Yuan Heng Gas Holdings reported FY26 revenue of RMB 609.02 million, down 24.6% year on year, as the company sharply curtailed oil and gas trading activities. The production and sales of liquefied natural gas (LNG) remained the core business, contributing 93.8% of turnover with RMB 571.34 million, up 8.8% on a 9.7% rise in LNG output to 531 million cubic metres. Oil and gas trading revenue slumped 94.4% to RMB 12.65 million.

Gross profit inched up 1.6% to RMB 44.74 million, lifting the margin to 7.4% from 5.5% a year earlier. The improvement stemmed from reduced impairment charges, which fell to RMB 19.39 million from RMB 1.87 billion in FY25.

Loss attributable to shareholders narrowed markedly to RMB 158.73 million, versus a RMB 1.92 billion loss a year earlier. Basic loss per share contracted to RMB 2.42 cents from RMB 29.27 cents. The board recommended no final dividend.

Finance costs nearly doubled to RMB 136.78 million, reflecting accrued interest on overdue borrowings. Net operating cash flow turned positive, yet liquidity remains strained: cash and cash equivalents stood at just RMB 7.64 million against short-term bank borrowings of RMB 1.11 billion and guaranteed notes of RMB 191.66 million. The group defaulted on RMB 1.03 billion of bank loans, triggering cross-default on an additional RMB 69.71 million.

Total equity was negative RMB 1.25 billion, while net current liabilities widened to RMB 1.77 billion. The auditor issued a disclaimer of opinion, citing multiple material uncertainties over the group’s ability to continue as a going concern.

Management is pursuing debt restructuring, negotiating with creditors, tightening working-capital usage, and seeking new financing. A proposed 20-to-1 share consolidation and capital reduction, subject to shareholder approval, aims to facilitate future capital raising.

No material acquisitions occurred during the year. The FY25 deconsolidation of Huaheng Energy, previously the piped-gas segment, remains under legal dispute and exposed the group to RMB 108.66 million of financial-guarantee liabilities.

Yuan Heng Gas continues to focus on its LNG production, distribution and transportation businesses while implementing cost controls and operational adjustments amid ongoing market volatility and restructuring efforts.