Yuan Heng Gas Holdings Ltd. is currently addressing legal proceedings involving its subsidiary in relation to Huaheng Energy Investments Co., Ltd. The Higher People's Court of Guizhou Province has rejected all claims raised by the subsidiary. Consequently, the subsidiary is considering applying for a retrial with the Supreme People's Court, consulting with its PRC legal advisers on the matter. Despite the ongoing legal challenges, the relevant banks have shown understanding and indicated that they will not pursue enforcement actions against the subsidiary further at this stage. Meanwhile, the Group is actively seeking professional advice to progress in these unsettled litigations. Additionally, Yuan Heng Gas Holdings Ltd. has engaged with a potential strategic investor, signing a memorandum of understanding to explore financial support for the Group's restructuring efforts.