Financial Performance - The revenue for the first quarter of 2021 was RMB 14,120,000, compared to RMB 6,642,000 in the same period of 2020, representing a year-over-year increase of 112.3%[6] - The gross loss for the first quarter of 2021 was RMB 1,023,000, slightly improved from a gross loss of RMB 1,076,000 in the first quarter of 2020[6] - The total loss for the period was RMB 3,074,000, which is an improvement from a loss of RMB 4,133,000 in the same period last year, indicating a reduction of 25.7%[6] - The basic and diluted loss per share for the first quarter of 2021 was RMB 0.46, compared to RMB 0.74 in the first quarter of 2020, reflecting a decrease of 37.8%[6] - Other income and gains for the first quarter of 2021 were RMB 22,000, a significant decrease from RMB 398,000 in the same period of 2020[6] - Administrative expenses decreased to RMB 1,882,000 in the first quarter of 2021 from RMB 2,942,000 in the same period of 2020, showing a reduction of 36%[6] - The company reported a financial asset impairment reversal of RMB 414,000 in the first quarter of 2021, compared to no such reversal in the same period of 2020[6] - The company reported a pre-tax loss of RMB 3.1 million for the three months ended March 31, 2021, compared to a loss of RMB 4.1 million in the same period of 2020[29] - Basic loss per share for the three months ended March 31, 2021, was RMB 0.46, compared to RMB 0.74 for the same period in 2020[29] - The company did not declare any dividends for the three months ended March 31, 2021, consistent with the same period in 2020[30] - Income tax expense for the period was approximately RMB 104,000, compared to a tax credit of approximately RMB 12,000 in the same period last year[42] - Loss attributable to owners of the company was approximately RMB 3.1 million, a decrease of RMB 1.0 million or 24.4% from RMB 4.1 million in the previous year[43] Revenue Breakdown - Revenue from wholesale CNG sales increased by approximately RMB 5.4 million or 145.9% to approximately RMB 9.1 million for the three months ended March 31, 2021, compared to approximately RMB 3.7 million in the same period of 2020[35] - Revenue from retail CNG sales increased by approximately RMB 2.2 million or 78.6% to approximately RMB 5.0 million for the three months ended March 31, 2021, compared to approximately RMB 2.8 million in the same period of 2020[35] - For the three months ended March 31, 2021, the group did not generate any revenue from its automatic car wash services[36] Cost and Expenses - The cost of goods sold for the three months ended March 31, 2021, was RMB 11.9 million, compared to RMB 5.2 million in the same period of 2020[21] - Cost of sales for the same period was approximately RMB 15.1 million, an increase of approximately RMB 7.4 million or 96.1% compared to RMB 7.7 million for the same period in 2020[36] - Selling and distribution expenses rose to approximately RMB 183,000, an increase of approximately RMB 97,000 or 112.8% from RMB 86,000 in the same period last year[39] - Administrative expenses decreased to approximately RMB 1.9 million, a reduction of RMB 1.0 million or 34.5% from RMB 2.9 million in the previous year[40] Shareholder Information - Liu Yongcheng holds 375,000,000 shares, representing approximately 57.62% of the total issued shares[53] - Liu Yongqiang also holds 375,000,000 shares, equivalent to about 57.62% of the total issued shares[55] - Liu Yongcheng and Liu Yongqiang are considered concert parties, collectively owning 266,250,000 shares of Hongsheng, which is about 40.20% of the total issued shares[54] - Liu Yongcheng directly owns 100% of Yongsheng, which holds 108,750,000 shares, or approximately 16.42% of the total issued shares[59] - The major shareholder, Anwen Development, holds 55,490,000 shares, representing approximately 8.37% of the total issued shares[57] - The total number of shares held by major shareholders, including Yongsheng and Hongsheng, is 375,000,000 shares each, totaling approximately 58.62% of the total issued shares[57] - The company has no other directors or executives with recorded interests in shares or related securities as of March 31, 2021[57] Stock Options - The company has a stock option plan approved by shareholders on April 20, 2018, allowing for the issuance of options for 5,500,000 and 1,123,600 shares[61] - Liu Yongcheng and Liu Yongqiang each received stock options under the plan, with 5,500,000 and 1,123,600 shares respectively[60] - The company reported a total of 5,500,000 stock options granted to directors and major shareholders as of January 1, 2021[64] - The fair value of the stock options granted on June 23, 2020, was estimated at approximately RMB 4,655,000, with an expense of RMB 359,000 recognized during the period[66] - As of the report date, there are 109,500,000 unexercised stock options, representing about 16.53% of the issued shares[66] - The exercise price for stock options granted on January 21, 2020, was HKD 0.166, while for those granted on June 23, 2020, it was HKD 0.130[65] - The expected volatility for the stock options was approximately 42.55% and 42.33% for the options granted on June 23, 2020, and January 21, 2020, respectively[65] - The stock options vesting schedule includes 30% vesting at grant date, another 30% after one year, and the remaining 40% after two years[65] Corporate Governance - The company adopted and complied with the corporate governance code as per the GEM Listing Rules, with the exception of the separation of roles between the Chairman and CEO, which is currently held by Mr. Liu Yongcheng[74] - Ms. Li Kailin resigned as an independent non-executive director effective April 30, 2021, and Ms. Zeng Li was appointed to the same position on the same date[75] - The Audit and Risk Management Committee consists of three independent non-executive directors, ensuring compliance with the corporate governance code[77] - The company has appointed a compliance advisor to ensure adherence to GEM Listing Rules[73] Business Operations and Future Outlook - The company is engaged in CNG sales and automatic car wash services in China, indicating ongoing operational activities in the region[14] - The company plans to continue its focus on expanding its CNG sales and services in the Chinese market[14] - The company plans to actively explore new business opportunities in China and other regions to diversify its revenue sources[46] - The board anticipates ongoing challenges in the business environment due to the impact of COVID-19, despite the rollout of vaccination programs[45] - The report includes forward-looking statements regarding the company's financial condition and operational performance, highlighting potential risks and uncertainties[78] Compliance and Trading - The company confirmed compliance with the trading standards set forth by the GEM Listing Rules during the reporting period[69] - No directors or major shareholders engaged in any competing business activities during the reporting period[71] - The company has not purchased, sold, or redeemed any of its listed securities during the three months ended March 31, 2021[69] - No significant events occurred after the reporting period, indicating stability in operations[78]
TL NATURAL GAS(08536) - 2021 Q1 - 季度财报