Financial Performance - Revenue for the three months ended September 30, 2022, was RMB 19,093 thousand, an increase from RMB 10,080 thousand in the same period last year, representing an increase of 89.5%[7] - Gross profit for the three months ended September 30, 2022, was RMB 5,825 thousand, compared to a gross loss of RMB 1,245 thousand in the same period last year[7] - The net loss for the three months ended September 30, 2022, was RMB 1,586 thousand, an improvement from a net loss of RMB 2,785 thousand in the same period last year, reflecting a decrease of 43.0%[9] - Total comprehensive loss for the three months ended September 30, 2022, was RMB 2,226 thousand, compared to RMB 2,905 thousand in the same period last year, indicating a reduction of 23.3%[9] - For the nine months ended September 30, 2022, total revenue was RMB 46,160 thousand, up from RMB 33,900 thousand in the same period last year, marking an increase of 36.0%[7] - The company reported a gross profit of RMB 10,070 thousand for the nine months ended September 30, 2022, compared to a gross loss of RMB 3,997 thousand in the same period last year[7] - The basic and diluted loss per share for the three months ended September 30, 2022, was RMB 0.89, an improvement from RMB 1.57 in the same period last year[7] - CNG sales for the three months ended September 30, 2022, amounted to RMB 18,287,000, compared to RMB 10,080,000 for the same period in 2021, reflecting a growth of approximately 81.9%[22] - For the nine months ended September 30, 2022, the company's revenue was approximately RMB 46.2 million, an increase of approximately RMB 12.3 million or 36.3% compared to RMB 33.9 million for the same period in 2021[36] - Revenue from wholesale CNG sales increased by RMB 9.1 million or 43.1% to RMB 30.2 million for the nine months ended September 30, 2022, compared to RMB 21.1 million for the same period in 2021[36] - Gross profit for the nine months ended September 30, 2022, was approximately RMB 10.1 million, with a gross margin of 21.8%, compared to a gross loss of approximately RMB 4.0 million for the same period in 2021[39] - The company reported a loss attributable to owners of the company of approximately RMB 4.0 million for the nine months ended September 30, 2022, a decrease of approximately RMB 4.1 million or 50.6% compared to RMB 8.1 million for the same period in 2021[44] Operational Efficiency - The financial performance reflects ongoing efforts to improve operational efficiency and reduce losses compared to previous periods[9] - The company has implemented measures to mitigate the impact of COVID-19 on its operations, including streamlining workflows and managing working capital[46] - The company anticipates that government policies supporting natural gas development will stimulate the industry and promote growth in related products[46] - The board will continue to assess the impact of COVID-19 on the group's operations and financial performance, closely monitoring risks and uncertainties arising from the pandemic[47] Business Focus and Strategy - The company continues to focus on the sales of compressed natural gas (CNG) in China, which remains its primary business segment[14] - The company is actively exploring new business opportunities in China and other regions to diversify its revenue sources[46] - The company has not indicated any new product launches or significant market expansions in the upcoming quarters[14] - The company has not provided guidance for future performance or new product developments in the current report[18] Assets and Liabilities - Non-current assets in China increased to RMB 34,276,000 as of September 30, 2022, from RMB 34,071,000 as of December 31, 2021, showing a slight increase of 0.6%[19] - The company’s total non-current assets as of September 30, 2022, were RMB 48,426,000, slightly up from RMB 48,188,000 as of December 31, 2021, reflecting a growth of approximately 0.5%[19] - The total tax expense for the nine months ended September 30, 2022, was RMB 0, as the company did not generate taxable profits in Hong Kong[28] Shareholder Information - Major shareholders hold approximately 50.36% of the issued shares, with Liu Yongcheng and Liu Yongqiang each holding 49.43%[54][59] - Liu Yongcheng directly owns 100% of Yongsheng Industrial Co., which holds approximately 10.94% of the issued shares[56] - Liu Yongqiang directly owns 100% of Hongsheng, which holds approximately 37.55% of the issued shares[57] - As of September 30, 2022, Liu Yongqiang directly owned 100% of Hongsheng, which held 66,562,500 shares or approximately 37.55% of the issued shares[3] - Liu Yongqiang is also considered to have an interest in 19,392,500 shares or approximately 10.94% of the issued shares of Yongsheng due to being a concert party with Liu Yongcheng[3] Corporate Governance - The company has established an Audit and Risk Management Committee, consisting of three independent non-executive directors, to review the unaudited consolidated financial statements for the nine months ending September 30, 2022[80] - The company has complied with the corporate governance code, with the exception of the separation of the roles of Chairman and CEO, which is deemed appropriate under current management structure[77] - The company has maintained compliance with the GEM Listing Rules regarding corporate governance throughout the reporting period[77] - The company has adopted the trading compliance standards as per the GEM Listing Rules, confirming compliance by all directors for the nine months ending September 30, 2022[73] - There were no conflicts of interest reported among directors, major shareholders, or their close associates in any restricted business activities during the nine months ending September 30, 2022[76] Stock Options and Securities - The stock options plan was approved by shareholders on April 20, 2018, with details available in the annual report for the year ending December 31, 2021[4] - The fair value of stock options granted during the period was estimated at approximately RMB 4,655,000, with RMB 315,000 recognized as stock option expenses during the period[69] - As of the report date, there were 25,816,009 unexercised stock options, representing about 14.56% of the issued shares[71] - The exercise price for stock options granted on January 21, 2020, was adjusted from HKD 0.166 to HKD 0.664 due to a share consolidation[71] - The exercise period for the stock options is from June 23, 2020, to June 22, 2025, for options granted on June 23, 2020[68] - No purchases, sales, or redemptions of the company's listed securities occurred during the nine months ending September 30, 2022[72] Employee Information - The group employed 73 employees as of September 30, 2022, with employee costs amounting to approximately RMB 3.5 million for the nine months ending September 30, 2022[52] Dividends - The company did not declare any dividends for the three months and nine months ended September 30, 2022, consistent with the same periods in 2021[31] - No dividends are recommended for the nine months ending September 30, 2022, consistent with the previous year[47] Risks and Uncertainties - Forward-looking statements regarding the company's financial condition and operational performance are subject to known and unknown risks and uncertainties[81] - The company’s financial performance and operational results are subject to significant variability due to external factors[81] - There is no significant interest rate risk, and the group has not implemented specific policies to manage such risks[50] - The group reported no significant impact on working capital due to foreign exchange fluctuations, as most transactions are denominated in RMB[49] - No major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures occurred during the reporting period[50]
TL NATURAL GAS(08536) - 2022 Q3 - 季度财报