Financial Performance - The revenue for the first quarter of 2023 was RMB 14,825,000, representing a 34.5% increase from RMB 11,057,000 in the same period of 2022[7] - Gross profit for the first quarter of 2023 was RMB 1,920,000, compared to RMB 486,000 in the first quarter of 2022, indicating a significant improvement[7] - The net loss for the first quarter of 2023 was RMB 1,832,000, a decrease from a net loss of RMB 2,075,000 in the same period of 2022, reflecting a 11.7% improvement[7] - Basic and diluted loss per share for the first quarter of 2023 was 1.01 cents, compared to 1.20 cents in the first quarter of 2022[7] - The total revenue for the three months ended March 31, 2023, was approximately RMB 14.8 million, an increase of about RMB 3.7 million or 33.3% compared to RMB 11.1 million for the same period in 2022[33] - The basic loss per share for the three months ended March 31, 2023, was RMB (1.01), compared to RMB (1.20) for the same period in 2022[27] - The loss attributable to owners for the three months ended March 31, 2023, was approximately RMB 1.8 million, a decrease of RMB 0.3 million or 14.3% compared to RMB 2.1 million for the same period in 2022[40] Revenue Breakdown - Revenue from CNG sales to wholesale customers increased by approximately RMB 4.3 million or 65.2%, from about RMB 6.6 million to approximately RMB 10.9 million[33] - Revenue from CNG sales to retail customers decreased by approximately RMB 2.3 million or 51.1%, from about RMB 4.5 million to approximately RMB 2.2 million[33] - LNG sales generated revenue of approximately RMB 1.5 million during the period, compared to none in the same period of 2022[33] Expenses and Costs - The company’s administrative expenses increased to RMB 3,613,000 in the first quarter of 2023 from RMB 2,520,000 in the same period of 2022, reflecting a 43.3% rise[7] - The cost of sales for the first quarter of 2023 was RMB 12,905,000, up from RMB 10,571,000 in the first quarter of 2022, indicating a 22.1% increase[7] - The cost of sold inventory for the three months ended March 31, 2023, was RMB 9.8 million, compared to RMB 8.5 million for the same period in 2022[22] - The cost of sales for the three months ended March 31, 2023, was approximately RMB 12.9 million, an increase of about RMB 2.3 million or 21.7% compared to RMB 10.6 million for the same period in 2022[34] - Selling and distribution expenses rose by approximately RMB 32,000 or 27.4% to about RMB 149,000 for the three months ended March 31, 2023, compared to RMB 117,000 for the same period in 2022[36] - Administrative expenses increased by approximately RMB 1.1 million or 44.0% to about RMB 3.6 million for the three months ended March 31, 2023, primarily due to increased maintenance costs and new business-related expenses[37] Equity and Shareholder Information - The total equity attributable to owners of the company as of March 31, 2023, was RMB 81,148,000, a decrease from RMB 84,268,000 as of January 1, 2022[9] - As of March 31, 2023, Liu Yongcheng directly owns 100% of Yongsheng Industrial Co., which holds 19,392,500 shares or approximately 10.94% of the issued shares[53] - Liu Yongqiang directly owns 100% of Hongsheng Industrial Co., which holds 66,562,500 shares or approximately 37.55% of the issued shares as of March 31, 2023[53] - Yongsheng and Hongsheng are both considered substantial shareholders, each holding 85,955,000 shares or 50.36% of the total issued shares[54] - Anwei Development Limited holds 13,872,500 shares, representing 7.83% of the total issued shares[54] - Liu Guohua holds 9,492,500 shares, which is approximately 5.36% of the total issued shares[54] Corporate Governance - The company has adopted and complied with the corporate governance code as per the GEM listing rules, with the exception of the separation of the roles of Chairman and CEO, which are held by the same individual, Liu Yongcheng[71] - The board of directors includes three executive directors and three independent non-executive directors, ensuring appropriate checks and balances[76] - The Audit and Risk Management Committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements for the three months ending March 31, 2023[72] Future Outlook - The company anticipates strong GDP growth in China in the coming years as the economy gradually recovers from pandemic restrictions[41] - The company is optimistic about the growth of natural gas consumption in China, supported by government policies promoting cleaner energy sources[41] Share Options and Compliance - The stock option plan was approved by shareholders on April 20, 2018, allowing for the issuance of stock options[58] - Liu Yongcheng and Liu Yongqiang were each granted stock options for 1,375,000 and 280,900 shares respectively under the stock option plan[59] - The company has utilized all existing authorized limits under the share option plan, with 25,816,009 unexercised options remaining, representing approximately 14.56% of the issued shares as of the report date[64] - The fair value of the granted options, calculated using a binomial option pricing model, is estimated at RMB 4,655,000[65] - The expected volatility for the options is 42.55% and 42.33% for the respective grant dates[63] - The share options vesting schedule includes 30% vesting at grant date, another 30% after one year, and the remaining 40% after two years[64] - The company confirmed compliance with the trading standards set forth in the GEM Listing Rules during the reporting period[68] - There were no conflicts of interest reported by directors or major shareholders in businesses that may compete with the company's operations during the three months ended March 31, 2023[70] - The company has not granted any rights to directors or their immediate family members to purchase shares or debentures of the company during the reporting period[66] Other Information - The company has no significant investments or acquisitions planned during the reporting period[46] - The company has confirmed that the controlling shareholders have adhered to the non-competition agreement throughout the reporting period[69] - No significant events occurred after the reporting period, aside from those disclosed in the report[73] - The report contains forward-looking statements regarding the company's financial condition and operational performance, which involve known and unknown risks and uncertainties[75]
TL NATURAL GAS(08536) - 2023 Q1 - 季度财报