Financial Performance - The company's revenue for the year 2021 was RMB 5,830,081,000, a significant increase of 67.4% compared to RMB 3,481,322,000 in 2020[20] - Gross profit for 2021 was RMB 612,724,000, with a gross margin of 11%, down from 14% in 2020[20] - Net profit attributable to equity shareholders was RMB 176,620,000, representing a 43.3% increase from RMB 123,283,000 in the previous year[20] - The total assets of the company reached RMB 1,544,375,000, up from RMB 1,273,135,000 in 2020[20] - The company achieved an operating profit of RMB 293,000,000 for the year[25] - The company recorded revenue of RMB 5,830.1 million, an increase of RMB 2,348.8 million or 67% compared to RMB 3,481.3 million in 2020[36] - The sales volume of finished oil reached approximately 836,000 tons in 2021, up about 27% from approximately 656,000 tons in 2020[36] - The company’s finished oil sales revenue was RMB 5,539.3 million, representing a year-on-year increase of approximately 72% and accounting for about 95% of total revenue[36] - Natural gas sales revenue was RMB 236.4 million, a 13% increase year-on-year, contributing 4% to total revenue[37] - The company’s net profit for 2021 was RMB 181.9 million, an increase of RMB 57.5 million compared to RMB 124.4 million in 2020[47] Market and Industry Trends - In 2022, global energy demand is expected to rise as major economies recover from the pandemic[26] - China's natural gas production reached approximately 205.1 billion cubic meters in 2021, a year-on-year increase of 7.72%[23] - In 2021, China's natural gas production reached 205.3 billion cubic meters, an increase of 8.2% year-on-year, marking five consecutive years of production growth exceeding 10 billion cubic meters[30] - Natural gas imports totaled 12 million tons in 2021, reflecting a year-on-year increase of 19.9%[30] - The apparent consumption of natural gas reached 372.6 billion cubic meters, up 12.7% year-on-year, continuing the positive growth trend from the 13th Five-Year Plan period[30] - In 2021, China's oil consumption reached 34.148 million tons, a year-on-year growth of 3.2%, nearly recovering to pre-pandemic levels[31] - The sales volume of new energy vehicles in China exceeded 3.5 million units in 2021, with a market share increase to 13.4%[33] - The global oil price saw a significant increase, with Brent crude oil closing at $77.78 per barrel at the end of 2021, up over 50% from 2020, marking the largest annual increase in five years[31] Strategic Initiatives - The company expanded its compressed natural gas refueling station network, benefiting from national policy support, leading to increased competitiveness[25] - The company successfully acquired Hengyong Global Investment Limited, which expanded its fuel retail and wholesale business, providing new revenue sources[25] - The company plans to actively seek strategic partnerships, acquisitions, and explore opportunities in the new energy sector to enhance its diversified layout in the energy era[27] - The company aims to leverage its long-standing presence in the Northeast energy market to enhance core competitiveness and diversify revenue sources[27] - The acquisition of Hengyong Global in August 2020 has diversified the company's operations into fuel retail, oil wholesale, and transportation services, enhancing market competitiveness[62] - The company aims to leverage synergies between its existing natural gas refueling business and the newly acquired fuel retail and oil transportation businesses[62] Corporate Governance - The company maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[65] - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[65] - The company held four board meetings in 2021, with all directors attending all meetings[69] - The chairman and CEO roles are held by the same individual, Zhao Jinmin, to provide strong and consistent leadership[68] - The company has adopted the corporate governance code and has complied with all applicable provisions for the year ended December 31, 2021, except for certain exceptions[65] - The independent non-executive directors were unable to attend the annual general meeting due to overseas commitments[65] - The company has service contracts with executive directors, with terms starting from April 1, 2017, and specific terms for other directors[67] - The board regularly reviews and improves its corporate governance practices to ensure compliance with the corporate governance code[65] Environmental, Social, and Governance (ESG) Practices - The company is committed to integrating sustainable development values into its long-term business strategy while pursuing economic returns[98] - The company has established a central safety committee responsible for overseeing ESG-related matters, including occupational safety and health policies[108] - The board of directors supervises ESG matters and ensures effective communication across management levels to implement sustainable development policies[107] - The company aims to enhance its supply chain resilience and achieve orderly development in the natural gas industry to meet the "dual carbon" goals and contribute to a "Beautiful China"[98] - The company emphasizes the importance of effective communication with shareholders, holding the annual general meeting on June 11, 2021, with at least 20 business days' notice provided[91] - The company has established a website to keep investors updated on financial information and corporate governance practices, enhancing transparency and investor relations[92] - The company conducted an annual ESG materiality assessment survey to identify key ESG issues and effectively communicate with stakeholders[104] - The report quantifies greenhouse gas emissions and resource consumption, providing detailed metrics on environmental and social performance[104] Employee Management and Development - The company has a total of 1,768 employees as of December 31, 2021[56] - The employee turnover rate for the fiscal year 2021 was 12.2%[158] - The company adheres to local employment laws and has established internal policies for attendance and leave management[162] - The company has implemented a transparent recruitment process, ensuring fairness and competitiveness in hiring[157] - The company has conducted multiple recruitment activities in 2021 to attract talent and enhance its employer brand[157] - The company emphasizes equal opportunity and anti-discrimination in all HR and employment decisions, ensuring a fair and diverse work environment[163] - The company achieved a training participation rate of 99.0% among its total workforce of 1,750 employees[175] - The average training hours for male employees was 24.4 hours, while female employees averaged 24.7 hours in fiscal year 2021[176] Safety and Health Management - The company strictly implemented internal safety and health policies in FY2021, adhering to various safety management regulations and Chinese laws[165] - The company established a central safety committee to oversee the implementation of safety policies across all business sectors[165] - In FY2021, the company conducted various occupational safety and health training sessions, requiring all units to include occupational disease knowledge in their annual plans[166] - The company has a strict emergency response plan for unexpected situations, with a dedicated emergency response team responsible for handling incidents[167] - The company has implemented a reward and punishment system regarding safety and health issues, with severe penalties for violations[166] Supplier and Procurement Management - The company collaborates with a total of 475 suppliers, all located in mainland China, with 424 suppliers in the province where the company operates[186] - The company adheres to a green procurement policy, which covers approximately 90% of its procurement products, aiming to reduce environmental impact during the supply chain management process[186] - The procurement process includes rigorous supplier evaluation based on quality management systems and technical capabilities[180] - The company implements a comprehensive risk assessment for suppliers, including on-site visits and market research[180] - The company prioritizes local suppliers to minimize environmental pollution during transportation[186] Customer Relations and Service Quality - The company aims to maintain a customer satisfaction rate of 90% through quality control and service excellence in its gas stations and refueling services[188] - In the fiscal year 2021, the company received three customer complaints, all of which were properly handled and resolved[197] - The company has implemented a customer complaint management system to enhance the efficiency of handling customer feedback and improve service standards[190] - The company has adjusted its service standards during the pandemic, providing free disinfection services and ensuring employee safety through protective equipment[196]

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 2,291,301 thousand, representing a 41% increase from RMB 1,625,571 thousand in the same period of 2020[5] - Gross profit for the same period was RMB 327,150 thousand, up from RMB 210,555 thousand, resulting in a gross margin of 14% compared to 13% in 2020[5] - Net profit for the period was RMB 115,956 thousand, significantly higher than RMB 49,490 thousand in the prior year, marking a 134% increase[5] - Profit attributable to equity shareholders was RMB 113,502 thousand, compared to RMB 50,848 thousand in the previous year, reflecting a substantial growth[5] - Operating profit for the six months was RMB 175,464 thousand, compared to RMB 84,958 thousand in the same period of 2020[8] - The total comprehensive income for the period was RMB 116,116 thousand, significantly higher than RMB 50,632 thousand in the prior year[10] - The company reported a basic and diluted earnings per share of RMB 0.30 for the first half of 2021, compared to RMB 0.15 in the same period of 2020[8] - The company reported a profit of RMB 50,848 thousand for the six months ended June 30, 2021, compared to a loss in the previous period[15] - Comprehensive income for the period totaled RMB 52,016 thousand, demonstrating a significant recovery from previous losses[15] - The net profit before tax for the six months ended June 30, 2021, was RMB 157,427,000, significantly higher than RMB 67,317,000 for the same period in 2020, reflecting an increase of approximately 133.3%[33] Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 1,395,927 thousand, an increase from RMB 1,273,135 thousand at the end of 2020[6] - The company’s net assets increased to RMB 384,393 thousand as of June 30, 2021, from RMB 285,109 thousand at the end of 2020[6] - As of June 30, 2021, total non-current assets amounted to RMB 720,881 thousand, slightly down from RMB 722,867 thousand as of December 31, 2020[12] - Current assets increased to RMB 675,046 thousand from RMB 550,268 thousand, with inventory rising significantly to RMB 140,891 thousand from RMB 111,976 thousand[12] - Current liabilities decreased to RMB 623,301 thousand from RMB 621,075 thousand, with trade payables slightly down to RMB 87,556 thousand from RMB 90,139 thousand[12] - Non-current liabilities rose to RMB 388,233 thousand from RMB 366,951 thousand, primarily due to an increase in lease liabilities[12] - The total equity attributable to shareholders increased to RMB 350,414 thousand from RMB 253,605 thousand, indicating a robust financial position[13] - Total assets less current liabilities increased to RMB 772,626 thousand from RMB 652,060 thousand[12] Cash Flow - Cash generated from operating activities was RMB 91,251,000, a decrease of 62.5% from RMB 243,479,000 in the same period last year[17] - The net cash from operating activities was RMB 52,182,000, down 76.1% from RMB 218,334,000 in the previous year[17] - The company incurred a net cash outflow from investing activities of RMB 7,015,000, compared to RMB 19,037,000 in the same period last year[17] - The net cash used in financing activities was RMB 83,641,000, a decrease of 29.0% from RMB 117,887,000 in the previous year[17] - As of June 30, 2021, cash and cash equivalents decreased to RMB 73,113,000 from RMB 147,856,000 at the beginning of the period[17] Revenue Breakdown - Revenue from retail sales of refined oil and natural gas was RMB 2,265,700 thousand, up from RMB 1,600,586 thousand, indicating a growth of 41.4%[27] - Revenue from transportation services amounted to RMB 24,620 thousand, an increase from RMB 19,645 thousand, reflecting a growth of 25.3%[27] - The sales revenue from refined oil reached approximately RMB 2,160.7 million, up approximately 44%, accounting for 94% of total revenue during the same period[74] - Natural gas sales revenue was approximately RMB 106.0 million, a year-on-year increase of about 5%, representing about 5% of total revenue[75] Employee and Operational Costs - Employee costs rose to RMB 77,980,000 in the first half of 2021, compared to RMB 65,499,000 in the same period of 2020, which is an increase of approximately 18.9%[37] - The total depreciation expenses for the first half of 2021 amounted to RMB 40,557,000, up from RMB 34,819,000 in the same period of 2020, indicating an increase of approximately 16.4%[36] - Financing costs increased to approximately RMB 18.7 million for the six months ended June 30, 2021, from RMB 9.1 million in the same period of 2020[85] Shareholder Information - As of June 30, 2021, Mr. Zhao holds 209,829,240 shares, representing 56.03% of the company's equity[104] - Major shareholders include Golden Truth with 56.03% and Rui Shan with 19.17% of the company's equity[108] - The company has a share option plan allowing for the issuance of up to 10% of the total issued shares, equivalent to 23,450,200 shares[111] - The total number of shares that may be issued upon the exercise of all outstanding options cannot exceed 30% of the total issued shares[111] Corporate Governance - The company has complied with all provisions of the corporate governance code during the reporting period, with exceptions noted for attendance at the annual general meeting[113] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2021, and confirmed compliance with applicable accounting standards[114] - The remuneration committee is responsible for reviewing the remuneration of directors and senior management, with current members including both executive and independent non-executive directors[115] - The nomination committee is tasked with reviewing the board's structure and identifying suitable candidates for board membership[116]

Financial Performance - Total revenue for the year 2020 was RMB 3,481.3 million, a decrease of 12% from RMB 3,953.3 million in 2019[5] - Gross profit for 2020 was RMB 470.3 million, resulting in a gross margin of 14%, compared to 13% in 2019[5] - Net profit attributable to shareholders for 2020 was RMB 123.3 million, down from RMB 135.6 million in 2019[5] - The company reported an operating profit of RMB 207.9 million during the reporting period despite challenging market conditions[7] - The company’s basic and diluted earnings per share for 2020 were RMB 0.35, down from RMB 0.41 in 2019[5] - The group's profit before tax decreased by RMB 20.7 million to RMB 170.8 million in 2020, compared to RMB 191.5 million in 2019[22] - Net profit for 2020 was RMB 124.4 million, a decrease of RMB 14.0 million from RMB 138.4 million in 2019[22] - Total assets increased to RMB 1,273.1 million in 2020 from RMB 1,056.0 million in 2019[5] - The debt ratio increased to 77% as of December 31, 2020, up from 74% in 2019, primarily due to the acquisition of Hengyong Global[24] Acquisitions and Strategic Partnerships - The company completed the acquisition of Hengyong Global Investment Limited, enhancing its market presence in the northeastern region of China[8] - Following the acquisition of Hengyong Global, the company officially entered the fuel business, diversifying its revenue sources[10] - The acquisition is expected to create synergies between Hengyong's oil business and the company's existing gas business, enhancing competitiveness in the energy sector[16] - The strategic cooperation framework agreement with Sen Tian Group aims to explore potential projects in oil and gas retail and wholesale transportation and storage[8] - The company is actively seeking strategic partnerships and acquisitions to strengthen its fuel and gas business, leveraging synergies between business segments[10] Market Outlook and Industry Trends - The outlook for 2021 indicates a mix of challenges and opportunities in the domestic energy sector amid ongoing economic uncertainties[9] - The global natural gas consumption decreased by 4% year-on-year in 2020, but the market showed signs of recovery in the second half of the year as countries eased pandemic restrictions[11] - In 2020, China's automobile sales reached 25.31 million units, maintaining its position as the world's largest market, with a 10.9% year-on-year increase in new energy vehicle sales[14] - The International Energy Agency forecasts a 21% increase in global liquefied natural gas trade from 2019 to 2025, with China expected to surpass Japan as the world's largest liquefied natural gas buyer by 2023[36] - The International Energy Agency predicts a significant rebound in oil demand in 2021, driven by the recovery of the domestic automotive industry, which will create growth opportunities in the oil and gas sales market[37] Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of ESG management, actively engaging stakeholders and implementing feedback mechanisms to improve sustainability practices[68] - The company reported a commitment to integrating sustainable development values into its long-term business strategy while pursuing economic returns[66] - The company is focused on quantifying its ESG performance, including greenhouse gas emissions and resource consumption metrics for the fiscal year 2020[74] - The company aims to explore and apply environmentally friendly technologies while pursuing business returns[70] - The group has established a comprehensive management framework and risk management system to integrate ESG risk management with corporate governance[76] - The board of directors is responsible for overseeing ESG-related matters and ensuring effective communication across all levels of management[77] Employee and Workplace Safety - The company emphasizes the importance of employee health and safety, aiming for a "zero accident" safety performance and actively identifying and controlling occupational health risks[84] - The company has implemented strict safety and health policies, including the "Safety Management Regulations" and "Safety Management Red Line" to ensure compliance with national laws[130] - All new employees are required to undergo a series of safety training before starting work, focusing on occupational health laws and emergency response measures[134] - The company conducts annual health check-ups for all employees, with results documented in employee health records[134] - In fiscal year 2020, the company reported a total of 370 workdays lost due to work-related injuries, indicating a focus on workplace safety[136] Community Engagement and Social Responsibility - The company actively participated in community service, providing essential supplies to underprivileged residents and supporting local educational initiatives[165] - The company donated a total of over 30,000 yuan worth of anti-epidemic supplies, including 18,500 masks and 8,500 pairs of disposable gloves during the pandemic[166] - The company emphasized its commitment to social responsibility and community well-being during the pandemic[167] - The company has been involved in various community activities to understand local needs and ensure business operations consider community interests[176] Risk Management and Compliance - The company undertakes various risks, including business, financial, compliance, and operational risks, and has implemented measures to control and mitigate these risks[54] - The company has established a risk management framework to identify, assess, and respond to significant business risks, ensuring effective use of resources to achieve business objectives[54] - The company adheres to local anti-corruption laws and implemented strict anti-bribery policies, ensuring transparent transaction processes[163] - The company has not encountered any legal cases related to corruption or violations of anti-bribery laws during the fiscal year[164] Operational Efficiency and Technology - The company implemented the V20 project for automated data extraction and information management in oil product transactions, enhancing operational efficiency and reducing environmental impact[162] - The company has adopted innovative technologies to reduce nitrogen oxides in exhaust emissions, contributing to improved air quality[101] - The company has focused on optimizing logistics management to minimize environmental impact through better route selection and maintenance of transport vehicles[114] Financial Management and Governance - The board of directors is committed to presenting a comprehensive annual report that reflects the company's financial health and operational strategies[187] - The proposed final dividend for the year ended December 31, 2020, is HKD 0.0534 per ordinary share, totaling HKD 20 million[190] - As of December 31, 2020, the company's distributable reserves amount to approximately RMB 685.6 million, which includes a share premium of RMB 719.5 million and accumulated losses of RMB 33.9 million[193]

Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 127,234 thousand, a decrease of 34.7% compared to RMB 194,954 thousand for the same period in 2019[7] - Gross profit for the same period was RMB 61,821 thousand, resulting in a gross margin of 49%, up from 41% in 2019[7] - Net profit for the six months was RMB 2,753 thousand, a decline of 85.3% from RMB 18,663 thousand in 2019[8] - Earnings per share (basic and diluted) decreased to RMB 0.01 from RMB 0.08 in the previous year[8] - The company reported a total comprehensive income of RMB 4,092 thousand for the period, down from RMB 18,648 thousand in 2019[11] - The company reported a profit of RMB 3,287 thousand for the six months ended June 30, 2020, compared to a profit of RMB 16,949 thousand for the same period in 2019, indicating a decrease of approximately 80.6%[15] - The total comprehensive income for the period was RMB 4,092 thousand, down from RMB 18,397 thousand in the previous year, representing a decrease of approximately 77.8%[15] Assets and Liabilities - Total assets as of June 30, 2020, were RMB 424,811 thousand, slightly down from RMB 427,670 thousand at the end of 2019[7] - Total liabilities increased to RMB 125,214 thousand from RMB 76,419 thousand, indicating a rise of about 64%[12] - The company's net assets decreased to RMB 260,725 thousand from RMB 274,762 thousand, a decline of approximately 5.1%[13] - The total equity attributable to shareholders decreased to RMB 255,146 thousand from RMB 268,349 thousand, reflecting a decrease of about 4.9%[13] - Current assets decreased to RMB 184,224 thousand from RMB 190,885 thousand, representing a decline of about 3.9%[12] - Cash and cash equivalents significantly increased to RMB 135,327 thousand from RMB 57,474 thousand, marking an increase of approximately 135.5%[12] Cash Flow - For the six months ended June 30, 2020, the net cash generated from operating activities was RMB 99,397,000, an increase of 78.0% compared to RMB 55,909,000 in 2019[16] - The net cash used in investing activities was RMB (9,184,000), significantly improved from RMB (73,897,000) in the previous year[16] - The net cash used in financing activities was RMB (13,117,000), a decrease from RMB 31,138,000 in 2019[16] - The total cash and cash equivalents as of June 30, 2020, were RMB 135,327,000, compared to RMB 141,439,000 at the end of the previous year[16] Revenue Breakdown - Revenue from the sale of natural gas through gas stations was RMB 95,361,000, a decrease of 40.0% from RMB 158,706,000 in 2019[24] - Revenue from transportation services was RMB 26,533,000, down 17.9% from RMB 32,096,000 in 2019[24] - Reportable segment revenue for gas sales was RMB 101,368,000, and for transportation services was RMB 31,172,000, totaling RMB 132,540,000 for the first half of 2020[28] - In the first half of 2020, the company's natural gas sales revenue was approximately RMB 100.7 million, a year-on-year decrease of about 38%, accounting for approximately 79% of total revenue during the same period[70] - Transportation services generated revenue of approximately RMB 26.5 million, a year-on-year decrease of about 17%, accounting for approximately 21% of total revenue[73] Cost and Expenses - The cost of sales decreased by approximately 43% to about RMB 65.4 million, down from approximately RMB 115.4 million in the same period of 2019, due to a reduction in total product procurement[75] - Employee costs decreased to RMB 23,288,000 for the six months ended June 30, 2020, from RMB 25,231,000 in 2019, a reduction of about 7.7%[35] - Financing costs increased to RMB 4,189,000 in the first half of 2020, compared to RMB 2,900,000 in the same period of 2019, marking an increase of approximately 44.4%[34] - Income tax expenses decreased by approximately RMB 4.7 million or about 55% to approximately RMB 3.8 million, primarily due to the decline in pre-tax profit[83] Dividends and Shareholder Information - The company declared dividends amounting to RMB 17,855 thousand, which was paid out during the period[15] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2020, remaining at zero, consistent with the previous year[55] - The company approved a final dividend of HKD 0.0853 per share for the last fiscal year, totaling RMB 17,855,000, an increase from RMB 17,465,000 in the previous year[56] - Major shareholder Golden Truth holds 201,928,240 shares, representing 86.10% of the company's equity[102] Acquisition and Market Position - The acquisition of the entire issued share capital of Hengyong Global Investment Limited for the gas station business was approved, with a total consideration of HKD 650,000,000, including cash of HKD 150,000,000[64] - The acquisition of Hengyong Global, completed on August 24, 2020, positions the company as the largest private gas station operator in Northeast China, capturing approximately 1.1% of the total market share in the region[97] - The company aims to strengthen its market position in compressed natural gas stations in Jilin Province and expand its liquefied natural gas business, leveraging local policy support and resources[97] Operational Measures and Future Outlook - The company has implemented various measures to manage cash flow and ensure adequate natural gas supply in response to the pandemic[61] - The domestic economy is gradually recovering, leading to a rebound in natural gas demand, which is expected to maintain stable growth in the future[68] - The demand for natural gas as a clean energy source is expected to continue rising, with projections indicating that the number of natural gas vehicles in China will exceed 10 million by the end of 2020[95] - The natural gas industry is expected to benefit from declining prices, which will stimulate demand for natural gas vehicles and increase overall consumption[95] Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the absence of some independent non-executive directors at the annual general meeting[108] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2020[109] - The remuneration committee is responsible for reviewing the compensation of directors and senior management[110]

Financial Performance - The company's revenue for 2019 was RMB 403,248,000, an increase of 15.8% from RMB 348,166,000 in 2018[18]. - Gross profit for 2019 was RMB 176,502,000, representing a gross margin of 44%, up from 43% in 2018[18]. - Net profit attributable to equity shareholders was RMB 35,642,000, a decrease of 17.1% compared to RMB 42,971,000 in the previous year[18]. - The total assets increased to RMB 427,670,000 from RMB 323,322,000, reflecting a growth of 32.4%[18]. - The company's total revenue for 2019 was RMB 403.2 million, up RMB 55.0 million or 16% from RMB 348.2 million in 2018, primarily due to increased natural gas sales from gas stations[32]. - The company reported a basic and diluted earnings per share of RMB 0.15, down from RMB 0.18 in 2018[18]. - The company's profit before tax decreased by RMB 5.2 million to RMB 53.3 million in 2019, compared to RMB 58.5 million in 2018[34]. - The company's distributable reserves as of December 31, 2019, amounted to approximately RMB 639 million, which includes a share premium of RMB 1,026 million and accumulated losses of RMB 387 million[165]. Debt and Liquidity - The debt ratio rose to 36% in 2019, compared to 21% in 2018, indicating increased leverage[18]. - The current ratio decreased to 2.50 from 3.37, indicating a tighter liquidity position[18]. - The company's debt ratio increased to 36% as of December 31, 2019, compared to 21% at the end of 2018, primarily due to increased bank loans for the acquisition of Yinquan[37]. - As of December 31, 2019, the company's bank balances and cash amounted to RMB 57.5 million, down from RMB 127.9 million at the end of 2018[35]. Business Operations and Strategy - The company plans to expand its business scope and enhance development potential in response to the growing demand for natural gas[23]. - The company plans to diversify its revenue sources by exploring related business areas and enhancing its industry chain layout[24]. - The company operates 22 compressed natural gas stations in Northeast China as of December 31, 2019[29]. - The company completed the acquisition of 100% equity in Yinquan Green Energy for RMB 650 million, marking a strategic step into new business areas[31]. - The acquisition of Hengyong Global Investment Limited, a major private gas station operator in Northeast China, is expected to strengthen the company's entry into the gas station and oil wholesale businesses[24]. - The company anticipates that the launch of the China-Russia East Route Natural Gas Pipeline will significantly enhance resource supply capabilities in Northeast China, benefiting its core business[44]. - The company aims to maintain profitability through cost-saving strategies amid challenges posed by the pandemic[24]. Market and Industry Trends - Natural gas consumption in China reached 304 billion cubic meters in 2019, with a year-on-year growth of over 9%[21]. - The natural gas production in China reached 173.3 billion cubic meters in 2019, also reflecting a year-on-year growth of 9.6%[27]. - The total number of natural gas refueling stations in China has exceeded 9,000, indicating a robust growth in the sector[28]. - The government continues to promote the use of natural gas vehicles and the construction of natural gas refueling stations, which presents new development opportunities for the company[24]. Employee and Management Practices - As of December 31, 2019, the company had a total of 520 employees and provided various insurance and retirement benefits in compliance with applicable laws[41]. - Employee costs rose to RMB 50.5 million in 2019, up RMB 6.3 million or 14.2% from RMB 44.2 million in 2018, primarily due to an increase in employee numbers and average salaries[34]. - The company emphasizes the importance of retaining talent for long-term business development and has established clear procedures for recruitment and promotion[119]. - The company has implemented strict policies regarding employee dismissal to prevent unfair terminations[120]. - The company has established a professional team for occupational safety management, ensuring compliance with national laws and regulations regarding occupational hazards[128]. Environmental, Social, and Governance (ESG) Practices - The company adheres to the ESG reporting guidelines set by the Hong Kong Stock Exchange, showcasing its performance in ESG management for the fiscal year ending December 31, 2019[75]. - The ESG report is compiled based on principles of materiality, quantification, balance, and consistency, ensuring comprehensive disclosure of the company's practices[77]. - The company emphasizes the importance of stakeholder feedback in its ESG report, identifying "occupational health and safety," "product/service health and safety," and "customer satisfaction" as critical sustainability issues[79]. - The company is committed to strict control of emissions and resource consumption, adhering to relevant environmental laws and regulations in China[98]. - The company has implemented policies to encourage the use of liquefied natural gas (LNG) as a vehicle fuel to minimize emissions[103]. - The company has engaged in community activities, such as chess training and competitions, to promote children's overall development[91]. Corporate Governance - The board of directors consists of seven members, including four executive directors and three independent non-executive directors, ensuring independent discussions[49]. - The company held four board meetings in 2019, with all directors attending all meetings, demonstrating strong governance practices[50]. - The company has established risk management and internal control objectives, including identifying potential impacts and implementing appropriate monitoring measures[61]. - The independent auditor's report confirms that the consolidated financial statements of the company fairly reflect its financial position as of December 31, 2019, in accordance with International Financial Reporting Standards[198]. Shareholder Information - The company reported a proposed final dividend of HKD 0.0853 per ordinary share, totaling HKD 20 million for the year ended December 31, 2019[162]. - The largest supplier accounted for 23% of the group's procurement, while the top five suppliers represented 54%[167]. - Major shareholders include Golden Truth with 86.10% and Rui Shan with 30.61% of the company's equity[178]. - The company has a share option plan that allows for the issuance of up to 10% of the total issued shares, equivalent to 23,450,200 shares[182].

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 194,954,000, representing a 22.5% increase from RMB 159,152,000 in the same period of 2018[7] - Gross profit for the same period was RMB 79,573,000, with a gross margin of 41%, compared to RMB 64,183,000 and a gross margin of 40% in 2018[7] - Profit attributable to equity shareholders for the six months was RMB 18,693,000, up from RMB 16,358,000 in 2018, reflecting an increase of 8.2%[9] - Basic and diluted earnings per share were RMB 0.08, compared to RMB 0.07 in the previous year[9] - The company reported a net profit margin of approximately 9.6% for the period[9] - Total comprehensive income for the six months was RMB 18,648,000, compared to RMB 17,377,000 in the same period of 2018[12] - The company reported a net profit of RMB 18,693,000, compared to a loss of RMB 30,000 in the previous period[21] - The total comprehensive income for the period was RMB 18,678,000, reflecting a significant recovery from the previous year's loss[21] - For the six months ended June 30, 2019, the operating profit was RMB 27,652 thousand, compared to RMB 22,812 thousand for the same period in 2018, representing a year-over-year increase of approximately 21%[44] - Profit before tax for the six months was RMB 26,480 thousand, compared to RMB 22,449 thousand in the same period last year, marking an increase of around 18%[44] Assets and Liabilities - Total assets as of June 30, 2019, amounted to RMB 422,625,000, an increase from RMB 323,322,000 at the end of 2018[7] - As of June 30, 2019, non-current assets increased to RMB 230,938 thousand from RMB 120,329 thousand as of December 31, 2018, representing an increase of 92%[15] - Total liabilities decreased to RMB 85,919 thousand from RMB 60,193 thousand, an increase of 42.6%[15] - The company's total equity increased slightly to RMB 256,365 thousand from RMB 255,468 thousand, showing a growth of 0.35%[16] - The company's capital and reserves stood at RMB 250,033 thousand, up from RMB 248,820 thousand, indicating a growth of 0.5%[16] - The company's total equity as of June 30, 2019, was RMB 256,365,000, up from RMB 255,468,000 at the beginning of the year[21] - The company's debt ratio was 21%, indicating a stable financial position[7] - The current ratio decreased to 2.23 from 3.37 in the previous year, suggesting a tighter liquidity position[7] Cash Flow - Operating cash flow for the six months was RMB 64,208,000, a substantial increase from a cash outflow of RMB 19,956,000 in the same period last year[22] - The company experienced a net cash outflow from investing activities of RMB 73,897,000, compared to RMB 30,304,000 in the previous year, primarily due to the acquisition of a joint venture[22] - Financing activities generated a net cash inflow of RMB 31,138,000, a recovery from a cash outflow of RMB 828,000 in the previous year[22] - The net cash used in operating activities was RMB 56,324 thousand, compared to RMB 19,956 thousand in the previous year, showing a significant increase in cash outflow[45] - Cash and cash equivalents increased to RMB 141,439,000 as of June 30, 2019, up from RMB 127,918,000 as of December 31, 2018, reflecting a growth of 10.1%[72] Operational Highlights - The company continues to focus on expanding its natural gas sales through gas stations and providing oil and gas transportation services[25] - Revenue from natural gas sales through gas stations reached RMB 158,706 thousand, up from RMB 130,004 thousand in the previous year, reflecting a growth of about 22%[48] - Transportation service revenue recorded approximately RMB 32.1 million, a year-on-year increase of 37%, accounting for 16% of total revenue[99] - The company plans to continue expanding its gas station operations and enhance its transportation services to drive future growth[49] - The company aims to increase domestic natural gas production to 2 billion cubic meters by 2020, as part of the provincial government's initiative to promote stable development in the natural gas sector[119] Employee and Operational Costs - Employee costs rose to RMB 25,231,000, a 19.8% increase from RMB 21,139,000 in 2018[60] - Depreciation expenses increased to RMB 14,577,000 from RMB 8,025,000, reflecting a 81.5% rise[61] - The company incurred financing costs of RMB 2,900,000, significantly higher than RMB 363,000 in the previous year[59] IFRS 16 Adoption - The company has adopted IFRS 16 for the first time, which may affect future financial reporting but did not significantly impact the current period[28] - The company adopted IFRS 16 on January 1, 2019, applying a modified retrospective approach, resulting in adjustments to the opening equity balance as of that date[29] - The total lease liabilities as of June 30, 2019, were RMB 34,524,000, reflecting a decrease from RMB 50,452,000 on January 1, 2019[41] - The total non-current assets increased to RMB 175,746,000 due to the capitalization of operating lease contracts[38] Corporate Governance - The company has complied with all provisions of the corporate governance code during the six months ending June 30, 2019, except for the attendance of certain independent non-executive directors at the annual general meeting[132] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2019, and confirmed compliance with applicable accounting standards[133] - The remuneration committee has been established to review the compensation of directors and senior management[134] - The nomination committee has been formed to assess the board's structure and identify suitable candidates for board membership[135] Future Outlook - The company anticipates significant growth opportunities in the natural gas sector, driven by national policies aimed at increasing the share of natural gas in primary energy consumption to 10% by 2020 and 15% by 2023[95] - The strategic cooperation with upstream natural gas sales companies is expected to increase natural gas supply to Jilin Province to 4 billion cubic meters by 2020[120] - The company is committed to maintaining stable growth in its main business while actively expanding its business scope to create new growth points[120]

Financial Performance - The company's revenue for the year ended December 31, 2018, was RMB 348,166,000, an increase of 36% from RMB 256,147,000 in 2017[4] - Gross profit for 2018 was RMB 148,846,000, up from RMB 111,342,000 in the previous year, maintaining a gross margin of 43%[4] - Net profit attributable to equity shareholders was RMB 42,971,000, significantly higher than RMB 9,525,000 in 2017, reflecting a growth of 351%[4] - The company reported a basic and diluted earnings per share of RMB 0.18, compared to RMB 0.05 in the previous year[4] - Total revenue for the company in 2018 was RMB 348.2 million, an increase of RMB 92.1 million or 36% compared to RMB 256.1 million in 2017, primarily due to increased product sales and transportation service revenue[18] - Operating profit increased to RMB 59,112,000, up 31% from RMB 45,119,000 in the previous year[172] - The company's net profit for the year ended December 31, 2018, was RMB 43,547,000, a significant increase from RMB 10,615,000 in 2017, reflecting a growth of 310%[172] Assets and Liabilities - The total assets of the company increased to RMB 323,322,000 from RMB 300,550,000, indicating a solid asset base[4] - The current ratio improved to 3.37 from 2.89, demonstrating enhanced liquidity[4] - The debt ratio decreased to 21% from 23%, indicating a stronger financial position[4] - Total assets increased by 8% to RMB 323.3 million as of December 31, 2018, compared to RMB 300.6 million in 2017[22] - The company's equity attributable to equity shareholders increased to RMB 248,820,000 from RMB 223,871,000, an increase of 11.1%[178] Market and Economic Environment - The overall economic environment in China remained stable, with GDP growth of 6.6% in 2018, despite uncertainties from the US-China trade war[7] - In 2018, China's natural gas consumption reached 276.6 billion cubic meters, representing a year-on-year growth of 17%[8] - The government aims to increase the proportion of natural gas in total energy consumption to 10% by 2020, indicating a strong upward trend in natural gas demand[12] Business Operations and Strategy - The company is committed to furthering its strategic initiatives in response to the evolving market conditions[5] - The company plans to establish an industry acquisition fund of HKD 50 million, focusing on energy and new energy sectors to strengthen its market position[9] - The company is actively exploring business diversification related to its main operations to capture growth opportunities in the natural gas sector[9] - The company emphasizes enhancing customer loyalty through stable service quality and increasing brand recognition in the natural gas market[8] Employee and Operational Costs - Employee costs rose to RMB 44.2 million in 2018, an increase of RMB 9.6 million from RMB 34.6 million in 2017, attributed to a higher number of employees and increased average salaries[21] - Operating lease expenses increased by 14% from RMB 71 million in 2017 to RMB 81 million in 2018, primarily due to the rise in property, equipment, and vehicle leasing costs[22] Corporate Governance - The board of directors consists of seven members, including four executive directors and three independent non-executive directors[42] - The company has adopted a corporate governance code to ensure high standards of governance and accountability to shareholders[42] - The company has complied with all applicable provisions of the corporate governance code for the fiscal year ending December 31, 2018, with minor exceptions noted[42] Environmental, Social, and Governance (ESG) Initiatives - The company has established a professional team to manage ESG-related matters and continuously reviews its sustainability policies[65] - The ESG report aligns with international standards to enhance completeness and comparability within the industry[63] - The company aims to create sustainable value while reducing its environmental impact through proactive strategies[65] Risk Management - The company recognizes various operational risks and has established procedures to manage these risks effectively[35] - The board has ultimate responsibility for risk management and has implemented measures to identify and mitigate significant business risks[55] Shareholder Information - The proposed final dividend for the year ended December 31, 2018, is HKD 0.0852 per ordinary share, totaling HKD 20,000,000[123] - As of December 31, 2018, the distributable reserves amount to approximately RMB 1.092 billion, including a share premium of RMB 1.200 billion and accumulated losses of RMB 108 million[126] Financial Reporting and Compliance - The financial statements are prepared in accordance with all applicable International Financial Reporting Standards (IFRS) and comply with the relevant disclosure requirements of the Hong Kong Companies Ordinance and the Listing Rules[189] - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2018, in accordance with International Financial Reporting Standards[159]