Key takeaway

The company delivered stable overall operations in 2025.Although performance fell short of expectations in 3Q due toscheduled dry-docking of LPG vessels, the energy logisticsservices segment achieved a sequential recovery in profitabilityduring 4Q. In 1Q26, performance fully demonstrated operationalresilience amid significant international geopolitical volatility:although the revenue side was impacted by shipping schedulesand geopolitical risks, leading to a decline in sales volume forsome businesses, the company optimized operationalmanagement, achieving a steady increase in comprehensivegross profit for its core business and highlighting operationalresilience. The company is actively advancing multiple qualityprojects, including the Qinghua coal-to-gas Phase II project.While the fundamental business remains solid, growth prospectsare also worth anticipating.

Event

The company released its 2025 annual report, reporting revenueof RMB20.27bn, down 8.1% YoY, and net profit attributable toshareholders of the parent company of RMB1.48bn, down 12.1%YoY. Net profit attributable to shareholders of the parentcompany in 4Q was RMB240mn, representing a YoY increase of60.2% and a QoQ decrease of 37.2%. In 1Q26, revenue wasRMB4.50bn, down 17.98% YoY and 3.50% QoQ, and net profitattributable to shareholders of the parent company wasRMB430mn, down 14.2% YoY but up 81.9% QoQ.

Risks:

1、Macroeconomic fluctuations and geopolitical conflict risks: the clean energy sector in which the companyoperates is closely linked to national economic development. Macroeconomic fluctuations, changes in macropolicies, or shifts in relevant industry demand may adversely affect the company's operations and marketdevelopment.

2、Intensified market competition risk: the company's LNG and LPG products are homogeneous and subjectto full market competition. If new competitors emerge within the company's operating regions, the companymay be placed at a disadvantage in the market.

3、Large-scale project investment risk: large-scale project investment is a key pathway to achieving thecompany's strategic development objectives. Large-scale projects typically feature substantial capitalinvestment, lengthy construction periods, and numerous approval procedures. During project evaluation,construction, and operation, they may face uncertainties such as insufficient or excessive capital investment,policy changes, construction delays, shifts in market demand, and investment returns falling short ofexpectations.