Financial Performance - The company recorded revenue of RMB 963 million for the year, an increase of approximately RMB 183 million or 23.5% compared to 2023[10]. - LNG sales contributed RMB 513 million this year, up from RMB 241 million in 2023, driven by increased local community demand[10]. - CNG sales decreased to RMB 451 million from RMB 538 million in 2023 due to a trend of vehicles transitioning to electric[10]. - The net loss for the year decreased by 57.5% to RMB 99 million from RMB 233 million in 2023[10]. - Revenue increased by approximately RMB 18.3 million or 23.5% to approximately RMB 96.3 million for the year ended December 31, 2024, compared to RMB 78.0 million for the previous year[16]. - Retail business revenue decreased by approximately RMB 4.5 million or 26.5% to approximately RMB 12.5 million, accounting for 13.0% of total revenue, primarily due to the shift from CNG vehicles to electric vehicles[19]. - Wholesale business revenue decreased by approximately RMB 4.1 million or 11.1% to approximately RMB 32.7 million, representing 33.9% of total revenue, mainly due to reduced CNG sales[19]. - LNG sales revenue surged by approximately RMB 27.2 million or 112.9% to approximately RMB 51.3 million, making up 53.3% of total revenue, driven by increased local community demand[20]. - Cost of sales increased by approximately RMB 17.7 million or 25.1% to approximately RMB 88.2 million, primarily due to a significant rise in LNG sales volume[21]. - Gross profit rose by approximately RMB 0.6 million to approximately RMB 8.1 million, with a gross margin decrease from 9.6% to 8.4% due to high procurement costs and low LNG sales margins[22]. - Administrative expenses increased by approximately RMB 2.9 million or 23.0% to approximately RMB 15.5 million, mainly due to legal fees related to Malaysian property and increased employee costs[29]. - The company reported a loss attributable to owners of approximately RMB 9.7 million for the year, a decrease of RMB 13.3 million or 57.8% compared to RMB 23.0 million for the year ended December 31, 2023[34]. Assets and Equity - As of December 31, 2024, the total equity of the group was approximately RMB 53.3 million, down from RMB 59.3 million as of December 31, 2023[36]. - The group's cash and cash equivalents amounted to approximately RMB 29.4 million as of December 31, 2024, compared to RMB 28.4 million as of December 31, 2023[36]. - The group's operating working capital was approximately RMB 33.9 million as of December 31, 2024, down from RMB 35.1 million as of December 31, 2023[36]. - The trade receivables turnover days decreased to approximately 9.1 days for the year, down from 18.1 days for the year ended December 31, 2023[41]. - The group recorded a decrease in trade receivables of approximately RMB 1.2 million to about RMB 1.8 million as of December 31, 2024, compared to RMB 3.0 million as of December 31, 2023[41]. - As of December 31, 2024, the distributable reserves of the company were approximately RMB 57.3 million, slightly down from RMB 57.6 million the previous year[86]. Business Strategy and Opportunities - The company remains optimistic about CNG consumption growth due to China's shift from coal to natural gas and other renewable energy sources[11]. - The company is actively considering and exploring various business opportunities to diversify revenue sources and enhance shareholder value[11]. - The company plans to utilize the net proceeds from its listing for various projects, including the construction of CNG refueling stations, with a total of RMB 29.15 million allocated for these purposes[50]. - The company plans to construct a CNG refueling station to expand its network, with expected completion by the end of 2025[53]. - The upgrade of the Jingzhou mother station's infrastructure to equip it with LNG refueling capabilities has been completed, allowing simultaneous sales of CNG and LNG[53]. - The company aims to expand its wholesale customer base through the upgraded Jingzhou mother station, enhancing its market presence in CNG and LNG[53]. - The board will continuously evaluate business objectives and may adjust plans based on changing market conditions[56]. - The company expects no changes to the main plans regarding the use of proceeds as of the report date[57]. Management and Governance - Liu Yongqiang and Liu Yongsheng are responsible for corporate strategy and overall operations, with Liu Yongqiang having 16 years of experience in the natural gas industry and Liu Yongsheng over 25 years[63][64]. - Zhao Yonghe has over 26 years of experience in finance and accounting, overseeing the group's financial and accounting operations[71]. - The company has a strong management team with diverse backgrounds in finance, operations, and legal affairs, enhancing its governance and strategic direction[65][66][67]. - The group has been expanding its operational management capabilities, with Li Shaohua promoted to Operations Manager in 2019, focusing on production and administrative management[69][70]. - The board is committed to presenting audited financial statements and annual reports, ensuring transparency and accountability in financial reporting[73]. - The company has adopted the corporate governance code as a benchmark for its governance practices[136]. - The board consists of six members, including three executive directors and three independent non-executive directors[141]. - The company has established a mechanism for checks and balances involving the board and independent non-executive directors[144]. - The board of directors is collectively responsible for overseeing the company's affairs and ensuring effective internal controls and risk management systems[148]. - The audit and risk management committee held three meetings during the year to review interim and annual financial performance and discuss significant financial reporting matters[164]. - The remuneration committee conducted one meeting during the year to review the remuneration policies and structures for directors and senior management[168]. - The company ensures that at least one independent non-executive director possesses appropriate professional qualifications or relevant financial management expertise[153]. - All directors received formal and comprehensive induction training upon their first appointment to understand the company's business and operations[158]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company[160]. - The independent non-executive directors do not receive performance-related equity remuneration to maintain their objectivity and independence[155]. - The nomination committee strictly adheres to the nomination policy and evaluates the independence of independent non-executive directors annually[154]. - The company has established three committees: audit and risk management, remuneration, and nomination, to oversee specific aspects of the company's affairs[162]. Risk Management and Compliance - The company has established a risk management and internal control system aimed at managing risks associated with achieving business objectives[182]. - The audit and risk management committee assists the board in overseeing the implementation and monitoring of risk management and internal control systems[184]. - The company has engaged an external professional firm to conduct internal audit functions, as it currently does not have an internal audit function due to the scale and complexity of its operations[188]. - The external auditor received a fee of HKD 880,000 for audit services during the year, with no non-audit services provided[194]. - The board has confirmed the effectiveness of the risk management and internal control systems for the year, with no significant internal control deficiencies found[188]. - The company has implemented strict controls to prevent unauthorized access and use of insider information[189]. - The company has established a disclosure policy to manage confidential information and respond to market inquiries[189]. - The company ensures compliance with relevant laws and regulations to safeguard its assets and maintain reliable financial records[188]. Shareholder Information - The board does not recommend a final dividend for the year, consistent with the previous year[80]. - Sales from the top five customers accounted for 23.7% of total sales, with the largest customer contributing 5.3%[87]. - Purchases from the top five natural gas suppliers represented 82.4% of total purchases, with the largest supplier accounting for 43.0%[87]. - The company has a policy in place to ensure that all significant independent matters are presented for independent resolutions at the shareholders' meetings[198]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting, which must be held within two months of the request[199]. - All resolutions presented at the shareholders' meetings will be voted on, with results published on the company's and the stock exchange's websites[198].
TL NATURAL GAS(08536) - 2024 - 年度财报