Recent breakthrough exploration wells in the Huagang Formation in the Y-area of the central anticlinal zone of the Xihu Sag have confirmed the significant exploration potential of structure–lithology complex hydrocarbon reservoirs. However, limited understanding of the provenance system, sedimentary facies, and microfacies has hindered further progress in complex hydrocarbon exploration. Analysis of high-precision stratigraphic sequences and seismic facies data, mudstone core color, grain-size probability cumulative curves, core facies, well logging facies, lithic type, the heavy-mineral ZTR index, and conglomerate combinations in drilling sands reveals characteristics of the source sink system and provenance direction. The Huagang Formation in the Y-area represents an overall continental fluvial delta sedimentary system that evolved from a braided river delta front deposit into a meandering river channel large-scale river deposit. The results indicate that the primary provenance of the Huagang Formation in the Y-area of the Xihu Sag is the long-axis provenance of the Hupi Reef bulge in the northeast, with supplementary input from the short-axis provenance of the western reef bulge. Geochemical analysis of wells F1, F3, and G in the study area suggests that the prevailing sedimentary environment during the period under investigation was characterized by anoxic conditions in nearshore shallow waters. This confirms previous research indicating strong tectonic reversal in the northeast and a small thickness of the central sand body unrelated to the flank slope provenance system. The aforementioned findings deviate from conventional understanding and will serve as a valuable point of reference for future breakthroughs in exploration.