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]

Financial Performance - The group's revenue for the three months ended March 31, 2019, was approximately RMB 18.7 million, unchanged from RMB 18.7 million for the same period in 2018[6]. - The net profit for the three months ended March 31, 2019, was RMB 0.1 million, a significant decrease from RMB 1.3 million in the same period last year, primarily due to increased gas purchase prices leading to higher sales costs[6]. - The gross profit for the three months ended March 31, 2019, was approximately RMB 1.3 million, with a gross margin of 7.1%, compared to a gross profit of RMB 2.9 million and a gross margin of 15.7% for the same period in 2018[6]. - The pre-tax profit for the three months ended March 31, 2019, was RMB 0.286 million, down from RMB 1.914 million in the same period last year[8]. - The total comprehensive loss for the period was RMB 0.598 million, compared to a total comprehensive income of RMB 1.329 million for the same period in 2018[11]. - The basic and diluted earnings per share for the three months ended March 31, 2019, was RMB 0.01, down from RMB 0.35 in the same period last year[11]. - The company reported other income and gains of RMB 0.178 million for the three months ended March 31, 2019, compared to RMB 0.004 million in the same period last year[8]. - The cost of goods sold for the three months ended March 31, 2019, was RMB 14,213,000, an increase from RMB 12,732,000 in the same period of 2018[29]. - The company reported a profit attributable to owners of approximately RMB 0.1 million for the three months ended March 31, 2019, down from RMB 1.3 million in the same period in 2018[47]. Expenses and Costs - The increase in sales costs was attributed to pricing guidelines implemented by local price bureaus, which affected the ability to pass on costs to customers in a timely manner[6]. - Administrative expenses increased to RMB 1.075 million for the three months ended March 31, 2019, from RMB 0.915 million in the same period last year[8]. - Cost of sales increased by approximately RMB 1.6 million or about 10.1% to RMB 17.4 million for the three months ended March 31, 2019, compared to RMB 15.8 million in the same period in 2018[42]. - Administrative expenses rose by approximately RMB 0.2 million or about 22.2% to RMB 1.1 million for the three months ended March 31, 2019, primarily due to increased legal and professional fees after the company's listing[45]. - The income tax expense for the three months ended March 31, 2019, was RMB 235,000, a decrease from RMB 613,000 in the same period of 2018[30]. - Income tax expense for the three months ended March 31, 2019, was approximately RMB 0.2 million, with an effective tax rate increasing from about 32.0% in the same period in 2018 to approximately 82.2%[46]. Business Operations - The company is focused on CNG sales through its subsidiaries, following a restructuring that established it as the holding company for its current subsidiaries[17]. - For the three months ended March 31, 2019, the revenue from CNG and LNG sales was RMB 18,725,000, slightly down from RMB 18,738,000 in the same period of 2018[27]. - The total revenue from major customers, which accounted for over 10% of total revenue, was RMB 8,239,000 for the three months ended March 31, 2019, compared to RMB 8,637,000 in the same period of 2018[25]. - The company operates primarily in Hubei Province, China, focusing on the supply of CNG to retail and wholesale customers[41]. - The company’s non-current assets are entirely located in China, indicating a concentrated operational footprint[22]. - The company is optimistic about the growth of CNG consumption in China due to government policies supporting natural gas and natural gas vehicles[48]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the GEM Listing Rules, with the exception of certain deviations regarding the separation of the roles of Chairman and CEO[80]. - The board believes that having the same individual serve as both Chairman and CEO is in the best interest of the company due to their familiarity with the operations[80]. - The company has a structured governance mechanism in place through the board and three independent non-executive directors to ensure proper checks and balances[80]. - The company confirmed compliance with the trading rules for directors as per the GEM Listing Rules during the three months ending March 31, 2019[75]. - The company has established a non-competition agreement with its controlling shareholders, ensuring they will not engage in any competing business activities during the agreement's validity[76]. - The Audit and Risk Management Committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements for the three months ending March 31, 2019[81]. - The company confirmed compliance with the non-competition agreement by its controlling shareholders during the reporting period[76]. - There were no conflicts of interest reported among directors, major shareholders, or their close associates in any restricted business that could significantly compete with the company's operations[77]. Capital and Shareholder Information - As of March 31, 2019, the company's total equity was approximately RMB 85.2 million, with cash and cash equivalents of about RMB 29.2 million[53]. - The company has no outstanding interest-bearing bank loans or significant contingent liabilities as of March 31, 2019[55][57]. - As of March 31, 2019, the company employed a total of 91 employees, with employee costs for the three months ending March 31, 2019, amounting to approximately RMB 1.0 million, an increase from RMB 0.9 million for the same period in 2018[60]. - The company raised approximately HKD 29.2 million from its listing on May 18, 2018, and has utilized about HKD 1.0 million for infrastructure upgrades and HKD 1.6 million for general working capital as of March 31, 2019[62]. - As of March 31, 2019, Liu Yongqiang held 375,000,000 shares, representing 75% of the issued share capital of the company[63]. - Liu Yongcheng directly owns 100% of Yongsheng Industrial Co., which holds 108,750,000 shares or approximately 21.75% of the issued share capital[65]. - The company has not granted any share options under its share option scheme since its adoption[71]. - No shares or securities of the company were purchased, sold, or redeemed by the company or its subsidiaries during the three months ending March 31, 2019[74]. - The report was issued by the executive director, Chairman, and CEO, confirming the board's composition as of May 8, 2019[83]. Forward-Looking Statements - The report includes forward-looking statements regarding the company's financial condition and operational performance, which are subject to known and unknown risks[82]. - The company has not disclosed any interests that require notification under the GEM Listing Rules from its compliance advisor as of March 31, 2019[78].

Financial Performance - The company's revenue for the year was approximately RMB 854 million, representing a growth of about 30.0% compared to RMB 657 million for the year ended December 31, 2017[13]. - The net profit for the year was approximately RMB 46 million, a significant improvement from a net loss of approximately RMB 54 million in 2017[13]. - Excluding listing expenses of RMB 50 million, the profit for the year would be approximately RMB 96 million, compared to RMB 66 million in the previous year, indicating an increase in profitability[13]. - The company's revenue for the year was approximately RMB 854 million, an increase of about 30.0% from RMB 657 million in the previous year, driven by increased orders from existing wholesale customers and the introduction of new wholesale clients[25]. - The net profit for the year was approximately RMB 46 million, compared to a net loss of RMB 54 million in the previous year, with a profit of approximately RMB 96 million after excluding one-time listing expenses[25]. - Gross profit increased by 82.8% to approximately RMB 170 million, with the gross profit margin rising from about 14.1% to approximately 19.8%[31]. - The profit attributable to the owners of the parent company for the year was approximately RMB 4.6 million, compared to a loss of RMB 5.4 million in the same period last year[39]. - The income tax expense increased by 209.1% to approximately RMB 34 million, consistent with the growth in pre-tax profits, with the effective tax rate rising to approximately 42.7%[38]. Market Opportunities - The natural gas consumption in Hubei Province is expected to grow at a compound annual growth rate (CAGR) of 25.1% from 2017 to 2021[14]. - The number of gas stations in China is projected to increase by approximately 50.0% from 2016 to 2020, indicating significant market opportunities for CNG/LNG stations[14]. - The number of natural gas vehicles in Jingzhou, Hubei Province, is expected to reach 6,178 by 2021, with a CAGR of 3.8% from 2017 to 2021[14]. - The company is positioned to benefit from government policies encouraging the use of natural gas vehicles in China[14]. - The company is optimistic about the growth of CNG consumption as China improves its energy consumption structure through coal-to-clean energy initiatives[66]. - The local government in Jingzhou has implemented multiple policies to promote the use of natural gas, including the elimination of coal-fired boilers[66]. - By 2020, Jingzhou plans to increase the number of buses and taxis in the central urban area, most of which are expected to use natural gas as fuel[66]. - The company believes that favorable government policies and industry trends will stimulate local demand for natural gas[66]. Business Strategy and Development - The company aims to expand its customer base by acquiring new wholesale customers, contributing to revenue growth[13]. - The strategic development of the company has made significant progress, enhancing its corporate image and ability to attract talent[13]. - The company plans to focus on developing vehicle natural gas and building more CNG/LNG refueling stations to expand market share and enter new markets in China[25]. - The company aims to integrate upstream and downstream business opportunities and continue pursuing clean energy projects to maximize long-term benefits for shareholders, customers, employees, and the community[25]. - The company plans to conduct feasibility studies, including environmental impact assessments, for the construction of new gas stations and upgrades to existing facilities[63]. Financial Position and Assets - As of December 31, 2018, current assets were approximately RMB 63.4 million, up from RMB 17.1 million as of December 31, 2017, with cash and cash equivalents increasing to RMB 37.3 million from RMB 2.8 million[42]. - The current ratio as of December 31, 2018, was approximately 7.9 times, compared to 1.6 times as of December 31, 2017, primarily due to an increase in cash from listing proceeds[42]. - Trade receivables increased by approximately RMB 11.2 million to RMB 17.4 million as of December 31, 2018, with the trade receivables turnover days rising to about 50.4 days from 32.9 days[43]. - The net proceeds from the listing on May 18, 2018, amounted to approximately HKD 29.2 million, with specific allocations for projects including CNG stations and infrastructure upgrades[54]. - The company has no significant contingent liabilities as of December 31, 2018, and had no major acquisitions or disposals during the year[48][53]. - The company has no interest-bearing borrowings, resulting in an asset-to-liability ratio that is not applicable[42]. - The company's available reserves for distribution as of December 31, 2018, were approximately RMB 482 million, an increase from RMB 148 million as of December 31, 2017[103]. Corporate Governance - The board consists of six members, including three executive directors and three independent non-executive directors[147]. - The company has adopted the corporate governance code as a benchmark for its governance practices[142]. - The independent non-executive directors confirmed their independence according to the GEM Listing Rules[153]. - The company has implemented appropriate checks and balances with a board comprising independent non-executive directors for major decisions[152]. - The audit and risk management committee consists of three independent non-executive directors, ensuring rigorous oversight of financial reporting and internal controls[177]. - The company has established three committees: audit and risk management, remuneration, and nomination, each with clearly defined responsibilities[173]. - The nomination committee will consider various aspects of board diversity and set measurable objectives for achieving diversity[181]. - The company has adopted a board diversity policy aimed at enhancing competitive advantage through diverse perspectives and skills[185]. Shareholder Information - As of December 31, 2018, the company’s major shareholders, Liu Yongcheng and Liu Yongqiang, each hold 375,000,000 shares, representing 75% of the total issued share capital[116]. - Liu Yongcheng directly owns 100% of Yongsheng Industrial Limited, which holds 108,750,000 shares or approximately 21.75% of the issued share capital[116]. - Liu Yongqiang directly owns 100% of Hongsheng Industrial Limited, which holds 266,250,000 shares or approximately 53.25% of the issued share capital[117]. - The company has a share option scheme approved on April 20, 2018, allowing the issuance of up to 50,000,000 shares, equivalent to 10% of the expanded issued share capital[122]. - No share options were granted, exercised, lapsed, or cancelled during the year, and there were no unexercised options as of December 31, 2018[126]. - The company has not granted any rights to directors or their family members to acquire shares or debentures during the reporting period[127]. - There are no provisions regarding pre-emption rights in the company's articles of association or under Cayman Islands law[128]. Compliance and Risk Management - The company has complied with all relevant environmental laws and regulations during the year, supporting sustainable development[93]. - The company has implemented compliance procedures to ensure adherence to applicable laws and regulations[93]. - The audit and risk management committee reviewed the audited consolidated financial statements for the year ending December 31, 2018, ensuring compliance with applicable financial reporting standards[137]. - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve strategic goals[196]. - The audit and risk management committee assists the board in overseeing the risk management and internal control systems[197]. - The company has established internal control policies to ensure effective operations and compliance with applicable laws[197]. - The risk management system includes procedures for identifying, assessing, and managing significant risks[200].