China HK Power Smart Energy Group Limited released its audited results for the year ended 31 March 2026.
Revenue and Profitability • Group revenue rose 14.2% year-on-year to HK$814.69 million, driven by a 19.7% increase in natural-gas (NG) income to HK$694.47 million (85.2% of total revenue). • New-energy revenue declined 10.1% to HK$118.33 million, while financial-services income was stable at HK$1.89 million. • Gross profit fell 80.1% to HK$23.21 million; gross margin narrowed sharply to 2.8% from 16.3% a year earlier, reflecting higher feedstock costs and lower downstream prices. • Loss attributable to shareholders widened 57.2% to HK$166.64 million; total net loss stood at HK$173.53 million. Basic loss per share was HK$0.023.
Segment Performance Natural-gas business – Wholesale LNG/PNG trading revenue surged 57.3% to HK$576.79 million on higher volumes (158,924 tonnes, +93.0%). – Point-to-point LNG retail revenue fell 46.4% to HK$87.36 million on a 33.9% drop in sales volume to 14,252 tonnes. – LNG logistics revenue decreased 39.8% to HK$30.32 million.
New-energy business – Integrated-solution projects generated HK$104.38 million (+28.4%), offsetting a 72.2% fall in new-energy product sales to HK$13.96 million.
Cash Flow and Balance Sheet • Cash and cash equivalents stood at HK$36.97 million (FY2025: HK$37.27 million). • Net current liabilities widened to HK$446.55 million. • Interest-bearing debt totalled HK$719.23 million; gearing ratio edged up to 276.2%. • Net assets amounted to HK$260.40 million, including HK$490.93 million of property, plant and equipment.
Liquidity Measures and Going-Concern The auditor drew attention to material uncertainties related to going concern. Management is relying on: 1) an HK$800 million shareholder standby facility (HK$326.63 million undrawn at 31 March 2026); 2) capitalisation of HK$260 million shareholder loans completed on 26 May 2026, lifting available facilities to HK$586.63 million; and 3) ongoing cost control and bank-credit negotiations in mainland China.
Capital Expenditure and Commitments • Outstanding capex commitments were HK$163.20 million, mainly for energy-infrastructure builds in Hubei, Anhui, Jiangxi, Guangdong and Jiangsu. • Key projects under construction include the Zhanjiang biomass steam plant (Phase I capex RMB480 million) and the Dongguan Songshan Lake integrated energy station (capex RMB107 million).
Dividends No dividend was declared for FY2026.
Legal Contingency A penalty provision of HK$6.64 million was booked for overdue interest relating to LNG tank-container litigation; cumulative provision stands at HK$39.22 million.
Headcount and Costs Employee numbers declined to 498 (-3.9% year-on-year); staff costs fell 12.3% to HK$83.0 million following workforce optimisation.
Outlook Management intends to stabilise the NG core, expand new-energy solutions, and pursue additional bank financing while leveraging shareholder support to mitigate liquidity pressure.