Financial Performance - In 2021, the company's revenue was RMB 1,209,271,000, a slight increase from RMB 1,186,824,000 in 2020, representing a growth of approximately 1.4%[12] - The company reported a loss attributable to owners of RMB 26,817,000 in 2021, compared to a loss of RMB 27,697,000 in 2020, indicating a reduction in losses[12] - The company reported a loss attributable to shareholders of approximately RMB 36.46 million in 2021, an increase of 45% compared to a loss of RMB 25.16 million in 2020[20] - The gross profit for 2021 was RMB 248.14 million, down 8% from RMB 269.01 million in 2020, resulting in a gross margin of 20.5%, a decrease of 2.1 percentage points[20] - Revenue for the reporting period was approximately RMB 1,209.27 million, an increase of about 2% compared to RMB 1,186.82 million in 2020[23] - Revenue from gas generation was approximately RMB 802.18 million, a decrease of about 9% from RMB 877.51 million in 2020[23] - Revenue from liquefied natural gas (LNG) supply and gas transportation services was approximately RMB 181.88 million, an increase of about 124% compared to RMB 81.22 million in 2020[23] - Other income for the reporting period was approximately RMB 10.82 million, an increase of about 504% from RMB 1.79 million in 2020, mainly due to more government subsidies received[23] Assets and Liabilities - Total assets decreased to RMB 2,406,049,000 in 2021 from RMB 2,524,718,000 in 2020, a decline of about 4.7%[12] - The total liabilities decreased to RMB 1,124,019,000 in 2021 from RMB 1,206,225,000 in 2020, a reduction of approximately 6.8%[12] - The company’s total equity stood at RMB 1,282,030,000 in 2021, down from RMB 1,318,493,000 in 2020, reflecting a decrease of about 2.7%[12] - The group's total cash and bank deposits as of December 31, 2021, were approximately RMB 297.55 million, a decrease from RMB 511.83 million in 2020[26] - The group's total bank and other borrowings as of December 31, 2021, were approximately RMB 615.44 million, compared to RMB 607.80 million in 2020[26] - The debt-to-equity ratio as of December 31, 2021, was 48%, an increase from 46% in 2020[26] - The current ratio as of December 31, 2021, was approximately 1.03, compared to 1.01 in 2020, indicating a stable liquidity position[26] Operational Developments - The company successfully developed and launched two new air separation units with a capacity of 40,000 Nm3/h each, enhancing production capacity significantly[10] - The company reported a successful R&D in rare gas products, filling market gaps in aerospace and high-end electronics sectors[10] - The company has initiated 6 new technology projects and filed 5 patents and 2 software reports in 2021, reflecting a strong commitment to innovation[10] - The company aims to enhance its market competitiveness by focusing on high-value products and expanding its strategic layout across China[10] - The company plans to deepen cooperation with Hebei Iron and Steel Group in the steelmaking industry, leveraging its production service experience[10] - The company plans to enhance its oxygen production capacity through the construction of air separation units at the Tangshan plant, funded by the proceeds from its IPO[19] - The company aims to develop high-value specialty gases, including electronic gases and medical gases, to diversify its product offerings and improve profitability[19] Market and Strategic Outlook - The production target for 2022 includes 15.86 million tons of iron, 17.48 million tons of steel, and 16.91 million tons of steel products[1] - The company expects to gradually increase its production capacity utilization rates in the coming years, driven by new construction and relocation of facilities[1] - The steel industry in China benefited from a strong economic environment in 2021, with the steel price index increasing by 34.53% year-on-year[1] - The company has a priority right to acquire industrial gas assets from Hebei Iron and Steel Group if they are offered for sale, which is a key growth strategy[19] Employee and Management Information - The group employed a total of 369 employees as of December 31, 2021, a slight decrease from 370 employees in 2020[32] - The total employee cost for the group was approximately RMB 54.04 million for the year, compared to RMB 40.04 million for the year ended December 31, 2020[32] - The management team includes experienced professionals with backgrounds in finance and engineering, contributing to operational and strategic decision-making[67] - The company plans to continue attracting and retaining skilled personnel through competitive compensation and professional development programs[32] Corporate Governance - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors[43] - The company has established a strong governance structure with independent non-executive directors overseeing board activities and providing independent opinions[62] - The board is responsible for guiding and supervising the company's affairs, ensuring effective internal controls and risk management[84] - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period[73] - The company has implemented appropriate insurance coverage for directors and senior officers against potential legal actions arising from company activities[86] Risk Management - The company faces operational risks, regulatory risks, and financial risks, including interest rate risk and credit risk[113] - The board is responsible for assessing and determining the nature and extent of risks the company is willing to take to achieve strategic goals, with a minimum annual review of the risk management and internal control systems[111] - The company has established internal control procedures in compliance with applicable Chinese laws and regulations, covering governance, operations, management, legal matters, finance, and auditing[113] - The board has reviewed the effectiveness of the risk management and internal control systems during the reporting period and deemed them sufficient and effective[118] Future Growth Strategies - The management has outlined future growth strategies that include market expansion and potential mergers and acquisitions to enhance competitive positioning[61] - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[58] - The company is exploring potential acquisitions to enhance its product offerings and market reach[143] Environmental and Social Responsibility - The company has implemented environmental protection measures and encourages employees to conserve energy and reduce waste[198] - The group made charitable donations of approximately RMB 5,000 during the reporting period[156] - The company has been engaged in comprehensive and all-season ecological tourism resource development, greening and environmental protection, skiing, and sports training since its establishment[61]

Financial Performance - The company reported a revenue of RMB 1,186,824,000 for the fiscal year 2020, a decrease of 9.1% compared to RMB 1,305,152,000 in 2019[10]. - The company incurred a loss attributable to owners of RMB 27,697,000 in 2020, compared to a profit of RMB 133,838,000 in 2019, marking a significant decline[10]. - The total revenue for the reporting period was approximately RMB 1,186.82 million, a decrease of about 9.07% compared to RMB 1,305.15 million in 2019[22]. - The gross profit for 2020 was approximately RMB 269.01 million, down about 4.7% from RMB 282.23 million in 2019, with a gross margin of approximately 22.67%[22]. - The revenue from the supply of industrial gases was approximately RMB 877.51 million, a decrease of about 5.81% from RMB 931.64 million in 2019[23]. - The revenue from the supply of liquefied industrial gases was approximately RMB 214.98 million, down about 15.76% from RMB 255.20 million in 2019[23]. - The company reported a loss attributable to equity shareholders of approximately RMB 25.16 million, a decrease of about 119% compared to a profit of RMB 132.89 million in 2019[22]. - Other income for the reporting period was approximately RMB 1.79 million, a decrease of about 20.27% from RMB 2.25 million in 2019[24]. Assets and Liabilities - Total assets increased to RMB 2,524,718,000 in 2020, up from RMB 2,052,539,000 in 2019, reflecting a growth of 23%[10]. - The total liabilities of the company stood at RMB 1,206,225,000 in 2020, an increase from RMB 748,505,000 in 2019[10]. - Current assets increased by approximately 51.31% to RMB 930.47 million, while current liabilities rose to RMB 920.53 million, resulting in a current ratio of approximately 1.01[32]. - As of December 31, 2020, the total cash and bank balances amounted to approximately RMB 511.83 million, with a debt-to-equity ratio of 46% compared to 29% in 2019[31]. Strategic Initiatives - The company has established a strategic partnership with Hebei Iron and Steel Group, aiming to explore more business development and equity cooperation opportunities[8]. - The company plans to leverage its listing in Hong Kong to enhance its future development and expand its market presence[8]. - The company is actively seeking acquisition opportunities for high-quality industrial gas assets from the Hebei Steel Group, which is a key strategic development for future growth[19]. - The company aims to develop high-value specialty gases, including electronic gases and medical gases, to diversify its product offerings and enhance profitability[19]. - The company plans to increase oxygen production capacity by 67,000 standard cubic meters per hour, representing a 30.7% increase from the capacity as of June 30, 2020[18]. Operational Performance - In 2020, the company produced 1.47 billion cubic meters of oxygen, 1.77 billion cubic meters of nitrogen, and 5.67 million cubic meters of hydrogen, achieving a sales revenue of RMB 877 million[16]. - Sales and distribution expenses decreased by approximately 17% to RMB 1.36 million due to reduced travel costs amid the COVID-19 pandemic[26]. - Administrative expenses increased by approximately 34.26% to RMB 53.96 million, primarily due to relocation costs and increased capital expenditures related to new properties and equipment[27]. - The company recognized an impairment provision of RMB 118 million for receivables due to long-term overdue loans that are unlikely to be recovered[28]. - Financing costs increased by approximately 17.3% to RMB 22.73 million, attributed to an increase in bank borrowings[29]. Corporate Governance - The company has established a robust governance structure with various committees, including the Nomination Committee and the Audit Committee, to ensure effective oversight[69]. - The board of directors is committed to maintaining high standards of corporate governance to protect shareholders' interests[93]. - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with high standards of corporate governance[93]. - The audit committee has reviewed the company's governance policies and compliance with legal and regulatory requirements since the listing date[127]. - The company has implemented a whistleblowing policy to encourage reporting of fraud or misconduct within the group[136]. Management and Personnel - The company has a strong management team with diverse backgrounds in engineering, finance, and operations, enhancing its strategic capabilities[69]. - The group employed 370 employees as of December 31, 2020, down from 400 employees in 2019, with total employee costs approximately RMB 40.04 million, a decrease from RMB 46.74 million in the previous year[45]. - The company plans to continue attracting and retaining high-skilled personnel to strengthen its corporate culture and support employee development[44]. - The management team includes members with advanced degrees in relevant fields, such as Mr. Yao's PhD in Metallurgical Engineering and Ms. Gao's MBA[66]. Risks and Challenges - The company faces significant risks related to its relationship with the Hebei Steel Group, which is crucial for its operations; any changes in this relationship could adversely affect its financial performance[164]. - The company faces operational risks related to relationships with subsidiaries, production control, and customer service, as well as regulatory and financial risks[129]. - The company’s financial performance may be impacted by the construction of its only in-progress production facility, which is expected to incur substantial depreciation expenses[164]. Shareholder Relations - The company emphasizes effective communication with shareholders to enhance understanding of its business performance and strategies[153]. - The company does not recommend the distribution of a final dividend for the reporting period, considering the long-term interests of shareholders[157]. - The company’s dividend payments are contingent upon the availability of profits from its subsidiaries, as per Chinese accounting standards[157]. Market Position - The company operates as an industrial gas supplier in Hebei Province, China, focusing on pipeline industrial gases and liquefied gases, with products including oxygen, nitrogen, argon, hydrogen, and carbon dioxide[162]. - The company’s industrial gas products are essential raw materials in steel production, indicating a strong link to the steel industry’s market conditions[162]. - The largest customer contributed approximately 88% to the total revenue during the reporting period, while the top five customers accounted for about 91% of total revenue[171]. - The largest supplier accounted for approximately 78% of total procurement costs, with the top five suppliers collectively representing about 82%[172].