Zhonghua Gas Holdings Limited said its business has been “seriously impacted” by coronavirus as the Hong Kong-based company reports its first quarter of 2020 results.

The total revenue from continuing operations recorded was reduced to HKD75.1m, representing a 29.5% decrease in revenue year-on-year, from HKD113.6m.

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. 

“The decrease in revenue was mainly caused by the outbreak of coronavirus (Covid-19) which led to the imposition of various travel and work restrictions by the relevant government administrations,” said Zhonghua Gas Holdings Limited in a statement.

“This 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 endeavoured to strengthen LNG supply during the heat supply period.

The 60:40 Joint Venture that Zhonghua Gas Holdings Limited set up with Shanghai Jiulian Group enabled the company 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.

Zhonghua Gas Holdings Limited said it continued to maintain a 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, Zhonghua Gas Holdings Limited said it 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 minimise losses.