Financial Performance - For the six months ended June 30, 2021, the revenue was RMB 216,837,000, representing a 215.3% increase compared to RMB 68,762,000 for the same period in 2020[9]. - The gross loss for the period was RMB (3,924,000), a significant decline from a gross profit of RMB 186,000 in the corresponding period of 2020, reflecting a gross loss margin of (1.8%) compared to 0.3%[9][13]. - The total comprehensive loss for the period was RMB (123,572,000), which is a 509.5% increase from RMB (20,273,000) in the prior year[9]. - The loss attributable to owners of the company was RMB (109,896,000), up 466.1% from RMB (19,412,000) in the same period last year[9]. - The operating loss for the period was RMB 128,729,000, compared to a loss of RMB 20,881,000 in the prior year, indicating a substantial increase in losses[19]. - Basic loss per share was RMB 0.030, compared to RMB 0.005 for the same period in 2020, indicating a worsening financial position[19]. - The company reported a net loss of RMB 123,572,000 for the six months ended June 30, 2021, compared to a net loss of RMB 20,273,000 for the same period in 2020[58]. - The company reported a net loss attributable to shareholders of RMB 109,896,000 for the six months ended June 30, 2021, compared to a loss of RMB 19,412,000 for the same period in 2020[67]. Assets and Liabilities - The company's total assets decreased by 25.9% to RMB 441,121,000 from RMB 595,030,000 at the end of 2020[10]. - The net asset value also saw a decline of 34.9%, dropping to RMB 230,977,000 from RMB 354,549,000[10]. - Cash and cash equivalents decreased by 26.4% to RMB 62,915,000 from RMB 85,484,000 at the end of 2020[10]. - Current assets decreased to RMB 354,342,000 from RMB 517,782,000, indicating a reduction in liquidity[22]. - Total liabilities were RMB 210,144,000, down from RMB 240,481,000, suggesting a slight improvement in the company's leverage position[24]. - Equity attributable to owners of the company decreased to RMB 230,977,000 from RMB 354,549,000, reflecting a significant decline in shareholder value[24]. - The company's asset-liability ratio as of June 30, 2021, was 36.1%, up from 27.2% as of December 31, 2020, with net assets decreasing to approximately RMB 231,000,000 from RMB 354,500,000[125]. Cash Flow - Cash used in operating activities was RMB 7,310,000, compared to RMB 18,317,000 for the same period in 2020, representing a 60% improvement[28]. - Cash used in investing activities amounted to RMB 8,611,000, significantly higher than RMB 384,000 in the previous year, indicating increased investment in property, plant, and equipment[28]. - Cash used in financing activities was RMB 5,692,000, a decrease from cash generated of RMB 6,222,000 in the prior year, reflecting changes in financing strategies[28]. - The net decrease in cash and cash equivalents for the period was RMB 21,613,000, compared to RMB 12,479,000 in the same period last year, indicating a larger cash outflow[28]. - As of June 30, 2021, the company reported cash and cash equivalents of RMB 62,915,000, up from RMB 7,152,000 at the end of the previous year[28]. Revenue Sources - Revenue from the LNG trading business for the six months ended June 30, 2021, was RMB 216,593,000, a significant increase from RMB 68,510,000 for the same period in 2020, representing a growth of 216%[50]. - Total revenue for the six months ended June 30, 2021, was RMB 216,837,000, compared to RMB 68,762,000 for the same period in 2020, indicating an increase of 216%[50]. - The company's revenue for the period was approximately RMB 216,800,000, an increase of 215.3% compared to RMB 68,800,000 in the corresponding period, primarily due to the addition of a new LNG supply point in Shanghai[115]. Expenses and Costs - The cost of sales for the same period was RMB 220,761,000, leading to a gross loss of RMB 3,924,000 compared to a gross profit of RMB 186,000 in the previous year[19]. - The sales cost for the new energy business was approximately RMB 220,800,000, up from RMB 68,600,000 in the corresponding period, attributed to increased costs from the new LNG supply point[116]. - Total employee costs decreased to RMB 6,269,000 from RMB 8,410,000 year-on-year, reflecting a reduction of approximately 25.5%[64]. - Administrative expenses decreased by 4.4% to approximately RMB 12,500,000 from RMB 13,000,000 in the corresponding period, due to reduced amortization costs related to share-based payments[118]. Investments and Development - The company has engaged in the development of diversified integrated new energy services, including heat supply and coal-to-gas solutions, indicating a focus on expanding its service offerings[30]. - The company aims to continue developing its LNG business in Shanghai, which is expected to contribute significantly to revenue despite intense price competition[113]. - The company is exploring opportunities to expand into the European market through partnerships, including with Tractebel Engineering S.A. in France[113]. - The company aims to expand its LNG supply network beyond Shanghai and is actively seeking new joint ventures and acquisition opportunities to enhance business growth[126]. Corporate Governance and Compliance - The audit committee reviewed the interim financial results and confirmed compliance with applicable accounting standards[168]. - The company has adopted corporate governance practices in accordance with GEM listing rules[166]. - The external auditor did not identify any significant modifications needed for the interim financial information[168]. Shareholder Information - The company did not declare any dividends for the period[133]. - The company has a share option scheme that allows for the issuance of options not exceeding 30% of the issued share capital[89]. - As of June 30, 2021, the total number of shares involved in unexercised options was 257,280,000, representing 7.1% of the issued shares[92]. - The total number of shares granted to employees during the period was 39,216,000, with an exercise price of HKD 0.289[146].

Financial Performance - Revenue for the first quarter of 2021 was RMB 141,420,000, representing a 106.0% increase compared to RMB 68,636,000 in the same period of 2020[8] - The gross loss for the first quarter of 2021 was RMB 2,409,000, compared to a gross profit of RMB 2,643,000 in the same period of 2020, indicating a significant decline of 191.1%[8] - The total comprehensive loss for the period was RMB 50,188,000, a drastic increase from a profit of RMB 3,993,000 in the same period of 2020, reflecting a change of 1,356.9%[8] - The loss attributable to owners of the company was RMB 45,105,000, compared to a profit of RMB 2,627,000 in the same period of 2020, marking an increase of 1,817.0%[8] - The basic and diluted loss per share for the first quarter of 2021 was RMB (1.25) cents, a significant decline from RMB 0.07 cents in the same period of 2020, representing a change of 1,885.7%[8] - The gross margin for the first quarter of 2021 was (1.7%), down from 3.9% in the same period of 2020[11] - The net loss margin for the first quarter of 2021 was (35.5%), compared to a net profit margin of 5.8% in the same period of 2020[11] Dividends and Shareholder Returns - The company did not declare any dividends for the first quarter of 2021[9] - The company did not recommend any dividend for the period, consistent with the same period in 2020[35] - The board does not recommend any dividend payment for the current period[58] Revenue Sources and Growth - For the three months ended March 31, 2021, the revenue from new energy business was RMB 141,298,000, a significant increase from RMB 68,510,000 in the same period of 2020, representing a growth of 106.5%[24] - The total revenue for the group for the three months ended March 31, 2021, was RMB 141,420,000, compared to RMB 68,636,000 for the same period in 2020, indicating an increase of 105.1%[24] - The group received approximately RMB 1,000,000 in government subsidies during the period, aimed at encouraging the development of its new energy business[24] Expenses and Costs - The company reported a significant increase in administrative expenses, amounting to RMB 6,491,000 for the first quarter of 2021, compared to RMB 6,593,000 in the same period of 2020[17] - The total employee costs for the three months ended March 31, 2021, were RMB 3,280,000, down from RMB 4,450,000 in the same period of 2020, reflecting a decrease of 26.3%[27] - The company's sales cost for the new energy business was approximately RMB 143,800,000, up from RMB 66,000,000 in the corresponding period[46] Impairments and Provisions - The expected credit loss provision for trade receivables was RMB 61,200,000 for the three months ended March 31, 2021, compared to zero in the same period of 2020[25] - Trade receivables impairment provision for the period was approximately RMB 61,200,000, compared to zero in the corresponding period[41] Share Capital and Ownership - The company has issued a total of 3,622,136,000 shares with a par value of HKD 0.00125 as of March 31, 2021[57] - The company reported a total of 137,632,000 shares held by directors and major executives, representing 15.11% of the issued share capital[67] - Mr. Hu holds 547,184,000 shares, accounting for 15.11% of the company's issued share capital[67] - Ms. Lin has 493,456,000 shares, which is 13.62% of the issued share capital[67] - Depot Up Limited holds 640,000,000 shares, representing 17.67% of the issued share capital[74] - Tongjie Global Limited and Songsheng Global Investment Limited each hold 448,000,000 shares, accounting for 12.37% of the issued share capital[74][76] - Yude Limited has 219,112,000 shares, which is 6.05% of the issued share capital[74][76] Corporate Governance and Compliance - The company has adhered to the corporate governance code as per GEM listing rules throughout the reporting period[80] - The audit committee consists of three independent non-executive directors and has reviewed the unaudited financial statements for the period[82] - The board of directors communicated with shareholders through annual general meetings and special meetings[79] - The company continues to monitor shareholder interests and compliance with securities regulations[73] Future Plans and Market Strategy - The company plans to establish new supply points in key business hotspots to enhance LNG supply capabilities[42] - The company is preparing to expand its LNG supply network in new regions of China and is looking to establish joint ventures and partnerships with key LNG suppliers[53] - The company remains vigilant to market changes and aims to explore opportunities in the renewable energy sector[53] Miscellaneous - The company has not adopted any financial instruments for hedging purposes during the period[59] - The company has not established any arrangements for directors or key executives to acquire rights to purchase securities during the reporting period[77] - The company has no significant acquisitions or disposals of subsidiaries or associates during the period[61] - The company did not issue any debt securities during the reporting period[76] - There were no purchases, sales, or redemptions of any shares by the company or its subsidiaries during the reporting period[78] - The report will be published on the GEM website and the company's website for at least seven days[84]

Financial Performance - The total revenue for the year ended December 31, 2020, was RMB 243.7 million, primarily from the core LNG supply business[6] - The company's total revenue for the year ended December 31, 2020, decreased by 29.3% to approximately RMB 243.7 million from RMB 344.8 million in the previous year[22] - The net loss after tax for the year was RMB 143.5 million, compared to a net profit of RMB 53.7 million in the previous year, representing a decline of 367.0%[22] - The company recorded a loss attributable to owners of RMB 131 million, a decrease of 397.0% from a net profit of RMB 44.1 million in the previous year[22] - The gross profit margin for the LNG supply business was significantly lower, leading to a gross loss for the year, while the previous year recorded a gross profit[22] - The group's revenue from continuing operations for the year was RMB 243,700,000, a decrease of 29.3% from RMB 344,800,000 in the previous year[30] - Revenue from the new energy business decreased by 29.4% to RMB 243,200,000, accounting for 99.8% of the group's total revenue[43] - The group recorded other losses of RMB 15,800,000 this year, compared to other income of RMB 300,000 last year, primarily due to fair value losses on convertible bonds[35] Assets and Liabilities - The total assets as of December 31, 2020, were RMB 595.0 million, a decrease of 3.8% from RMB 618.7 million in the previous year[12] - The net asset value decreased by 27.1% to RMB 354.5 million from RMB 486.5 million in the previous year[12] - Cash and bank balances increased by 336.0% to RMB 85.5 million from RMB 19.6 million in the previous year[12] - The company's total assets and liabilities as of December 31, 2020, were RMB 517,800,000 and RMB 141,000,000, respectively, compared to RMB 536,400,000 and RMB 130,500,000 on December 31, 2019[48] - The company's debt-to-equity ratio increased to 27.2% as of December 31, 2020, from 0.0% on December 31, 2019, following the issuance of convertible bonds[48] - The group had no outstanding bank loans or other borrowings as of December 31, 2020, maintaining a debt-free status[161] Business Strategy and Market Expansion - The company expanded its LNG supply network by adding a new supply point in Shanghai during the third quarter of 2020, targeting the potential new market in the Yangtze River Delta[6] - The company plans to further develop domestic markets outside of Tianjin and expand into overseas markets such as Europe once the COVID-19 restrictions are lifted[7] - The company aims to become a leading diversified integrated energy service provider in the Greater China region[7] - The company plans to expand its LNG supply network to other regions in China through new joint ventures and acquisition activities[65] - The company anticipates a decrease in new project numbers in the future due to market saturation in the coal-to-gas sector in the Tianjin area[24] COVID-19 Impact - The company faced significant challenges due to the COVID-19 pandemic, impacting business operations and leading to delays in client meetings and promotional activities[22] - The company is committed to maintaining a positive work environment to attract and retain key personnel essential for its operations[142] - The company has enhanced its office cleaning and implemented flexible work arrangements to mitigate health risks associated with the COVID-19 pandemic[140] Corporate Governance - The board of directors consists of four executive directors and three independent non-executive directors, responsible for managing and monitoring the company's business and strategies[85] - All independent non-executive directors confirmed their independence according to GEM Listing Rules, ensuring compliance with governance standards[87] - The company has adopted a board diversity policy, focusing on gender, age, work experience, and ethnicity to enhance strategic goals and sustainable development[84] - The company has implemented training and support for all directors to ensure compliance with relevant laws and regulations[97] - The audit committee held 10 meetings during the year, with all members attending all sessions[101] Risk Management - The board of directors is responsible for establishing a clear enterprise risk management framework and risk management policies to assess the company's business strategy and risk tolerance[123] - The management is responsible for identifying and continuously monitoring strategic, operational, financial, reporting, and compliance risks faced by the company[126] - The company conducts regular assessments of identified risks and implements internal control measures to mitigate those risks[130] - The internal audit team, composed of personnel not responsible for the review scope, completed the internal control review for the year 2020 and reported findings to the audit committee[135] Environmental and Safety Compliance - The company has implemented strict compliance with national hazardous chemical regulations and operational standards to minimize safety risks associated with LNG operations[140] - The company is committed to minimizing its environmental impact and will publish its ESG report within three months of the annual report[191] - The company has established internal environmental regulations and key performance indicators to ensure compliance with local environmental laws and reduce potential penalties[142] Shareholder Relations and Dividends - The company did not recommend any dividend payment for the current year, consistent with the previous year[58] - The group’s reserves available for distribution to equity shareholders were RMB 302.6 million as of December 31, 2020, down from RMB 422.1 million in 2019[161] - The company has a long-term dividend policy aimed at distributing dividends when business conditions are favorable and profitable[157] Stock Options and Executive Compensation - The company has implemented a share option scheme to incentivize eligible participants, effective since December 12, 2011, with a maximum share issuance limit of 30% of the company's issued share capital[170] - Directors' remuneration is determined by the remuneration committee based on performance and the group's results, with annual bonuses awarded[168] - The total number of stock options across all categories was 294,384,000, with 257,280,000 options available for exercise at year-end[174]

Financial Performance - For the nine months ended September 30, 2020, the company reported revenue of RMB 79,557,000, a decrease of 64.4% compared to RMB 226,797,000 for the same period in 2019[10] - The gross loss for the nine months was RMB 1,992,000, compared to a gross profit of RMB 79,995,000 in the same period of 2019, indicating a significant decline in profitability[10] - The net loss attributable to owners of the company for the nine months was RMB 36,236,000, compared to a profit of RMB 34,086,000 in the same period of 2019, reflecting a negative shift in financial performance[10] - The basic and diluted loss per share for the nine months was RMB 1.01, compared to earnings of RMB 0.97 per share in the same period of 2019[10] - The company recorded a total comprehensive loss of RMB 38,812,000 for the nine months, compared to a total comprehensive income of RMB 41,183,000 in the same period of 2019[10] - The company reported a significant increase in administrative expenses, totaling RMB 17,335,000 for the nine months, compared to RMB 9,447,000 in the same period of 2019[10] - Other income for the nine months was RMB 11,527,000, a decrease from RMB 11,527,000 in the same period of 2019[10] - The company experienced a substantial impairment loss on trade receivables amounting to RMB 36,680,000 for the nine months[10] - The total comprehensive income for the period was RMB 34,187,000, with non-controlling interests contributing RMB 6,996,000, resulting in a total of RMB 41,183,000[11] - The company recognized a loss of RMB 36,236,000 during the period, with non-controlling interests accounting for RMB 2,576,000, leading to a total loss of RMB 38,812,000[11] - The company reported a pre-tax loss of RMB 16,824,000 for the three months ended September 30, 2020, compared to a profit of RMB 1,641,000 for the same period in 2019[33] - The company reported a loss attributable to owners of the company of RMB (36,236,000) for the nine months ended September 30, 2020, compared to a profit of RMB 34,187,000 for the same period in 2019[33] - The net loss after tax for the period was RMB 38,800,000, while the corresponding period last year recorded a net profit of RMB 41,200,000[44] - The company incurred a provision for expected credit losses totaling RMB 36,700,000 due to adverse market conditions, which was not present in the same period last year[44] - The company recorded a total loss attributable to owners of RMB 36,200,000 for the period, contrasting with a profit of RMB 34,200,000 in the same period last year[44] - The company reported total revenue of RMB 79,600,000 for the period, a significant decrease of 64.9% compared to RMB 226,800,000 in the same period last year[44] Revenue Sources and Business Operations - The revenue from the new energy business for the nine months ended September 30, 2020, was RMB 79,182,000, compared to RMB 226,419,000 for the same period in 2019, reflecting a decline[17] - The company did not generate any revenue from construction-related and consulting services during the period due to travel and work restrictions caused by COVID-19[14] - The LNG supply business was the only revenue source for the company's new energy segment during the period, with no new projects obtained in construction-related and consulting services[45] - Revenue from the new energy business for the period was RMB 79,200,000, accounting for 99.5% of total revenue, a decrease from RMB 226,400,000 in the corresponding period[50] - Sales cost for the new energy business decreased to RMB 81,500,000 from RMB 146,800,000 in the corresponding period, primarily due to a drop in LNG supply costs[52] - Gross margin for the new energy business fell from 35.2% in the corresponding period to a gross loss of 3.0% in the current period, attributed to a significant decline in LNG supply revenue[53] Future Outlook and Strategic Plans - The company has not provided specific guidance for future performance or new product developments in the conference call[10] - The company anticipates continued challenges in Q4 2020 due to economic risks from the COVID-19 pandemic and a slowdown in China's economic growth[61] - The company plans to establish a new joint venture to strengthen LNG supply and explore acquisitions to enhance business capabilities[61] - The company aims to issue convertible bonds to raise funds, with estimated net proceeds of HKD 97,500,000 to strengthen financial position and expand investor base[61] - The company has expanded its geographical coverage by entering the Shanghai market, which is expected to contribute to revenue in the last quarter of 2020[45] Shareholder Information and Corporate Governance - The company has not declared or proposed any dividends for the nine months ended September 30, 2020, compared to a dividend of HKD 0.005 per share in the same period last year[38] - The company has not established any arrangements for directors or executives to acquire rights to purchase its securities during the reporting period[82] - The board communicates with shareholders through annual general meetings and special meetings, ensuring transparency[84] - The company adheres to the corporate governance code as per GEM listing rules and has been regularly reviewing its compliance[85] - The audit committee has reviewed the unaudited third-quarter financial statements and confirmed compliance with applicable accounting standards[87] Stock Options and Share Capital - The company has implemented a stock option plan effective for 10 years starting from December 12, 2011, allowing eligible participants to purchase shares at a price equal to the higher of the closing price on the grant date or the average closing price over the previous five trading days[67] - As of September 30, 2020, the total number of unexercised stock options granted under the plan was 257,280,000 shares, representing 7.10% of the company's issued shares at that date[69] - The maximum number of shares that can be issued upon the exercise of stock options under this plan and any other stock option plans cannot exceed 10% of the issued shares on the date of listing and approval for trading[67] - The company granted 28,000,000 stock options in 2014 at an exercise price of HKD 0.81 per share, and 343,536,000 stock options in 2017 at an exercise price of HKD 0.289 per share[69] - The total number of shares issued and to be issued due to the exercise of stock options within any 12-month period cannot exceed 1% of the issued shares[67] Shareholding Structure - The company’s major shareholders include Mr. Hu with 547,184,000 shares (15.11%) and Ms. Lin with 493,456,000 shares (13.62%) as of September 30, 2020[72] - Depot Up Limited holds 640,000,000 shares, representing 17.67% of the company's issued share capital[79] - Tongjie Global Limited and Songsheng Global Investment Limited each hold 448,000,000 shares, accounting for 12.37% of the company's issued share capital[79] - Yude Limited has 219,112,000 shares, which is 6.05% of the company's issued share capital[79] Compliance and Reporting - The company has not disclosed any competitive business interests or conflicts of interest among its directors and management during the reporting period[76] - The company has not applied any non-competition agreements during the reporting period[77] - The company has not issued any debt securities during the reporting period[81] - There were no purchases, sales, or redemptions of the company's listed securities during the reporting period[83] - The report will be published on the GEM website and the company's website for at least seven days from the publication date[88]

Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 68,762,000, a decrease of 67.4% compared to RMB 211,105,000 for the same period in 2019[12] - Gross profit for the same period was RMB 186,000, representing a 99.7% decrease from RMB 67,339,000 in 2019[12] - The total comprehensive loss for the period was RMB (20,273,000), a significant decline from a profit of RMB 38,724,000 in the corresponding period of 2019, marking a 152.4% change[12] - The loss attributable to owners of the company was RMB (19,412,000), compared to a profit of RMB 32,445,000 in the previous year, reflecting a 159.8% decrease[12] - The total revenue from continuing operations for the six months ended June 30, 2020, was RMB (20,273) thousand, compared to RMB 38,724 thousand for the same period in 2019, representing a decline of approximately 152.4%[22] - The net loss attributable to owners from continuing operations was RMB (19,412) thousand for the six months ended June 30, 2020, compared to a profit of RMB 32,445 thousand in the same period of 2019, indicating a significant downturn[25] - The basic and diluted loss per share from continuing operations was RMB (0.005) for the six months ended June 30, 2020, compared to earnings of RMB 0.009 per share in the same period of 2019[28] - The group reported a pre-tax loss of RMB 20,945,000 for the six months ended June 30, 2020, compared to a profit of RMB 55,497,000 in the same period of 2019[56] - The company reported a loss attributable to owners of the company of RMB 19,412,000 for the six months ending June 30, 2020[81] - The company recorded a loss attributable to owners of RMB 19,400,000, a decrease of 159.6% compared to a profit of RMB 32,500,000 in the previous period[122] Assets and Liabilities - The company's total assets as of June 30, 2020, were RMB 607,725,000, down 1.8% from RMB 618,694,000 at the end of 2019[11] - Net assets decreased by 2.3% to RMB 475,098,000 from RMB 486,462,000 at the end of 2019[11] - Cash and bank balances significantly dropped by 63.5% to RMB 7,152,000 from RMB 19,607,000 at the end of 2019[11] - The total assets as of June 30, 2020, were RMB 475,098 thousand, a decrease from RMB 486,462 thousand as of December 31, 2019, reflecting a decline of approximately 2.8%[32] - Current assets amounted to RMB 529,180 thousand as of June 30, 2020, compared to RMB 536,449 thousand as of December 31, 2019, showing a decrease of about 1.4%[33] - The current liabilities were RMB 131,758 thousand as of June 30, 2020, slightly increased from RMB 130,546 thousand as of December 31, 2019, indicating a marginal rise of 0.9%[33] - The group recorded a net asset value of RMB 475,100,000 as of June 30, 2020, down from RMB 486,500,000 as of December 31, 2019, primarily due to net losses during the period[124] - The group's current assets and current liabilities as of June 30, 2020, were RMB 529,200,000 and RMB 131,800,000, respectively, compared to RMB 536,400,000 and RMB 130,500,000 as of December 31, 2019[124] Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2020, was RMB (18,616,000), a significant improvement from RMB (152,090,000) in the same period of 2019[40] - The financing activities generated a net cash inflow of RMB 6,162,000 for the six months ended June 30, 2020, compared to RMB 622,000 in the same period of 2019[40] - The company’s investment activities resulted in a net cash outflow of RMB (1,000,000) during the reporting period, compared to an inflow of RMB 4,736,000 in the same period of 2019[40] - The total cash and cash equivalents at the end of the reporting period was RMB 59,275,000, compared to RMB 7,152,000 at the beginning of the period[39] - As of June 30, 2020, the group had no bank borrowings and maintained a debt-to-equity ratio of 0.0%[124] Revenue Sources - Revenue from the new energy business for the six months ended June 30, 2020, was RMB 68,510,000, a decrease of 67.5% compared to RMB 210,853,000 for the same period in 2019[51] - LNG supply was the only source of revenue during the period, with significant declines in supply and revenue due to COVID-19[109] - Revenue from the new energy business was RMB 68,500,000, down from RMB 210,900,000, accounting for 99.6% of total revenue[113] Government Support and Subsidies - The company received a subsidy of RMB 5,562,000 from the local government in China to encourage the development of its new energy business during the reporting period[43] - The group recognized government subsidies related to COVID-19 amounting to RMB 140,000 during the reporting period[60] - The company received government subsidies of approximately RMB 420,000 related to the Covid-19 employment support scheme in July 2020[106] Employee and Management Compensation - The total employee costs for the period were RMB 5,529,000, with RMB 3,880,000 included in the cost of sales[69] - The total compensation for directors and key management personnel for the six months ended June 30, 2020, was RMB 3,483,000, a decrease from RMB 5,579,000 in the previous year[105] - The company reported a decrease in short-term employee benefits from RMB 5,469,000 to RMB 3,366,000 year-over-year[105] Share Options and Equity - The company has a share option plan that allows for the issuance of options equivalent to up to 30% of the issued share capital, excluding shares issued upon exercise of options[99] - As of June 30, 2020, the number of shares involved in unexercised options was adjusted to 267,280,000, representing 7.4% of the issued shares, down from 8.2% as of December 31, 2019[100] - The weighted average exercise price of options as of June 30, 2020, was HKD 0.291, compared to HKD 0.289 for the previous period[102] - The stock options plan allows for the issuance of shares not exceeding 1% of the issued shares within any 12-month period[140] Market Outlook and Strategy - The board anticipates that the impact of COVID-19 will continue to negatively affect the group's overall performance in the near term, maintaining a cautious outlook for the remainder of the year[126] - The group plans to actively seek new markets for LNG trading while maintaining existing locations, focusing on expanding its new energy business beyond its main base in Tianjin[126] - The group will seek new engineering projects with good profit margins to expand its operations and allocate sufficient resources to LNG supply to promote business development[126] Miscellaneous - The company has not experienced significant adverse effects on its financial condition and performance due to government support measures in response to the pandemic[43] - The company continues to apply the same accounting policies and methods as those presented in the annual financial statements for the year ended December 31, 2019[44] - The company has not adopted any financial instruments for hedging purposes during the period[130] - The company communicated with shareholders through the annual general meeting and special general meeting[157] - The report will be published on the GEM website for at least seven days from the publication date[157]

Financial Performance - Revenue for the first quarter of 2020 was RMB 68,636 thousand, a decrease of 29.5% compared to RMB 97,408 thousand in the same period of 2019[8] - Gross profit for the first quarter of 2020 was RMB 2,643 thousand, down 89.6% from RMB 25,376 thousand in the first quarter of 2019[8] - Net profit attributable to owners for the first quarter of 2020 was RMB 3,993 thousand, a decline of 72.5% from RMB 14,542 thousand in the previous year[8] - The basic and diluted earnings per share for the first quarter of 2020 were RMB 0.07, down 77.4% from RMB 0.31 in the same period of 2019[12] - The gross margin for the first quarter of 2020 was 3.9%, significantly lower than 26.1% in the first quarter of 2019[8] - The net profit margin for the first quarter of 2020 was 5.8%, compared to 14.9% in the same period of 2019[8] - The total comprehensive income for the first quarter of 2020 was RMB 2,627 thousand, a decrease of 76.1% from RMB 11,001 thousand in the first quarter of 2019[8] - Profit before tax for the three months ended March 31, 2020, was RMB 7,026,000, compared to RMB 22,269,000 in 2019, reflecting a decrease of 68.4%[13] - Total comprehensive income for the period was RMB 3,993,000, down from RMB 14,542,000 in the previous year, a decline of 72.6%[13] - The company's net profit attributable to owners was RMB 2,600,000, a decrease of 76.7% from RMB 11,300,000 in the previous period, with basic and diluted earnings per share at RMB 0.07[50] Operational Challenges - The company experienced a significant decline in both revenue and profit margins, indicating challenges in its operational performance during the period[8] - The financial results reflect the impact of market conditions on the company's performance, necessitating strategic adjustments moving forward[8] - The group’s operations were significantly impacted by COVID-19, leading to temporary closures of offices and work-from-home arrangements for most employees[36] - The only revenue source during the first three months was from LNG supply, which has a lower gross margin compared to construction-related and consulting services[36] - The group anticipates continued adverse impacts on overall business and financial performance in the second quarter due to COVID-19, depending on the duration of the pandemic and regulatory measures[51] Revenue and Cost Analysis - Revenue from continuing operations for the three months ended March 31, 2020, was RMB 68,636,000, a decrease of 29.6% compared to RMB 97,408,000 for the same period in 2019[13] - Total revenue from continuing operations decreased from RMB 97,400,000 to RMB 68,600,000, representing a year-on-year decline of 29.5%[36] - Revenue from the new energy business was RMB 68,500,000, accounting for 99.8% of total revenue, compared to 99.9% in the previous period[40] - The sales cost for the new energy business was RMB 66,000,000, down from RMB 72,000,000 in the previous period[42] - The gross profit margin for the new energy business dropped from 26.0% to 3.7% due to lower margins on LNG supply[43] - The cost of inventory recognized as an expense was RMB 63,410,000, compared to RMB 68,629,000 in the previous year, indicating a reduction of 7.5%[21] Employee and Administrative Expenses - Total employee costs for the three months ended March 31, 2020, were RMB 4,450,000, down from RMB 6,386,000 in 2019, a decrease of 30.4%[21] - Administrative expenses decreased by 25.1% to RMB 6,600,000 from RMB 8,800,000 in the previous period[45] Taxation and Government Support - The company reported a tax expense of RMB 3,033,000 for the current period, down from RMB 7,727,000 in 2019, a decrease of 60.7%[22] - The company received government subsidies of approximately RMB 5,517,000 during the period to support its new energy business development[20] - The group recorded no provision for Hong Kong profits tax due to tax losses incurred by subsidiaries during the periods[24] - Income tax expenses fell by 60.7% to RMB 3,000,000 from RMB 7,700,000, mainly due to reduced provisions for corporate income tax[46] Corporate Governance and Compliance - The company has established an audit committee in compliance with GEM listing rules, consisting of three independent non-executive directors[82] - The audit committee reviewed the unaudited financial statements for the first quarter and confirmed they were prepared in accordance with applicable accounting standards[82] - The company has been in compliance with the corporate governance code as per GEM listing rules during the reporting period[80] Stock Options and Shareholder Information - The company has granted a total of 285,944,000 stock options as of March 31, 2020, which represents 8.0% of the issued shares at that date, down from 10.1% a year earlier[59] - The exercise price for stock options granted in 2014 was set at HKD 0.81 per share, which was adjusted to 224,000,000 shares after a stock split[59] - As of March 31, 2020, the number of stock options granted but not exercised decreased from 355,680,000 to 285,944,000 over the year[59] - The maximum number of shares that can be issued upon the exercise of stock options under the plan is capped at 10% of the issued shares on the date of listing[57] - The company must obtain shareholder approval to update the 10% limit on the total number of shares that can be issued upon the exercise of stock options[57] - The company has issued stock options to directors, advisors, and employees as part of its incentive plan[59] Shareholding Structure - Mr. Hu holds 544,184,000 shares, representing 15.14% of the company's issued share capital[64] - Ms. Lin has 489,088,000 shares, accounting for 13.61% of the company's issued share capital[64] - Depot Up Limited holds 640,000,000 shares, which is 17.81% of the company's issued share capital[74] - The company has 44,800,000 and 92,832,000 unexercised share options granted at exercise prices of HKD 0.10125 and HKD 0.289 respectively[68] - The company has not issued any debt securities during the reporting period[76] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the reporting period[78] - The company has no knowledge of any competing business interests held by directors or management shareholders[69] - The company has no arrangements for directors or executives to acquire any securities of the company or its affiliates[77] - No other individuals are known to hold significant interests in the company's shares or related securities[76]

Business Transformation and Growth - The overall revenue of Zhonghua Gas Holdings Limited recorded stable growth, primarily driven by the liquefied natural gas (LNG) supply from the new energy business[6]. - The company has successfully transformed its business to focus on new energy-related consulting projects, technical development, and LNG station operations[6]. - The management team is focused on expanding the new energy market and aims to become a leading diversified new energy service provider in the Greater China region[6]. - The company has significantly broadened its revenue sources and expanded the scope of its new energy business, establishing long-term relationships with various business partners and customers[6]. - The company is committed to maintaining a strong market position and aims to become a leading integrated diversified new energy operator in the Greater China region[7]. - The main business includes providing diversified integrated new energy services, such as heating and coal-to-gas solutions, technical development, and LNG supply[10]. Financial Performance - The company's revenue from continuing operations for the year ended December 31, 2019, was RMB 344,766,000, representing a 7.3% increase from RMB 321,265,000 in the previous year[11]. - Gross profit margin decreased to 34.0% from 53.6% year-on-year, leading to a significant drop in net profit by 46.6% to RMB 53,740,000[14][20]. - The company made a provision for expected credit losses of RMB 9,400,000 due to the temporary closure of all offices in Tianjin since the COVID-19 outbreak[20]. - The total assets as of December 31, 2019, were RMB 618,694,000, a decrease of 9.0% from RMB 679,951,000 in the previous year[15]. - The company did not recommend any dividend for the year, compared to a dividend of HKD 0.005 per share in the previous year[19]. - The company's profit attributable to the owners decreased by 46.7% to RMB 44,200,000 from RMB 82,900,000 in the previous year, mainly due to lower gross margins from LNG supply and a reduction in government subsidies[37]. Revenue Sources and Business Segments - The new energy business revenue accounted for 99.9% of the total revenue, with significant contributions from LNG supply and completed construction-related projects[40]. - The group's revenue for the year was RMB 344,800,000, an increase of 7.3% from RMB 321,300,000 in the previous year, primarily due to an increase in revenue from the new energy business by RMB 23,200,000[28]. - The sales cost for the new energy business rose to RMB 227,534,000, a 52.7% increase from RMB 148,966,000 in the previous year, mainly due to increased LNG supply[29]. - The gross margin for the new energy business decreased from 53.6% to 33.9%, attributed to the lower margin of LNG supply compared to construction-related and consulting projects[30]. Market Challenges and Strategic Responses - Despite recent market challenges due to the COVID-19 outbreak, the company believes that national policy directions related to its business will remain unchanged, limiting negative impacts[7]. - The group plans to cautiously expand its LNG supply business and closely monitor market changes in response to the impacts of COVID-19[44]. - The company is closely monitoring government policy changes regarding the "coal-to-gas" project to adjust its business operations accordingly[130]. Risk Management and Internal Controls - The company has established a risk register to document identified risks and regularly assesses their potential impact and likelihood[124]. - The company has enhanced its internal control measures to address risks associated with supply chain management and contractor performance[137]. - The company has developed an emergency response plan to improve operational capabilities in case of safety incidents[134]. - The company is increasing its internal control levels in response to significant social events affecting its Hong Kong operations[130]. Corporate Governance - The company has maintained a high standard of corporate governance to enhance shareholder value and ensure transparency, accountability, and independence[73]. - The board has adopted the revised corporate governance code as per GEM listing rules, with a commitment to regular reviews and compliance[74]. - All directors confirmed full compliance with the trading standards for securities transactions during the year ending December 31, 2019, with no violations reported[76]. - The board consists of four executive directors and three independent non-executive directors, responsible for enhancing shareholder value[79]. - The audit committee, composed entirely of independent non-executive directors, held six meetings this year, with full attendance from its members[94]. Employee and Shareholder Engagement - The company maintains a healthy work environment and regularly reviews employee benefits to attract key personnel[141]. - The company provides training and support to all directors regarding their responsibilities and relevant regulations[90]. - The company is committed to high transparency and timely disclosure of information to enhance investor relations[150]. Share Options and Capital Structure - The total number of share options granted and unexercised as of December 31, 2019, was 294.4 million shares, representing 8.2% of the issued shares[175]. - The company has implemented a share option scheme to incentivize eligible participants based on their contributions to the group's operational achievements[172]. - The board's long-term dividend policy aims to distribute dividends when the company's business conditions are favorable and profitable[154].

Financial Performance - The company reported a gross profit margin based on revenue minus cost of sales, indicating financial health [8]. - The net profit margin was calculated as the profit for the period divided by revenue, reflecting overall profitability [8]. - For the nine months ended September 30, 2019, the total revenue was RMB 226,797,000, a decrease of 9.8% compared to RMB 251,427,000 for the same period in 2018 [9]. - The net profit for the nine months ended September 30, 2019, was RMB 34,088,000, down 9.5% from RMB 37,788,000 in the corresponding period of 2018 [9]. - The earnings per share (EPS) for the nine months ended September 30, 2019, was RMB 1.97, a decrease of 10.0% compared to RMB 2.19 for the same period in 2018 [9]. - The company reported a gross profit margin of 80.7% for the nine months ended September 30, 2019, compared to 56.6% for the same period in 2018 [9]. - The operating profit margin for the nine months ended September 30, 2019, was 29.4%, an increase from 18.1% in the same period of 2018 [9]. - The total comprehensive income for the nine months ended September 30, 2019, was RMB 41,183,000, a decrease of 9.5% from RMB 45,655,000 in the same period of 2018 [9]. - The company reported a decrease in total assets to RMB 267,964,000 as of September 30, 2019, compared to RMB 298,458,000 as of September 30, 2018 [9]. - The company incurred a loss of RMB 115,000 from the liquidation of its wholly-owned subsidiary Shanghai Yinjia Food Co., Ltd. as of September 30, 2018 [23]. Market Strategy and Growth - The company is focused on expanding its market presence and enhancing operational efficiency [5]. - The company plans to expand its market presence and invest in new product development to drive future growth [9]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product offerings [9]. - The LNG supply business has been a major growth driver, with plans for expansion into other regions of China and the establishment of a joint venture with Jiulian Group to develop the LNG sector [70]. - The joint venture will focus on LNG sales and related services, leveraging Jiulian Group's resources and the company's end-user market [70]. - The company plans to explore opportunities in its existing and new construction-related and consulting businesses, which are key revenue sources [70]. - The company continues to invest in expanding its sales team and establishing new platforms to enhance revenue generation in new markets [53]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2020 [99]. Operational Efficiency - The company aims to enhance operational efficiency through strategic initiatives and cost management [9]. - The company has focused resources on the new energy business following the divestment of its restaurant operations, leading to stable performance in this segment [52]. - The company aims to reduce operational costs by 8% through process optimization initiatives [99]. - A strategic acquisition of a local competitor is in progress, which is anticipated to enhance operational efficiency by 15% [99]. Revenue and Income Sources - Revenue from continuing operations for the nine months ended September 30, 2019, was RMB 226,797 thousand, an increase of 38.2% compared to RMB 164,090 thousand for the same period in 2018 [14]. - Revenue from the new energy business reached RMB 226.4 million, accounting for 99.8% of total revenue, with significant contributions from LNG supply and related consulting services [58]. - The gross profit margin for the new energy business decreased from 60.9% to 35.2%, attributed to lower margins from LNG supply compared to construction-related services [61]. - The company reported a rental and operational management service income of RMB 5,395 thousand for the nine months ended September 30, 2019, up from RMB 2,861 thousand in 2018 [22]. - The company recorded other income of RMB 300,000, primarily due to an increase in foreign exchange gains during the period [62]. Shareholder and Governance - The company did not declare any dividends for the nine months ended September 30, 2019, and September 30, 2018 [44]. - The company has a share option plan in place to incentivize eligible participants, which has been effective since December 12, 2011 [78]. - The maximum number of shares that can be issued under the share option plan is capped at 30% of the company's issued share capital [78]. - The audit committee consists of three independent non-executive directors, including Mr. Lu Tian-neng as the chairman [96]. - The company has adhered to the corporate governance code as per GEM listing rules, with some deviations noted [94]. - No conflicts of interest were reported among directors and management during the period [87]. - The company communicated with shareholders through annual and special general meetings [93]. Future Outlook - The company provided a positive outlook for Q4 2019, projecting a revenue increase of 10% to 12% [99]. - New product development includes the launch of a smart energy management system, expected to contribute an additional $5 million in revenue [99]. - Future guidance indicates a focus on sustainability, with a target to reduce carbon emissions by 30% by 2025 [99]. - Customer satisfaction ratings improved to 85%, reflecting a 5% increase from the previous quarter [99]. - The company plans to invest $2 million in R&D for new technologies in the upcoming fiscal year [99].

Revenue and Profitability - Revenue from continuing operations for the six months ended June 30, 2019, was RMB 211,105 thousand (HKD 239,984 thousand), representing an increase of 122.3% compared to RMB 94,983 thousand (HKD 112,659 thousand) for the same period in 2018[6]. - Revenue from both continuing and discontinued operations was RMB 226,022 thousand (HKD 256,942 thousand), a 94.0% increase from RMB 116,496 thousand (HKD 138,176 thousand) in the same period last year[6]. - Total comprehensive income for the period was RMB 38,724 thousand (HKD 44,021 thousand), up 61.7% from RMB 23,944 thousand (HKD 28,400 thousand) in the previous year[6]. - Profit attributable to owners of the company increased by 65.3% to RMB 32,445 thousand (HKD 36,883 thousand) from RMB 19,627 thousand (HKD 23,280 thousand) in 2018[6]. - Basic and diluted earnings per share increased by 80.0% to RMB 0.009 (HKD 0.010) from RMB 0.005 (HKD 0.006) in 2018[6]. - Profit before tax was RMB 55,497,000, compared to RMB 40,565,000, marking an increase of 36.8%[33]. - The company reported a profit of RMB 38,825,000 for the six months ended June 30, 2019, compared to RMB 22,252,000 for the same period in 2018, representing an increase of approximately 74.5%[41]. - The company’s revenue from new energy business reached RMB 210,853,000 for the six months ended June 30, 2019, compared to RMB 94,928,000 for the same period in 2018, representing a growth of 122.1%[170]. Financial Position - Total assets as of June 30, 2019, were RMB 642,003,000, a decrease of 5.6% compared to RMB 679,951,000 as of December 31, 2018[10]. - Net asset value increased by 7.6% to RMB 457,916,000 from RMB 425,703,000 year-over-year[10]. - Current ratio as of June 30, 2019, was 1.5, indicating a healthy liquidity position[9]. - Current ratio increased to 3.1 from 2.3, indicating improved liquidity[10]. - Non-current assets decreased to RMB 88,075,000 from RMB 92,025,000, a decline of 4.3%[37]. - Current assets totaled RMB 553,928,000, down from RMB 587,926,000, indicating a decrease of 5.8%[37]. - Current liabilities decreased significantly to RMB 181,554,000 from RMB 254,248,000, a reduction of 28.6%[37]. - Total equity increased to RMB 457,916,000 from RMB 425,703,000, reflecting a growth of 7.6%[37]. - The company reported a net cash position with bank balances and cash amounting to RMB 59,275,000, up from RMB 206,007,000 in the previous year[37]. Operational Efficiency - The company reported a net profit margin of 18.3% for the period, reflecting strong operational efficiency[9]. - Gross profit for the same period was RMB 67,339 thousand (HKD 76,551 thousand), a 10.6% increase from RMB 60,908 thousand (HKD 72,243 thousand) in 2018[6]. - Gross profit margin from continuing operations was 31.9%, down from 64.1% in the previous year[10]. - Net profit margin from continuing operations decreased to 18.3% from 25.2% year-over-year[10]. - Average return on equity improved to 8.5% from 6.9% in the previous year[10]. Cash Flow and Investments - Operating cash flow before changes in working capital was RMB 69,010,000 for the six months ended June 30, 2019, up from RMB 52,751,000 in 2018, indicating a growth of about 30.9%[41]. - The company experienced a net cash outflow from operating activities of RMB 152,090,000 for the six months ended June 30, 2019, compared to a net inflow of RMB 27,266,000 in 2018[41]. - The company reported a net cash outflow from investing activities of RMB 4,736,000 for the six months ended June 30, 2019, compared to a net cash outflow of RMB 77,854,000 in 2018[43]. Accounting Standards and Compliance - The company has adopted the new International Financial Reporting Standards (IFRS) and its amendments, effective from January 1, 2019, with no significant impact on performance and financial position during the reporting period[48]. - The financial statements are prepared in accordance with International Financial Reporting Standards, reflecting historical cost except for investment properties measured at fair value[67]. - The company expects that the application of new accounting standards will not have a significant impact on its financial position or performance in the foreseeable future[64]. - The company recognized lease liabilities of RMB 34,737,000 and right-of-use assets of RMB 34,939,000 upon initial application of IFRS 16 on January 1, 2019[54]. Revenue Recognition - Revenue from customer contracts is recognized when control of goods or services is transferred to the customer, in accordance with IFRS 15[79]. - Revenue from industrial products and LNG is recognized upon the transfer of control at the time of delivery, with credit terms ranging from 60 to 180 days[83]. - Revenue from LNG pipeline and operational management services is recognized over time, with contract liabilities recorded at the time of the initial sale[84]. - Revenue from construction-related and consulting services is recognized when services are performed and accepted by the customer, with deposits collected at contract signing[87]. Impairment and Credit Risk - The company assesses for impairment of investments in associates if there is objective evidence of impairment, with any impairment losses recognized as part of the investment's carrying amount[77]. - The expected credit loss provision for trade receivables is sensitive to estimation changes, with the provision rate determined based on internal credit ratings[166]. - A significant increase in credit risk is indicated when contractual payments are overdue by more than 30 days, unless there is reasonable evidence to the contrary[141]. Other Financial Information - The company incurred interest expenses of RMB 607,000 for the six months ended June 30, 2019, with no interest expenses reported in the same period of 2018[41]. - The company recognized a share-based payment expense of RMB 4,590,000 for the six months ended June 30, 2019, compared to RMB 9,661,000 in the same period of 2018, showing a decrease of about 52.5%[41]. - The company confirmed short-term employee benefits as expenses, with liabilities for accrued wages and benefits recognized after deducting any amounts already paid[97].

Zhonghua Gas Holdings Limited 中 華 燃 氣 控 股 有 限 公 司 (於開曼群島註冊成立之有限公司) 08246.HK 2019 First Quarterly Report 二零一九年第一季度報告 香港聯合交易所有限公司（「聯交所」）GEM（「GEM」）的特色 GEM乃為較於聯交所上市之其他公司帶有更高投資風險之公司提供上市之市場。有意投資者應了解投資於 該等公司之潛在風險，並應經過審慎周詳考慮後方作出投資決定。GEM之較高風險及其他特色表明GEM 較適合專業及其他經驗豐富之投資者。 由於GEM上市公司之新興性質使然，在GEM買賣之證券可能會承受較於主板買賣之證券為高之市場波動 風險，同時亦無法保證在GEM買賣之證券會有高流通量之市場。 香港交易及結算所有限公司及香港聯合交易所有限公司對本報告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不會對本報告的全部或任何部分內容所產生或因依賴該等內容而引致的任 何損失承擔任何責任。 本報告乃遵照香港聯合交易所有限公司GEM證券上市規則的規定而提供有關中華燃氣控股有限公司（「本公 司」）的資料。本公司之董事（「董事」 ...