=4&type=chunk) - The company is currently undergoing **business and debt restructuring** to address market challenges and internal reorganization risks[6](index=6&type=chunk) - Looking ahead, the company will continue to expand its natural gas business, believing China's "dual carbon" policy will create growth opportunities[7](index=7&type=chunk)[9](index=9&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis%20of%20the%20Group%20Financial%20Review) [BUSINESS REVIEW](index=5&type=section&id=BUSINESS%20REVIEW) The Group's performance declined severely due to substantial impairment losses on prepayments to a supplier and trade receivables from customers - The poor performance this fiscal year was mainly attributable to two significant impairment provisions: - An impairment of **approximately RMB 1.34 billion** on prepayments to a supplier[16](index=16&type=chunk) - An impairment of **approximately RMB 446 million** on trade receivables from two customers[16](index=16&type=chunk) | Business Segment | FY2025 | FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | **LNG Production and Sales** | | | | | Production Volume | 484 million m³ | 442 million m³ | +9.5% | | Revenue | RMB 525 million | RMB 983 million | -46.6% | | Gross Profit Margin | 7.8% | 5.4% | +2.4pp | | **Oil and Gas Trading** | | | | | Revenue | RMB 231 million | RMB 3.943 billion | -94.1% | | Gross Profit Margin | 0.4% | 0.6% | -0.2pp | - The piped gas business (Huaheng Energy) was classified as a discontinued operation and deconsolidated, resulting in a loss of **approximately RMB 35 million**, due to the non-renewal of its gas operating license and a dispute with its partner Guizhou Gas[23](index=23&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - Despite intense market competition and ongoing restructuring, management believes China's low-carbon goals will support the long-term stable growth of the natural gas market[38](index=38&type=chunk)[39](index=39&type=chunk) [FINANCIAL REVIEW](index=9&type=section&id=FINANCIAL%20REVIEW) The Group's financial position deteriorated sharply, marked by a significant revenue drop, soaring impairment losses, and severe liquidity pressure with substantial loan defaults | Financial Metric | FY2025 | FY2024 | YoY Change | | :--- | :--- | :--- | :--- | | Turnover | RMB 808 million | RMB 4.97 billion | -83.7% | | Gross Profit | RMB 44 million | RMB 82 million | -46.3% | | Gross Profit Margin | 5.5% | 1.6% | +3.9pp | | Impairment losses under ECL model | RMB 1.866 billion | RMB 508 million | +267.3% | | Liquidity Metric | 31 March 2025 | 31 March 2024 | | :--- | :--- | :--- | | Bank Balances and Cash | RMB 10 million | RMB 11 million | | Net Current (Liabilities)/Assets | (RMB 1.634 billion) | RMB 293 million | | Current Ratio | 0.41 | 1.15 | | Gearing Ratio | -1.20 | 1.54 | - As of 31 March 2025, the Group had defaulted on bank borrowings of **approximately RMB 1.043 billion**, which triggered cross-defaults on other bank borrowings of **approximately RMB 72 million**[63](index=63&type=chunk) - To alleviate liquidity pressure, the Group is actively negotiating with lenders for renewals and extensions and seeking potential strategic investors[64](index=64&type=chunk) [Corporate Governance Report](index=13&type=section&id=Corporate%20Governance%20Report) [Board of Directors & Committees](index=14&type=section&id=Board%20of%20Directors%20%26%20Committees) The Board comprises six directors, meeting listing rule requirements, with a disclosed deviation where the Chairman and CEO roles are combined - The Board consists of 6 directors, including 2 executive directors and 4 independent non-executive directors, in compliance with the Listing Rules[90](index=90&type=chunk) - A deviation from the Corporate Governance Code was disclosed: the roles of **Chairman and Chief Executive Officer are both held by Mr. Wang Jianqing**, which the Board believes enhances efficiency[118](index=118&type=chunk)[119](index=119&type=chunk) - The Audit Committee, comprising four independent non-executive directors, held six meetings during the year to review financial reports and internal control systems[134](index=134&type=chunk)[142](index=142&type=chunk)[143](index=143&type=chunk) [Risk Management and Internal Controls](index=31&type=section&id=Risk%20Management%20and%20Internal%20Controls) The Group has an established risk management framework and conducted an annual review confirming the effectiveness of its internal control systems - The Board has conducted an annual review of the effectiveness of the Group's risk management and internal control systems, covering financial, operational, and compliance controls, and considers them **effective and adequate**[175](index=175&type=chunk)[176](index=176&type=chunk) - The Group has engaged an independent external professional firm to review its internal control systems periodically to provide an objective assessment[172](index=172&type=chunk) [Disclaimer of Opinion Regarding Going Concern](index=37&type=section&id=Disclaimer%20of%20Opinion%20Regarding%20Going%20Concern) The independent auditor issued a disclaimer of opinion on the Group's ability to continue as a going concern due to multiple material uncertainties - The auditor's **disclaimer of opinion** stems from multiple material uncertainties that cast significant doubt on the Group's ability to continue as a going concern[206](index=206&type=chunk) | Metric | Amount | | :--- | :--- | | Net loss from continuing operations | Approx. RMB 1.958 billion | | Bank borrowings and guaranteed notes due within 12 months | Approx. RMB 1.303 billion | | Cash and cash equivalents | Approx. RMB 10 million | | Defaulted or cross-defaulted borrowings and notes | Approx. RMB 1.30 billion | - To address going concern issues, the Group is implementing plans including: - **Debt restructuring** through a legal scheme of arrangement[217](index=217&type=chunk)[218](index=218&type=chunk) - Seeking new strategic investors and funding sources, and considering the disposal of certain pipeline assets[217](index=217&type=chunk)[218](index=218&type=chunk) - Communicating with creditors to resolve pending litigations and maintain the status quo[217](index=217&type=chunk)[218](index=218&type=chunk) - Optimizing operational strategies to improve cash generation[217](index=217&type=chunk)[218](index=218&type=chunk) - The company anticipates that the successful implementation of these measures will improve its financial position and lead to the removal of the disclaimer of opinion in the next auditor's report[219](index=219&type=chunk) [Biographical Details of Directors](index=41&type=section&id=Biographical%20Details%20of%20Directors) [Biographical Details of Directors](index=41&type=section&id=Biographical%20Details%20of%20Directors) This section provides detailed profiles of the company's directors, highlighting their professional experience and relationships - Executive Director **Mr. Wang Jianqing (aged 56)** has extensive experience in the energy and trading industries and serves as both Chairman and Chief Executive Officer[221](index=221&type=chunk) - Executive Director **Mr. Bao Jun (aged 57)** has over 20 years of experience in project investment, construction, and operational management[223](index=223&type=chunk) - Executive Directors **Mr. Wang Jianqing and Mr. Bao Jun are cousins**[227](index=227&type=chunk)[229](index=229&type=chunk) - The four independent non-executive directors possess deep professional backgrounds in finance, accounting, risk management, or commodity trading[225](index=225&type=chunk)[233](index=233&type=chunk)[238](index=238&type=chunk)[244](index=244&type=chunk) [Directors' Report](index=45&type=section&id=Directors'%20Report) [Directors' Report](index=45&type=section&id=Directors'%20Report) The report outlines the company's principal activities, discloses customer and supplier concentration, and confirms compliance with public float requirements | Concentration Metric | Percentage of Total | | :--- | :--- | | Sales to largest customer | 23% | | Sales to five largest customers | 60% | | Purchases from largest supplier | 32% | | Purchases from five largest suppliers | 67% | - The company adopted a share option scheme on 4 October 2021, but **no options have been granted** since its adoption[334](index=334&type=chunk)[348](index=348&type=chunk) - The company maintained a sufficient public float of **not less than 25%** during the fiscal year, in compliance with the Listing Rules[356](index=356&type=chunk) - There was a change of auditor, with SHINEWING (HK) CPA Limited resigning on 22 January 2025 and **Parker Randall CF (H.K.) CPA Limited** being appointed on 28 January 2025[357](index=357&type=chunk) [Independent Auditor's Report](index=62&type=section&id=Independent%20Auditor's%20Report) [Independent Auditor's Report](index=62&type=section&id=Independent%20Auditor's%20Report) The auditor issued a disclaimer of opinion on the financial statements due to material uncertainties regarding going concern and insufficient evidence on opening balances - The auditor **does not express an opinion** on the consolidated financial statements for the fiscal year[365](index=365&type=chunk) - **Basis for Disclaimer of Opinion 1: Material Uncertainty Related to Going Concern** - The Group recorded a significant loss, has substantial short-term maturing debts and defaulted loans, against minimal cash reserves, and the auditor could not obtain sufficient evidence regarding the success of the company's mitigation plans[367](index=367&type=chunk)[368](index=368&type=chunk) - **Basis for Disclaimer of Opinion 2: Opening Balances of Other Receivables** - The auditor was unable to obtain sufficient appropriate audit evidence regarding the potential impairment of prepayments of **approximately RMB 1.557 billion** to a supplier as of 31 March 2024, affecting the financial results of both FY2024 and FY2025[372](index=372&type=chunk) - The report notes that the prior year's financial statements were audited by another auditor who also issued a disclaimer of opinion due to multiple uncertainties related to going concern[373](index=373&type=chunk) [Consolidated Financial Statements](index=66&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=66&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's loss widened significantly in FY2025, driven by a sharp revenue decline and massive impairment losses under the expected credit loss model | Item | FY2025 (RMB'000) | FY2024 (RMB'000, Restated) | | :--- | :--- | :--- | | Total operating turnover | 807,820 | 4,969,826 | | Gross profit | 44,036 | 81,595 | | Impairment losses under ECL model | (1,865,601) | (507,777) | | Loss before tax | (1,965,074) | (513,877) | | Loss for the year | (1,992,981) | (522,274) | | Loss for the year attributable to owners of the Company | (1,916,096) | (497,270) | | Basic loss per share (RMB cents) | (29.27) | (7.60) | [Consolidated Statement of Financial Position](index=69&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The Group's balance sheet shows a severe deterioration, shifting from a net asset position to a significant capital deficiency of RMB 1.08 billion | Item | 31 March 2025 (RMB'000) | 31 March 2024 (RMB'000, Restated) | | :--- | :--- | :--- | | Total assets | 1,697,994 | 2,861,776 | | Total liabilities | 2,780,570 | 1,975,441 | | Net current (liabilities)/assets | (1,633,984) | 292,837 | | Total (capital deficiency)/equity | (1,082,576) | 886,335 | [Consolidated Statement of Cash Flows](index=73&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The Group's net cash used in operating activities improved significantly, but its overall cash position remains extremely tight with only RMB 10.5 million at year-end | Item | FY2025 (RMB'000) | FY2024 (RMB'000, Restated) | | :--- | :--- | :--- | | Net cash used in operating activities | (7,443) | (406,395) | | Net cash (used in)/from investing activities | (330) | 308,508 | | Net cash from financing activities | 5,322 | 35,861 | | Net decrease in cash and cash equivalents | (2,451) | (62,026) | | Cash and cash equivalents at end of year | 10,498 | 10,688 | [Notes to the Consolidated Financial Statements](index=75&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes highlight material uncertainties regarding going concern, prior year restatements, and massive impairments on receivables that drove the annual loss - **Material Uncertainty Related to Going Concern (Note 2.1)**: The Group's ability to continue as a going concern is in significant doubt due to substantial losses, large short-term maturing debts, and loan defaults, with management outlining various mitigating measures[404](index=404&type=chunk)[405](index=405&type=chunk) - **Prior Year Restatement (Note 2.2)**: Due to a change in the ECL assessment method for two major customers, the **impairment loss for FY2024 was increased by RMB 351 million**, restating the FY2024 loss from RMB 171 million to RMB 522 million[422](index=422&type=chunk)[428](index=428&type=chunk) - **Discontinued Operation (Note 12)**: The piped gas business (Huaheng Energy) was deconsolidated due to a loss of control following a dispute with partner Guizhou Gas, resulting in a confirmed loss of **approximately RMB 34.74 million**[761](index=761&type=chunk)[767](index=767&type=chunk) - **Impairment of Trade and Other Receivables (Note 26)**: An impairment loss of **RMB 1.34 billion** was recognized on prepayments to a supplier, while the credit loss allowance for trade receivables increased sharply from RMB 594 million to **RMB 1.09 billion**[863](index=863&type=chunk)[870](index=870&type=chunk) - **Default on Bank Borrowings and Guaranteed Notes (Notes 34, 36)**: As of 31 March 2025, the Group had defaulted on bank borrowings of **approximately RMB 1.043 billion**, triggering cross-defaults of **approximately RMB 72 million**, and guaranteed notes of **RMB 185 million** were overdue[889](index=889&type=chunk)[908](index=908&type=chunk) [Financial Information of Five Years](index=208&type=section&id=Financial%20Information%20of%20Five%20Years) [Financial Information of Five Years](index=208&type=section&id=Financial%20Information%20of%20Five%20Years) The five-year summary shows a trend of declining turnover after a 2022 peak and a sharp deterioration in financial health in the last two years | Item (RMB'000) | 2021 | 2022 | 2023 | 2024 (Restated) | 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total operating turnover | 7,188,589 | 7,902,036 | 7,446,796 | 4,969,879 | 807,820 | | Profit (loss) for the year | 52,472 | 95,705 | (28,267) | (510,942) | (1,958,240) | | Total assets | 3,558,475 | 3,434,555 | 3,733,792 | 2,861,776 | 1,697,994 | | Total liabilities | (2,137,333) | (1,917,105) | (2,319,612) | (1,975,441) | (2,780,570) | | Net assets (liabilities) | 1,421,142 | 1,517,450 | 1,414,180 | 886,335 | (1,082,576) | [Corporate Information](index=209&type=section&id=Corporate%20Information) [Corporate Information](index=209&type=section&id=Corporate%20Information) This section provides the company's basic registration details, a list of directors, and key professional advisors - The company's auditor is **Parker Randall CF (H.K.) CPA Limited**[1034](index=1034&type=chunk) - The company is incorporated in Bermuda, with its principal place of business in Hong Kong located in North Point[1035](index=1035&type=chunk)

[Company Information and Results Announcement](index=1&type=section&id=Company%20Information%20and%20Results%20Announcement) This section provides an overview of Yuanheng Gas Holdings Limited's audited consolidated results for the year ended March 31, 2025 [Company Overview](index=1&type=section&id=Company%20Overview) Yuanheng Gas Holdings Limited (Stock Code: 332) announced its audited consolidated results for the year ended March 31, 2025 - Yuanheng Gas Holdings Limited (Stock Code: 332) released its audited consolidated results for the year ended March 31, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) [Annual Results Announcement](index=1&type=section&id=Annual%20Results%20Announcement) The Board of Directors of Yuanheng Gas Holdings Limited announces the audited consolidated results for the year ended March 31, 2025 - The Company's Board of Directors is pleased to announce the audited consolidated results for the year ended March 31, 2025, along with comparative figures[3](index=3&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's consolidated financial performance and position, highlighting significant losses and deteriorating liquidity [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=I.%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group recorded a substantial loss for the year ended March 31, 2025, primarily due to a significant increase in expected credit losses Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Total operating revenue | 807,820 | 4,969,826 | | Gross profit | 44,036 | 81,595 | | Impairment losses under ECL model, net | (1,865,601) | (507,777) | | Loss before tax | (1,965,074) | (513,877) | | Loss for the year | (1,992,981) | (522,274) | | Basic loss per share (RMB cents) | (29.27) | (7.60) | - Loss for the year significantly increased from **RMB 522,274 thousand** in 2024 to **RMB 1,992,981 thousand** in 2025, primarily due to a surge in net expected credit losses[4](index=4&type=chunk) - Basic loss per share worsened from **RMB 7.60 cents** in 2024 to **RMB 29.27 cents** in 2025[5](index=5&type=chunk) [Consolidated Statement of Financial Position](index=4&type=section&id=II.%20Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, the Group's net current assets turned into a deficit, reflecting a significant deterioration in financial health Key Data from Consolidated Statement of Financial Position | Indicator | March 31, 2025 (RMB thousands) | March 31, 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Non-current assets | 565,368 | 615,134 | | Current assets | 1,132,626 | 2,246,642 | | Current liabilities | 2,766,610 | 1,953,805 | | Net current (liabilities) assets | (1,633,984) | 292,837 | | Total assets less current liabilities | (1,068,616) | 907,971 | | Equity attributable to owners of the Company | (1,088,549) | 844,631 | | Total (capital deficit) equity | (1,082,576) | 886,335 | - Net current assets turned from a **RMB 292,837 thousand** surplus in 2024 to a **RMB 1,633,984 thousand** deficit in 2025, indicating severe liquidity deterioration[7](index=7&type=chunk) - Equity attributable to owners of the Company shifted from a **RMB 844,631 thousand** surplus in 2024 to a **RMB 1,088,549 thousand** deficit in 2025, reflecting a capital deficit in the structure[7](index=7&type=chunk) [Notes to the Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed notes on the Group's accounting policies, financial performance, and position for the reporting period [1. General Information](index=6&type=section&id=1.%20General%20Information) The Group's principal activities include oil and gas trading, LNG production and sales, and natural gas infrastructure, with financial statements presented in RMB - The Group's principal activities include oil and gas trading, LNG production and sales, vehicle gas sales, piped natural gas sales, LNG transportation, and natural gas pipeline infrastructure construction[8](index=8&type=chunk) - The consolidated financial statements are presented in RMB[9](index=9&type=chunk) [2. Basis of Preparation of Consolidated Financial Statements](index=6&type=section&id=2.%20Basis%20of%20Preparation%20of%20Consolidated%20Financial%20Statements) The Group faces significant going concern uncertainties but prepares financial statements on a going concern basis, with prior year restatements for expected credit losses [2.1 Going Concern Basis](index=6&type=section&id=2.1%20Going%20Concern%20Basis) The Group faces severe going concern uncertainties due to substantial losses, significant short-term debt, and cash shortages, with management implementing various mitigation measures - The Group's continuing operations recorded a net loss of approximately **RMB 1,958,240,000**[11](index=11&type=chunk) Debt and Cash Position as of March 31, 2025 | Indicator | Amount (RMB thousands) | | :--- | :--- | | Total bank borrowings (due within 12 months) | 1,117,899 | | Guaranteed notes (due within 12 months) | 184,811 | | Cash and cash equivalents | 10,498 | | Defaulted and cross-defaulted bank borrowings | 1,114,899 | | Defaulted and cross-defaulted guaranteed notes | 184,811 | - Management has implemented or is implementing various measures, including optimizing operational strategies, negotiating loan extensions with creditors, resolving outstanding litigations, restructuring existing debts through legal processes, and securing new funding[11](index=11&type=chunk)[12](index=12&type=chunk) [2.2 Restatement Adjustments](index=8&type=section&id=2.2%20Restatement%20Adjustments) The Group restated prior year expected credit losses for trade receivables, significantly impacting 2024 and 2023 financial statements due to increased impairment losses - The Group performed restatement adjustments for prior year Expected Credit Losses (ECL) under HKFRS 9, specifically for trade receivables from two major customers[14](index=14&type=chunk)[15](index=15&type=chunk) Impact of Restatement Adjustments on Financial Position as of March 31, 2024 | Indicator | Previously Reported (RMB thousands) | Restatement Adjustment (RMB thousands) | Restated (RMB thousands) | | :--- | :--- | :--- | | Trade and other receivables | 2,631,875 | (424,544) | 2,207,331 | | Net current assets | 717,381 | (424,544) | 292,837 | | Equity attributable to owners of the Company | 1,230,104 | (385,473) | 844,631 | | Total equity | 1,310,879 | (424,544) | 886,335 | Impact of Restatement Adjustments on Statement of Profit or Loss as of March 31, 2024 | Indicator | Previously Reported (RMB thousands) | Restatement Adjustment (RMB thousands) | Restated (RMB thousands) | | :--- | :--- | :--- | | Impairment losses under ECL model, net | (156,385) | (351,392) | (507,777) | | Loss for the year | (170,882) | (351,392) | (522,274) | | Basic loss per share (HK cents) | (2.52) | (5.08) | (7.60) | [3. Application of New and Revised Hong Kong Financial Reporting Standards](index=11&type=section&id=3.%20Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group adopted several revised HKFRSs this year with no material impact, while HKFRS 18 is expected to affect future financial statement presentation and disclosures - The HKFRS amendments first applied this year had no material impact on the Group's financial position and performance[18](index=18&type=chunk) - HKFRS 18 "Presentation and Disclosure in Financial Statements" will be effective for annual periods beginning on or after January 1, 2027, and is expected to impact the presentation of the statement of profit or loss and future financial statement disclosures[21](index=21&type=chunk) [4. Segment Information and Revenue](index=12&type=section&id=4.%20Segment%20Information%20and%20Revenue) The Group's operating segments include LNG production, oil and gas trading, and piped natural gas, with external customer revenue significantly declining in 2025 - The Group's reportable segments include production and sale of LNG, oil and gas trading, piped natural gas, and the combined "other operations" (vehicle gas sales at refilling stations and LNG transportation)[23](index=23&type=chunk) Overview of Segment Revenue and Results | Segment | 2025 Revenue (RMB thousands) | 2024 Revenue (RMB thousands) (Restated) | 2025 Segment Results (RMB thousands) | 2024 Segment Results (RMB thousands) (Restated) | | :--- | :--- | :--- | :--- | :--- | | Production and sale of LNG | 524,751 | 983,477 | (309,899) | (41,094) | | Oil and gas trading | 231,190 | 3,942,794 | (1,577,928) | (438,685) | | Other operations | 51,879 | 43,555 | (1,043) | 953 | | Subtotal from continuing operations | 807,820 | 4,969,826 | (1,888,870) | (478,826) | | Discontinued operations (piped natural gas) | – | 53 | (34,741) | (5,845) | | Total | 807,820 | 4,969,879 | (1,923,611) | (484,671) | - Total revenue in 2025 significantly decreased to **RMB 807,820 thousand** from **RMB 4,969,826 thousand** in 2024, primarily due to a sharp decline in oil and gas trading revenue[24](index=24&type=chunk)[26](index=26&type=chunk) [Segment Revenue and Results](index=12&type=section&id=Segment%20Revenue%20and%20Results) External customer revenue from continuing operations drastically decreased in 2025, with segment loss widening, primarily due to the oil and gas trading segment - External customer revenue from continuing operations significantly decreased from **RMB 4,969,826 thousand** in 2024 to **RMB 807,820 thousand** in 2025[24](index=24&type=chunk)[26](index=26&type=chunk) - The oil and gas trading segment's loss expanded from **RMB 438,685 thousand** in 2024 to **RMB 1,577,928 thousand** in 2025[24](index=24&type=chunk)[26](index=26&type=chunk) [Revenue from Major Products and Services](index=13&type=section&id=Revenue%20from%20Major%20Products%20and%20Services) Total revenue for 2025 significantly decreased, mainly driven by reduced revenue from LNG production and sales, and oil and gas contract trading Revenue from Major Products and Services | Product/Service | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Production and sale of LNG | 524,751 | 983,477 | | Oil and gas contract trading | 740 | 24,432 | | Sale of vehicle gas at refilling stations | 41,694 | 31,552 | | LNG transportation | 10,185 | 12,003 | | Total (continuing operations) | 577,370 | 1,051,464 | - Revenue from production and sale of LNG decreased from **RMB 983,477 thousand** in 2024 to **RMB 524,751 thousand** in 2025[29](index=29&type=chunk) - Revenue from oil and gas contract trading sharply decreased from **RMB 24,432 thousand** in 2024 to **RMB 740 thousand** in 2025[29](index=29&type=chunk) [5. Other Income](index=14&type=section&id=5.%20Other%20Income) The Group's other income decreased in 2025, primarily due to a reduction in bank interest income Composition of Other Income | Item | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Bank interest income | 13 | 1,367 | | Government grants | 1,304 | 295 | | Others | 605 | 2,671 | | Total | 1,922 | 4,333 | - Bank interest income significantly decreased from **RMB 1,367 thousand** in 2024 to **RMB 13 thousand** in 2025[30](index=30&type=chunk) [6. Other Gains and Losses](index=14&type=section&id=6.%20Other%20Gains%20and%20Losses) The Group recorded a net loss in other gains and losses in 2025, a reversal from a gain in 2024, mainly due to foreign exchange losses Composition of Other Gains and Losses | Item | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Net foreign exchange (losses) gains | (230) | 29,525 | | Write-back of other payables | – | 7,108 | | Total | (230) | 35,241 | - Net foreign exchange gains turned from **RMB 29,525 thousand** in 2024 to a **RMB 230 thousand** loss in 2025[31](index=31&type=chunk) [7. Impairment Losses under Expected Credit Loss Model, Net](index=15&type=section&id=7.%20Impairment%20Losses%20under%20Expected%20Credit%20Loss%20Model%2C%20Net) Net impairment losses under the ECL model significantly increased in 2025, primarily due to substantial impairment losses on prepayments and trade receivables Composition of Net Impairment Losses under ECL Model | Item | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Impairment losses recognized on trade receivables | (496,768) | (507,777) | | Impairment losses recognized on prepayments | (1,339,751) | – | | Impairment losses recognized on financial guarantees | (27,919) | – | | Total | (1,865,601) | (507,777) | - Prepayments recognized a substantial impairment loss of **RMB 1,339,751 thousand** for the first time in 2025[32](index=32&type=chunk) [8. Finance Costs](index=15&type=section&id=8.%20Finance%20Costs) The Group's finance costs slightly increased in 2025, primarily comprising interest on bank borrowings and guaranteed notes Composition of Finance Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Interest on bank borrowings | 53,206 | 52,171 | | Interest on guaranteed notes | 15,830 | 15,302 | | Total (continuing operations) | 69,118 | 67,515 | - Finance costs for continuing operations slightly increased from **RMB 67,515 thousand** in 2024 to **RMB 69,118 thousand** in 2025[33](index=33&type=chunk) [9. Income Tax Credit](index=15&type=section&id=9.%20Income%20Tax%20Credit) The Group's income tax credit increased in 2025, mainly attributable to changes in deferred tax Composition of Income Tax Credit | Item | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | PRC enterprise income tax - current year | 160 | – | | PRC enterprise income tax - under (over) provision in prior years | 582 | (4,114) | | Deferred tax | (7,576) | 1,179 | | Total (continuing operations) | (6,834) | (2,935) | - Income tax credit increased from **RMB 2,935 thousand** in 2024 to **RMB 6,834 thousand** in 2025[34](index=34&type=chunk) [10. Discontinued Operations](index=16&type=section&id=10.%20Discontinued%20Operations) Huaheng Energy (piped natural gas business) was deconsolidated in 2025 due to license issues and disputes, resulting in a loss on disposal and financial guarantee liabilities - Huaheng Energy (piped natural gas business) was deconsolidated in 2025 as the Group lost accounting control due to suspended operating licenses and disputes with Guizhou Gas[35](index=35&type=chunk)[36](index=36&type=chunk)[61](index=61&type=chunk) - The Group has initiated legal proceedings against Guizhou Gas and its subsidiaries to resolve the disputes[36](index=36&type=chunk)[49](index=49&type=chunk)[61](index=61&type=chunk) - The Group issued financial guarantees to banks for Huaheng Energy's borrowings, resulting in financial guarantee contract liabilities of approximately **RMB 67,401,000**[36](index=36&type=chunk)[40](index=40&type=chunk)[62](index=62&type=chunk) [Results of Discontinued Operations](index=17&type=section&id=Results%20of%20Discontinued%20Operations) Discontinued operations recorded a loss on disposal in 2025, reflecting the financial impact of business termination Results of Discontinued Operations | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss for the year from discontinued operations | – | (11,332) | | Loss on disposal of discontinued operations | (34,741) | – | | Loss before tax | (34,741) | (11,332) | [Assets and Liabilities of Huaheng Energy at Deconsolidation Date](index=18&type=section&id=Assets%20and%20Liabilities%20of%20Huaheng%20Energy%20at%20Deconsolidation%20Date) At the deconsolidation date, Huaheng Energy had net liabilities, leading to a recognized loss for the Group, primarily from financial guarantee liabilities - At the deconsolidation date, Huaheng Energy had net liabilities of **RMB 56,730 thousand**[40](index=40&type=chunk) - The deconsolidation resulted in the Group recognizing a loss of **RMB 34,741 thousand**, primarily due to the recognition of financial guarantee contract liabilities[40](index=40&type=chunk) [11. Loss for the Year](index=19&type=section&id=11.%20Loss%20for%20the%20Year) The Group's loss for the year is primarily composed of recognized cost of inventories, depreciation, directors' emoluments, and staff welfare expenses Major Components of Loss for the Year | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Auditor's remuneration | 850 | 932 | | Cost of inventories recognized | 756,070 | 959,451 | | Depreciation of property, plant and equipment | 38,137 | 42,166 | | Directors' emoluments | 2,603 | 2,806 | | Salaries and other benefits (excluding directors' emoluments) | 38,513 | 41,706 | | Retirement benefit scheme contributions (excluding directors' emoluments) | 8,055 | 8,714 | [12. Loss Per Share](index=19&type=section&id=12.%20Loss%20Per%20Share) The Group's basic and diluted loss per share significantly increased for the year ended March 31, 2025, indicating continued deterioration in profitability Loss Per Share Data | Indicator | 2025 (RMB cents) | 2024 (RMB cents) (Restated) | | :--- | :--- | :--- | | Basic loss per share from continuing and discontinued operations | (29.27) | (7.60) | | Basic loss per share from continuing operations | (28.74) | (7.51) | - The weighted average number of ordinary shares used to calculate loss per share was **6,545,621 thousand** for both years, with no outstanding potential ordinary shares[42](index=42&type=chunk) [13. Dividends](index=20&type=section&id=13.%20Dividends) The Company neither paid, declared, nor proposed any dividends for the two years ended March 31, 2025 - The Company neither paid, declared, nor proposed any dividends for the two years ended March 31, 2025[43](index=43&type=chunk) [14. Trade and Other Receivables](index=20&type=section&id=14.%20Trade%20and%20Other%20Receivables) The Group's total trade and other receivables significantly decreased due to a surge in credit loss provisions, particularly for prepayments, and a high proportion of overdue trade receivables Overview of Trade and Other Receivables | Item | 2025 (RMB thousands) | 2024 (RMB thousands) (Restated) | | :--- | :--- | :--- | | Trade receivables (net of provision) | 138,213 | 623,712 | | Other receivables (net of provision) | 4,716 | 6,636 | | Prepayments (net of provision) | 957,566 | 1,576,983 | | Total | 1,100,495 | 2,207,331 | - Credit loss provision for trade receivables increased from **RMB 593,715 thousand** in 2024 to **RMB 1,090,483 thousand** in 2025[44](index=44&type=chunk) - Prepayments incurred a credit loss provision of **RMB 1,339,751 thousand** in 2025, compared to zero in 2024[44](index=44&type=chunk) [15. Trade and Other Payables](index=21&type=section&id=15.%20Trade%20and%20Other%20Payables) The Group's trade and other payables substantially increased in 2025, primarily driven by a surge in other payables Composition of Trade and Other Payables | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 172,945 | 180,145 | | Other payables | 891,146 | 107,777 | | Receipts in advance | 102,894 | 106,340 | | Total | 1,234,899 | 448,146 | - Other payables significantly increased from **RMB 107,777 thousand** in 2024 to **RMB 891,146 thousand** in 2025[45](index=45&type=chunk) - Trade payables aging analysis shows overdue amounts over 365 days increased from **RMB 23,935 thousand** in 2024 to **RMB 82,234 thousand** in 2025[45](index=45&type=chunk) [16. Bank Borrowings](index=21&type=section&id=16.%20Bank%20Borrowings) The Group's total bank borrowings in 2025 were largely in default or triggered cross-defaults, classified as current liabilities, indicating severe short-term repayment pressure Overview of Bank Borrowings | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total bank borrowings | 1,117,899 | 1,196,220 | | Repayable within one year or on demand | 1,117,899 | 1,187,720 | | Secured borrowings | 938,119 | 950,551 | | Unsecured borrowings | 179,780 | 245,669 | - As of March 31, 2025, the Group defaulted on approximately **RMB 1,043,305,000** of bank borrowings and triggered cross-defaults on approximately **RMB 71,594,000** of other borrowings, all presented as current liabilities[46](index=46&type=chunk) [17. Financial Guarantee Liabilities](index=22&type=section&id=17.%20Financial%20Guarantee%20Liabilities) The Group recognized financial guarantee liabilities for Huaheng Energy's defaulted bank borrowings, amounting to RMB 95,320 thousand as of March 31, 2025 - The Group issued financial guarantees to banks for Huaheng Energy's borrowings and recognized related liabilities as financial guarantee liabilities due to its default[47](index=47&type=chunk) - As of March 31, 2025, financial guarantee liabilities amounted to **RMB 95,320 thousand**, with an expected credit loss provision of **RMB 27,919 thousand** recognized[48](index=48&type=chunk) [18. Litigation](index=22&type=section&id=18.%20Litigation) The Group faces multiple litigations related to overdue bank borrowings and disputes with Guizhou Gas, with management actively seeking amicable resolutions - The Group is involved in several litigations regarding the repayment of overdue/outstanding bank borrowings[49](index=49&type=chunk) - The Group has filed legal proceedings against Guizhou Gas, its subsidiaries, and related parties in the Intermediate People's Court of Guizhou Province, China[49](index=49&type=chunk) [Extracts from Independent Auditor's Report](index=23&type=section&id=Extracts%20from%20Independent%20Auditor's%20Report) This section presents key findings from the independent auditor's report, including a disclaimer of opinion due to insufficient audit evidence and going concern uncertainties [Disclaimer of Opinion](index=23&type=section&id=Disclaimer%20of%20Opinion) The independent auditor issued a disclaimer of opinion on the Group's consolidated financial statements for the year ended March 31, 2025, due to insufficient appropriate audit evidence - The independent auditor issued a disclaimer of opinion on the Group's consolidated financial statements for the year ended March 31, 2025[50](index=50&type=chunk) - The basis for the auditor's disclaimer of opinion was the inability to obtain sufficient appropriate audit evidence[50](index=50&type=chunk) [Basis for Disclaimer of Opinion](index=23&type=section&id=Basis%20for%20Disclaimer%20of%20Opinion) The auditor's disclaimer is based on significant uncertainties regarding the Group's going concern ability and insufficient audit evidence for a substantial prepayment's opening balance [Material Uncertainty Related to Going Concern](index=23&type=section&id=Material%20Uncertainty%20Related%20to%20Going%20Concern) The Group recorded substantial losses, has significant overdue debts, and insufficient cash, leading the auditor to question the appropriateness of the going concern basis - The Group's continuing operations recorded a net loss of approximately **RMB 1,958,240,000**[51](index=51&type=chunk) - The Group has approximately **RMB 1,117,899,000** in bank borrowings and **RMB 184,811,000** in guaranteed notes due within the next 12 months, while cash and cash equivalents are only **RMB 10,498,000**[51](index=51&type=chunk) - The auditor could not obtain sufficient audit evidence to be satisfied with the reasonableness of management's plans and measures supporting the Group's cash flow forecasts, including plans for successful renewal or extension of defaulted loans and securing new financing sources[52](index=52&type=chunk) [Opening Balance of Other Receivables](index=24&type=section&id=Opening%20Balance%20of%20Other%20Receivables) The auditor could not obtain sufficient evidence regarding the impairment of a significant prepayment as of March 31, 2024, potentially impacting prior and current year results - As of March 31, 2024, prepayments to a supplier amounted to approximately **RMB 1,556,578,000**[54](index=54&type=chunk) - The auditor could not obtain sufficient audit evidence to be satisfied whether any impairment should be recognized for the carrying amount of this prepayment as of March 31, 2024[54](index=54&type=chunk) [Management Discussion and Analysis](index=25&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's operational and financial performance, strategic outlook, and liquidity position for the year ended March 31, 2025 [Business Review](index=25&type=section&id=Business%20Review) The Group's 2025 fiscal year saw a significant decline in turnover and expanded losses, primarily due to substantial impairment losses on prepayments and trade receivables [Group Performance](index=25&type=section&id=Group%20Performance) The Group's 2025 fiscal year turnover significantly decreased, and loss after tax expanded, mainly due to substantial impairment losses on prepayments and trade receivables - For the year ended March 31, 2025, the Group's turnover was approximately **RMB 808,000,000**, a significant decrease from approximately **RMB 4,970,000,000** in 2024[55](index=55&type=chunk) - Loss after tax was approximately **RMB 1,993,000,000**, a significant increase from approximately **RMB 522,000,000** in 2024[55](index=55&type=chunk) - The unfavorable performance was primarily attributable to a substantial increase in impairment losses on prepayments (approximately **RMB 1,340,000,000**) and trade receivables (approximately **RMB 446,000,000**)[56](index=56&type=chunk) [Production and Sale of Liquefied Natural Gas](index=25&type=section&id=Production%20and%20Sale%20of%20Liquefied%20Natural%20Gas) LNG production increased, but sales revenue decreased due to market competition, though segment gross margin improved, with efforts to stabilize profitability - LNG production increased by **9.5%** to approximately **484,000,000 cubic meters**[57](index=57&type=chunk) - LNG sales revenue decreased by **46.6%** to approximately **RMB 525,000,000**, accounting for approximately **65.0%** of total turnover[57](index=57&type=chunk) - Segment gross margin increased from approximately **5.4%** to **7.8%**, but gross profit decreased by approximately **RMB 12,000,000**[57](index=57&type=chunk) [Sale of Piped Natural Gas](index=26&type=section&id=Sale%20of%20Piped%20Natural%20Gas) The piped natural gas sales business was terminated in August 2022, generating no revenue in fiscal year 2025, and is now classified as a discontinued operation - The piped natural gas sales business was terminated in August 2022, with no sales revenue in fiscal year 2025[58](index=58&type=chunk) - The piped natural gas business was classified as a discontinued operation due to the deconsolidation of Huaheng Energy[58](index=58&type=chunk) [Oil and Gas Trading](index=26&type=section&id=Oil%20and%20Gas%20Trading) Oil and gas sales contracts sharply declined in 2025, with gross profit and margin significantly reduced due to market competition, leading to reduced trading volume to mitigate risk - Total oil and gas sales contracts decreased by **94.1%** to approximately **RMB 231,000,000**, accounting for approximately **28.6%** of total turnover[59](index=59&type=chunk) - Gross profit decreased from approximately **RMB 24,000,000** to approximately **RMB 1,000,000**, with gross margin declining from approximately **0.6%** to **0.4%**[59](index=59&type=chunk) - The Group has reduced its trading volume to mitigate business risks and enhance working capital efficiency[59](index=59&type=chunk) [Material Investments and Material Acquisitions and Disposals](index=26&type=section&id=Material%20Investments%20and%20Material%20Acquisitions%20and%20Disposals) There were no significant M&A activities this year, but Huaheng Energy's deconsolidation resulted in a one-off loss and financial guarantee liabilities for the Group [Discontinued Operations](index=26&type=section&id=已終止經營業務_MDA) Huaheng Energy was deconsolidated due to license issues and disputes, leading to a recognized unaudited loss for the Group, including a one-off gain offset by financial guarantee liabilities - Huaheng Energy was deconsolidated as the Group lost accounting control due to its inability to renew licenses and strained relations with Guizhou Gas[60](index=60&type=chunk)[61](index=61&type=chunk) - The Group recognized an unaudited loss of approximately **RMB 35,000,000** from discontinued operations during the period[62](index=62&type=chunk) - This loss includes a one-off gain of approximately **RMB 32,000,000** from the deconsolidation of Huaheng Energy, offset by a loss of approximately **RMB 67,000,000** from the recognition of financial guarantee contract liabilities[62](index=62&type=chunk) [Outlook](index=27&type=section&id=Outlook) Despite market instability, the Group's other operations remain normal, with expectations for stable natural gas market growth and ongoing efforts to restructure business and debt for long-term value creation - The Group's other operations remain normal, and the natural gas market in mainland China is expected to maintain stable growth[63](index=63&type=chunk) - The Group is restructuring its business and debt to lay a solid foundation for long-term growth[63](index=63&type=chunk) - Management will continue to adopt prudent measures, implement various strategies, and explore new business opportunities to create value for shareholders[63](index=63&type=chunk) [Financial Review](index=28&type=section&id=Financial%20Review) The Group's 2025 fiscal year saw significant declines in turnover and gross profit, reduced other income, increased impairment losses, and slightly higher administrative and finance costs [Revenue](index=28&type=section&id=营业额_FR) The Group's 2025 fiscal year revenue significantly decreased, primarily due to reduced oil and gas trading volume - Fiscal year 2025 turnover was approximately **RMB 808,000,000**, a significant decrease from approximately **RMB 4,970,000,000** in 2024[64](index=64&type=chunk) - The decrease in turnover was primarily due to reduced oil and gas trading, which recorded turnover of approximately **RMB 231,000,000** (2024: approximately **RMB 3,943,000,000**)[64](index=64&type=chunk) [Gross Profit](index=28&type=section&id=毛利_FR) The Group's 2025 fiscal year gross profit decreased, but the gross profit margin improved from 1.6% to 5.5% - Fiscal year 2025 gross profit was approximately **RMB 44,000,000**, a decrease from approximately **RMB 82,000,000** in 2024[65](index=65&type=chunk) - Gross profit margin increased from approximately **1.6%** in fiscal year 2024 to approximately **5.5%** in fiscal year 2025[65](index=65&type=chunk) [Other Income](index=28&type=section&id=其他收入_FR) The Group's other income in 2025 fiscal year decreased by approximately 50% compared to the previous year - Fiscal year 2025 other income was approximately **RMB 2,000,000**, a decrease of approximately **50.0%** from approximately **RMB 4,000,000** in 2024[66](index=66&type=chunk) [Other Gains and Losses](index=28&type=section&id=其他收益及虧損_FR) The Group recorded a net loss in other gains and losses in 2025, a reversal from a gain in 2024, mainly due to foreign exchange losses - Fiscal year 2025 net loss was approximately **RMB 200,000**, compared to a net gain of approximately **RMB 35,000,000** in 2024[67](index=67&type=chunk) - This decrease was primarily due to net exchange gains reducing to net exchange losses of approximately **RMB 200,000** (2024: net exchange gains of approximately **RMB 30,000,000**)[67](index=67&type=chunk) [Impairment Losses under Expected Credit Loss Model](index=28&type=section&id=預期信貸虧損模式下之減值虧損_FR) Impairment losses under the ECL model significantly increased in 2025, primarily due to increased provisions for trade receivables amidst a global economic slowdown - Fiscal year 2025 recognized impairment losses under ECL model were approximately **RMB 1,866,000,000**, a significant increase from approximately **RMB 508,000,000** in 2024[68](index=68&type=chunk) - The increase in losses was mainly due to the continued global economic slowdown, leading to extended debt recovery periods and overdue trade receivables[68](index=68&type=chunk) [Administrative Expenses](index=28&type=section&id=行政開支_FR) The Group's administrative expenses in 2025 fiscal year increased by approximately 8.2% compared to the previous year - Fiscal year 2025 administrative expenses were approximately **RMB 92,000,000**, an increase of approximately **8.2%** from approximately **RMB 85,000,000** in 2024[69](index=69&type=chunk) [Share of Results of Associates](index=28&type=section&id=應佔聯營公司之業績_FR) The Group's share of results from associates decreased in 2025 fiscal year compared to the previous year - Fiscal year 2025 share of results of associates recorded a gain of approximately **RMB 21,000,000**, a decrease from approximately **RMB 33,000,000** in 2024[70](index=70&type=chunk) [Finance Costs](index=29&type=section&id=融資成本_FR) The Group's finance costs in 2025 fiscal year slightly increased by approximately 1.5% compared to the previous year - Fiscal year 2025 finance costs were approximately **RMB 69,000,000**, an increase of approximately **1.5%** from approximately **RMB 68,000,000** in 2024[71](index=71&type=chunk) [Income Tax Credit](index=29&type=section&id=所得稅抵免_FR) The Group's income tax credit increased in 2025 fiscal year, primarily due to an increase in tax refunds - Fiscal year 2025 income tax credit was approximately **RMB 7,000,000**, an increase from approximately **RMB 3,000,000** in 2024[72](index=72&type=chunk) - The increase in tax credit was primarily due to an increase in tax refunds of approximately **RMB 4,000,000**[72](index=72&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=29&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of March 31, 2025, the Group's cash balances decreased, net current liabilities surged, and liquidity ratios deteriorated, with significant bank loan defaults and cross-defaults Key Liquidity and Capital Structure Indicators | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Bank balances and cash (RMB thousands) | 10,000 | 11,000 | | Net current (liabilities) assets (RMB thousands) | (1,634,000) | 293,000 | | Current ratio | 0.41 | 1.15 | | Gearing ratio | -1.20 | 1.54 | | Total borrowings (RMB thousands) | 1,118,000 | 1,196,220 | | Guaranteed notes (RMB thousands) | 185,000 | 169,094 | - The Group defaulted on approximately **RMB 1,043,000,000** of bank borrowings and triggered cross-defaults on approximately **RMB 72,000,000** of other bank borrowings[73](index=73&type=chunk) - The Group is actively negotiating with existing lenders to renew and extend bank loans and seeking potential strategic investors to increase capital reserves and liquidity[74](index=74&type=chunk) [Capital Expenditure on Property, Plant and Equipment](index=29&type=section&id=Capital%20Expenditure%20on%20Property%2C%20Plant%20and%20Equipment) The Group's capital expenditure on property, plant and equipment significantly decreased in 2025 fiscal year - Fiscal year 2025 capital expenditure on property, plant and equipment was approximately **RMB 1,300,000**, a significant decrease from approximately **RMB 7,000,000** in 2024[75](index=75&type=chunk) [Pledge of Assets](index=29&type=section&id=Pledge%20of%20Assets) As of March 31, 2025, the Group pledged assets totaling approximately RMB 241 million to banks for financing - As of March 31, 2025, the Group pledged assets totaling approximately **RMB 241,000,000** to banks for financing[76](index=76&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates or Joint Ventures](index=30&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20or%20Joint%20Ventures) The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended March 31, 2025 - The Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[77](index=77&type=chunk) [Capital Commitments](index=30&type=section&id=Capital%20Commitments) As of March 31, 2025, the Group had no significant capital commitments - As of March 31, 2025, the Group had no significant capital commitments[78](index=78&type=chunk) [Treasury Policy](index=30&type=section&id=Treasury%20Policy) The Group primarily operates in China with transactions denominated in RMB, HKD, and USD, continuously monitoring currency risk without liquidity issues from exchange fluctuations - The Group primarily operates in China, with most transactions denominated and settled in RMB, HKD, and USD[79](index=79&type=chunk) - The Group continuously monitors overall currency risk but has not encountered any liquidity issues due to exchange rate fluctuations[79](index=79&type=chunk) [Employee Information](index=30&type=section&id=Employee%20Information) As of March 31, 2025, the Group had approximately 271 employees, with remuneration reviewed annually based on market conditions and employee qualifications - As of March 31, 2025, the Group had approximately **271** employees (2024: approximately **280**)[80](index=80&type=chunk) - Remuneration packages are generally determined by reference to market conditions and employee qualifications, and are reviewed annually based on performance appraisals and other relevant factors[80](index=80&type=chunk) [Events After Reporting Period](index=30&type=section&id=Events%20After%20Reporting%20Period) The Company is unaware of any significant subsequent events occurring after March 31, 2025, up to the date of this announcement - The Company is unaware of any significant subsequent events occurring after March 31, 2025, and up to the date of this announcement[81](index=81&type=chunk) [Corporate Governance and Other Information](index=30&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the Company's corporate governance practices, compliance with codes, auditor's role, and other relevant information for the reporting period [Corporate Governance](index=30&type=section&id=Corporate%20Governance) The Company complied with Appendix C1 of the Listing Rules' Corporate Governance Code in 2025, with noted deviations regarding the Chairman and CEO roles, AGM attendance, and company secretary appointment - The Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules in fiscal year 2025, with noted deviations[82](index=82&type=chunk) [Code Provision C.2.1](index=30&type=section&id=守則條文第C.2.1條) Mr. Wang Jianqing holds both Chairman and CEO roles, a deviation from Code Provision C.2.1, but the Board believes this structure is suitable with adequate oversight - Mr. Wang Jianqing holds both the Chairman and Chief Executive Officer positions, deviating from Code Provision C.2.1[83](index=83&type=chunk) - The Board believes the current structure is most suitable for the Company, with oversight from the Board and Audit Committee ensuring a balance of power[83](index=83&type=chunk) [Code Provision F.2.2](index=31&type=section&id=守則條文第F.2.2條) Chairman Mr. Wang Jianqing did not physically attend the 2024 AGM due to health reasons, attending by phone, a deviation from Code Provision F.2.2 - Chairman Mr. Wang Jianqing did not physically attend the 2024 Annual General Meeting due to health reasons but attended by phone, deviating from Code Provision F.2.2[84](index=84&type=chunk) - Executive Director Mr. Bao Jun chaired the 2024 Annual General Meeting[84](index=84&type=chunk) [Code Provision C.6.2](index=31&type=section&id=守則條文第C.6.2條) The company secretary's appointment was handled via written resolution instead of a physical board meeting, a deviation from Code Provision C.6.2, but deemed adequately consulted - The company secretary's appointment was handled via written resolution instead of a physical board meeting, deviating from Code Provision C.6.2[85](index=85&type=chunk) - The Board believes that all directors were individually consulted before signing the written resolution, with no objections to the matter[85](index=85&type=chunk) [Audit Committee](index=31&type=section&id=Audit%20Committee) The Audit Committee, comprising four independent non-executive directors, reviewed the Group's consolidated financial statements and annual results announcement for the year ended March 31, 2025 - The Audit Committee, comprising four independent non-executive directors, reviewed the Group's consolidated financial statements and annual results announcement[86](index=86&type=chunk) [Auditor's Scope of Work](index=31&type=section&id=核數師工作範圍) The financial figures in this announcement align with the audited consolidated financial statements as agreed by the auditor, BDO Limited, but the auditor did not issue a certification for the announcement - The financial figures in this results announcement have been agreed by the auditor, BDO Limited, to be consistent with the audited consolidated financial statements[87](index=87&type=chunk) - The auditor did not issue a certification for the results announcement[87](index=87&type=chunk) [Compliance with Directors' Securities Transactions Code](index=31&type=section&id=Compliance%20with%20Directors'%20Securities%20Transactions%20Code) The Company adopted the Model Code in Appendix 10 of the Listing Rules, and all directors confirmed compliance during the 2025 fiscal year - The Company adopted the Model Code in Appendix 10 of the Listing Rules and confirmed that all directors complied with the code in fiscal year 2025[88](index=88&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=32&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the 2025 fiscal year - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year[89](index=89&type=chunk) [Publication of Annual Results and Annual Report](index=32&type=section&id=Publication%20of%20Annual%20Results%20and%20Annual%20Report) This results announcement is available on the HKEX and Company websites, with the annual report to be published in due course - This results announcement is available on the websites of Hong Kong Exchanges and Clearing Limited and the Company[90](index=90&type=chunk) - The Company will publish its annual report, containing all information required by the Listing Rules, in due course[90](index=90&type=chunk) [By Order of the Board](index=32&type=section&id=By%20Order%20of%20the%20Board) This announcement was issued by Mr. Wang Jianqing, Chairman and CEO, on June 30, 2025, listing the Board members - This announcement was issued by Mr. Wang Jianqing, Chairman and Chief Executive Officer, on June 30, 2025[91](index=91&type=chunk) - The Board members include Executive Directors Mr. Wang Jianqing and Mr. Bao Jun, and Independent Non-executive Directors Dr. Liang Haiming, Mr. Wong Chi Keung, Mr. Wong Siu Hung, and Ms. Lam Wing[91](index=91&type=chunk)

Market Overview - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 1.17% to close at 23,698.65 points and the Tech Index dropping by 1.58% to 5,208.23 points [1] Sector Performance - Oil and gas stocks showed renewed activity, while biopharmaceutical B shares increased in value. However, sectors such as new energy vehicles, technology, and domestic real estate stocks faced declines, and rare earth concept stocks experienced a pullback [1] Notable Stock Movements - Jixing New Energy (03395.HK) surged by 337.5%, while Yuanheng Gas (00332.HK) rose by 50%, United Energy Group (00467.HK) increased by 35.7%, and Baiqin Oil Services (02178.HK) gained 47.8% [1] - Beijing Construction (00925.HK) resumed trading with a rise of over 210%, as it plans to privatize and delist [1] - Lehua Entertainment (02306.HK) saw an increase of nearly 30% [1] - Conversely, companies like Li Auto (02015.HK), China Resources Land (01109.HK), and Meituan (03690.HK) fell by 3.7%, while Alibaba (09988.HK) and Kuaishou (01024.HK) dropped by over 2.5% [1]

Financial Performance - The Group reported a gross amount from operations of RMB 532,563,000 for the six months ended September 30, 2024, a decrease of 83.3% compared to RMB 3,186,238,000 in the same period of 2023[4]. - Other revenue decreased to RMB 317,304,000, down 33.8% from RMB 479,204,000 year-over-year[4]. - The gross profit for the period was RMB 30,316,000, representing a decline of 33.9% from RMB 45,828,000 in the previous year[4]. - The loss before tax was RMB 68,009,000, compared to a profit of RMB 23,875,000 in the same period last year[4]. - The loss for the period from continuing operations was RMB 70,205,000, a significant drop from a profit of RMB 28,894,000 in 2023[5]. - Total comprehensive expense for the period attributable to owners of the Company was RMB 116,307,000, compared to a comprehensive income of RMB 28,239,000 in the previous year[8]. - Basic loss per share from continuing operations was RMB (1.05), compared to earnings of RMB 0.45 in the same period last year[8]. - The Group experienced a significant increase in distribution and selling expenses, which amounted to RMB 2,525,000, compared to RMB 4,991,000 in the previous year[4]. - The Group reported a consolidated loss attributable to owners of the Company of approximately RMB116,029,000 for the six months ended 30 September 2024, compared to a profit of approximately RMB28,358,000 for the same period in 2023[24]. - The Group recorded a net operating cash outflow of approximately RMB17,261,000 for the six-month period ended 30 September 2024[24]. - The Group's cash and cash equivalents decreased by RMB5,157,000 during the six months ended 30 September 2024, compared to a decrease of RMB54,038,000 in the same period of 2023[21]. - The Group experienced a loss after tax of approximately RMB117 million, compared to a profit after tax of approximately RMB26 million in the same period last year[124]. Assets and Liabilities - As of September 30, 2024, the net current assets amounted to RMB 681,347,000, a decrease from RMB 717,381,000 as of March 31, 2024, reflecting a decline of approximately 5.0%[13]. - Total assets less current liabilities were reported at RMB 1,234,380,000, down from RMB 1,332,515,000, indicating a decrease of about 7.4%[13]. - The equity attributable to owners of the Company decreased to RMB 1,096,714,000 from RMB 1,230,104,000, representing a decline of approximately 10.8%[13]. - The total equity as of September 30, 2024, was RMB 1,199,606,000, down from RMB 1,310,879,000, marking a decrease of around 8.5%[13]. - The company’s bank borrowings due after one year increased to RMB 20,000,000 from RMB 8,500,000, reflecting a rise of approximately 135.3%[13]. - The Group's total liabilities, including trade and other payables, were RMB 445,609,000 as of September 30, 2024, compared to RMB 448,146,000 as of March 31, 2024, indicating a slight decrease of 0.57%[77]. - The Group's borrowings amounted to approximately RMB1,103 million as of 30 September 2024, with a gearing ratio of approximately 1.17, up from approximately 1.04 as of 31 March 2024[145]. Operational Highlights - Segment revenue from external customers for the six months ended September 30, 2024, totaled RMB 532,563,000, with LNG production and sales contributing RMB 292,482,000[39]. - The segment results for the same period showed a total loss of RMB 63,955,000, with LNG production and sales reporting a loss of RMB 2,807,000[39]. - Revenue from wholesale of LNG was RMB 292,482,000, while trading of oil and gas contracts generated RMB 4,993,000, and sales of vehicle gas at refueling stations amounted to RMB 19,770,000[51]. - The Group's market faced intense competition and slow economic recovery, suppressing demand for gas products[128]. - The Group's turnover for the period was approximately RMB533 million, a significant decrease from approximately RMB3,189 million for the six months ended September 30, 2023[143]. Cash Flow and Financing - The net cash used in operating activities was RMB(17,261,000) for the six months ended September 30, 2024, significantly improved from RMB(271,880,000) in the same period of 2023[21]. - The net cash from financing activities was RMB14,152,000 for the six months ended September 30, 2024, compared to RMB219,177,000 in the same period of 2023[21]. - The Group has defaulted or cross-defaulted on certain bank borrowings and guaranteed notes as of 30 September 2024[24]. - The Group has been actively negotiating with existing lenders for the extension of bank loans and credit facilities, with no creditors taking enforcement action for immediate repayment as of the interim report date[27]. Strategic Initiatives - The Group is seeking to settle outstanding litigations and has made relevant provisions for claims, aiming for amicable solutions on unresolved charges[27]. - The Group is in discussions with potential strategic investors to raise new funds to enhance liquidity and reduce borrowing levels[27]. - The Group is considering the disposal of non-core assets to improve liquidity and has been following up on receivable collections to expedite outstanding trade debts[27]. - The Group has implemented measures to control operating costs, including reducing rental and staff costs, and will continue to take additional steps to minimize non-essential expenditures[29]. Governance and Compliance - The interim results for the six months ended September 30, 2024, have been reviewed by the Audit Committee of the Company[185]. - The Company has complied with all applicable code provisions of the Corporate Governance Code throughout the six months ended September 30, 2024, with some deviations noted[175]. - The Chairman and CEO roles are held by the same individual, Mr. Wang Jianqing, which the Board believes is suitable for the Company’s current structure[176]. Shareholder Information - As of September 30, 2024, Wang Jianqing holds 4,238,827,528 shares, representing 64.76% of the total shareholding[154]. - Champion Ever Limited, wholly owned by Wang Jianqing, has a beneficial interest in 3,602,323,177 shares, accounting for 55.03% of total holdings[161]. - The total issued share capital of the company as of September 30, 2024, is 6,545,621,131 shares[164]. - No share options were granted under the 2021 Scheme since its adoption on October 4, 2021[164].

Financial Performance - For the six months ended September 30, 2024, total revenue was RMB 532,563,000, a decrease of 83.3% compared to RMB 3,186,238,000 in the same period of 2023[2] - Oil and gas sales contracts totaled RMB 215,259,000, down from RMB 2,707,034,000 year-on-year, reflecting a significant decline[2] - Gross profit for the period was RMB 30,316,000, compared to RMB 45,828,000 in the previous year, indicating a decrease of 33.9%[2] - The company reported a loss from continuing operations of RMB 70,205,000, compared to a profit of RMB 28,894,000 in the same period last year[5] - Total comprehensive loss for the period was RMB 117,543,000, compared to a comprehensive income of RMB 26,312,000 in the previous year[5] - Basic loss per share from continuing and discontinued operations was RMB 1.77, compared to earnings of RMB 0.43 in the prior year[11] - For the six months ended September 30, 2024, the company reported a net loss attributable to shareholders of approximately RMB 116,029,000, compared to a profit of RMB 28,358,000 for the same period in 2023[26] - The group reported a pre-tax loss of RMB 115,069,000 for the six months ended September 30, 2024[37] - The net loss after tax for the period was approximately RMB 117,000,000, while the net profit for the same period in 2023 was approximately RMB 26,000,000[94] - The group recorded a loss from discontinued operations of approximately RMB 47 million, resulting from the termination of the consolidated accounts of Huaheng Energy[102] Assets and Liabilities - Non-current assets decreased to RMB 553,033,000 from RMB 615,134,000 as of March 31, 2024[16] - Current assets totaled RMB 2,636,689,000, slightly down from RMB 2,671,186,000 at the end of the previous reporting period[16] - Current liabilities were RMB 1,955,342,000, compared to RMB 1,953,805,000 in the previous period, indicating a slight increase[18] - Total equity attributable to owners of the company decreased to RMB 1,096,714,000 from RMB 1,230,104,000[18] - As of September 30, 2024, the company had total bank borrowings and financial guarantee liabilities amounting to approximately RMB 1,202,563,000, with cash and cash equivalents of RMB 5,252,000[27] - The company's total assets as of September 30, 2024, included a net current asset position of approximately RMB 681,347,000[26] - The total debt of the group is approximately RMB 97,520,000, which includes unpaid principal and interest[78] - As of September 30, 2024, the group had total borrowings due within one year of approximately RMB 1,103,000,000, with a debt-to-equity ratio of approximately 1.17[114] Cash Flow and Financing - The company’s net cash outflow from operating activities was RMB 17,261,000 for the six months ended September 30, 2024, compared to RMB 271,880,000 for the same period in 2023[24] - The company recorded a decrease in cash and cash equivalents from RMB 10,688,000 on April 1, 2024, to RMB 5,252,000 on September 30, 2024[24] - The group obtained new bank and other loans of approximately RMB 41,000,000 during the period, compared to RMB 262,000,000 for the same period in 2023[72] - The group repaid approximately RMB 24,100,000 in bank and other loans during the period, compared to RMB 302,000,000 in the previous year[72] - The group has been actively communicating with existing lenders regarding the renewal of bank loans and credit financing, with no creditors taking immediate action for repayment as of the announcement date[28] Revenue Breakdown - The total revenue for the group during the period was RMB 322,297,000, a decrease from RMB 506,336,000 for the same period last year[44] - Revenue from oil and gas sales contracts was RMB 4,993,000, down from RMB 24,807,000 year-on-year[44] - Other revenue from customer contracts amounted to RMB 317,304,000, compared to RMB 481,529,000 in the previous year[44] - Revenue from wholesale liquefied natural gas for 2024 reached RMB 292,482,000, a decrease of 36.4% compared to RMB 459,488,000 in 2023[45] - Revenue from oil and gas contract trading for 2024 was RMB 4,993,000, down 79.9% from RMB 24,807,000 in 2023[45] - Revenue from sales of vehicle gas for 2024 increased to RMB 19,770,000, up 37.5% from RMB 14,384,000 in 2023[45] - Revenue from liquefied natural gas sales was approximately RMB 293 million, a decrease of about RMB 167 million or 36.4%, accounting for about 55.0% of the group's total revenue[95] - Revenue from oil and gas trading decreased from approximately RMB 2,707 million to approximately RMB 215 million, a reduction of about RMB 2,492 million or 92.1%, accounting for about 40.4% of total revenue[98] Operational Measures and Future Outlook - The group aims to control operating costs through measures such as improving office space efficiency and streamlining personnel structure[29] - The group is focused on improving liquidity and generating sufficient cash flow to meet its obligations[29] - The group plans to continue implementing business strategy plans and cost control measures to improve operational cash flow[29] - The group anticipates a recovery in demand as the global economy stabilizes and domestic markets recover, supported by effective government measures[103] - The group will continue to develop its business in the natural gas sector and explore new opportunities to create value for its shareholders[103] Employee and Administrative Costs - The group reported a total employee cost (excluding director remuneration) of RMB 12,742,000 for 2024, down from RMB 17,560,000 in 2023[49] - Administrative expenses increased by approximately 12.1% to about RMB 37 million, primarily due to an increase in research and development expenses of RMB 6 million[109] - The group employed approximately 283 employees as of September 30, 2024, an increase from approximately 280 employees as of March 31, 2024[121] Legal and Compliance Issues - The group has lost accounting control over Huaheng Energy and has ceased to consolidate it in the financial statements[75] - The group is involved in legal proceedings regarding Huaheng Energy, which may impact future operations and financial results[76] - The group is actively seeking resolutions for ongoing litigation related to overdue bank loans and operational payables[89] Taxation - The effective corporate income tax rate for qualifying group entities is 8.25% on the first RMB 2,000,000 of profit and 16.5% on profits exceeding that amount[57] - The group's income tax expense for the period was approximately RMB 2,200,000, compared to a tax credit of about RMB 5,000,000 for the six months ended September 30, 2023[113] Dividends - No dividends were declared or proposed for both interim periods[59] - The group has not declared an interim dividend for the six months ended September 30, 2024[93]

Financial Performance - The Group recorded turnover of approximately RMB4,970 million for the year ended 31 March 2024, a decrease of 33.3% from approximately RMB7,447 million in 2023[30]. - The loss after tax for the Group was approximately RMB171 million for the year ended 31 March 2024, compared to a loss of approximately RMB28 million in 2023[30]. - The Group incurred a net loss of approximately RMB 170,882,000 and net operating cash outflows of approximately RMB 406,395,000 for the year ended 31 March 2024[169]. - As of 31 March 2024, the Group's total bank borrowings amounted to approximately RMB 1,187,720,000 and guaranteed notes of approximately RMB 169,094,000 will be due for repayment within the next twelve months[169]. - The Group's cash and cash equivalents were approximately RMB 10,688,000 as of 31 March 2024[169]. - The Group's financial statements for the year ended 31 March 2024 have not yet reflected the potential adjustments related to the ongoing uncertainties[171]. Corporate Governance - The Board is committed to maintaining good corporate governance standards to enhance shareholder value[49]. - The Company has complied with all applicable code provisions of the Corporate Governance Code for the year ended 31 March 2024[49]. - The Board will continuously review and improve corporate governance practices to ensure proper regulation of business activities and decision-making processes[49]. - The Corporate Governance Report outlines the need for independent resolutions for re-appointing any independent non-executive director serving over nine years[60]. - The Company emphasizes the importance of independence and integrity when appointing directors[103]. Risk Management - The Group has established a risk management organizational framework that includes the Board, audit committee, and risk management group[111]. - The internal audit function has been established to monitor the risk management and internal control systems[113]. - The Group's risk management systems are designed to provide reasonable assurance but not absolute assurance against material misstatements or losses[117]. - The Group's risk management team conducts annual assessments of significant risks affecting business objectives and develops mitigation plans accordingly[127]. - The board has conducted an annual review of the effectiveness of the Group's risk management and internal control systems, confirming their adequacy[116]. Strategic Initiatives - The Group is exploring potential strategic investors to increase fund reserves and liquidity for repayment of borrowings[19]. - The Group aims to control administrative costs through human resources optimization and management remuneration adjustments, while also constraining unnecessary capital expenditures[19]. - The Group is actively progressing with an action plan to resolve its financial difficulties[30]. - The management will continue to enhance efficiency and reduce costs while seeking profitable trading opportunities amidst uncertainties in international oil and gas prices[46]. - The Group expects that the demand for natural gas will maintain steady growth due to the PRC government's commitment to clean production and pollution control[46]. Compliance and Reporting - The Group is committed to ensuring the accuracy of financial reporting and compliance with relevant accounting standards[28]. - The Company emphasizes compliance with accounting and auditing standards in its financial reporting[64]. - The Company ensures that all disclosed information is accurate and not misleading, adhering to the Securities and Futures Ordinance and Listing Rules[147]. - The Company maintains a shareholders' communication policy to ensure timely and equal access to information regarding financial performance and strategic goals[152]. - The Company has recognized the importance of timely disclosure of information to enable informed investment decisions by shareholders and investors[152]. Employee and Board Diversity - The Company aims to appoint at least one female Board member by December 31, 2024, to enhance gender diversity[93]. - As of March 31, 2024, the employee gender ratio is 4:1, indicating a measurable target for gender diversity[108]. - The Nomination Committee conducted an annual review of the board diversity policy and confirmed its effective implementation[103]. - The Company is committed to ensuring that proper arrangements are in place for independent investigations of financial reporting concerns raised by employees[89]. - The remuneration policy of the Group is designed to reward employees and directors based on performance, qualifications, and market comparability, typically including salary, pension contributions, performance bonuses, and share options[77]. Legal and Regulatory Matters - The Group has made provisions for litigations and claims, actively seeking amicable solutions to outstanding litigations[19]. - The independent auditor has issued a disclaimer of opinion regarding the Company's ability to continue as a going concern[169]. - The Company has defaulted or cross-defaulted on certain bank borrowings and guaranteed notes as of 31 March 2024[169]. - There were no material breaches of applicable laws and regulations that significantly impacted the Group's business and operations during the year ended March 31, 2024[134]. - The Group is committed to complying with environmental standards set by the governments of the People's Republic of China and Hong Kong, recognizing the importance of sustainable business operations[135].

Financial Performance - Total revenue for the year ended March 31, 2024, was RMB 4,969,879,000, a decrease of 33.3% from RMB 7,446,796,000 in the previous year[3] - Oil and gas sales contracts totaled RMB 3,942,794,000, down 28.2% from RMB 5,500,617,000 year-on-year[3] - The company reported a net loss of RMB 170,882,000 for the year, compared to a net loss of RMB 28,267,000 in the previous year, representing a significant increase in losses[4] - Basic and diluted loss per share was RMB 2.52, compared to earnings of RMB 0.42 per share in the previous year[4] - For the fiscal year ending March 31, 2024, total revenue was approximately RMB 1,051,517,000, a decrease from RMB 2,030,802,000 in the previous year, representing a decline of about 48%[35] - The revenue from wholesale liquefied natural gas was RMB 983,477, a decrease of 37% from RMB 1,551,130 in the previous year[37] - The revenue from oil and gas trading contracts was RMB 24,432, down 71% from RMB 84,623 in the previous year[37] - The segment performance for liquefied natural gas production and sales showed a loss of RMB 133,279 for the year ending March 31, 2024, compared to a profit of RMB 33,491 in the previous year[30][33] - The company reported total operating revenue of approximately RMB 4,970,000,000 for the year ended March 31, 2024, down from RMB 7,447,000,000 in 2023, representing a decrease of about 33%[49] - The net loss after tax for the year ended March 31, 2024, was approximately RMB 171,000,000, compared to a net loss of RMB 28,000,000 in 2023, indicating a significant increase in losses[49] Cash Flow and Liquidity - Cash and cash equivalents at the end of the reporting period were RMB 10,688,000, a decrease from RMB 71,662,000 in the previous year[6] - The company recorded a net cash outflow from operating activities of RMB 406,395,000 for the year[12] - The company’s cash and cash equivalents were approximately RMB 10,688,000 as of March 31, 2024, indicating a liquidity challenge given the outstanding borrowings[45] - As of March 31, 2024, the group held cash and bank balances of approximately RMB 11 million, down from RMB 72 million the previous year, with a current ratio of approximately 1.37[65] - The company is actively exploring financing options for operational capital and commitments for the foreseeable future[13] - The company is actively negotiating with existing financial institutions for the extension or deferral of bank loans and credit financing[13] - The group is actively negotiating with existing lenders to extend bank loans and seeking potential strategic investors to improve liquidity and financial conditions[66] Assets and Liabilities - Total assets decreased to RMB 2,671,186,000 from RMB 3,187,053,000 year-on-year, indicating a decline of 16.2%[6] - Current liabilities decreased to RMB 1,953,805,000 from RMB 2,160,758,000, a reduction of 9.6%[8] - The company’s total equity attributable to owners decreased to RMB 1,230,104,000 from RMB 1,393,962,000, a decline of 11.7%[8] - The company’s bank borrowings totaled approximately RMB 1,187,720,000 as of March 31, 2024, with a significant portion due within the next twelve months[45] - The company has several bank loans and guaranteed notes that have defaulted or cross-defaulted as of March 31, 2024[12] - The company has clarified the classification of liabilities as current or non-current based on the rights to defer settlement for at least twelve months[25] - The total liabilities classification will not change with the application of the revised accounting standards effective from April 1, 2024[26] Operational Challenges and Strategies - The company is reviewing and improving measures for the collection of accounts receivable to accelerate the recovery of outstanding trade receivables[15] - The company aims to control administrative costs through human resource optimization and management salary adjustments, while limiting unnecessary capital expenditures[15] - The company believes that if all assumptions and plans are successfully implemented, it will have sufficient operating funds to meet its financial obligations[14] - The company has made provisions related to ongoing litigation and claims, seeking amicable resolutions for unresolved claims and litigation costs[13] - The expected credit loss on trade receivables was approximately RMB 156 million, significantly higher than RMB 1 million in the previous year, due to prolonged debt recovery periods[59] Corporate Governance and Compliance - The group has complied with all applicable corporate governance codes during the reporting period, with some deviations noted[74] - The audit committee reviewed the consolidated financial statements for the year ended March 31, 2024[79] - The group has adopted the standard code of conduct for securities trading by directors and has ensured compliance throughout the reporting period[81] Employee and Operational Metrics - The group has approximately 280 employees as of March 31, 2024, down from 330 in 2023[73] - The group has not engaged in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[69] Other Financial Information - Interest income for the year was RMB 1,368, slightly down from RMB 1,460 in the previous year[37] - The company reported a net foreign exchange gain of RMB 29,525, down from RMB 53,599 in the previous year[37] - The company did not recommend the payment of a final dividend for the year ended March 31, 2024, consistent with the previous year[48] - The interest expense on bank loans increased to RMB 57,229,000 in 2024 from RMB 55,579,000 in 2023, reflecting a rise of about 3%[7] - The group produced approximately 442 million cubic meters of liquefied natural gas (LNG) for the year ending March 31, 2024, a decrease of about 13 million cubic meters or 2.9% compared to the previous year[50] - LNG sales revenue was approximately RMB 983 million, a decrease of about RMB 568 million or 36.6%, accounting for approximately 19.8% of the group's total revenue[50] - The total sales revenue from pipeline natural gas and related services dropped from approximately RMB 365 million to about RMB 53 thousand, a decrease of approximately RMB 364 million or 100% due to the expiration of the gas operation license[51] - The group's gross profit for the year was approximately RMB 77 million, down from about RMB 252 million, with a gross profit margin decreasing from approximately 3.4% to about 1.5%[56] - Other income increased to approximately RMB 4 million, up about 47.3% from RMB 3 million in the previous year[57] - The group wrote off its subsidiary Guizhou Yineda Energy Service Co., Ltd., resulting in a loss of RMB 2,015,000, a decrease in non-controlling interests of RMB 6,216,000, and a net cash outflow of RMB 6,748,000[69] - As of March 31, 2024, the group has pledged assets totaling approximately RMB 256,000,000 for bank financing, a decrease from RMB 600,000,000 in 2023[68] - As of March 31, 2024, the group had no significant capital commitments[70] - As of March 31, 2023, the group provided a financial guarantee for a bank loan of RMB 19,500,000 related to an associate, which was not present in 2024[71] - The group’s guarantee notes are due on April 30, 2024, with an outstanding principal amount of approximately RMB 169,000,000 and related interest payable of approximately RMB 14,000,000 as of the announcement date[82]