Financial Performance - For the first half of 2023, the company recorded revenue of approximately RMB 696.2 million, a decrease of about RMB 420.3 million compared to RMB 1,116.5 million in the same period of 2022, primarily due to a decline in liquefied petroleum gas sales volume and lower sales prices for liquefied petroleum gas and compressed natural gas [9]. - The company's liquefied petroleum gas sales business generated revenue of approximately RMB 559.0 million in the first half of 2023, down from RMB 972.3 million in the same period of 2022, a decrease of about RMB 413.3 million [10]. - The revenue from the compressed natural gas sales business was approximately RMB 131.8 million for the first half of 2023, slightly down from RMB 134.0 million in the same period of 2022, a decrease of about RMB 2.2 million [11]. - The company's total revenue for the six months ended June 30, 2023, was approximately RMB 696.2 million, down from RMB 1,116.5 million in the same period of 2022, representing a decrease of approximately RMB 420.3 million [29]. - Gross profit for the six months ended June 30, 2023, was approximately RMB 36.6 million, down from RMB 48.3 million in the same period of 2022, a decrease of approximately RMB 11.7 million [30]. - The net profit for the six months ended June 30, 2023, was RMB 1,004 thousand, a decline of 44.2% compared to RMB 1,799 thousand in 2022 [94]. - Total revenue for the group decreased to RMB 696,197,000 for the six months ended June 30, 2023, down 37.8% from RMB 1,116,492,000 in 2022 [113]. - The gross profit for the reportable segments was RMB 36,583,000 for the six months ended June 30, 2023, a decline of 24.2% from RMB 48,330,000 in the same period of 2022 [118]. Consumption Trends - The apparent consumption of liquefied petroleum gas in China reached 40.73 million tons for the first half of 2023, representing a year-on-year increase of 10.24% and a quarter-on-quarter increase of 7.84% [5]. - The apparent consumption of natural gas in China was 194.1 billion cubic meters from January to June 2023, reflecting a year-on-year growth of 5.6% [6]. - The forecast for China's natural gas consumption in 2023 is approximately 444.06 billion cubic meters, an increase of 21.23% year-on-year [26]. Operational Strategy - The company aims to optimize gas source procurement and explore new distribution channels for liquefied petroleum gas, expanding into southwestern provinces such as Jiangxi, Hunan, and Guizhou [5]. - The company is focusing on enhancing customer satisfaction through differentiated marketing activities and optimizing procurement channels to stabilize end sales [6]. - The company plans to enhance its online sales management platform to improve operational management capabilities [27]. - The company aims to optimize communication with upstream and downstream customers and strengthen supply and storage systems to ensure stable supply and pricing [27]. Financial Position - Total assets as of June 30, 2023, were approximately RMB 1,383.0 million, an increase of about RMB 435.1 million from RMB 947.9 million as of December 31, 2022 [44]. - The debt-to-equity ratio as of June 30, 2023, was approximately 70.8%, up from 57.9% as of December 31, 2022, attributed to an increase in bank loans [47]. - As of June 30, 2023, the company had approximately RMB 940.0 million in secured short-term borrowings, an increase from RMB 507.5 million as of December 31, 2022 [46]. - The group maintained a healthy liquidity position with prudent financial management strategies as of June 30, 2023 [55]. - The group held approximately RMB 24.4 million in unlisted equity securities as of June 30, 2023, to enhance capital utilization [56]. Cost Management - Sales cost decreased to approximately RMB 659.6 million in 2023 from approximately RMB 1,068.2 million in 2022, a reduction of about RMB 408.6 million [30]. - Employee costs for the six months ended June 30, 2023, were approximately RMB 15.7 million, a decrease of about RMB 1.0 million compared to RMB 16.7 million for the same period in 2022 [32]. - Depreciation for the same period was approximately RMB 7.1 million, down RMB 2.8 million from RMB 9.9 million in 2022, primarily due to the closure of two gas stations [35]. - Operating lease expenses decreased to approximately RMB 0.2 million from RMB 2.2 million, a reduction of about RMB 2.0 million, due to the reduction in operating lease expenses from the two closed gas stations [36]. - Financing costs were approximately RMB 5.6 million, a decrease of RMB 2.3 million from RMB 7.9 million in 2022, mainly due to a decline in bank loan interest rates [38]. Shareholder Information - The major shareholder, Mr. Ji, held 162,000,000 shares, representing 75% of the company [63]. - UBS Trustees held 121,500,000 shares, representing 56.25% of the company [67]. - The total number of issued shares as of June 30, 2023, is 216,000,000 shares [70]. - The company has not granted or agreed to grant any options under the share option scheme since its adoption [77]. - The maximum number of shares available for issuance under the share option scheme is capped at 30% of the company's issued share capital [74]. - The board does not recommend the payment of an interim dividend for the six months ending June 30, 2023 [84]. Legal and Compliance - The maximum risk related to contingent liabilities could reach approximately RMB 68,469,000 for Claim One, but the group was ruled not liable [59]. - The group did not recognize any provisions as of June 30, 2023, related to the aforementioned claims [60]. - The group’s subsidiary was previously ruled not liable for a claim in 2022, and this ruling was upheld again in June 2023 [148]. - The company has established a corporate governance framework to ensure shareholder interests and business ethics are upheld [80]. - The company has complied with the corporate governance code as outlined in the listing rules for the six months ending June 30, 2023 [80]. Investment and Future Plans - The company is actively seeking suitable acquisition targets but has not yet identified any as of the report date [52]. - There were no specific future plans for significant investments or capital assets as of June 30, 2023 [57]. - The company is considering the potential sale of its entire stake in Henan Lantian and leasing operations of certain gas stations, with preliminary disclosures made on August 10, 2023 [89].
中油洁能控股(01759) - 2023 - 中期财报