Yuan Heng Gas Holdings Limited provided group earnings guidance for the six months period ended September 30, 2016. The board of directors of the company informed the shareholders of the company and potential investors that, based on the preliminary assessment of the information currently available to the Board, the Group's profit attributable to owners of the company for the six months period ended 30 September 2016 is expected to decrease as compared to that for the corresponding period in 2015. Based on the information currently available, the expected decrease in the profit of the Group for the interim period ended 30 September 2016 as compared to that for the corresponding period in 2015 is principally attributable to (1) the slowdown in natural gas demand growth due to a slowdown in China's economic growth since 2014, the transformation of the economic structure and the deceleration of industrial and power generation gas consumption; and (2) the loss of economic advantages of domestic LNG due to the continuous unfavourable prices of the international oil and gas. Furthermore, the decrease in the cost of the alternative source of energy and the dis-alignment on the price adjustment between the natural gas suppliers and the market users have caused significant challenges to the Group in costs transferring, placing pressure on the Company's products' selling price and volume. The Group's Sichuan based LNG plant, in this regard, reported gross loss for the first time for the past off peak season. The management has carried out a series of efforts to reduce cost and increase efficiency, which aim to improve the profitability of the processing plants in a short term and to enhance the core competitiveness. The management considers that although the domestic natural gas market is currently in an over supply position during the transitional gas users adjustment period, the policy of the Chinese government to adjust the overall energy structure and to increase the use of natural gas is clear in a long run, and the prospect of the natural gas industry remains favorable.