Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 63,964,000, a decrease of 49.8% compared to RMB 127,376,000 for the same period in 2023[10]. - The gross profit for the same period was RMB 2,620,000, representing a gross margin of 4.1%, compared to a gross loss of RMB 3,384,000 in the prior year[10][12]. - The total comprehensive loss attributable to owners of the company was RMB 10,439,000, a significant decline from a profit of RMB 34,648,000 in the previous year, marking a 130.1% decrease[10]. - The company reported a net loss margin of (9.8%) for the current period, compared to a net profit margin of 32.4% in the same period last year[12]. - Operating profit decreased significantly to RMB 625,000 from RMB 41,409,000 year-on-year[15]. - The company reported a net loss attributable to owners of the company of RMB 10,439,000, compared to a profit of RMB 34,648,000 in the same period last year[15]. - LNG sales revenue was RMB 63,384 thousand, down from RMB 126,807 thousand, reflecting a 50% decline year-over-year[27]. - The company recorded a loss attributable to owners of approximately RMB 10,400,000 for the period, compared to a profit of approximately RMB 34,600,000 in the corresponding period[72]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 365,505,000, an increase of 4.5% from RMB 349,670,000 at the end of 2023[11]. - Cash and cash equivalents decreased significantly by 70.1%, from RMB 196,083,000 at the end of 2023 to RMB 58,605,000[11]. - Current assets rose to RMB 352,255,000, compared to RMB 338,606,000 at the end of 2023[16]. - The net asset liability ratio improved to 58.8% from 67.6% in the previous year, indicating better financial stability[12]. - Trade receivables amounted to RMB 242,918,000 as of June 30, 2024, down from RMB 331,119,000 as of December 31, 2023, reflecting a decrease of approximately 26.6%[42]. - The impairment provision for trade receivables was RMB 203,324,000 as of June 30, 2024, compared to RMB 226,218,000 as of December 31, 2023, indicating a reduction of about 10.1%[42]. - Total trade and other payables increased to RMB 126,297,000 as of June 30, 2024, from RMB 113,905,000 as of December 31, 2023, representing an increase of approximately 10.8%[45]. Cash Flow and Financing - The company experienced a cash outflow from operating activities of RMB 130,680,000, compared to a cash inflow of RMB 74,529,000 in the previous year[18]. - The available cash and cash equivalents of the group were only RMB 58,605,000 as of June 30, 2024, indicating significant uncertainty regarding the group's ability to continue as a going concern[20]. - A repayment agreement was established with convertible bondholders on May 20, 2024, with a repayment schedule of nine installments, each approximately RMB 4,550,000, totaling RMB 48,080,000[20]. - The group plans to seek bank financing to settle the final payment of approximately RMB 48,080,000 and applicable interest to convertible bondholders[21]. - The ability of the group to continue as a going concern is contingent upon successful currency exchange procedures and obtaining bank financing[21]. Strategic Initiatives and Market Outlook - The company is focusing on strategic initiatives to enhance operational efficiency and explore market expansion opportunities[10]. - The company plans to expand its LNG supply business and explore opportunities in overseas markets to enhance its market position[74]. - The company aims to establish joint ventures and pursue acquisitions to further develop its business, including stable LNG supply and pipeline gas markets in northern China[74]. - The company continues to maintain strategic cooperation with Jiangsu Shagang Group Co., Ltd. to supply LNG and manage LNG supply stations[64]. - The company anticipates a continued decrease in the number of new projects in the future due to market saturation in Tianjin's coal-to-gas initiatives[64]. Share Capital and Stock Options - The company's issued and paid-up share capital was RMB 3,724,000 as of June 30, 2024, with a total of 3,666,936,000 shares issued[44]. - A total of 366,688,000 stock options were granted under the new plan as of December 11, 2023, representing 10% of the company's issued shares on that date[88]. - The total number of stock options available for grant under the new plan is capped at 10% of the company's issued share capital at the time of approval[88]. - The company has a total of 21,776,000 stock options that have not been exercised as of June 30, 2024[91]. - The company has a significant number of stock options that are set to expire in the near future, indicating potential future dilution[91]. Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules and has complied with all provisions during the reporting period[105]. - The Audit Committee was established in accordance with GEM Listing Rules and consists of three independent non-executive directors as of June 30, 2024[106]. - The Audit Committee reviewed the interim results and mid-term report for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[106]. - The board of directors has maintained communication with shareholders through annual and special general meetings[103].
中华燃气(08246) - 2024 - 中期财报