Financial Performance - Revenue for the three months ended September 30, 2020, was RMB 15,153 thousand, a decrease of 20.5% compared to RMB 18,959 thousand for the same period in 2019[9] - Gross profit for the three months ended September 30, 2020, was RMB 383 thousand, down 84.0% from RMB 2,401 thousand in the same period last year[9] - The net loss for the three months ended September 30, 2020, was RMB 3,000 thousand, compared to a profit of RMB 436 thousand in the same period of 2019[9] - Total comprehensive loss for the three months ended September 30, 2020, was RMB 4,078 thousand, compared to a comprehensive income of RMB 767 thousand in the same period last year[11] - The company reported a loss per share of RMB 0.45 for the three months ended September 30, 2020, compared to earnings per share of RMB 0.09 in the same period of 2019[9] - Other income and gains for the three months ended September 30, 2020, were RMB 337 thousand, a decrease of 19.2% from RMB 417 thousand in the same period last year[9] - The total revenue for the nine months ended September 30, 2020, was RMB 34,771 thousand, slightly down from RMB 34,735 thousand in the same period of 2019[9] - Total revenue for the nine months ended September 30, 2020, was RMB 34,771,000, a decrease of 37.5% compared to RMB 55,669,000 for the same period in 2019[28] - CNG sales revenue for the three months ended September 30, 2020, was RMB 14,993,000, down 18.5% from RMB 18,368,000 in the same period of 2019[28] - The company reported a net loss before tax of RMB 11,165,000 for the three months ended September 30, 2020, compared to a loss of RMB 12,869,000 for the same period in 2019[31] - For the nine months ended September 30, 2020, the company's revenue was approximately RMB 34.8 million, a decrease of approximately RMB 20.9 million or 37.5% compared to RMB 55.7 million for the same period in 2019 due to COVID-19 disruptions[46] - Revenue from wholesale CNG sales decreased by approximately RMB 5.6 million or 22.8% to RMB 19.0 million, while revenue from retail CNG sales decreased by approximately RMB 13.9 million or 47.3% to RMB 15.5 million for the nine months ended September 30, 2020[49] - The cost of sales for the nine months ended September 30, 2020, was approximately RMB 34.7 million, a decrease of approximately RMB 14.9 million or 30.0% compared to RMB 49.6 million for the same period in 2019[50] - Gross profit decreased to approximately RMB 36,000 for the nine months ended September 30, 2020, from RMB 6.0 million for the same period in 2019, with a gross margin of 0.1% compared to 10.8% in 2019[51] - The company reported a loss attributable to owners of approximately RMB 8.3 million for the nine months ended September 30, 2020, compared to a net profit of approximately RMB 0.5 million for the same period in 2019[56] Expenses and Costs - Administrative expenses increased to RMB 3,139 thousand for the three months ended September 30, 2020, compared to RMB 1,561 thousand in the same period of 2019, representing a 100.8% increase[9] - Total financing costs for the nine months ended September 30, 2020, amounted to RMB 835,000, compared to RMB 336,000 for the same period in 2019[32] - Administrative expenses increased by approximately RMB 6.6 million or 164.5% to RMB 10.6 million for the nine months ended September 30, 2020, primarily due to increased professional fees related to acquisitions and the fair value of share options granted[53] Assets and Liabilities - Non-current assets in China increased to RMB 52,926,000 as of September 30, 2020, from RMB 44,017,000 as of December 31, 2019, representing a growth of 20.5%[24] - The company’s total non-current assets as of September 30, 2020, were RMB 67,648,000, an increase from RMB 44,017,000 in the previous year[24] Business Operations and Strategy - The company has not provided specific guidance for future performance or new product developments in the conference call[9] - The company has expanded its business by acquiring an automatic car wash service, diversifying its revenue sources[45] - The company resumed its CNG business operations in March 2020 after a temporary suspension due to COVID-19, and has fully restored operations as of the report date[44] - The company has been exploring new business opportunities in China and other regions to further diversify its revenue streams[45] - The group has diversified its revenue sources by acquiring an automatic car wash business in China and residential property investments in Malaysia, with the acquisition cost for the car wash business being RMB 20,029,908[63] - The group has completed the acquisition of Silver Max AP Company Limited for a total consideration of 9.8 million Malaysian Ringgit, paid through the issuance of shares and convertible bonds[65] - The group has completed the acquisition of residential property units in Kuala Lumpur, which is expected to generate additional revenue streams[59] Government and Regulatory Matters - The company received government subsidies amounting to RMB 3,027,000 during the nine months ended September 30, 2020, which were not reported in the previous year[28] - The group anticipates that government policies promoting clean energy and new energy vehicles will stimulate growth in the related industries[59] Employee and Management Information - The group employed 74 employees as of September 30, 2020, with total employee costs amounting to approximately RMB 6.1 million for the nine months ended September 30, 2020, compared to RMB 3.1 million for the same period in 2019[68] - The company has established an audit and risk management committee consisting of three independent non-executive directors[102] - The chairman and CEO roles are held by the same individual, which is considered appropriate for the company's effective management[101] Shareholder and Stock Information - As of September 30, 2020, the total issued shares of the company were approximately 662,360,000[79] - Liu Yongcheng and Liu Yongqiang each held 375,000,000 shares, representing approximately 110.94% of the total issued shares[72] - The company plans to issue 48,276,300 shares and 118,193,700 shares to Yongsheng and Hongsheng, respectively, as part of a share exchange agreement[72] - The company has granted stock options to Liu Yongqiang and Liu Yongcheng for 5,500,000 and 1,123,600 shares, respectively[73] - The fair value of the stock options granted during the period is estimated at approximately RMB 6,019,000, with an expense of RMB 2,434,000 recognized during the period[92] - As of the report date, there are 115,736,000 unexercised stock options, representing about 17.47% of the issued shares[92] - The stock option plan was approved by shareholders on April 20, 2018, with an updated authorization limit of 10% of the total shares as of the annual general meeting date[85] Compliance and Governance - The company has adopted the corporate governance code as per the GEM Listing Rules, with some deviations noted[101] - The compliance advisor reported no interests that require disclosure under the GEM Listing Rules as of September 30, 2020[99] - The group has not faced significant foreign exchange risks due to most transactions being denominated in Renminbi, with no major impacts from currency fluctuations reported[60] - The group has not established specific policies for managing interest rate risks and will continue to monitor related risks closely[61] - The controlling shareholders confirmed compliance with the non-competition agreement throughout the reporting period[97] - No directors or major shareholders held positions or interests in any competing businesses during the nine months ended September 30, 2020[98] - The company did not grant any rights to directors or their family members to purchase shares or debentures during the nine months ended September 30, 2020[94] - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the nine months ended September 30, 2020[95] - The company adopted and complied with the trading compliance standards as per the GEM Listing Rules during the nine months ended September 30, 2020[96] - The report includes forward-looking statements regarding the company's financial condition and operational performance, which are subject to known and unknown risks[102]
TL NATURAL GAS(08536) - 2020 Q3 - 季度财报