Financial Performance - The company recorded total revenue of RMB 420.7 million for the year ended December 31, 2021, representing a 72.6% increase compared to the previous year[9]. - The company's total revenue for the year was approximately RMB 420.7 million, an increase of 72.6% compared to RMB 243.7 million in the previous year[26]. - The net loss for the year was approximately RMB 213.6 million, compared to a net loss of RMB 143.5 million in the previous year, primarily due to an increase in trade receivables impairment provision[26]. - The gross loss increased from approximately RMB 4.1 million in the previous year to approximately RMB 7 million this year, attributed to intense competition and price volatility in the LNG market[26]. - The company recorded a gross loss margin of 1.8% for the new energy business, slightly improved from 1.9% in the previous year[37]. - Revenue from the new energy business increased by 72.8% to approximately RMB 420,200,000 this year from approximately RMB 243,200,000 last year, accounting for 99.9% of the company's total revenue[47]. Business Expansion and Strategy - The expansion of the liquefied natural gas (LNG) supply business into Shanghai significantly contributed to revenue growth[9]. - The company aims to further expand its domestic market beyond Tianjin, targeting areas with high affordability and clean energy initiatives[10]. - The company plans to explore overseas markets, including Europe, after the lifting of lockdown measures[10]. - The company is committed to developing and expanding its new energy business, considering collaborations on suitable projects[10]. - The company emphasizes the potential for growth in the new energy sector, particularly in developed regions like the Yangtze River Delta[10]. - The company aims to become a leading diversified new energy service provider in the Greater China region[10]. - The company plans to further develop its LNG supply business in Shanghai, which contributed approximately 60% of the total revenue this year[28]. - A strategic cooperation agreement was signed with Jiangsu Shagang Group to create synergies in the LNG refueling station and pipeline natural gas supply sectors[28]. - The company aims to expand its new energy business and explore opportunities in overseas markets, particularly in Europe, during the post-pandemic recovery[81]. Financial Position and Assets - The total assets decreased by 39.7% to RMB 358.9 million from RMB 595 million in the previous year[17]. - The net asset value decreased by 59.2% to RMB 144.7 million from RMB 354.5 million in the previous year[17]. - Cash and cash equivalents decreased by 28.9% to RMB 60.8 million from RMB 85.5 million in the previous year[17]. - The company's asset-liability ratio increased to 54.5% as of December 31, 2021, from 27.2% as of December 31, 2020, due to a decrease in total equity[53]. - The company raised approximately RMB 82,700,000 from the issuance of convertible bonds, with plans to use 50% for general working capital and 50% for enhancing existing business[57]. - The company raised approximately HKD 97,500,000, with 50% allocated for general working capital and 50% for enhancing existing business operations[68][72]. - As of December 31, 2021, the company had issued a total of 3,666,936,000 shares at a par value of HKD 0.00125 per share[73]. - As of December 31, 2021, the reserves available for distribution to equity shareholders were approximately RMB 115 million (previous year: approximately RMB 302.6 million)[196]. - As of December 31, 2021, the group had no outstanding bank loans or other borrowings, nor any bank financing (previous year: none)[199]. Governance and Compliance - The company has maintained high standards of corporate governance to enhance shareholder value and ensure transparency and accountability[96]. - The board consists of four executive directors and three independent non-executive directors, responsible for managing and monitoring the company's business and strategy[102]. - The company has adopted a board diversity policy effective from September 1, 2013, focusing on gender, age, work experience, and ethnicity to enhance strategic goals and sustainable development[100]. - All independent non-executive directors have submitted annual independence confirmation letters, and the company believes they meet the independence guidelines[102]. - The company has complied with the GEM Listing Rules and adopted the necessary amendments to the corporate governance code for the year[97]. - The company has established a clear framework for independent directors, ensuring their rights and responsibilities are well-defined[113]. - The company has established an enterprise risk management framework to ensure effective risk management practices[140]. - The Board is responsible for establishing a clear enterprise risk management framework and policies[141]. - The Audit Committee supervises the overall risk management procedures and reviews the risk register[142]. - The company is committed to ensuring compliance with corporate governance policies and regulations[129]. Risk Management - The management is closely monitoring government policy changes, particularly regarding the development of new energy and natural gas consumption, which may increase operational costs[156]. - The company has implemented internal control measures to address identified risks and continuously monitors changes in these risks[151]. - The internal audit team has completed the annual internal control review, identifying issues and proposing corrective measures[152]. - The company maintains a zero-tolerance policy towards unethical behaviors such as bribery and fraud, reinforcing its integrity culture[154]. - The company is actively seeking multiple stable LNG suppliers to avoid reliance on a single supplier, thereby mitigating supply chain risks[160]. - The company has increased its credit risk provisions due to the financial difficulties faced by customers amid the COVID-19 pandemic[162]. - The company is conducting regular safety inspections and emergency planning to address the risks posed by extreme weather conditions on infrastructure[162]. Employee and Stakeholder Relations - The company recognizes employees as key to business success and aims to foster a supportive work environment[187]. - The company has established good relationships with customers and suppliers, continuing to provide quality products and services[187]. - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders[170]. - The company plans to hold its annual general meeting by June 30, 2022[174]. Environmental and Social Responsibility - The company is committed to sustainable development and has implemented policies to reduce environmental impact[182]. - The company will publish its environmental, social, and governance report within five months after the fiscal year-end[185]. - The company strictly adheres to national hazardous chemical regulations and operational standards to ensure a 100% monitoring rate of critical production operations[158]. - The company has implemented internal inspections to reduce the risk of violating environmental laws and regulations[160].
中华燃气(08246) - 2021 - 年度财报