Financial Performance - Revenue for the three months ended September 30, 2022, was RMB 19,093 thousand, an increase from RMB 10,080 thousand in the same period last year, representing an increase of 89.5%[7] - Gross profit for the three months ended September 30, 2022, was RMB 5,825 thousand, compared to a gross loss of RMB 1,245 thousand in the same period last year[7] - The net loss for the three months ended September 30, 2022, was RMB 1,586 thousand, an improvement from a net loss of RMB 2,785 thousand in the same period last year, reflecting a decrease of 43.0%[9] - Total comprehensive loss for the three months ended September 30, 2022, was RMB 2,226 thousand, compared to RMB 2,905 thousand in the same period last year, indicating a reduction of 23.3%[9] - For the nine months ended September 30, 2022, total revenue was RMB 46,160 thousand, up from RMB 33,900 thousand in the same period last year, marking an increase of 36.0%[7] - The company reported a gross profit of RMB 10,070 thousand for the nine months ended September 30, 2022, compared to a gross loss of RMB 3,997 thousand in the same period last year[7] - The basic and diluted loss per share for the three months ended September 30, 2022, was RMB 0.89, an improvement from RMB 1.57 in the same period last year[7] - CNG sales for the three months ended September 30, 2022, amounted to RMB 18,287,000, compared to RMB 10,080,000 for the same period in 2021, reflecting a growth of approximately 81.9%[22] - For the nine months ended September 30, 2022, the company's revenue was approximately RMB 46.2 million, an increase of approximately RMB 12.3 million or 36.3% compared to RMB 33.9 million for the same period in 2021[36] - Revenue from wholesale CNG sales increased by RMB 9.1 million or 43.1% to RMB 30.2 million for the nine months ended September 30, 2022, compared to RMB 21.1 million for the same period in 2021[36] - Gross profit for the nine months ended September 30, 2022, was approximately RMB 10.1 million, with a gross margin of 21.8%, compared to a gross loss of approximately RMB 4.0 million for the same period in 2021[39] - The company reported a loss attributable to owners of the company of approximately RMB 4.0 million for the nine months ended September 30, 2022, a decrease of approximately RMB 4.1 million or 50.6% compared to RMB 8.1 million for the same period in 2021[44] Operational Efficiency - The financial performance reflects ongoing efforts to improve operational efficiency and reduce losses compared to previous periods[9] - The company has implemented measures to mitigate the impact of COVID-19 on its operations, including streamlining workflows and managing working capital[46] - The company anticipates that government policies supporting natural gas development will stimulate the industry and promote growth in related products[46] - The board will continue to assess the impact of COVID-19 on the group's operations and financial performance, closely monitoring risks and uncertainties arising from the pandemic[47] Business Focus and Strategy - The company continues to focus on the sales of compressed natural gas (CNG) in China, which remains its primary business segment[14] - The company is actively exploring new business opportunities in China and other regions to diversify its revenue sources[46] - The company has not indicated any new product launches or significant market expansions in the upcoming quarters[14] - The company has not provided guidance for future performance or new product developments in the current report[18] Assets and Liabilities - Non-current assets in China increased to RMB 34,276,000 as of September 30, 2022, from RMB 34,071,000 as of December 31, 2021, showing a slight increase of 0.6%[19] - The company’s total non-current assets as of September 30, 2022, were RMB 48,426,000, slightly up from RMB 48,188,000 as of December 31, 2021, reflecting a growth of approximately 0.5%[19] - The total tax expense for the nine months ended September 30, 2022, was RMB 0, as the company did not generate taxable profits in Hong Kong[28] Shareholder Information - Major shareholders hold approximately 50.36% of the issued shares, with Liu Yongcheng and Liu Yongqiang each holding 49.43%[54][59] - Liu Yongcheng directly owns 100% of Yongsheng Industrial Co., which holds approximately 10.94% of the issued shares[56] - Liu Yongqiang directly owns 100% of Hongsheng, which holds approximately 37.55% of the issued shares[57] - As of September 30, 2022, Liu Yongqiang directly owned 100% of Hongsheng, which held 66,562,500 shares or approximately 37.55% of the issued shares[3] - Liu Yongqiang is also considered to have an interest in 19,392,500 shares or approximately 10.94% of the issued shares of Yongsheng due to being a concert party with Liu Yongcheng[3] Corporate Governance - The company has established an Audit and Risk Management Committee, consisting of three independent non-executive directors, to review the unaudited consolidated financial statements for the nine months ending September 30, 2022[80] - The company has complied with the corporate governance code, with the exception of the separation of the roles of Chairman and CEO, which is deemed appropriate under current management structure[77] - The company has maintained compliance with the GEM Listing Rules regarding corporate governance throughout the reporting period[77] - The company has adopted the trading compliance standards as per the GEM Listing Rules, confirming compliance by all directors for the nine months ending September 30, 2022[73] - There were no conflicts of interest reported among directors, major shareholders, or their close associates in any restricted business activities during the nine months ending September 30, 2022[76] Stock Options and Securities - The stock options plan was approved by shareholders on April 20, 2018, with details available in the annual report for the year ending December 31, 2021[4] - The fair value of stock options granted during the period was estimated at approximately RMB 4,655,000, with RMB 315,000 recognized as stock option expenses during the period[69] - As of the report date, there were 25,816,009 unexercised stock options, representing about 14.56% of the issued shares[71] - The exercise price for stock options granted on January 21, 2020, was adjusted from HKD 0.166 to HKD 0.664 due to a share consolidation[71] - The exercise period for the stock options is from June 23, 2020, to June 22, 2025, for options granted on June 23, 2020[68] - No purchases, sales, or redemptions of the company's listed securities occurred during the nine months ending September 30, 2022[72] Employee Information - The group employed 73 employees as of September 30, 2022, with employee costs amounting to approximately RMB 3.5 million for the nine months ending September 30, 2022[52] Dividends - The company did not declare any dividends for the three months and nine months ended September 30, 2022, consistent with the same periods in 2021[31] - No dividends are recommended for the nine months ending September 30, 2022, consistent with the previous year[47] Risks and Uncertainties - Forward-looking statements regarding the company's financial condition and operational performance are subject to known and unknown risks and uncertainties[81] - The company’s financial performance and operational results are subject to significant variability due to external factors[81] - There is no significant interest rate risk, and the group has not implemented specific policies to manage such risks[50] - The group reported no significant impact on working capital due to foreign exchange fluctuations, as most transactions are denominated in RMB[49] - No major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures occurred during the reporting period[50]

Financial Performance - For the six months ended June 30, 2022, the revenue was RMB 27,067 thousand, an increase of 18.8% compared to RMB 22,822 thousand for the same period in 2021[6] - The gross profit for the six months ended June 30, 2022, was RMB 4,245 thousand, compared to a gross loss of RMB 2,752 thousand in the same period of 2021[6] - The net loss for the six months ended June 30, 2022, was RMB 2,458 thousand, a significant improvement from a net loss of RMB 5,351 thousand in the same period of 2021[6] - The company reported a basic and diluted loss per share of RMB 0.22 for the six months ended June 30, 2022, compared to RMB 0.80 for the same period in 2021[6] - The company reported a pre-tax loss of RMB 383,000 for the six months ended June 30, 2022, compared to a loss of RMB 2,277,000 for the same period in 2021, indicating a significant improvement[11] - The company reported a loss attributable to owners of approximately RMB 2.5 million, a decrease of RMB 2.9 million or 53.7% compared to a loss of RMB 5.4 million in the previous year[60] Assets and Equity - The total assets as of June 30, 2022, were RMB 130,066 thousand, a decrease from RMB 132,637 thousand as of December 31, 2021[10] - The cash and cash equivalents as of June 30, 2022, amounted to RMB 28,255 thousand, down from RMB 29,647 thousand as of December 31, 2021[10] - The company reported a decrease in total equity from RMB 84,268 thousand as of December 31, 2021, to RMB 81,717 thousand as of June 30, 2022[11] - The company’s total equity attributable to owners as of June 30, 2022, was RMB 81,717,000, a decrease from RMB 87,301,000 at the beginning of the year[13] - As of June 30, 2022, the total equity of the company was approximately RMB 81.7 million, with cash and cash equivalents of approximately RMB 28.3 million[66] Cash Flow and Expenses - The net cash generated from operating activities for the six months ended June 30, 2022, was RMB 743,000, a significant decrease compared to RMB 17,328,000 in the same period of 2021[16] - The company incurred administrative expenses of RMB 6,390 thousand for the six months ended June 30, 2022, compared to RMB 3,083 thousand for the same period in 2021[6] - The company incurred employee benefits expenses of RMB 1,803,000 for the six months ended June 30, 2022, up 22% from RMB 1,478,000 in the same period of 2021[11] - The company’s cash flow from financing activities showed a net outflow of RMB 718,000 for the six months ended June 30, 2022, compared to an outflow of RMB 3,373,000 in the same period of 2021[16] - The total financing costs for the six months ended June 30, 2022, amounted to RMB 192,000, a decrease from RMB 583,000 in the same period of 2021[11] Revenue Breakdown - The company’s major customers, which are state-owned enterprises, contributed RMB 10,456,000 to total revenue for the six months ended June 30, 2022, compared to RMB 13,442,000 in the same period of 2021[26] - Revenue from wholesale CNG sales increased by RMB 4.5 million or 32.1% to RMB 18.5 million, driven by higher average selling prices while maintaining stable sales volume[53] - Revenue from retail CNG sales decreased by RMB 1.2 million or 12.2% to RMB 8.6 million, primarily due to road closures near a gas station in Jingzhou, Hubei[53] Inventory and Receivables - The company’s inventory increased to RMB 70 thousand as of June 30, 2022, from RMB 12 thousand as of December 31, 2021[10] - The company’s trade receivables decreased to RMB 4,781 thousand as of June 30, 2022, from RMB 6,028 thousand as of December 31, 2021[10] - The total trade receivables as of June 30, 2022, were RMB 10,825,000, with a net amount of RMB 4,781,000 after deducting credit loss provisions[39] Shareholder Information - As of June 30, 2022, Mr. Liu Yongcheng holds 85,955,000 shares, representing approximately 49.43% of the total issued shares[27] - Mr. Liu Yongqiang also holds 85,955,000 shares, equivalent to approximately 49.43% of the total issued shares[27] - The company has a total of 19,392,500 shares held by Yongsheng Industrial Limited, accounting for about 10.94% of the total issued shares[109] - The company has a total of 66,562,500 shares held by Hongsheng Industrial Limited, representing approximately 37.55% of the total issued shares[109] - The total shares held by major shareholders, including Yongsheng and Hongsheng, amount to 85,955,000 shares, which is about 50.36% of the total issued shares[112] Corporate Governance - The company has adopted and complied with the corporate governance code as per the GEM Listing Rules, with the exception of the separation of roles between the Chairman and CEO[130] - The audit and risk management committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022[132] - The company confirmed that there were no conflicts of interest involving directors or major shareholders in restricted businesses as of June 30, 2022[34] Future Plans and Commitments - The company is actively exploring new business opportunities in China and other regions to diversify its revenue sources, supported by national policies promoting cleaner energy[63] - The company plans to construct a CNG refueling station with an estimated cost of HKD 5,212,000, representing 17.9% of the total proceeds[75] - The construction of a comprehensive CNG/LNG refueling station is projected to cost HKD 12,250,000, accounting for 42.0% of the total proceeds[75] - The company has no significant contingent liabilities or guarantees as of June 30, 2022, consistent with the previous year[67] - There are no major investments or acquisitions planned by the company as of the report date[71]

Financial Performance - The company's revenue decreased by 8.8% from RMB 509 million in 2020 to RMB 464 million in 2021 due to COVID-19 impacts and road closures near a gas station[12]. - The net loss for the year was reduced by 62.4% to RMB 85 million from RMB 226 million in 2020[12]. - Total revenue for the year was approximately RMB 46.4 million, a decrease of about RMB 4.5 million or 8.8% from RMB 50.9 million in the previous year[24]. - Retail business revenue accounted for 35.4% of total revenue, down from 42.3% in the previous year, with a decrease of approximately RMB 5.1 million or 23.7% to RMB 16.4 million[24]. - Wholesale business revenue increased by approximately RMB 1.0 million or 3.4% to RMB 30.1 million, representing 64.7% of total revenue, up from 57.1% in the previous year[24]. - Gross loss for the year was approximately RMB 1.0 million, compared to RMB 0.8 million in the previous year, mainly due to high procurement costs of natural gas[27]. - The company reported a loss attributable to owners of approximately RMB 8.5 million, a decrease of RMB 14.1 million or 62.4% from RMB 22.6 million in the previous year[35]. - The company did not generate any revenue from automatic car wash services during the year, compared to RMB 374,000 in the previous year, due to ongoing pandemic restrictions[25]. Cost Management - Administrative expenses decreased by approximately RMB 77 million, from RMB 162 million in 2020 to RMB 85 million in 2021, due to the absence of one-time professional fees from a prior acquisition[12]. - Cost of sales decreased by approximately RMB 4.4 million or 8.5% to RMB 47.4 million, primarily due to a reduction in sales volume of compressed natural gas[26]. - Administrative expenses decreased by approximately RMB 7.7 million or 47.5% to RMB 8.5 million, mainly due to the absence of one-time professional fees related to acquisitions in the previous year[31]. Business Operations - The main business operations are located in Jingzhou, Hubei Province, China, focusing on CNG sales and automatic car wash services[17]. - CNG sales are primarily generated from retail customers and wholesale clients, with natural gas purchased from China National Petroleum Corporation[18]. - The company has established car wash facilities at multiple gas stations across China[19]. - The company operated three gas stations in Jingzhou, Hubei Province, as of December 31, 2021[24]. Strategic Initiatives - The company aims to provide safe and reliable clean energy supply and is optimistic about the growth of CNG consumption in China due to favorable government policies[13]. - The company is actively exploring various business opportunities to diversify revenue sources and enhance shareholder value[14]. - The company plans to leverage industry trends and government support to stimulate domestic demand for natural gas[13]. - The group is exploring opportunities in electric vehicle charging to align with government initiatives for cleaner energy sources[39]. - The group anticipates that government policies regarding cleaner energy will stimulate the natural gas industry and promote the development of related products[38]. Financial Position - Total equity as of December 31, 2021, was approximately RMB 843 million, a decrease from RMB 873 million as of December 31, 2020[40]. - Cash and cash equivalents increased to approximately RMB 296 million as of December 31, 2021, compared to RMB 62 million as of December 31, 2020[40]. - Operating working capital was approximately RMB 370 million as of December 31, 2021, up from RMB 325 million as of December 31, 2020, with a current ratio of 4.5[40]. - Trade receivables decreased to approximately RMB 60 million as of December 31, 2021, from RMB 126 million as of December 31, 2020, with a reduction in collection days to about 73.3 days from 109.6 days[45]. - The group has no bank borrowings as of December 31, 2021, resulting in an asset-to-liability ratio that is not applicable[40]. Corporate Governance - The company is committed to maintaining high standards of corporate governance through its independent board members[73][74][75]. - The company has a focus on risk management and compliance, as evidenced by the establishment of various committees within the board[73]. - The board consists of six members, including three executive directors and three independent non-executive directors[166]. - The company has adopted trading compliance standards as per GEM Listing Rules, confirming adherence by all directors during the year[142]. - The company has established a balance mechanism involving the board and three independent non-executive directors to consult on significant decisions[171]. Shareholder Information - As of December 31, 2021, the company had 177,255,000 shares issued, with major shareholders holding significant stakes[112]. - Major shareholders, including 永盛 and 鴻盛, each held 85,955,000 shares, representing approximately 50.36% of the total issued shares[119]. - The company’s directors and key executives have stock options totaling 3,311,800 shares[119]. - The company has a share option scheme approved by shareholders on April 20, 2018, allowing the grant of options to directors and employees as an incentive[124]. Compliance and Risk Management - The company has implemented compliance procedures to ensure adherence to applicable environmental laws and regulations[91]. - The company has adopted trading standards for directors to ensure compliance with securities trading regulations[162]. - The audit and risk management committee reviewed the consolidated financial statements for the year ended December 31, 2021[150]. - The independent non-executive directors are responsible for ensuring high standards of regulatory reporting and providing independent judgment on company actions[177]. Future Outlook - The company aims to leverage its strategic development capabilities to enhance its market position in the natural gas sector[71]. - The company has a clear vision for future growth, emphasizing the importance of strategic planning and operational efficiency[71]. - The board will continuously evaluate the company's business objectives and may modify plans based on changing market conditions[65].

Financial Performance - The revenue for the first quarter of 2022 was RMB 11,057,000, a decrease of 21.5% compared to RMB 14,120,000 in the same period of 2021[6] - The gross profit for the first quarter of 2022 was RMB 486,000, compared to a gross loss of RMB 1,023,000 in the first quarter of 2021[6] - The net loss for the first quarter of 2022 was RMB 2,075,000, an improvement from a net loss of RMB 3,074,000 in the same period of 2021[6] - The company reported other comprehensive income of RMB 1,007,000 for the first quarter of 2022, compared to a loss of RMB 97,000 in the first quarter of 2021[8] - The total comprehensive loss for the first quarter of 2022 was RMB 1,068,000, compared to RMB 3,171,000 in the first quarter of 2021[8] - Total revenue for the three months ended March 31, 2022, was RMB 11,057,000, a decrease of 21.6% from RMB 14,120,000 for the same period in 2021[23] - The cost of goods sold for the same period was RMB 8,549,000, down from RMB 11,876,000 in 2021, reflecting a 28.5% reduction[24] - The group reported a pre-tax loss of RMB 2,075,000 for the three months ended March 31, 2022, compared to a loss of RMB 3,074,000 in the same period of 2021, indicating an improvement of 32.6%[31] - Basic loss per share for the period was RMB (1.20), an improvement from RMB (1.86) in the previous year[31] - Revenue for the three months ended March 31, 2022, was approximately RMB 11.1 million, a decrease of about RMB 3.0 million or 21.3% compared to RMB 14.1 million for the same period in 2021[37] Expenses and Costs - The administrative expenses increased to RMB 2,520,000 in the first quarter of 2022 from RMB 1,882,000 in the same period of 2021[6] - The financing costs decreased significantly to RMB 44,000 in the first quarter of 2022 from RMB 298,000 in the first quarter of 2021[6] - Cost of sales for the three months ended March 31, 2022, was approximately RMB 10.6 million, a decrease of about RMB 4.5 million or 29.8% compared to RMB 15.1 million for the same period in 2021[38] - Employee costs for the three months ended March 31, 2022, were approximately RMB 1.1 million, down from RMB 1.3 million for the same period in 2021[53] Revenue Sources - The company is engaged in CNG sales in the People's Republic of China during the reporting period[13] - All revenue during the period was generated from customers located in China[18] - Sales revenue from wholesale customers decreased by approximately RMB 2.5 million or 27.5% to about RMB 6.6 million, primarily due to the ongoing impact of COVID-19[37] - Sales revenue from retail customers decreased by approximately RMB 0.5 million or 10.0% to about RMB 4.5 million, attributed to road closures near a gas station[37] Shareholder Information - Liu Yongcheng and Liu Yongqiang each hold 85,955,000 shares, representing approximately 49.43% of the total issued shares[55] - Liu Yongcheng and Liu Yongqiang are also deemed to have interests in 66,562,500 shares, approximately 37.55% of the total issued shares, held by Hongsheng Industrial Limited[57] - Major shareholders, including Yongsheng and Hongsheng, collectively hold 85,955,000 shares, representing approximately 50.36% of the total issued shares[61] - An Wei Development Limited holds 13,872,500 shares, approximately 7.83% of the total issued shares[61] - As of March 31, 2022, no other directors or key executives held any recorded interests in the company's shares[59] Corporate Governance - The company adopted and complied with the corporate governance code as per the GEM Listing Rules, with a noted deviation regarding the separation of the roles of Chairman and CEO[77] - The Audit and Risk Management Committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the three months ending March 31, 2022[78] - The company confirmed compliance with the non-competition agreement signed by its controlling shareholders on April 20, 2018, which prohibits engaging in any competing business activities during its validity period[74] - As of March 31, 2022, there were no conflicts of interest reported among directors, controlling shareholders, or their close associates in any competing businesses[75] Future Outlook - The company anticipates that its revenue and profitability will continue to be affected by COVID-19, with a challenging business environment expected in the future[47] - The company is actively exploring new business opportunities in China and other regions to diversify its revenue sources[48] Stock Options - The share option plan was approved by shareholders on April 20, 2018, allowing for the granting of options to directors and employees[58] - As of March 31, 2022, there were 25,816,009 unexercised stock options, equivalent to approximately 14.56% of the issued shares[70] - The fair value of the stock options granted was estimated at RMB 4,655,000, with an expense of RMB 167,000 recognized during the period[70] - The exercise price for stock options granted on January 21, 2020, was adjusted from HKD 0.166 to HKD 0.664 due to a share consolidation[70] - The exercise price for stock options granted on June 23, 2020, was adjusted from HKD 0.130 to HKD 0.520 due to a share consolidation[70] Other Information - The company did not declare any dividends for the three months ended March 31, 2022, consistent with the previous year[32] - The group did not declare any dividends for the three months ended March 31, 2022, consistent with the previous year[50] - The company has no significant investments or major acquisitions planned during the reporting period[51] - The company did not purchase, sell, or redeem any of its listed securities during the three months ending March 31, 2022[73] - All directors confirmed compliance with the trading standards set forth in the GEM Listing Rules during the three months ending March 31, 2022[73] - There were no grants of rights to purchase shares or debt securities to any directors or their immediate family members during the three months ending March 31, 2022[72] - No significant events occurred after the reporting period, aside from those disclosed in the report[79] - The report contains forward-looking statements regarding the company's financial condition and operational performance, which are subject to known and unknown risks[81]

Financial Performance - TL Natural Gas Holdings Limited reported its annual results for the year ended December 31, 2021, in compliance with GEM listing rules[1]. - The company's revenue decreased by 8.8% from RMB 50.9 million in 2020 to RMB 46.4 million in 2021[22]. - Retail business revenue dropped by 23.7% to approximately RMB 16.4 million, accounting for 35.4% of total revenue in 2021[26]. - Wholesale business revenue increased by 3.4% to approximately RMB 30.1 million, representing 64.7% of total revenue in 2021[26]. - The company's sales cost decreased by 8.5% to approximately RMB 47.4 million in 2021, down from RMB 51.8 million in 2020[28]. - The gross loss for the year was approximately RMB 1.0 million, compared to RMB 0.8 million in 2020[29]. - Other income and losses amounted to approximately RMB 1.9 million, primarily due to compensation income of RMB 3.3 million from the government[30]. - The company reported a loss attributable to owners of approximately RMB 8.5 million, a reduction of RMB 14.1 million or 62.4% compared to RMB 22.6 million for the year ended December 31, 2020, driven by lower administrative expenses and reduced impairment losses[37]. - The total equity as of December 31, 2021, was approximately RMB 843 million, down from RMB 873 million as of December 31, 2020[42]. - Cash and cash equivalents increased to approximately RMB 296 million from RMB 62 million as of December 31, 2020, indicating improved liquidity[42]. - The operating cash flow (net current assets) was approximately RMB 370 million, up from RMB 325 million as of December 31, 2020, reflecting better working capital management[42]. Corporate Governance - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[11]. - The company is committed to transparency and accountability in its financial reporting and corporate governance practices[5]. - The board consists of six members, including three executive directors and three independent non-executive directors[167]. - The company adopted the corporate governance code as a standard for its governance practices[162]. - The audit and risk management committee reviewed the financial statements for compliance with applicable reporting standards[151]. - The company has appointed Yang Zhenyu as an independent non-executive director and chairman of the audit and risk management committee, ensuring compliance with GEM listing rules regarding independent directors[173]. - The board of directors has established three committees: the audit and risk management committee, the remuneration committee, and the nomination committee, to oversee various aspects of the company's affairs[186]. - The audit and risk management committee held seven meetings during the year to review quarterly, interim, and annual financial performance and reports[188]. - The company has implemented a balance mechanism involving the board and three independent non-executive directors to consult on significant decisions[172]. - The specific term for independent non-executive directors is three years, with re-election required at the annual general meeting[174]. - The company has received annual confirmations of independence from all independent non-executive directors, affirming their independence[173]. - The board collectively oversees the company's affairs and is responsible for strategy formulation and monitoring its implementation[176]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company[182]. - The board retains decision-making authority on significant matters, including policies, strategies, and financial information[179]. - The Compensation Committee held one meeting during the year to review the remuneration policies for directors and senior management[190]. - The Nomination Committee also conducted one meeting to assess the board's structure, size, and the independence of non-executive directors[195]. - The company has adopted a board diversity policy, which includes measurable objectives for achieving diversity within the board[196]. - The Nomination Committee is committed to reviewing the board's composition annually and recommending changes to enhance the company's strategy and ensure a balanced and diverse board[196]. - The board aims to maintain a proper balance of diversity related to business growth and is dedicated to incorporating diverse candidates in recruitment practices[196]. - The company believes that enhancing board diversity is a key element in maintaining its competitive advantage[196]. - The Nomination Committee will regularly review the effectiveness of the board diversity policy[198]. - The board will consider setting measurable targets to implement the board diversity policy and will review these targets periodically[197]. - The Compensation Committee's responsibilities include establishing transparent procedures for setting remuneration policies to ensure no director can influence their own pay[191]. - The Nomination Committee evaluates the independence of non-executive directors as part of its responsibilities[192]. Business Operations and Strategy - The company operates in the compressed natural gas (CNG) and liquefied natural gas (LNG) sectors, focusing on clean alternative fuels for vehicles[6]. - The company remains optimistic about the growth of CNG consumption in China due to favorable government policies and industry trends[15]. - The company is actively exploring various business opportunities to diversify revenue sources and enhance shareholder value[16]. - The company plans to explore new business opportunities in China and other regions to diversify revenue sources, particularly in the clean energy sector[40]. - The board is focused on the potential of electric vehicle charging business as a clean alternative fuel source, aligning with government initiatives for cleaner energy[41]. - The company aims to provide safe and reliable clean energy supply while contributing to environmental protection in China[15]. - The company is actively managing operational risks related to COVID-19 and is prepared to take appropriate measures to mitigate these risks[41]. - The company aims to expand its wholesale customer base and capture the CNG and LNG market through these infrastructure enhancements[64]. - The company is committed to exploring new market opportunities and potential acquisitions to expand its footprint[90]. - Future outlook includes a focus on technological advancements in service delivery and operational processes[90]. - The management is actively monitoring market trends to adapt strategies accordingly and maintain competitive advantage[90]. - The company has established a strong foundation for growth through its diversified business model and experienced leadership[90]. Shareholder Information - The company does not recommend the payment of a final dividend for the year, consistent with the previous year[96]. - As of December 31, 2021, the company's distributable reserves amounted to approximately RMB 631 million, an increase from RMB 597 million the previous year[100]. - Sales to the top five customers accounted for 72.2% of total sales for the year, with the largest customer contributing 34.8%[101]. - The company has a stock option plan approved on April 20, 2018, allowing the issuance of options to directors and employees as incentives[125]. - The maximum number of shares that can be granted to any single participant under the stock option plan is limited to 1% of the company's issued share capital[126]. - The total number of options granted during the year is detailed in the annual report[129]. - The company can issue options up to a total of 10% of the shares issued at the time of listing on the GEM[127]. - As of December 31, 2021, major shareholders included Yongsheng and Hongsheng, each holding 85,955,000 shares[120]. - The stock option plan allows for options to be exercised within ten years from the grant date[126]. - The company must obtain shareholder approval to adjust the limits on the stock option plan[127]. - The company granted a total of 25,816,009 stock options, representing approximately 14.56% of the issued shares as of the report date[135]. - The fair value of the stock options granted was estimated at RMB 4,655,000, with an expense of RMB 1,002,000 recognized for the year[134]. - The exercise price for stock options granted on January 21, 2020, was adjusted from HKD 0.166 to HKD 0.664, and for those granted on June 23, 2020, from HKD 0.130 to HKD 0.520 due to a share consolidation[133]. - As of December 31, 2021, the company had 1,375,000 stock options that were exercised and 280,900 that were expired[130]. - The company reported a total of 6,875,000 stock options exercised and 12,317,409 stock options outstanding as of the reporting date[130]. Compliance and Risk Management - The company confirmed that the information provided in the announcement is accurate and complete, with no misleading or fraudulent elements[2]. - The company has implemented compliance procedures to ensure adherence to applicable environmental laws and regulations[92]. - The company is committed to sustainable development and maintaining close relationships with employees, customers, and business partners[94]. - There were no significant transactions involving directors or major shareholders with the company's top customers or suppliers[112]. - The company has not entered into any management or administrative contracts for any significant part of its business during the year[112]. - The company confirmed compliance with the trading standards for directors as per GEM Listing Rules[143]. - The company does not have any employees participating in the Hong Kong Mandatory Provident Fund, with employees in China contributing to a state-managed retirement benefits plan[140]. - The company has not established any equity-linked agreements during the year, aside from the stock option plan[142]. - The company confirmed compliance with the non-competition agreement by its controlling shareholders for the current year[144]. - There were no significant competitive interests reported by the board or major shareholders during the year[146]. - The proposed acquisition of Evergreen Leader Limited for 29 million Malaysian Ringgit was terminated due to pandemic-related restrictions[148]. - Ernst & Young resigned as the auditor, and a new auditor was appointed to fill the vacancy[157].

Financial Performance - For the three months ended September 30, 2021, the revenue was RMB 10,080,000, a decrease of 11% compared to RMB 11,325,000 in the same period of 2020[6] - The gross loss for the three months was RMB 1,245,000, compared to a gross profit of RMB 3,331,000 in the same period of 2020[6] - The total loss for the period was RMB 2,785,000, a slight improvement from a loss of RMB 3,000,000 in the same period of 2020[7] - The basic and diluted loss per share for the three months was RMB (1.57), compared to RMB (1.81) in the same period of 2020[6] - For the nine months ended September 30, 2021, the total revenue was RMB 33,900,000, a decrease of 10% from RMB 37,897,000 in the same period of 2020[6] - The total comprehensive loss for the nine months was RMB 8,226,000, compared to RMB 8,591,000 in the same period of 2020[7] - The total comprehensive loss for the nine months ended September 30, 2021, was RMB 8,591,000, compared to a loss of RMB 8,278,000 for the same period in 2020[9] - Basic loss per share for the nine months ended September 30, 2021, was RMB 4.75, compared to RMB 5.36 for the same period in 2020[29] - The company reported a loss attributable to owners of approximately RMB 8.1 million for the nine months ended September 30, 2021, compared to a net loss of approximately RMB 8.3 million for the same period in 2020[45] Revenue Sources - Major customer A contributed RMB 12,401,000 in revenue for the nine months ended September 30, 2021, compared to RMB 6,727,000 in the same period of 2020, reflecting an increase of 84.5%[21] - Major customer B generated RMB 6,280,000 in revenue for the nine months ended September 30, 2021, down from RMB 12,792,000 in the same period of 2020, indicating a decline of 50.9%[21] - Revenue from retail customers for CNG sales decreased by RMB 2.7 million or 17.4% to RMB 128 million for the nine months ended September 30, 2021, primarily due to a decline in CNG sales volume and average selling price[35] - Revenue from wholesale customers for CNG sales increased by RMB 2.1 million or 11.1% to RMB 211 million for the nine months ended September 30, 2021, driven by an increase in sales volume and a slight rise in average selling price[35] - For the nine months ended September 30, 2021, the group generated no revenue from automatic car wash services[37] Expenses and Costs - The company reported a financing cost of RMB 133,000 for the three months, down from RMB 262,000 in the same period of 2020[6] - The administrative expenses for the three months were RMB 1,734,000, a decrease from RMB 3,139,000 in the same period of 2020[6] - The cost of goods sold for the nine months ended September 30, 2021, was RMB 28.3 million, an increase from RMB 25.8 million in the same period of 2020[23] - Cost of sales for the nine months ended September 30, 2021, was approximately RMB 37.9 million, an increase of about RMB 3.2 million or 9.2% compared to RMB 34.7 million for the same period in 2020[38] - Selling and distribution expenses decreased by approximately RMB 281,000 or 38.0% to RMB 458,000 for the nine months ended September 30, 2021, compared to RMB 739,000 for the same period in 2020[41] - Administrative expenses decreased by approximately RMB 5.8 million or 54.7% to RMB 4.8 million for the nine months ended September 30, 2021, compared to RMB 10.6 million for the same period in 2020[43] Assets and Equity - The total non-current assets in China as of September 30, 2021, were RMB 48,137,000, a decrease from RMB 50,916,000 as of December 31, 2020, representing a decline of 5.5%[19] - The company’s total equity as of September 30, 2021, was RMB 84,862,000, down from RMB 87,301,000 as of January 1, 2021, indicating a decrease of approximately 2.5%[9] Corporate Governance and Compliance - The company has not reported any significant changes in accounting policies that would materially affect the financial statements for the nine months ended September 30, 2021[17] - The company confirmed that all directors complied with the trading compliance standards during the nine months ended September 30, 2021[69] - The company has adopted and complied with the corporate governance code as per GEM Listing Rules, with some deviations noted regarding the separation of roles between the Chairman and CEO[74] - The company is actively seeking suitable candidates to meet the GEM Listing Rules requirements for independent non-executive directors following recent resignations[76] - The audit and risk management committee consists of two independent non-executive directors who reviewed the unaudited consolidated financial statements for the nine months ended September 30, 2021[78] Future Plans and Strategies - The company plans to continue exploring market expansion opportunities and new product development strategies moving forward[6] - The company is exploring new business opportunities in China and other regions to diversify its revenue sources[48] - The company entered into a memorandum of understanding with Guangzhou Ruichuang New Energy Technology Co., Ltd. to collaborate on electric vehicle charging business in Guangzhou[52] Shareholder Information - The total issued shares as of September 30, 2021, were 177,255,000, with major shareholders holding significant stakes, including Liu Yongcheng and Liu Yongqiang, each owning approximately 53.82% of the shares[54] - Liu Yongcheng directly owned 100% of Yongsheng Industrial Co., which held 27,187,500 shares, representing about 15.34% of the issued shares[55] - Liu Yongqiang directly owned 100% of Hongsheng, which held 66,562,500 shares, representing about 37.55% of the issued shares[57] - Major shareholders include Yongsheng and Hongsheng, each holding 93,750,000 shares, which is approximately 54.76% of the total issued shares[58] - The company has a stock option plan approved by shareholders, which was adopted on April 20, 2018[59] - The fair value of share options granted during the period was estimated at approximately RMB 4,655,000, with RMB 1,063,000 recognized as share option expenses during the period[65] - The exercise price of share options granted on January 21, 2020, was adjusted from HKD 0.166 to HKD 0.664 due to a share consolidation effective July 20, 2021[67] - The exercise price of share options granted on June 23, 2020, was adjusted from HKD 0.130 to HKD 0.520 due to the same share consolidation[67] - As of January 1, 2021, a total of 109,500,000 share options were granted to directors, executives, and major shareholders[63] - As of September 30, 2021, the company had 25,816,009 unexercised share options, representing approximately 14.56% of the issued shares as of the report date[68] Employee Information - As of September 30, 2021, the group employed a total of 68 employees, with employee costs for the nine months ending September 30, 2021, approximately RMB 3.5 million, a decrease from RMB 6.1 million for the same period in 2020[53] - The employee performance is regularly reviewed, and training is provided to enhance skills[53] - The company continues to assess market compensation and employee contributions when determining salaries[53] - There are no other directors or key executives with recorded interests in the company's shares as of September 30, 2021[58]

Financial Performance - For the six months ended June 30, 2021, the company reported revenue of RMB 23,820,000, a decrease of 10.2% compared to RMB 26,572,000 for the same period in 2020[6] - The gross loss for the six months ended June 30, 2021, was RMB 2,752,000, compared to a gross loss of RMB 347,000 for the same period in 2020[6] - The company recorded a net loss of RMB 5,351,000 for the six months ended June 30, 2021, compared to a net loss of RMB 5,278,000 for the same period in 2020[8] - The total comprehensive income for the period was RMB (4,513,000), which includes a loss of RMB (5,278,000) from other comprehensive income[14] - The pre-tax loss for the six months ended June 30, 2021, was RMB 5,351,000, compared to a loss of RMB 5,278,000 for the same period in 2020[35] - Basic loss per share for the six months ended June 30, 2021, was RMB 0.80, a decrease from RMB 0.89 for the same period in 2020[35] - The company reported a loss attributable to owners of approximately RMB 5.4 million for the six months ended June 30, 2021, compared to a net loss of approximately RMB 5.3 million in the same period last year, indicating stability[63] Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 94,409,000, a slight decrease from RMB 100,387,000 as of December 31, 2020[10] - The total liabilities of the company as of June 30, 2021, were RMB 20,656,000, reflecting a decrease from previous periods[14] - Total trade receivables as of June 30, 2021, were RMB 10,878,000, down from RMB 19,347,000 as of December 31, 2020[39] - The company’s non-current assets in China amounted to RMB 52,470,000 as of June 30, 2021, compared to RMB 50,916,000 as of December 31, 2020[23] Cash Flow - The company’s cash and cash equivalents were RMB 15,469,000 as of June 30, 2021, compared to RMB 6,226,000 as of December 31, 2020[10] - For the six months ended June 30, 2021, the net cash generated from operating activities was RMB 17,328,000, compared to RMB 3,110,000 for the same period in 2020, representing a significant increase[17] - The company reported a net increase in cash and cash equivalents of RMB 9,681,000, bringing the total to RMB 15,469,000 at the end of the period[17] Equity - The total equity attributable to the owners of the parent company increased to RMB 87,537,000 as of June 30, 2021, from RMB 87,301,000 as of December 31, 2020[12] - The total equity attributable to the owners of the parent company increased to RMB 106,440,000 as of June 30, 2021, up from RMB 83,364,000 at the beginning of the year[14] - As of June 30, 2021, the total equity of the group was approximately RMB 875 million, with cash and cash equivalents of approximately RMB 155 million[69] Expenses - The company’s administrative expenses decreased to RMB 3,083,000 for the six months ended June 30, 2021, from RMB 7,433,000 for the same period in 2020[6] - The company’s sales and distribution expenses were RMB 296,000 for the six months ended June 30, 2021, down from RMB 404,000 for the same period in 2020[6] - The depreciation expense for property, plant, and equipment for the six months ended June 30, 2021, was RMB 2,186,000, slightly up from RMB 2,113,000 in the same period of 2020[28] - The group employed 69 employees as of June 30, 2021, with employee costs amounting to approximately RMB 2.5 million for the six months ended June 30, 2021, down from RMB 4.2 million in the same period last year[76] Revenue Sources - Revenue from CNG sales and automatic car wash services for the six months ended June 30, 2021, was RMB 23,820,000, an increase of 22.5% compared to RMB 19,392,000 for the same period in 2020[26] - Revenue from wholesale CNG sales increased from approximately RMB 10.9 million to RMB 14.0 million, a rise of about RMB 3.1 million or 28.4%[55] - Revenue from retail CNG sales rose from approximately RMB 8.5 million to RMB 9.8 million, an increase of about RMB 1.3 million or 15.3%[55] - The company did not generate any revenue from automatic car wash services during the six months ended June 30, 2021[56] Business Strategy - The company plans to continue exploring opportunities for market expansion and new product development in the upcoming periods[6] - The company is actively exploring new business opportunities in China and other regions to diversify its revenue sources[66] - The company plans to seek relocation opportunities following the planned demolition of a gas station, which is expected to yield compensation of approximately RMB 3.3 million[49] Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM Listing Rules, with a noted deviation regarding the separation of the roles of Chairman and CEO[133] - The board of directors includes three executive directors and three independent non-executive directors as of the report date[138] - The Audit and Risk Management Committee has been established, consisting of three independent non-executive directors, and has reviewed the unaudited consolidated financial statements for the six months ending June 30, 2021[135] Share Capital and Options - As of June 30, 2021, the company had a total of 709,020,000 shares issued, with major shareholders holding significant stakes, including 375,000,000 shares (54.76%) by Yongsheng and Hongsheng[115][116] - The company has a stock option plan approved by shareholders on April 20, 2018, with details provided in the annual report for the year ending December 31, 2020[122] - The fair value of the stock options granted during the period is estimated at approximately RMB 4,655,000, with the company recognizing an expense of RMB 833,000 during the period[125] - The company has a stock option plan where 30% of the options vest immediately, another 30% after one year, and the remaining 40% after two years[124] Compliance and Risks - The company confirmed compliance with the trading standards set forth in the GEM Listing Rules during the reporting period[129] - The board will continue to assess the impact of COVID-19 on the group's operations and financial performance, monitoring risks and uncertainties closely[66] - Forward-looking statements regarding the company's financial condition and operational performance have been made, acknowledging known and unknown risks[137]

Financial Performance - The revenue for the first quarter of 2021 was RMB 14,120,000, compared to RMB 6,642,000 in the same period of 2020, representing a year-over-year increase of 112.3%[6] - The gross loss for the first quarter of 2021 was RMB 1,023,000, slightly improved from a gross loss of RMB 1,076,000 in the first quarter of 2020[6] - The total loss for the period was RMB 3,074,000, which is an improvement from a loss of RMB 4,133,000 in the same period last year, indicating a reduction of 25.7%[6] - The basic and diluted loss per share for the first quarter of 2021 was RMB 0.46, compared to RMB 0.74 in the first quarter of 2020, reflecting a decrease of 37.8%[6] - Other income and gains for the first quarter of 2021 were RMB 22,000, a significant decrease from RMB 398,000 in the same period of 2020[6] - Administrative expenses decreased to RMB 1,882,000 in the first quarter of 2021 from RMB 2,942,000 in the same period of 2020, showing a reduction of 36%[6] - The company reported a financial asset impairment reversal of RMB 414,000 in the first quarter of 2021, compared to no such reversal in the same period of 2020[6] - The company reported a pre-tax loss of RMB 3.1 million for the three months ended March 31, 2021, compared to a loss of RMB 4.1 million in the same period of 2020[29] - Basic loss per share for the three months ended March 31, 2021, was RMB 0.46, compared to RMB 0.74 for the same period in 2020[29] - The company did not declare any dividends for the three months ended March 31, 2021, consistent with the same period in 2020[30] - Income tax expense for the period was approximately RMB 104,000, compared to a tax credit of approximately RMB 12,000 in the same period last year[42] - Loss attributable to owners of the company was approximately RMB 3.1 million, a decrease of RMB 1.0 million or 24.4% from RMB 4.1 million in the previous year[43] Revenue Breakdown - Revenue from wholesale CNG sales increased by approximately RMB 5.4 million or 145.9% to approximately RMB 9.1 million for the three months ended March 31, 2021, compared to approximately RMB 3.7 million in the same period of 2020[35] - Revenue from retail CNG sales increased by approximately RMB 2.2 million or 78.6% to approximately RMB 5.0 million for the three months ended March 31, 2021, compared to approximately RMB 2.8 million in the same period of 2020[35] - For the three months ended March 31, 2021, the group did not generate any revenue from its automatic car wash services[36] Cost and Expenses - The cost of goods sold for the three months ended March 31, 2021, was RMB 11.9 million, compared to RMB 5.2 million in the same period of 2020[21] - Cost of sales for the same period was approximately RMB 15.1 million, an increase of approximately RMB 7.4 million or 96.1% compared to RMB 7.7 million for the same period in 2020[36] - Selling and distribution expenses rose to approximately RMB 183,000, an increase of approximately RMB 97,000 or 112.8% from RMB 86,000 in the same period last year[39] - Administrative expenses decreased to approximately RMB 1.9 million, a reduction of RMB 1.0 million or 34.5% from RMB 2.9 million in the previous year[40] Shareholder Information - Liu Yongcheng holds 375,000,000 shares, representing approximately 57.62% of the total issued shares[53] - Liu Yongqiang also holds 375,000,000 shares, equivalent to about 57.62% of the total issued shares[55] - Liu Yongcheng and Liu Yongqiang are considered concert parties, collectively owning 266,250,000 shares of Hongsheng, which is about 40.20% of the total issued shares[54] - Liu Yongcheng directly owns 100% of Yongsheng, which holds 108,750,000 shares, or approximately 16.42% of the total issued shares[59] - The major shareholder, Anwen Development, holds 55,490,000 shares, representing approximately 8.37% of the total issued shares[57] - The total number of shares held by major shareholders, including Yongsheng and Hongsheng, is 375,000,000 shares each, totaling approximately 58.62% of the total issued shares[57] - The company has no other directors or executives with recorded interests in shares or related securities as of March 31, 2021[57] Stock Options - The company has a stock option plan approved by shareholders on April 20, 2018, allowing for the issuance of options for 5,500,000 and 1,123,600 shares[61] - Liu Yongcheng and Liu Yongqiang each received stock options under the plan, with 5,500,000 and 1,123,600 shares respectively[60] - The company reported a total of 5,500,000 stock options granted to directors and major shareholders as of January 1, 2021[64] - The fair value of the stock options granted on June 23, 2020, was estimated at approximately RMB 4,655,000, with an expense of RMB 359,000 recognized during the period[66] - As of the report date, there are 109,500,000 unexercised stock options, representing about 16.53% of the issued shares[66] - The exercise price for stock options granted on January 21, 2020, was HKD 0.166, while for those granted on June 23, 2020, it was HKD 0.130[65] - The expected volatility for the stock options was approximately 42.55% and 42.33% for the options granted on June 23, 2020, and January 21, 2020, respectively[65] - The stock options vesting schedule includes 30% vesting at grant date, another 30% after one year, and the remaining 40% after two years[65] Corporate Governance - The company adopted and complied with the corporate governance code as per the GEM Listing Rules, with the exception of the separation of roles between the Chairman and CEO, which is currently held by Mr. Liu Yongcheng[74] - Ms. Li Kailin resigned as an independent non-executive director effective April 30, 2021, and Ms. Zeng Li was appointed to the same position on the same date[75] - The Audit and Risk Management Committee consists of three independent non-executive directors, ensuring compliance with the corporate governance code[77] - The company has appointed a compliance advisor to ensure adherence to GEM Listing Rules[73] Business Operations and Future Outlook - The company is engaged in CNG sales and automatic car wash services in China, indicating ongoing operational activities in the region[14] - The company plans to continue its focus on expanding its CNG sales and services in the Chinese market[14] - The company plans to actively explore new business opportunities in China and other regions to diversify its revenue sources[46] - The board anticipates ongoing challenges in the business environment due to the impact of COVID-19, despite the rollout of vaccination programs[45] - The report includes forward-looking statements regarding the company's financial condition and operational performance, highlighting potential risks and uncertainties[78] Compliance and Trading - The company confirmed compliance with the trading standards set forth by the GEM Listing Rules during the reporting period[69] - No directors or major shareholders engaged in any competing business activities during the reporting period[71] - The company has not purchased, sold, or redeemed any of its listed securities during the three months ended March 31, 2021[69] - No significant events occurred after the reporting period, indicating stability in operations[78]

Financial Performance - Revenue decreased by 31.0% from RMB 738 million in 2019 to RMB 509 million in 2020 due to the impact of COVID-19[18]. - Net loss increased by 737.0% from RMB 27 million in 2019 to RMB 226 million in 2020[18]. - The company's revenue decreased by approximately RMB 22.9 million or 31.0% to about RMB 50.9 million for the year ended December 31, 2020, compared to approximately RMB 73.8 million for the year ended December 31, 2019[32]. - Retail business revenue accounted for 42.3% of total revenue, decreasing from 52.0% in the previous year, primarily due to a decline of approximately RMB 16.8 million or 43.9% to about RMB 21.5 million[34]. - Wholesale business revenue increased to 57.1% of total revenue, despite a decrease of approximately RMB 4.7 million or 13.9% to about RMB 29.1 million[34]. - The company reported a gross loss of approximately RMB 0.8 million for the year ended December 31, 2020, compared to a gross profit of approximately RMB 6.7 million for the previous year[37]. - Other income and gains increased from RMB 398,000 in 2019 to RMB 3,632,000 in 2020, mainly due to government subsidies of RMB 3,028,000 received in 2020[39]. - The company reported a significant increase in losses attributable to owners, rising by RMB 19.9 million or 737.0% to approximately RMB 22.6 million for the year ended December 31, 2020, compared to RMB 2.7 million for the previous year[49]. Business Expansion and Strategy - The company expanded its business scope by providing automatic car wash services, diversifying revenue sources[18]. - Acquisition of an automatic car wash business for approximately RMB 183 million was completed on January 6, 2020[19]. - The company plans to offer automatic car wash services at other gas stations in China to stimulate existing revenue[19]. - Investment in four serviced apartment units in Malaysia, with a total cost of RM 9.8 million, aimed at generating stable rental income[20]. - The construction of the "Jinfu Garden" project in Malaysia is expected to be completed by Q3 2022, consisting of 420 units[20]. - The company aims to leverage China's national policies by entering the Malaysian property market as part of the Belt and Road Initiative[20]. - The company has adjusted its business strategy to mitigate the impact of COVID-19, including streamlining workflows and enhancing customer promotions[51]. - The company plans to actively explore new business opportunities in China and other regions to diversify its revenue sources[52]. Financial Position and Cash Flow - As of December 31, 2020, the company's total equity was approximately RMB 87.3 million, an increase from RMB 83.4 million as of December 31, 2019[53]. - The company's cash and cash equivalents decreased to approximately RMB 6.2 million as of December 31, 2020, down from RMB 27.4 million the previous year[53]. - Trade receivables decreased by approximately RMB 5.4 million to about RMB 12.6 million as of December 31, 2020, primarily due to a recognized impairment loss provision of RMB 5.5 million[59]. - The company’s operating cash flow situation remains stable, with a current ratio of 2.8 as of December 31, 2020[53]. - The company incurred financing costs of RMB 561,000 for lease liabilities and RMB 637,000 for the amortization of convertible bonds issued for acquisition matters during the year[46]. Management and Governance - Liu Yongcheng, the Executive Director and CEO, has approximately 14 years of experience in the natural gas industry and has been with the group since August 30, 2007[86]. - Liu Yongqiang, the Executive Director and Deputy General Manager, also has around 14 years of experience in the natural gas sector and joined the group on August 30, 2007[87]. - Liu Chunde, the Executive Director and General Manager, has about 12 years of experience in the natural gas industry and has been with the group since January 1, 2009[88]. - The company has a strategic focus on business development and overall operational supervision, as indicated by the roles of its executive team[86][87][88]. - The management team has extensive backgrounds in various industries, including finance and property development, which may enhance strategic decision-making[91][92]. - The company has been expanding its management team with experienced professionals to strengthen its operational capabilities[90]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[186]. - The independent non-executive directors have confirmed their independence according to the guidelines set out in GEM Listing Rules, and the company has complied with the requirement of having at least three independent non-executive directors[193]. Compliance and Risk Management - The company has implemented compliance procedures to adhere to applicable laws and regulations, ensuring operational integrity[111]. - The audit and risk management committee reviewed the consolidated financial statements for the year ended December 31, 2020, ensuring compliance with applicable reporting standards[173]. - The company has adopted and applied the corporate governance code as per GEM Listing Rules Appendix 15, ensuring compliance with all applicable provisions during the year, except for a deviation regarding the separation of the roles of Chairman and CEO[181]. - The company has not identified any incidents of non-compliance with the trading regulations for directors and employees regarding insider information[183]. Sustainability and Future Outlook - The company is committed to developing new technologies and products to meet market demands and improve service offerings[89]. - Future outlook suggests a positive growth trajectory in the natural gas market, driven by strategic initiatives and experienced leadership[89]. - The company has set a target to reduce carbon emissions by GG% over the next five years as part of its sustainability initiatives[95]. Shareholder Information - The company reported a loss for the year, with reserves available for distribution amounting to approximately RMB 597 million as of December 31, 2020, compared to RMB 450 million as of December 31, 2019, representing a 32.67% increase[119]. - The company did not recommend the payment of a final dividend for the year, consistent with the previous year[115]. - The total number of shares to be issued as consideration shares was 48,276,300 and 118,193,700 for Yongsheng and Hongsheng, respectively, as per the sale agreement[138]. - As of December 31, 2020, the total issued shares of the company were 662,360,000[141]. - The company has no other significant investments or acquisitions during the year[69].

Financial Performance - Revenue for the three months ended September 30, 2020, was RMB 15,153 thousand, a decrease of 20.5% compared to RMB 18,959 thousand for the same period in 2019[9] - Gross profit for the three months ended September 30, 2020, was RMB 383 thousand, down 84.0% from RMB 2,401 thousand in the same period last year[9] - The net loss for the three months ended September 30, 2020, was RMB 3,000 thousand, compared to a profit of RMB 436 thousand in the same period of 2019[9] - Total comprehensive loss for the three months ended September 30, 2020, was RMB 4,078 thousand, compared to a comprehensive income of RMB 767 thousand in the same period last year[11] - The company reported a loss per share of RMB 0.45 for the three months ended September 30, 2020, compared to earnings per share of RMB 0.09 in the same period of 2019[9] - Other income and gains for the three months ended September 30, 2020, were RMB 337 thousand, a decrease of 19.2% from RMB 417 thousand in the same period last year[9] - The total revenue for the nine months ended September 30, 2020, was RMB 34,771 thousand, slightly down from RMB 34,735 thousand in the same period of 2019[9] - Total revenue for the nine months ended September 30, 2020, was RMB 34,771,000, a decrease of 37.5% compared to RMB 55,669,000 for the same period in 2019[28] - CNG sales revenue for the three months ended September 30, 2020, was RMB 14,993,000, down 18.5% from RMB 18,368,000 in the same period of 2019[28] - The company reported a net loss before tax of RMB 11,165,000 for the three months ended September 30, 2020, compared to a loss of RMB 12,869,000 for the same period in 2019[31] - For the nine months ended September 30, 2020, the company's revenue was approximately RMB 34.8 million, a decrease of approximately RMB 20.9 million or 37.5% compared to RMB 55.7 million for the same period in 2019 due to COVID-19 disruptions[46] - Revenue from wholesale CNG sales decreased by approximately RMB 5.6 million or 22.8% to RMB 19.0 million, while revenue from retail CNG sales decreased by approximately RMB 13.9 million or 47.3% to RMB 15.5 million for the nine months ended September 30, 2020[49] - The cost of sales for the nine months ended September 30, 2020, was approximately RMB 34.7 million, a decrease of approximately RMB 14.9 million or 30.0% compared to RMB 49.6 million for the same period in 2019[50] - Gross profit decreased to approximately RMB 36,000 for the nine months ended September 30, 2020, from RMB 6.0 million for the same period in 2019, with a gross margin of 0.1% compared to 10.8% in 2019[51] - The company reported a loss attributable to owners of approximately RMB 8.3 million for the nine months ended September 30, 2020, compared to a net profit of approximately RMB 0.5 million for the same period in 2019[56] Expenses and Costs - Administrative expenses increased to RMB 3,139 thousand for the three months ended September 30, 2020, compared to RMB 1,561 thousand in the same period of 2019, representing a 100.8% increase[9] - Total financing costs for the nine months ended September 30, 2020, amounted to RMB 835,000, compared to RMB 336,000 for the same period in 2019[32] - Administrative expenses increased by approximately RMB 6.6 million or 164.5% to RMB 10.6 million for the nine months ended September 30, 2020, primarily due to increased professional fees related to acquisitions and the fair value of share options granted[53] Assets and Liabilities - Non-current assets in China increased to RMB 52,926,000 as of September 30, 2020, from RMB 44,017,000 as of December 31, 2019, representing a growth of 20.5%[24] - The company’s total non-current assets as of September 30, 2020, were RMB 67,648,000, an increase from RMB 44,017,000 in the previous year[24] Business Operations and Strategy - The company has not provided specific guidance for future performance or new product developments in the conference call[9] - The company has expanded its business by acquiring an automatic car wash service, diversifying its revenue sources[45] - The company resumed its CNG business operations in March 2020 after a temporary suspension due to COVID-19, and has fully restored operations as of the report date[44] - The company has been exploring new business opportunities in China and other regions to further diversify its revenue streams[45] - The group has diversified its revenue sources by acquiring an automatic car wash business in China and residential property investments in Malaysia, with the acquisition cost for the car wash business being RMB 20,029,908[63] - The group has completed the acquisition of Silver Max AP Company Limited for a total consideration of 9.8 million Malaysian Ringgit, paid through the issuance of shares and convertible bonds[65] - The group has completed the acquisition of residential property units in Kuala Lumpur, which is expected to generate additional revenue streams[59] Government and Regulatory Matters - The company received government subsidies amounting to RMB 3,027,000 during the nine months ended September 30, 2020, which were not reported in the previous year[28] - The group anticipates that government policies promoting clean energy and new energy vehicles will stimulate growth in the related industries[59] Employee and Management Information - The group employed 74 employees as of September 30, 2020, with total employee costs amounting to approximately RMB 6.1 million for the nine months ended September 30, 2020, compared to RMB 3.1 million for the same period in 2019[68] - The company has established an audit and risk management committee consisting of three independent non-executive directors[102] - The chairman and CEO roles are held by the same individual, which is considered appropriate for the company's effective management[101] Shareholder and Stock Information - As of September 30, 2020, the total issued shares of the company were approximately 662,360,000[79] - Liu Yongcheng and Liu Yongqiang each held 375,000,000 shares, representing approximately 110.94% of the total issued shares[72] - The company plans to issue 48,276,300 shares and 118,193,700 shares to Yongsheng and Hongsheng, respectively, as part of a share exchange agreement[72] - The company has granted stock options to Liu Yongqiang and Liu Yongcheng for 5,500,000 and 1,123,600 shares, respectively[73] - The fair value of the stock options granted during the period is estimated at approximately RMB 6,019,000, with an expense of RMB 2,434,000 recognized during the period[92] - As of the report date, there are 115,736,000 unexercised stock options, representing about 17.47% of the issued shares[92] - The stock option plan was approved by shareholders on April 20, 2018, with an updated authorization limit of 10% of the total shares as of the annual general meeting date[85] Compliance and Governance - The company has adopted the corporate governance code as per the GEM Listing Rules, with some deviations noted[101] - The compliance advisor reported no interests that require disclosure under the GEM Listing Rules as of September 30, 2020[99] - The group has not faced significant foreign exchange risks due to most transactions being denominated in Renminbi, with no major impacts from currency fluctuations reported[60] - The group has not established specific policies for managing interest rate risks and will continue to monitor related risks closely[61] - The controlling shareholders confirmed compliance with the non-competition agreement throughout the reporting period[97] - No directors or major shareholders held positions or interests in any competing businesses during the nine months ended September 30, 2020[98] - The company did not grant any rights to directors or their family members to purchase shares or debentures during the nine months ended September 30, 2020[94] - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the nine months ended September 30, 2020[95] - The company adopted and complied with the trading compliance standards as per the GEM Listing Rules during the nine months ended September 30, 2020[96] - The report includes forward-looking statements regarding the company's financial condition and operational performance, which are subject to known and unknown risks[102]