Financial Performance - Revenue decreased by 31.0% from RMB 738 million in 2019 to RMB 509 million in 2020 due to the impact of COVID-19[18]. - Net loss increased by 737.0% from RMB 27 million in 2019 to RMB 226 million in 2020[18]. - The company's revenue decreased by approximately RMB 22.9 million or 31.0% to about RMB 50.9 million for the year ended December 31, 2020, compared to approximately RMB 73.8 million for the year ended December 31, 2019[32]. - Retail business revenue accounted for 42.3% of total revenue, decreasing from 52.0% in the previous year, primarily due to a decline of approximately RMB 16.8 million or 43.9% to about RMB 21.5 million[34]. - Wholesale business revenue increased to 57.1% of total revenue, despite a decrease of approximately RMB 4.7 million or 13.9% to about RMB 29.1 million[34]. - The company reported a gross loss of approximately RMB 0.8 million for the year ended December 31, 2020, compared to a gross profit of approximately RMB 6.7 million for the previous year[37]. - Other income and gains increased from RMB 398,000 in 2019 to RMB 3,632,000 in 2020, mainly due to government subsidies of RMB 3,028,000 received in 2020[39]. - The company reported a significant increase in losses attributable to owners, rising by RMB 19.9 million or 737.0% to approximately RMB 22.6 million for the year ended December 31, 2020, compared to RMB 2.7 million for the previous year[49]. Business Expansion and Strategy - The company expanded its business scope by providing automatic car wash services, diversifying revenue sources[18]. - Acquisition of an automatic car wash business for approximately RMB 183 million was completed on January 6, 2020[19]. - The company plans to offer automatic car wash services at other gas stations in China to stimulate existing revenue[19]. - Investment in four serviced apartment units in Malaysia, with a total cost of RM 9.8 million, aimed at generating stable rental income[20]. - The construction of the "Jinfu Garden" project in Malaysia is expected to be completed by Q3 2022, consisting of 420 units[20]. - The company aims to leverage China's national policies by entering the Malaysian property market as part of the Belt and Road Initiative[20]. - The company has adjusted its business strategy to mitigate the impact of COVID-19, including streamlining workflows and enhancing customer promotions[51]. - The company plans to actively explore new business opportunities in China and other regions to diversify its revenue sources[52]. Financial Position and Cash Flow - As of December 31, 2020, the company's total equity was approximately RMB 87.3 million, an increase from RMB 83.4 million as of December 31, 2019[53]. - The company's cash and cash equivalents decreased to approximately RMB 6.2 million as of December 31, 2020, down from RMB 27.4 million the previous year[53]. - Trade receivables decreased by approximately RMB 5.4 million to about RMB 12.6 million as of December 31, 2020, primarily due to a recognized impairment loss provision of RMB 5.5 million[59]. - The company’s operating cash flow situation remains stable, with a current ratio of 2.8 as of December 31, 2020[53]. - The company incurred financing costs of RMB 561,000 for lease liabilities and RMB 637,000 for the amortization of convertible bonds issued for acquisition matters during the year[46]. Management and Governance - Liu Yongcheng, the Executive Director and CEO, has approximately 14 years of experience in the natural gas industry and has been with the group since August 30, 2007[86]. - Liu Yongqiang, the Executive Director and Deputy General Manager, also has around 14 years of experience in the natural gas sector and joined the group on August 30, 2007[87]. - Liu Chunde, the Executive Director and General Manager, has about 12 years of experience in the natural gas industry and has been with the group since January 1, 2009[88]. - The company has a strategic focus on business development and overall operational supervision, as indicated by the roles of its executive team[86][87][88]. - The management team has extensive backgrounds in various industries, including finance and property development, which may enhance strategic decision-making[91][92]. - The company has been expanding its management team with experienced professionals to strengthen its operational capabilities[90]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[186]. - The independent non-executive directors have confirmed their independence according to the guidelines set out in GEM Listing Rules, and the company has complied with the requirement of having at least three independent non-executive directors[193]. Compliance and Risk Management - The company has implemented compliance procedures to adhere to applicable laws and regulations, ensuring operational integrity[111]. - The audit and risk management committee reviewed the consolidated financial statements for the year ended December 31, 2020, ensuring compliance with applicable reporting standards[173]. - The company has adopted and applied the corporate governance code as per GEM Listing Rules Appendix 15, ensuring compliance with all applicable provisions during the year, except for a deviation regarding the separation of the roles of Chairman and CEO[181]. - The company has not identified any incidents of non-compliance with the trading regulations for directors and employees regarding insider information[183]. Sustainability and Future Outlook - The company is committed to developing new technologies and products to meet market demands and improve service offerings[89]. - Future outlook suggests a positive growth trajectory in the natural gas market, driven by strategic initiatives and experienced leadership[89]. - The company has set a target to reduce carbon emissions by GG% over the next five years as part of its sustainability initiatives[95]. Shareholder Information - The company reported a loss for the year, with reserves available for distribution amounting to approximately RMB 597 million as of December 31, 2020, compared to RMB 450 million as of December 31, 2019, representing a 32.67% increase[119]. - The company did not recommend the payment of a final dividend for the year, consistent with the previous year[115]. - The total number of shares to be issued as consideration shares was 48,276,300 and 118,193,700 for Yongsheng and Hongsheng, respectively, as per the sale agreement[138]. - As of December 31, 2020, the total issued shares of the company were 662,360,000[141]. - The company has no other significant investments or acquisitions during the year[69].
TL NATURAL GAS(08536) - 2020 - 年度财报