Financial Performance - The company's revenue decreased by 8.8% from RMB 509 million in 2020 to RMB 464 million in 2021 due to COVID-19 impacts and road closures near a gas station[12]. - The net loss for the year was reduced by 62.4% to RMB 85 million from RMB 226 million in 2020[12]. - Total revenue for the year was approximately RMB 46.4 million, a decrease of about RMB 4.5 million or 8.8% from RMB 50.9 million in the previous year[24]. - Retail business revenue accounted for 35.4% of total revenue, down from 42.3% in the previous year, with a decrease of approximately RMB 5.1 million or 23.7% to RMB 16.4 million[24]. - Wholesale business revenue increased by approximately RMB 1.0 million or 3.4% to RMB 30.1 million, representing 64.7% of total revenue, up from 57.1% in the previous year[24]. - Gross loss for the year was approximately RMB 1.0 million, compared to RMB 0.8 million in the previous year, mainly due to high procurement costs of natural gas[27]. - The company reported a loss attributable to owners of approximately RMB 8.5 million, a decrease of RMB 14.1 million or 62.4% from RMB 22.6 million in the previous year[35]. - The company did not generate any revenue from automatic car wash services during the year, compared to RMB 374,000 in the previous year, due to ongoing pandemic restrictions[25]. Cost Management - Administrative expenses decreased by approximately RMB 77 million, from RMB 162 million in 2020 to RMB 85 million in 2021, due to the absence of one-time professional fees from a prior acquisition[12]. - Cost of sales decreased by approximately RMB 4.4 million or 8.5% to RMB 47.4 million, primarily due to a reduction in sales volume of compressed natural gas[26]. - Administrative expenses decreased by approximately RMB 7.7 million or 47.5% to RMB 8.5 million, mainly due to the absence of one-time professional fees related to acquisitions in the previous year[31]. Business Operations - The main business operations are located in Jingzhou, Hubei Province, China, focusing on CNG sales and automatic car wash services[17]. - CNG sales are primarily generated from retail customers and wholesale clients, with natural gas purchased from China National Petroleum Corporation[18]. - The company has established car wash facilities at multiple gas stations across China[19]. - The company operated three gas stations in Jingzhou, Hubei Province, as of December 31, 2021[24]. Strategic Initiatives - The company aims to provide safe and reliable clean energy supply and is optimistic about the growth of CNG consumption in China due to favorable government policies[13]. - The company is actively exploring various business opportunities to diversify revenue sources and enhance shareholder value[14]. - The company plans to leverage industry trends and government support to stimulate domestic demand for natural gas[13]. - The group is exploring opportunities in electric vehicle charging to align with government initiatives for cleaner energy sources[39]. - The group anticipates that government policies regarding cleaner energy will stimulate the natural gas industry and promote the development of related products[38]. Financial Position - Total equity as of December 31, 2021, was approximately RMB 843 million, a decrease from RMB 873 million as of December 31, 2020[40]. - Cash and cash equivalents increased to approximately RMB 296 million as of December 31, 2021, compared to RMB 62 million as of December 31, 2020[40]. - Operating working capital was approximately RMB 370 million as of December 31, 2021, up from RMB 325 million as of December 31, 2020, with a current ratio of 4.5[40]. - Trade receivables decreased to approximately RMB 60 million as of December 31, 2021, from RMB 126 million as of December 31, 2020, with a reduction in collection days to about 73.3 days from 109.6 days[45]. - The group has no bank borrowings as of December 31, 2021, resulting in an asset-to-liability ratio that is not applicable[40]. Corporate Governance - The company is committed to maintaining high standards of corporate governance through its independent board members[73][74][75]. - The company has a focus on risk management and compliance, as evidenced by the establishment of various committees within the board[73]. - The board consists of six members, including three executive directors and three independent non-executive directors[166]. - The company has adopted trading compliance standards as per GEM Listing Rules, confirming adherence by all directors during the year[142]. - The company has established a balance mechanism involving the board and three independent non-executive directors to consult on significant decisions[171]. Shareholder Information - As of December 31, 2021, the company had 177,255,000 shares issued, with major shareholders holding significant stakes[112]. - Major shareholders, including 永盛 and 鴻盛, each held 85,955,000 shares, representing approximately 50.36% of the total issued shares[119]. - The company’s directors and key executives have stock options totaling 3,311,800 shares[119]. - The company has a share option scheme approved by shareholders on April 20, 2018, allowing the grant of options to directors and employees as an incentive[124]. Compliance and Risk Management - The company has implemented compliance procedures to ensure adherence to applicable environmental laws and regulations[91]. - The company has adopted trading standards for directors to ensure compliance with securities trading regulations[162]. - The audit and risk management committee reviewed the consolidated financial statements for the year ended December 31, 2021[150]. - The independent non-executive directors are responsible for ensuring high standards of regulatory reporting and providing independent judgment on company actions[177]. Future Outlook - The company aims to leverage its strategic development capabilities to enhance its market position in the natural gas sector[71]. - The company has a clear vision for future growth, emphasizing the importance of strategic planning and operational efficiency[71]. - The board will continuously evaluate the company's business objectives and may modify plans based on changing market conditions[65].
TL NATURAL GAS(08536) - 2022 - 年度财报