Financial Performance - Revenue for the twelve months ended December 31, 2024, was RMB 89,193,000, a decrease of 52.2% compared to RMB 186,652,000 for the corresponding period in 2023[9]. - Gross profit for the same period was RMB 3,536,000, compared to a gross loss of RMB 6,793,000 in the previous year, representing a significant improvement[9]. - The total comprehensive loss for the period was RMB 47,125,000, which is an increase of 1,070.8% from RMB 4,025,000 in the prior year[9]. - The company incurred a net loss of RMB 47,125,000 for the twelve months ending December 31, 2024, compared to a net loss of RMB 4,025,000 in 2023, reflecting a substantial increase in losses[19]. - Operating loss increased to RMB 38,511,000 from RMB 1,904,000 year-over-year, highlighting ongoing operational challenges[19]. - The company reported a net cash outflow from operating activities of RMB 129,694,000 for the twelve months ended December 31, 2024, compared to a cash inflow of RMB 163,232,000 for the same period in 2023[23]. - The company reported a consolidated net loss of approximately RMB 47,125,000 for the twelve months ended December 31, 2024[26]. - The total comprehensive loss attributable to the company's owners increased to approximately RMB 49,100,000 from RMB 6,700,000 in the corresponding period, with a basic and diluted loss per share of RMB 0.013 compared to RMB 0.002 previously[96]. Assets and Liabilities - Total assets increased by 16.1% to RMB 406,028,000 from RMB 349,670,000 year-over-year[9]. - Cash and cash equivalents decreased by 64.8% to RMB 69,099,000 from RMB 196,083,000 in the prior year[9]. - Trade receivables and contract assets dropped significantly to RMB 43,301,000 from RMB 104,901,000, suggesting potential issues in revenue collection[20]. - The company's total assets increased to RMB 406,028,000 from RMB 349,670,000, indicating growth in asset base despite operational losses[20]. - The company's current assets and current liabilities were approximately RMB 393.9 million and RMB 231.8 million, respectively, compared to RMB 338.6 million and RMB 210 million as of December 31, 2023[104]. - The company's debt-to-equity ratio as of December 31, 2024, was 30.7%, a significant decrease from 68.4% on December 31, 2023[104]. - The net asset value increased to approximately RMB 172.6 million as of December 31, 2024, up from RMB 139.2 million as of December 31, 2023, primarily due to an increase in prepayments to suppliers[104]. Cash Flow and Liquidity - Cash and cash equivalents decreased to RMB 69,099,000 from RMB 196,083,000, indicating a liquidity strain[20]. - The company experienced a significant decrease in cash and cash equivalents, with a net decrease of RMB 127,068,000, compared to an increase of RMB 157,074,000 in the prior year[23]. - The company has successfully recovered several overdue trade receivables to improve liquidity and cash flow[28]. - The company has received shareholder support to avoid requesting repayment of due amounts until sufficient cash resources are available[29]. - The company has implemented measures to closely monitor trade receivables and improve cash flow in the short and long term[28]. Expenses and Costs - The company reported an increase in administrative expenses to RMB 52,354,000 from RMB 30,005,000, reflecting higher operational costs[19]. - Financial costs increased significantly to RMB 8,537 thousand in 2024 from RMB 1,801 thousand in 2023, an increase of about 373.5%[40]. - Administrative expenses increased by 74.5% to approximately RMB 52,400,000 from RMB 30,000,000 in the corresponding period, largely due to share-based payment expenses related to stock options granted in December 2023[92]. - The sales cost for the energy business was approximately RMB 85,700,000, down from approximately RMB 193,400,000 in the corresponding period[87]. Shareholder and Corporate Governance - The board of directors did not recommend any dividend payments for the two periods[113]. - The company has adopted the corporate governance code as per GEM listing rules and has complied with all provisions during the reporting period[145]. - The company provides a communication platform for shareholders through annual and special general meetings, as well as its corporate website[142]. - The company has not established any arrangements for directors or their associates to acquire securities of the company or its affiliates during the reporting period[140]. Strategic Initiatives and Future Outlook - The company is engaged in diversified energy services, including technology development for heating and coal-to-gas solutions, and LNG supply and sales[27]. - The company is focusing on expanding its energy business and exploring opportunities in overseas markets through joint ventures and acquisitions[102]. - The company aims to cultivate strategic relationships with major partners to identify and seek new business opportunities[84]. - The company is exploring investment opportunities in gas pressure regulating and metering equipment through a memorandum of understanding with Tianjin Jinhai Heating Group Co., Ltd.[83]. Employee and Share Options - The company has a share option plan that allows for the issuance of options not exceeding 30% of the issued share capital[65]. - As of December 31, 2024, a total of 209,480,000 options were granted under the 2011 plan, representing 5.7% of the issued shares[67]. - The total number of employee stock options granted was 438,800,000, with 352,032,000 options exercised during the period[131]. - The new share option plan was adopted on September 14, 2023, allowing for the issuance of options up to 10% of the company's issued share capital at the time of adoption[126][127]. Market and Industry Insights - China's LNG imports reached 38,000,000 tons in the first half of 2024, a year-on-year increase of 13.9%, while pipeline gas imports rose by 15% to 26,700,000 tons[98]. - The share of natural gas and LNG in China's energy structure is expected to increase from 7% to 12% or more by 2040, driven by government initiatives to reduce coal usage[99]. - China plans to enhance its LNG receiving station infrastructure, aiming for an annual import capacity of 247,000,000 tons by 2035, tripling current levels[100].
中华燃气(08246) - 2024 - 中期财报