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]
TL NATURAL GAS(08536) - 2020 - 中期财报