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]
TL NATURAL GAS(08536) - 2019 - 中期财报