Financial Performance - Revenue for the three months ended September 30, 2023, was RMB 20,600,000, an increase of 7.9% compared to RMB 19,093,000 for the same period in 2022[6]. - Gross profit for the nine months ended September 30, 2023, was RMB 5,672,000, down 43.7% from RMB 10,070,000 in the same period of 2022[6]. - The net loss for the three months ended September 30, 2023, was RMB 756,000, a decrease from a net loss of RMB 1,586,000 in the same period of 2022[6]. - The basic and diluted loss per share for the nine months ended September 30, 2023, was RMB 1.94, compared to RMB 2.28 for the same period in 2022[6]. - Other comprehensive loss for the three months ended September 30, 2023, was RMB 735,000, compared to RMB 2,226,000 for the same period in 2022[7]. - The total revenue for the nine months ended September 30, 2023, was RMB 51,886,000, an increase of 12.0% from RMB 46,160,000 in the same period of 2022[6]. - CNG sales for the three months ended September 30, 2023, were RMB 12,853,000, a decrease of 29.0% from RMB 18,287,000 in the same period of 2022[21]. - LNG sales for the nine months ended September 30, 2023, were RMB 12,055,000, compared to no sales in the same period of 2022[21]. - The cost of goods sold for the nine months ended September 30, 2023, was RMB 33,342,000, an increase of 18.0% from RMB 28,229,000 in the same period of 2022[23]. - The gross profit decreased from approximately RMB 10.1 million for the nine months ended September 30, 2022, to about RMB 5.7 million for the same period in 2023, with a gross margin decline from 21.8% to 10.9%[39]. - The company's loss attributable to owners for the nine months ended September 30, 2023, was approximately RMB 3.6 million, a decrease of about RMB 0.4 million or 10.0% compared to RMB 4.0 million for the same period in 2022[45]. Expenses and Costs - The company incurred administrative expenses of RMB 9,021,000 for the nine months ended September 30, 2023, down from RMB 13,536,000 in the same period of 2022[6]. - The cost of sales for the nine months ended September 30, 2023, was approximately RMB 46.2 million, an increase of about RMB 10.1 million or 28.0% compared to RMB 36.1 million for the same period in 2022[38]. - Administrative expenses decreased by approximately RMB 4.5 million or 33.3% to about RMB 9.0 million for the nine months ended September 30, 2023, compared to RMB 13.5 million for the same period in 2022[41]. - Employee costs for the nine months ended September 30, 2023, were approximately RMB 2.9 million, down from RMB 3.5 million for the same period in 2022, reflecting a decrease of about 17.14%[53]. Equity and Shareholder Information - The total equity attributable to owners of the company as of September 30, 2023, was RMB 79,244,000, down from RMB 84,268,000 at the beginning of the year[8]. - The company’s major shareholders, including 永盛 and 鴻盛, each hold approximately 50.36% of the issued shares, totaling 85,955,000 shares[60]. - Liu Yongcheng and Liu Yongqiang each own 49.43% of the company’s ordinary shares, with an additional 0.93% through stock options[55]. - As of September 30, 2023, Liu Yongcheng directly owns 100% of Yongsheng, which holds 19,392,500 shares, approximately 10.94% of the issued shares[63]. - Liu Yongcheng is deemed to have an interest in 66,562,500 shares, approximately 37.55% of the issued shares held by Hongsheng as of September 30, 2023[63]. - The company has a total of 25,816,009 unexercised share options, equivalent to about 14.56% of the issued shares as of the report date[73]. - The company’s stock options plan allows for the granting of options for a total of 1,375,000 shares and 280,900 shares to Liu Yongqiang and Liu Yongcheng, respectively[59]. Corporate Governance and Compliance - 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, 2023[82]. - 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, 2023[76]. - The company has complied with the corporate governance code, with the exception of the separation of roles between the Chairman and CEO, which is deemed appropriate under current management structure[80]. - The company has confirmed that there are no conflicts of interest among directors or major shareholders in restricted businesses as of September 30, 2023[79]. Future Outlook and Strategic Initiatives - The company has entered the new media industry since 2022 and signed a non-binding strategic cooperation framework agreement with a technology company to explore opportunities in live broadcasting and local lifestyle sectors[46]. - The company is optimistic about the growth of natural gas consumption in China, driven by government policies supporting the development and utilization of natural gas and clean energy[46]. - The company has not made any significant investments or acquisitions during the reporting period[51]. - The company has not disclosed any new product developments or technological advancements in the current report[54]. - The company anticipates that actual performance may differ significantly from forward-looking statements due to known and unknown risks[86]. - No significant events have occurred after the reporting date, aside from the disclosed placement and unaudited financial statements[85]. Share Placement - The company has entered into a placement agreement to issue up to 35,451,000 new shares at a placement price of HKD 0.45 per share, representing approximately 20% of the existing issued share capital[83]. - The maximum gross proceeds from the placement are expected to be HKD 15,952,950, with net proceeds estimated at approximately HKD 15 million after deducting related costs[84]. - The net proceeds from the placement will be used for investments in renewable energy-related businesses and general working capital[84]. - The placement price represents an approximate discount of 18.18% to the closing price on the date of the agreement[83].
TL NATURAL GAS(08536) - 2023 Q3 - 季度财报