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].
TL NATURAL GAS(08536) - 2019 Q1 - 季度财报