Hengbang Energy's Shenzhen Stock Exchange main board IPO "terminated", mainly engaged in urban gas transmission, distribution, and operation business.

On March 5th, Sichuan Hengbang Energy Co., Ltd. (referred to as Hengbang Energy) had its IPO application status on the Shenzhen Stock Exchange changed to "terminated." Due to the withdrawal of the issuance and listing application by Sichuan Hengbang Energy Co., Ltd., in accordance with relevant provisions of the Shenzhen Stock Exchange Stock Issuance and Listing Review Rules Article 62, the Shenzhen Stock Exchange has terminated its review of the issuance and listing. According to the prospectus, Hengbang Energy is mainly engaged in the distribution and operation of urban gas, including natural gas sales (including residential gas, industrial and commercial gas, CNG vehicle refueling, etc.) and installation of natural gas facilities and equipment. In terms of natural gas sales, the company purchases natural gas from upstream suppliers and transports it through pipeline transportation; the company connects its natural gas pipeline at the junction with the upstream gas supplier, processes it through pressure regulation, filtering, metering, odorization, etc., and supplies the processed natural gas to residents, industrial and commercial users, and CNG refueling stations through distribution stations, refueling stations, and urban transmission pipelines; in terms of natural gas installation business, the company provides installation and after-sales services for natural gas facilities and equipment according to the needs of end users. The company's business is mainly concentrated in the administrative jurisdictions of Jialing District, Leshan City and Emeishan City (except for Longchi Town, Dawei Town, and Jiuli Town Chuantou Emei Iron Family area). During the reporting period, the company's natural gas sales volumes were 79.7252 million cubic meters, 89.0593 million cubic meters, 94.1781 million cubic meters, and 55.3254 million cubic meters respectively. As of June 30, 2023, the company owned 4 distribution (leveraging) stations, 8 pressure regulating and metering levers, 1 CNG refueling station, and operated pipelines of different diameters totaling 1,500.85 kilometers, serving over 200,000 households of residential users and over 7,500 industrial and commercial users. Financially, in 2020, 2021, 2022, and January-June 2023, Hengbang Energy achieved operating revenues of approximately 284 million yuan, 310 million yuan, 337 million yuan, and 198 million yuan respectively. During the same period, the company achieved net profits of 68.4648 million yuan, 72.375 million yuan, 70.5455 million yuan, and 38.2915 million yuan respectively. According to the prospectus, Hengbang Energy faces the risk of insufficient gas supply. During the reporting period, the company's natural gas purchases came from a subsidiary of China National Petroleum Corporation, and the company has established a good cooperation relationship with upstream gas supply enterprises since its establishment. The company signs natural gas purchase contracts annually with upstream gas supply enterprises. However, due to the still prominent imbalance between supply and demand of natural gas in China, and the fact that the majority of the company's gas sources come from a subsidiary of China National Petroleum Corporation, if in the future China National Petroleum Corporation cannot meet the company's gas demand due to policy or other factors in the balance of natural gas allocation, it will have a negative impact on the company's production and operation.