Hansi Group Holdings (00554): Rising fuel costs will continue to put significant pressure on the operating expenses of the Group's transportation business

Zhitong Finance App News, Hansi Group Holdings (00554) issued an announcement. The ongoing Middle East crisis has triggered a sharp rise and sharp fluctuation in international fuel prices. Since the end of February 2026, the price of diesel has more than doubled, soaring from around $90 per barrel to over $200 per barrel. Citybus Ltd. (Citybus), a non-wholly-owned subsidiary of the Company, is directly affected by rising fuel costs.

On April 9, 2026, the Hong Kong Special Administrative Region Government (HKSAR Government) announced a series of short-term targeted measures to mitigate the impact of rising fuel prices. These measures include providing diesel subsidies to commercial vehicles and boats, reducing government tunnel fees for commercial vehicles by 50%, and setting up a public transport service special application task force to assist public transport operators. Although the measures taken by the HKSAR Government and Citybus's own cost control measures have contributed to a certain degree of mitigation, Citybus still has to bear part of the impact of rising fuel costs. With the recent termination of key short-term relief measures (in particular, the diesel subsidy ended on June 29, 2026), the Group expects its financial performance to continue to be adversely affected for some time to come due to high fuel prices. Although international fuel prices have declined somewhat from recent peaks, market conditions are still highly volatile. Rising fuel costs will continue to put significant pressure on the operating expenses of the Group's transportation business and may affect the Group's overall financial performance in the future.

The Group has been closely monitoring market dynamics and fuel price trends. The Group will continue to regularly assess the situation and discuss appropriate operational and financial measures with the HKSAR Government to mitigate the impact of rising fuel costs.