Yuan Ma Discusses Dividends: A Leading Natural Gas Company Pays RMB 11.4 per 10 Shares—With a Dividend Yield Exceeding 7%. Why Did Its Q1 Profits 'Plunge'?

I select stocks for retirement investing by evaluating five key criteria. Criterion One: Is the current dividend yield above 4%? Based on the closing price of RMB 15.9 per share on June 26, 2026, the annual dividend per share is RMB 0.96, yielding approximately 6.04%. Conclusion: This far exceeds the 4% threshold. Moreover, multiple securities firms forecast that the company’s dividend yield will continue rising through 2026–2028, reaching 6.2%, 7.0%, and 7.9%, respectively. Criterion Two: Is the company’s core business sustainable? Xin’ao Holdings’ business model is clear—natural gas procurement, sales, transmission & distribution, and infrastructure operations. Its core competitive advantages include: First, full-industry-chain integration. The company covers the entire natural gas value chain—from upstream international resource procurement, to midstream LNG receiving terminals and pipeline networks, to downstream city-gas sales. This integrated 'supply-storage-sales' model is unique among private-sector gas enterprises in China. Second, a massive customer base. It serves over 32.76 million households and 316,000 industrial and commercial customers—a scale that ensures stable cash flow and strong countercyclical resilience. Third, the Zhoushan LNG Receiving Terminal. Approved by China’s National Energy Administration, this is the first large-scale LNG terminal invested in and built by a private enterprise. Its Phase III project was completed and commissioned in August 2025, with a maximum annual processing capacity of 10 million tons. This represents the company’s most critical physical barrier to entry. Fourth, international resource deployment. The company has signed long-term supply agreements totaling over 7 million tons annually, with pricing linked to both the U.S. Henry Hub index and oil price indices. Starting in 2026, a 20-year LNG supply agreement with Cheniere Energy—providing 900,000 tons annually—will commence delivery. 'Cheniere Long-Term Agreement' refers to the long-term LNG purchase agreement signed between Xin’ao Holdings and Cheniere Energy (a leading global LNG producer and exporter, and the first U.S. company granted LNG export authorization). Xin’ao Holdings executed this agreement via its subsidiary, Xin’ao Singapore Pte. Ltd., to secure long-term overseas natural gas supply. In simple terms, Xin’ao Holdings has signed a 20-year 'wholesale procurement contract' with a major U.S. LNG exporter. Xin’ao Holdings has signed two long-term agreements with Cheniere: 1. First LTA (currently in effect): Deliveries began in 2022 at 900,000 tons/year. Xin’ao previously resold part of this volume to European buyers. 2. Second LTA (to commence in 2026): Signed in June 2023, originally scheduled to deliver ~1.8 million tons annually starting mid-2026. This new agreement underwent an important adjustment in early 2026. ● Adjustment: The original 900,000-ton annual volume was contingent upon the seller’s final investment decision for related LNG expansion projects—a condition not met. Consequently, both parties agreed to reduce the total annual volume from 1.8 million to 900,000 tons. ● Current Status: The revised 20-year agreement remains effective and will formally commence in 2026. ● Delivery Terms: Under the agreement, Cheniere will supply LNG on an FOB (Free On Board) basis.

Xin’ao Holdings: China’s Leading Domestic Natural Gas Operator

In 2021, driven by simultaneous growth in natural gas volume and pricing, as well as rapid expansion of integrated energy services, the company achieved full-year revenue of RMB 115.92 billion, up 31.58% year-on-year; and net profit of RMB 4.102 billion, up 94.69% year-on-year—boosted by rapid growth in natural gas direct sales and coal trading. Upstream Resource Pool: Low-cost, diversified gas supply channels—dual domestic and international sources. The company maintains diversified gas supply channels, primarily divided into domestic and international sources. Domestic supply: Xin’ao Energy has established long-term cooperative relationships with upstream suppliers—including PetroChina, Sinopec, and CNOOC—and signed gas purchase contracts covering pipeline transportation routes such as West-to-East Gas Transmission and Shaanxi-Beijing Pipeline. It also secures gas resources via long-term 'take-or-pay' and 'supply-or-pay' agreements. Since 2003, Xin’ao Energy and its subsidiaries have signed a total of 24 long-term gas supply agreements with PetroChina, Sinopec, and CNOOC, with contract durations ranging from 2 to 27 years. These agreements collectively cover annual gas volumes totaling approximately 36.2 billion cubic meters. International supply: In 2016, Xin’ao Energy’s subsidiary, Xin’ao Trading, successively signed long-term LNG import contracts with international suppliers, totaling ~1.44 million tons. Three of these—signed with Total, Ruijin, and Chevron—began implementation in the second half of 2018, further diversifying gas sourcing and enhancing supply stability. Pricing under these contracts is predominantly linked to international oil prices, with a small portion tied to the U.S. Henry Hub natural gas price. Following its major asset restructuring in 2020, the company accelerated overseas gas sourcing expansion, signing four additional LNG long-term agreements between October 2021 and April 2022. Except for the agreement with Novatek, the other three are priced against the Henry Hub benchmark. • In October 2021, the company signed a 13-year LNG supply agreement with Cheniere Energy for 900,000 tons annually; • In January 2022, it signed an 11-year LNG supply agreement with Russia’s Novatek for ~600,000 tons annually; • In March 2022, Xin’ao Holdings and Xin’ao Energy separately signed 20-year LNG supply agreements with U.S.-based ET LNG, providing 1.8 million tons and 900,000 tons annually, respectively; • In April 2022, Xin’ao Holdings’ subsidiary ENN LNG signed a 20-year LNG supply agreement with Rio Grande LNG (a subsidiary of NextDecade), providing 1.5 million tons annually. Beyond long-term contracts, the company supplements its supply with spot LNG purchases from overseas markets, adjusting flexibly based on actual needs and prevailing natural gas market prices. Focus on unconventional natural gas to achieve self-production and self-marketing.

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