Financial Performance - For the fiscal year ending December 31, 2023, the company recorded revenue of RMB 78.0 million, an increase of approximately RMB 10.4 million or 15.4% compared to 2022[13] - LNG sales contributed RMB 24.0 million to the revenue, a significant increase from RMB 3.3 million in 2022[13] - The net loss for the year increased by 547.2% to RMB 23.3 million, compared to a net loss of RMB 3.6 million in 2022[13] - Revenue increased by approximately RMB 10.4 million or 15.4% from RMB 67.6 million in 2022 to approximately RMB 78.0 million in 2023[19] - Retail business revenue accounted for 21.8% of total revenue, increasing from RMB 14.8 million in 2022 to RMB 17.0 million in 2023, a rise of 14.9%[21] - Wholesale business revenue decreased by approximately RMB 7.6 million or 17.1% from RMB 44.4 million in 2022 to RMB 36.8 million in 2023, accounting for 47.2% of total revenue[21] - LNG sales revenue rose significantly to approximately RMB 24.1 million in 2023 from RMB 3.3 million in 2022[22] - Gross profit decreased from approximately RMB 16.3 million in 2022 to approximately RMB 7.5 million in 2023, with a gross margin drop from 24.1% to 9.6%[24] - The company recorded a loss attributable to owners of approximately RMB 23.0 million in 2023, an increase of RMB 19.9 million or 641.9% compared to a loss of RMB 3.1 million in 2022[35] - Other income and losses recorded a loss of approximately RMB 46,000 in 2023, a decrease from a loss of approximately RMB 2.66 million in 2022[25] Operational Highlights - The main business operations are focused on CNG and LNG sales and transportation services in Jingzhou, Hubei Province, China[17] - The company primarily supplies CNG to retail customers and wholesale clients, purchasing natural gas from China National Petroleum Corporation[18] - 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[14] - The company is committed to contributing to the improvement of China's environmental conditions through its operations[14] - The company is actively considering and exploring various business opportunities to diversify revenue sources and enhance shareholder value[14] - The digital marketing business, while still in its early stages, contributed less than 1% to the total revenue for the year[17] Financial Position - The total equity of the company as of December 31, 2023, is approximately RMB 59.3 million, down from RMB 82.1 million as of December 31, 2022, representing a decrease of about 27.1%[40] - Cash and cash equivalents as of December 31, 2023, amount to approximately RMB 28.4 million, a decrease from RMB 33.8 million as of December 31, 2022, reflecting a decline of about 15.9%[40] - The company's operating working capital as of December 31, 2023, is approximately RMB 35.1 million, down from RMB 39.9 million as of December 31, 2022, indicating a decrease of about 9.6%[40] - The trade receivables decreased by approximately RMB 1.7 million to about RMB 3.0 million as of December 31, 2023, compared to RMB 4.7 million as of December 31, 2022, showing a reduction of about 36.2%[49] Strategic Initiatives - The company has entered into a strategic cooperation framework agreement with Guangzhou Jingbao Technology Co., Ltd. and Starlight Computer Technology (Shenzhen) Co., Ltd. to explore opportunities in the new media sector[36] - A memorandum of understanding was signed with Carbonis Inc. to collaborate on carbon credits and environmental sustainability, aiming to achieve mutual benefits and compliance with carbon neutrality commitments[36] - The company anticipates growth in natural gas consumption in China due to government policies promoting cleaner energy sources, which is expected to stimulate the natural gas industry[37] - The company is actively exploring new business opportunities to diversify its revenue sources and enhance shareholder value amid a challenging global economic landscape[36] Corporate Governance - The company has a strong leadership team with over 16 years of experience in the natural gas industry, including key executives Liu Yongcheng, Liu Yongqiang, and Liu Yongsheng[70][71][72] - The company has a diverse board of directors, including independent non-executive directors with extensive legal and financial backgrounds[74][75][76] - The board consists of six members, including three executive directors and three independent non-executive directors[155] - The company has established a balance mechanism with independent non-executive directors for major decision-making[157] - The board of directors is collectively responsible for overseeing the company's affairs and ensuring effective internal controls and risk management systems are in place[161] - The company has established three committees: audit and risk management, remuneration, and nomination, each with clearly defined powers and responsibilities[176] Risk Management - The board will consider setting measurable targets to implement the diversity policy and regularly review these targets[187] - The company has implemented a series of internal control policies aimed at ensuring effective operations and compliance with applicable laws[195] - The risk management system includes procedures for identifying, assessing, and managing significant risks to the business[197] - The board has confirmed the effectiveness of the risk management and internal control systems for the year ending December 31, 2023[200] - An external professional organization has been engaged to conduct internal audit functions due to the scale, nature, and complexity of the group's business[200] Shareholder Information - The company did not recommend the payment of a final dividend for the year, consistent with the previous year[90] - The board of directors includes key members with significant shareholdings, with Liu Yongcheng and Liu Yongqiang each holding approximately 43.88% of the issued shares[108] - As of December 31, 2023, TL Natural Gas Holdings Limited had a total of 177,255,000 shares issued, with major shareholders holding significant stakes, including 永盛 and 鴻盛, each owning approximately 44.81% of the shares[114] - The company has a stock option plan approved on April 20, 2018, allowing the issuance of options to directors and employees, with a maximum of 1% of the issued share capital available for any single participant[119] Employee Information - As of December 31, 2023, the group employed 71 staff members, an increase from 64 staff members as of December 31, 2022, with employee costs recorded at approximately RMB 5.0 million, down from RMB 5.2 million in the previous year[53] - The overall gender ratio among employees is approximately 44% male to 56% female[187] Compliance and Regulations - The company has implemented compliance procedures to ensure adherence to applicable environmental laws and regulations[86] - The company confirmed compliance with the non-competition agreement by its controlling shareholders for the current year[136] - The group did not engage in any related party transactions that required compliance with GEM listing rules[140]
TL NATURAL GAS(08536) - 2023 - 年度财报