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]

Financial Performance - For the six months ended June 30, 2020, the revenue was RMB 36,710 thousand, a decrease of 10.0% compared to RMB 40,700 thousand in the same period of 2019[9] - The gross profit for the six months ended June 30, 2020, was RMB 3,623 thousand, down 80.0% from RMB 18,000 thousand in the same period of 2019[9] - The net loss for the six months ended June 30, 2020, was RMB 5,278 thousand, compared to a profit of RMB 88 thousand in the same period of 2019[9] - The company reported a total revenue of RMB 7,327,000 for the six months ended June 30, 2020, compared to RMB 9,406,000 for the same period in 2019, reflecting a decline[33] - Total revenue for the six months ended June 30, 2020, was RMB 19,618,000, down from RMB 36,710,000 in the same period of 2019, a decrease of about 46.5%[34] - Revenue from CNG sales decreased to RMB 12,893,000 in 2020 from RMB 16,834,000 in 2019, representing a decline of approximately 23.1%[34] - The company recorded a gross loss of approximately RMB 0.3 million for the six months ended June 30, 2020, compared to a gross profit of approximately RMB 3.6 million for the same period in 2019[67] - For the six months ended June 30, 2020, the company's revenue was RMB 19.6 million, a decrease of approximately RMB 17.1 million or 46.6% compared to RMB 36.7 million for the same period in 2019[66] Assets and Equity - The total assets as of June 30, 2020, amounted to RMB 118,142 thousand, an increase of 30.8% from RMB 90,348 thousand as of December 31, 2019[14] - The total equity attributable to the owners of the parent as of June 30, 2020, was RMB 106,440 thousand, an increase of 27.7% from RMB 83,364 thousand as of December 31, 2019[15] - The company’s total equity as of June 30, 2020, was RMB 106,440,000, an increase from RMB 85,916,000 at the end of 2019[17] - As of June 30, 2020, the group’s total equity was approximately RMB 106.4 million, with cash and cash equivalents amounting to approximately RMB 31.4 million[80] Cash Flow and Financing - The cash and cash equivalents as of June 30, 2020, were RMB 31,380 thousand, up 14.3% from RMB 27,402 thousand as of December 31, 2019[14] - For the six months ended June 30, 2020, the net cash generated from operating activities was RMB 3,110,000, compared to RMB 1,370,000 for the same period in 2019, representing a significant increase[20] - The company’s financing activities used cash of RMB 1,162,000 for the six months ended June 30, 2020, compared to cash used of RMB 4,469,000 in the same period of 2019[20] - The group has no interest-bearing bank loans as of June 30, 2020, maintaining a debt-free status[81] Expenses - The administrative expenses for the six months ended June 30, 2020, were RMB 7,433 thousand, an increase of 205.0% from RMB 2,436 thousand in the same period of 2019[9] - The company incurred finance costs of RMB 573 thousand for the six months ended June 30, 2020, compared to RMB 224 thousand in the same period of 2019[9] - The company’s sales and distribution expenses increased by approximately RMB 75,000 or 22.8% to RMB 404,000, mainly due to an increase in the number of employees, particularly in the automatic car wash business[70] Operational Impact - The company suspended its operations for nearly two months due to COVID-19, significantly impacting its operational and financial performance during the period[63] - The company reported a pre-tax loss of RMB 1,145,000 for the six months ended June 30, 2020, compared to a profit of RMB 37,000 in 2019[44] - For the six months ended June 30, 2020, the company reported a loss attributable to owners of approximately RMB 5.3 million, compared to a net profit of RMB 0.1 million in the same period last year, primarily due to the impact of COVID-19 and increased professional fees related to acquisitions[73] Shareholder Information - The company issued 117,850,000 shares during the period, increasing the total issued shares to 662,360,000 as of June 30, 2020[52] - As of June 30, 2020, Liu Yongcheng directly owned 100% of Yongsheng Industrial Co., which held 108,750,000 shares, approximately 16.42% of the issued shares[1] - Liu Yongqiang was deemed to have an interest in 266,250,000 shares of Hongsheng Industrial Co., representing about 40.20% of the issued shares as of June 30, 2020[1] - The company plans to issue 48,276,300 shares and 118,193,700 shares to Yongsheng and Hongsheng respectively as consideration shares following the completion of the sale agreement[1] 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 the roles of Chairman and CEO, which are held by the same individual, Mr. Liu Yongcheng[150] - The Audit and Risk Management Committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2020[153] - The company emphasizes the importance of proper governance and decision-making processes to ensure effective management and business planning[150] Future Plans and Opportunities - The group has identified new business opportunities, including an automatic car wash business in China and property investments in Malaysia, which are expected to diversify revenue sources[76] - The company is exploring opportunities to develop electric vehicle charging stations in response to government initiatives promoting cleaner energy and electric vehicle usage[76] - The company has completed the acquisition of the automatic car wash business and residential properties during the reporting period, which are anticipated to generate additional revenue streams[76] Compliance and Regulations - The company has adopted the trading compliance standards as per the GEM Listing Rules, confirming compliance by all directors during the reporting period[145] - The company confirmed compliance with the non-competition agreement signed by its controlling shareholders[146] - There have been no significant events occurring after the reporting period, aside from those disclosed in the report[153]

Financial Performance - For the three months ended March 31, 2020, the company reported revenue of RMB 6,642,000, a decrease of 64.6% compared to RMB 18,725,000 for the same period in 2019[7]. - The gross loss for the period was RMB 1,076,000, compared to a gross profit of RMB 1,337,000 in the previous year[7]. - The company incurred an operating loss before tax of RMB 4,145,000, a significant decline from a profit of RMB 286,000 in the same period last year[7]. - The net loss attributable to equity holders of the parent was RMB 4,133,000, compared to a profit of RMB 51,000 in the prior year[7]. - Basic and diluted loss per share for the period was RMB (0.74), compared to earnings per share of RMB 0.01 in the previous year[7]. - The total comprehensive loss for the period was RMB 3,673,000, compared to a loss of RMB 598,000 in the same period last year[9]. - Revenue for the three months ended March 31, 2020, was RMB 6,499,000 from CNG sales and RMB 143,000 from automatic car wash services, compared to RMB 18,725,000 in the same period of 2019[22]. - The company reported a pre-tax loss of RMB 4,133,000 for the three months ended March 31, 2020, compared to a profit of RMB 51,000 in the same period of 2019, reflecting the impact of COVID-19 on operations[31]. - Basic loss per share for the period was RMB (0.74), compared to a profit of RMB 0.01 per share in the previous year, highlighting a substantial decline in profitability[31]. Operational Activities - The company continues to engage in CNG sales and automatic car wash services in China, indicating ongoing operational activities despite financial challenges[15]. - The company has fully resumed its CNG business operations after a temporary suspension due to COVID-19, which severely affected its financial performance in Q1 2020[35]. - The company is exploring new business opportunities in China and other regions to diversify revenue sources, including the acquisition of an automatic car wash business and property investments in Malaysia[46]. - The automatic car wash business is expected to provide additional value-added services to existing retail customers and increase revenue from gas stations[46]. - The company plans to develop electric vehicle chargers at existing gas stations and explore opportunities for new charging stations in China[47]. Costs and Expenses - Administrative expenses rose significantly to RMB 2,942,000 from RMB 1,075,000, reflecting increased operational costs[7]. - The cost of goods sold for the period was RMB 5,210,000, down from RMB 14,213,000 in the previous year, indicating a significant reduction in operational costs[23]. - Cost of sales for the three months ended March 31, 2020, was approximately RMB 7.7 million, a decrease of about RMB 9.7 million or 55.7% from RMB 17.4 million for the same period in 2019[39]. - The company incurred financing costs of RMB 237,000 during the period, reflecting new financial obligations[25]. Shareholder Information - The total issued shares of the company as of March 31, 2020, were approximately 562,030,000, with key executives holding significant stakes, including 130.54% by Liu Yongcheng and Liu Yongqiang[59]. - Liu Yongcheng and Liu Yongqiang each hold 375,000,000 shares and 166,470,000 shares in controlled corporations, respectively, indicating substantial ownership[61]. - The company has granted a total of 49,500,000 stock options, equivalent to approximately 7.5% of the issued shares as of March 31, 2020[75]. - The exercise price for the stock options is set at HKD 0.166 per share, with an exercise period from January 21, 2020, to January 21, 2025[72]. Corporate Governance - The company has adopted trading compliance standards as per the GEM Listing Rules, confirming compliance by all directors for the period ending March 31, 2020[77]. - The company has a non-compete agreement in place with its controlling shareholders, ensuring no competition with the group's existing business activities[78]. - The company has adopted and complied with the corporate governance code as per the GEM Listing Rules, ensuring proper regulation of business activities and decision-making processes[81]. - The chairman and CEO roles are held by the same individual, Mr. Liu Yongcheng, which the board believes is in the best interest of the company for effective management and business planning[82]. - An Audit and Risk Management Committee has been established, consisting of three independent non-executive directors, to review the unaudited consolidated financial statements for the three months ended March 31, 2020[83]. Acquisitions and Investments - The acquisition of Jet Union Technology Limited for RMB 20,029,908 was completed on January 6, 2020, to enhance the company's automatic car wash operations[52]. - Excellence Enterprise Holdings Limited agreed to acquire Evergreen Leader Limited for 29,000,000 Malaysian Ringgit, to be settled with 166,470,000 shares and convertible bonds totaling 29,129,880 HKD[54]. - The acquisition of Silver Max AP Company Limited was completed on April 21, 2020, for 9,800,000 Malaysian Ringgit, settled with 62,360,000 shares and convertible bonds totaling 7,465,600 HKD[55]. Forward-Looking Statements - The report contains forward-looking statements regarding the company's financial condition, operational performance, and business outlook, which involve known and unknown risks and uncertainties[85].

Financial Performance - The company recorded a net loss of RMB 2.7 million for the year ended December 31, 2019, compared to a net profit of RMB 4.6 million in 2018, reflecting the challenging macroeconomic environment [14]. - The company's revenue for the year ended December 31 was approximately RMB 738 million, a decrease of about 13.6% from RMB 854 million in the previous year, primarily due to a decline in sales to wholesale customers [26]. - The net loss for the year was approximately RMB 27 million, compared to a net profit of RMB 46 million in the previous year, mainly due to reduced income from wholesale customers and increased administrative expenses [26]. - Gross profit for the year was approximately RMB 67 million, with a gross margin of 9.1%, down from 19.8% in the previous year, mainly due to reduced income from wholesale customers [33]. - The average procurement price of natural gas increased from RMB 1.86 per cubic meter to RMB 1.93 per cubic meter, impacting the company's gross margin [32]. - The company's total distributable reserves as of December 31, 2019, were approximately RMB 450 million, a decrease from RMB 482 million as of December 31, 2018, representing a decline of about 6.6% [105]. - The company's reserves available for distribution decreased by approximately RMB 32 million year-over-year, indicating a need for strategic financial management [105]. Revenue Sources and Business Strategy - Revenue decreased due to reduced income from wholesale customers and an inability to pass on increased natural gas purchase prices, leading to a decline in gross profit and gross margin [14]. - The company plans to diversify its revenue sources and enhance shareholder value by exploring various business opportunities in response to market conditions [16]. - In December 2019, the company entered into an agreement to acquire an automatic car wash business for approximately RMB 20 million, aimed at providing additional value-added services to retail customers [17]. - The acquisition is expected to stimulate existing gas station revenues and expand the company's business scope by offering automatic car wash services at other gas stations and service stations in China [17]. - The company has identified three new business opportunities, including the acquisition of an automatic car wash business in China and property investments in Malaysia [41]. - The company plans to explore opportunities for electric charging stations in addition to CNG and LNG as cleaner alternative fuels [43]. Operational Challenges - The company suspended its gas station operations in Jingzhou, Hubei Province for nearly 2 months due to the COVID-19 outbreak, significantly impacting its operational and financial status in 2020 [15]. - The overall economic outlook for 2020 is challenging, with no significant turnaround expected, but the company believes in the long-term development of a robust economy in China [15]. - The company has begun preparations for its projects despite delays in government approvals due to the COVID-19 outbreak [66]. Management and Governance - Liu Yongcheng serves as the Executive Director, Chairman, and CEO, with approximately 13 years of experience in the natural gas industry [72]. - Liu Yongqiang, the Executive Director and Deputy General Manager, also has around 13 years of experience in the natural gas sector [73]. - Liu Chunde, the Executive Director and General Manager, has about 11 years of experience in the natural gas industry [74]. - The company emphasizes the importance of experienced leadership in the natural gas sector for its growth strategy [72][73][74]. - The management team has a diverse background, including military and legal experience, contributing to a well-rounded leadership approach [76][78]. - The company has a management team with extensive experience in finance and operations, contributing to its strategic direction [87]. Corporate Governance and Compliance - The company has adopted the corporate governance code as a benchmark for its governance practices, complying with all applicable provisions except for a specific deviation regarding the roles of the chairman and CEO [155]. - The independent non-executive directors have confirmed their independence according to the GEM listing rules, ensuring compliance with the requirement for at least three independent directors [165]. - The board is responsible for leading and monitoring the company, directly guiding management through strategy formulation and performance oversight [168]. - The company encourages continuous professional development for directors, providing training and resources to enhance their knowledge and skills [173]. - The company has established a written guideline for securities trading by employees to ensure compliance with insider trading regulations [157]. - The company has implemented appropriate checks and balances with a board composed of independent non-executive directors to ensure effective decision-making [164]. Risk Management - The board confirmed its responsibility for the effectiveness of risk management and internal control systems, which aim to manage risks rather than eliminate them [199]. - The Audit and Risk Management Committee assists the board in overseeing the management's development, implementation, and monitoring of risk management and internal control systems [200]. - The company has adopted a series of internal control policies and procedures to provide reasonable assurance for effective operations and reliable financial reporting [200]. Shareholder Information - The company’s issued share capital includes 375 million shares held by Yongsheng Industrial Limited, representing 75% of the total issued share capital [121]. - The company’s major shareholders include Liu Yongcheng and Liu Yongqiang, each holding 375 million shares, representing 75% of the issued share capital [126]. - Liu Yongqiang directly owns 100% of Hongsheng, which holds approximately 53.25% of the company's issued share capital, equating to 266,250,000 shares [128]. - The company has arranged appropriate insurance for its directors and senior officers regarding potential legal liabilities, which remains in effect [116]. Environmental and Social Responsibility - The company is committed to supporting sustainable development and has implemented compliance procedures to adhere to applicable environmental laws and regulations [95]. - The company has a strong focus on environmental, social, and governance (ESG) aspects, with a report included in the annual report [96]. - The group emphasizes the importance of relationships with employees, customers, and business partners for sustainable development [97].

Financial Performance - The group's revenue for the nine months ended September 30, 2019, was RMB 557 million, a decrease of RMB 49 million or 8.1% compared to RMB 606 million for the same period in 2018[6] - Gross profit for the nine months ended September 30, 2019, was RMB 60 million with a gross margin of 10.8%, down from RMB 90 million and 14.9% in the same period of 2018[6] - The group recorded a net profit of approximately RMB 5 million for the nine months ended September 30, 2019, compared to a net loss of approximately RMB 7 million in the same period last year[6] - For the three months ended September 30, 2019, the group reported revenue of RMB 189.59 million, down from RMB 200.92 million in the same period of 2018[8] - The gross profit for the three months ended September 30, 2019, was RMB 24.01 million, compared to RMB 29.72 million for the same period in 2018[8] - The group achieved a profit before tax of RMB 8.89 million for the three months ended September 30, 2019, compared to RMB 13.66 million in the same period of 2018[8] - Total comprehensive income for the three months ended September 30, 2019, was RMB 76.7 million, down from RMB 251.6 million in the same period of 2018[12] - The basic and diluted earnings per share for the nine months ended September 30, 2019, was RMB 0.10, compared to a loss of RMB 0.13 in the same period of 2018[12] Revenue Breakdown - For the nine months ended September 30, 2019, total revenue reached RMB 80,550,000, an increase from RMB 52,675,000 in the same period of 2018, representing a growth of approximately 53%[14] - Revenue from wholesale customers decreased by RMB 82 million or 25.0% to RMB 246 million, primarily due to a reduction in CNG sales volume and average selling price[50] - Revenue from retail customers increased by RMB 14 million or 5.0% to RMB 294 million, attributed to stable selling prices and a slight increase in average selling price[50] - For the nine months ended September 30, 2019, the company's revenue from CNG sales and transmission services was RMB 557 million, a decrease of 8.1% compared to RMB 606 million for the same period in 2018[50] Expenses and Costs - The company incurred share issuance expenses of RMB 9,164,000, which impacted the net income for the period[14] - The cost of goods sold for the three months ended September 30, 2019, was RMB 12,869,000, a decrease from RMB 14,027,000 in the same period of 2018, reflecting a reduction of 8.2%[37] - The total employee cost for the nine months ended September 30, 2019, was approximately RMB 3.1 million, compared to RMB 2.9 million for the same period in 2018[70] Financial Position - The company had total equity of RMB 867 million and cash and cash equivalents of RMB 319 million as of September 30, 2019[63] - The company has no interest-bearing bank loans as of September 30, 2019, indicating a strong financial position[64] - As of September 30, 2019, retained earnings amounted to RMB 4,658,000, compared to RMB 4,299,000 as of January 1, 2019, indicating a growth of approximately 8.4%[14] Corporate Actions and Governance - The company issued 125,000,000 new shares at a price of HKD 0.48 per share, raising a total of approximately RMB 48.7 million[14] - The board did not declare any interim dividend for the nine months ended September 30, 2019, consistent with the previous year[46] - The company has 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[99] - The Audit and Risk Management Committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the nine months ended September 30, 2019[102] Strategic Initiatives - The company plans to address the impact of rising natural gas procurement costs and pricing guidelines from local price bureaus in Hubei Province[6] - The company is optimistic about CNG consumption growth due to favorable government policies and industry trends in China[58] - The company is exploring new business opportunities in China and along the Belt and Road Initiative countries to diversify its revenue sources[59] - A memorandum of understanding was signed on April 28, 2019, to establish a joint venture for a manufacturing base in Hubei Province, China, for processing, production, and sales of fiberboard[69] Compliance and Risk Management - The company’s financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance and transparency[21] - The group has not engaged in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the nine months ended September 30, 2019[69] - The group has not entered into any hedging transactions or forward contracts to manage foreign currency risks[69] - There is no significant interest rate risk, and the group has not implemented specific policies to manage interest rate risks[69] - All directors confirmed compliance with the trading standards as per the GEM Listing Rules during the nine months ended September 30, 2019[94] Employee Information - The group employed a total of 84 employees as of September 30, 2019, down from 89 employees as of December 31, 2018[70] - The group’s total non-current assets are all located in China, emphasizing its regional focus[31]

Financial Performance - The group's revenue for the six months ended June 30, 2019, was approximately RMB 367 million, a decrease of about RMB 38 million or approximately 9.4% compared to RMB 405 million for the same period in 2018[6] - Gross profit and gross margin for the six months ended June 30, 2019, were approximately RMB 36 million and 9.9%, respectively, down from RMB 61 million and 15.0% in the same period of 2018[6] - The group recorded a net profit of approximately RMB 0.1 million for the six months ended June 30, 2019, compared to a net loss of approximately RMB 1.4 million in the same period last year[6] - For the three months ended June 30, 2019, revenue was RMB 179.85 million, down from RMB 217.83 million in the same period of 2018[8] - The group reported a gross profit of RMB 21.74 million for the three months ended June 30, 2019, compared to RMB 31.32 million in the same period of 2018[8] - Total comprehensive income for the six months ended June 30, 2019, was RMB 118,000, compared to RMB 248,000 for the same period in 2018[11] - The company reported a pre-tax profit of RMB 1.78 million for the three months ended June 30, 2019, compared to a loss of RMB 1.08 million in the same period of 2018[44] - The company reported a profit attributable to owners of approximately RMB 0.1 million for the six months ended June 30, 2019, compared to a net loss of RMB 1.4 million in the same period of 2018[77] Assets and Equity - The total assets less current liabilities as of June 30, 2019, amounted to RMB 93.33 million, an increase from RMB 85.79 million as of December 31, 2018[13] - Non-current assets totaled RMB 37.79 million as of June 30, 2019, compared to RMB 30.46 million as of December 31, 2018[13] - As of June 30, 2019, total equity attributable to owners of the parent was RMB 85,916,000, an increase from RMB 85,798,000 as of December 31, 2018, representing a growth of 0.14%[16] - The company’s total equity as of June 30, 2019, was RMB 85,916,000, reflecting a marginal increase from the previous year[20] - As of June 30, 2019, the company's total equity was approximately RMB 85.9 million, with cash and cash equivalents of approximately RMB 34.2 million[85] Cash Flow - For the six months ended June 30, 2019, net cash used in operating activities was RMB 1,370,000, compared to RMB (2,478,000) for the same period in 2018, indicating an improvement in cash flow[22] - The company reported a net cash outflow from investing activities of RMB (4,469,000) for the six months ended June 30, 2019, compared to RMB (541,000) in the previous year[22] - The company’s cash flow from operating activities improved significantly, indicating a positive trend in operational efficiency[22] - As of June 30, 2019, cash and cash equivalents totaled RMB 34,249,000, down from RMB 44,351,000 at the end of June 2018, reflecting a decrease of 22.7%[22] Revenue Breakdown - For the six months ended June 30, 2019, the company reported revenue from CNG and LNG sales of RMB 35.56 million, a decrease of 12.1% compared to RMB 40.52 million for the same period in 2018[42] - The company recorded a total revenue of RMB 36.71 million for the six months ended June 30, 2019, down from RMB 40.52 million in the same period of 2018, reflecting a decline of 9.4%[42] - Revenue from wholesale sales of CNG decreased by approximately RMB 6.8 million or 29.8% to RMB 16.0 million for the six months ended June 30, 2019, compared to RMB 22.8 million for the same period in 2018[70] - Revenue from retail sales of CNG increased by approximately RMB 1.8 million or 10.1% to RMB 19.6 million for the six months ended June 30, 2019, compared to RMB 17.8 million for the same period in 2018[70] Expenses - The cost of goods sold for the six months ended June 30, 2019, was RMB 26.83 million, a decrease of 5.1% from RMB 28.28 million in the same period of 2018[44] - For the six months ended June 30, 2019, the cost of sales was approximately RMB 33.1 million, a decrease of about RMB 1.3 million or approximately 3.8% compared to RMB 34.4 million for the same period in 2018[71] - Selling and distribution expenses increased by approximately RMB 107,000 or about 48.2% to RMB 329,000 for the six months ended June 30, 2019, primarily due to increased salary costs[74] - Administrative expenses decreased by approximately RMB 3.7 million or about 60.7% to RMB 2.4 million for the six months ended June 30, 2019, mainly due to the absence of listing expenses incurred in the previous period[75] Shareholder Information - Major shareholders, including Mr. Liu Yongcheng and Mr. Liu Yongqiang, each hold 375 million shares, representing 75% of the issued share capital[108] - Liu Yongcheng directly owns 100% of Yongsheng, which holds 108,750,000 shares, approximately 21.75% of the company's issued share capital[119] - Liu Yongqiang directly owns 100% of Hongsheng, which holds 266,250,000 shares, approximately 53.25% of the company's issued share capital[120] Corporate Governance - The company has adopted and complied with the corporate governance code as per the GEM Listing Rules, with some deviations noted[132] - The Audit and Risk Management Committee consists of three independent non-executive directors and has reviewed the unaudited consolidated financial statements for the six months ending June 30, 2019[133] - The company has confirmed compliance with the trading standards for directors during the six months ending June 30, 2019[127] - The company has established a non-competition agreement with its controlling shareholders, which remains effective unless certain exceptions apply[128] - The board of directors includes three executive directors and three independent non-executive directors, ensuring appropriate checks and balances[137] Future Outlook and Investments - The company remains optimistic about CNG consumption growth due to China's shift towards cleaner energy sources and supportive government policies[79] - On April 28, 2019, the company's subsidiary entered into a memorandum of understanding to establish a joint venture in Hubei Province for the production and sale of eco-friendly materials, indicating a strategy for business diversification[80] - The company invested 40% equity in Guangzhou Guanghong Energy Technology Co., Ltd. in January 2019, which focuses on the sale of compressed natural gas, reflecting its commitment to expanding its market presence[92] Use of Proceeds - The net proceeds from the IPO on May 18, 2018, amounted to approximately HKD 29.2 million, with planned allocations detailed in the report[97] - 17.9% of the net proceeds (HKD 5.2 million) is allocated for the construction of a CNG refueling station, which remains unutilized as of June 30, 2019[97] - 42.0% of the net proceeds (HKD 12.25 million) is designated for the construction of a combined CNG/LNG refueling station, which is also unutilized as of June 30, 2019[97] - 30.1% of the net proceeds (HKD 8.77 million) is allocated for upgrading infrastructure and equipment at the Jingzhou mother station, with HKD 1.02 million already utilized[97] - 10.0% of the net proceeds (HKD 2.92 million) is set aside for working capital and other general corporate purposes, with HKD 1.76 million already utilized[97] - The board expects no significant changes to the main plans regarding the use of proceeds as of the date of this interim report[105] - The company is in discussions with contractors to prepare for the construction of the CNG refueling station and the combined CNG/LNG refueling station[99][100] Employment and Employee Costs - As of June 30, 2019, the group employed a total of 84 employees, down from 89 employees as of December 31, 2018[94] - Employee costs for the six months ended June 30, 2019, were approximately RMB 2.1 million, compared to RMB 1.8 million for the same period in 2018, representing a 16.7% increase[94]