According to a company announcement, YUANHENG GAS (00332) has issued a profit warning for the financial year ending March 31, 2026. Based on a preliminary review of the group's unaudited consolidated management accounts and information currently available to the board, the net loss for FY2026 is expected to decrease by more than 90% compared to the net loss of approximately RMB 1.993 billion recorded in the previous financial year ended March 31, 2025 (FY2025).

The net loss for FY2026 has narrowed significantly. The primary reasons for this improvement are as follows. During FY2025, the group recognized a total of approximately RMB 1.866 billion in asset impairment losses. This amount represented impairment provisions made for trade receivables, prepayments, other receivables, and financial guarantee contract liabilities. It is anticipated that no significant asset impairment provisions will be made in FY2026, meaning the impairment loss for the current year will be substantially lower than in FY2025.

Furthermore, in FY2025, the group incurred a one-time loss of RMB 35 million due to the deconsolidation of a subsidiary, Guizhou Huaheng Energy Investment Co., Ltd. This specific loss is not expected to recur in FY2026.