HONG KONG, May 13, 2020 - (ACN Newswire) - Zhonghua Gas Holdings Limited (the "Company"; Stock Code: 8246) together with its subsidiaries (collective namely the "Group") today announces that the first quarter results for the three months ended 31 March 2020 ("the Current Period"). During the period, the Group's business has been seriously impacted by the Novel Coronavirus Disease ("COVID-19"). The total revenue from continuing operations recorded was reduced to HKD75.10 million, representing a 29.5% decrease in revenue year-on-year, from HKD113.6 million. The gross profit ratio and net profit after tax dropped by 22.2% and 72.5% respectively comparing with those of the Previous Period. The New Energy Business contributed over 99.8% to the Group's total revenue. Profit attributable to the owners of the Company from continuing operations decreased by 76.1% to HKD2.9 million compared to the Previous Period. The basic and diluted earnings per share for the Current Period were both HKD0.08 cents, as compared with HKD0.36 cents for the Previous Period.

The decrease in revenue was mainly caused by the outbreak of COVID-19 which led to the imposition of various travel and work restrictions by the relevant government administrations which unavoidably caused serious impact on the Group's normal business operations such as client meetings, contract negotiation and progresses on the completion of new projects. As a result, the only source of revenue earned for the first three months of this year was from the supply of LNG that has a thinner gross profit margin than that of construction related and consultancy works.

Regarding the development on LNG business, the Group endeavored to strengthen LNG supply during the heat supply period. The 60:40 Joint Venture that the Group set up with Shanghai Jiulian Group enabled the Group to secure stable supply of LNG resources and expand its business to the high potential market in the Yangtze River Delta region. The Joint Venture will be principally engaged in sale of LNG, engineering of LNG pipeline, sale, installation, maintenance of LNG delivery equipment, technology development, consulting and transfer of heating system, technology development of new energy, etc. Meanwhile, the Group continued to maintain solid relationship with Tractebel Engineering S.A. from France and Tianjin Jinre Heat-Supply Group Co. Ltd in technological and infrastructure related business.

Looking forward, the Group will stay alert on the market and continue to keep a close watch on the development of COVID-19 while implementing timely measures to mitigate any possible business risks and minimize losses.

Zhonghua Gas Holdings LimitedZhonghua Gas Holdings Limited is principally engaged in provision of diverse integrated new energy services including technological development, construction and consultancy services in relation to heat supply and coal-to-natural gas conversion, supply of liquefied natural gas, coupled with trading of new energy related industrial products. The Group is also engaged in the property investment business.

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