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].
TL NATURAL GAS(08536) - 2018 - 年度财报