Financial Performance - Revenue for the year ended December 31, 2023, was HKD 26,150.2 million, an increase of 25.8% from HKD 20,913.2 million in 2022[2] - The adjusted EBITDA for 2023 was HKD 167.0 million, down 63.2% from HKD 453.5 million in 2022[2] - The company reported a loss before tax of HKD 159.6 million compared to a profit of HKD 300.7 million in the previous year[4] - Basic loss per share for 2023 was HKD (1.72), a decline from earnings of HKD 3.26 per share in 2022[4] - Total comprehensive loss for the year was HKD (148.7) million, compared to a total comprehensive income of HKD 151.6 million in 2022[5] - The group reported a net loss attributable to shareholders of HKD 150.5 million for 2023, compared to a profit of HKD 285.9 million in 2022[47] - The company recorded a net loss of HKD 150.5 million for the year ended December 31, 2023, while adjusted EBITDA was HKD 167.1 million[61] - The company reported a gross loss of HKD 136.9 million for the year, primarily due to a non-cash impairment charge of HKD 119.9 million related to its Canadian assets[133] Revenue Sources - Revenue from external customers in Hong Kong was HKD 25,616.9 million, up 28.8% from HKD 19,910.7 million in 2022[17] - Revenue from Customer 1 increased dramatically to HKD 3,718.7 million in 2023 from HKD 1,198.0 million in 2022, representing a growth of 210.3%[39] - The group reported total revenue of HKD 26,150.2 million for the year, an increase from HKD 20,913.2 million in 2022, with HKD 533.3 million coming from upstream oil and gas product sales, down from HKD 1,002.6 million in the previous year[150] Dividends and Share Repurchase - The company did not declare any final dividend for the year ended December 31, 2023[2] - The board has recommended not to declare a final dividend for the year ending December 31, 2023[135] - The company did not declare a final dividend for the year ending December 31, 2023, and repurchased a total of 67,104,000 ordinary shares at a total price of HKD 7.8 million, which were subsequently cancelled[175] - The board believes that the share repurchase will enhance earnings per share and increase net asset value per share attributable to shareholders[175] Asset Management - The company experienced a significant decrease in current assets, with net current assets reported at HKD 1,028.3 million, down from HKD 1,185.2 million in 2022[25] - The group’s total assets were reported at HKD 1,245.0 million in 2023, down from HKD 1,863.3 million in 2022, indicating a reduction of 33.1%[34] - The company’s net working capital decreased to HKD 134.3 million as of December 31, 2023, down from HKD 193.9 million in 2022, primarily due to year-end settlements of trade receivables[109] - The company reported a total asset reduction in current liabilities, indicating a need for improved asset management strategies[199] Costs and Expenses - Financing costs increased to HKD (54.6) million in 2023 from HKD (27.8) million in 2022[21] - General and administrative expenses for the year were HKD 108.3 million, a decrease of HKD 22.6 million from HKD 130.9 million in the previous year, primarily due to cost control measures[151] Impairment and Losses - The company reported a net loss from investments of HKD (20.9) million, a decrease from a net income of HKD 25.0 million in the previous year[4] - The group recognized a loss of HKD 119.9 million due to asset impairment in 2023, which was not present in 2022[34] - The company recorded an impairment charge of HKD 119.9 million due to the significant drop in natural gas prices and production halts in Canada[83] Future Outlook and Strategies - The company is optimistic about future profitability and cash flow improvements due to expected rebounds in energy commodity prices and efficiency measures implemented by NTE Canada[119] - The company is actively exploring partnerships with local authorities and stakeholders to achieve net-zero emissions and support its ESG initiatives[113] - The company is transforming its energy strategy by redeveloping the 1,200-acre Discovery Park in British Columbia into a green ecosystem center, incorporating hydrogen/green ammonia facilities and vertical farming[63] - The company plans to establish a production facility for hydrogen/green ammonia at Discovery Park, leveraging abundant water supply and renewable energy[92] Market Conditions - The Argentine business experienced a significant decline in revenue and profit due to an annual inflation rate of 211% and a 354% depreciation of the Argentine peso against the US dollar[62] - The Argentine peso depreciated by 354% against the US dollar, with an inflation rate reaching a record 211%, making operations in Argentina challenging[129] Research and Development - Ongoing research and development efforts are prioritized to innovate and stay competitive in the industry[197] - The company is exploring new product development initiatives aimed at expanding market share in emerging sectors[197] - Market expansion strategies are being evaluated to penetrate new geographic regions and diversify revenue streams[197] Environmental Initiatives - The company aims to reduce carbon emissions and achieve net-zero targets through various carbon reduction initiatives[89] - Discovery Park is conducting a System Impact Study (SIS) with BC Hydro for a 300 MW hydroelectric power supply, with electricity priced as low as CAD 0.05 per kWh[124]

Financial Performance - The company reported a loss of HKD 34.3 million for the six months ended June 30, 2023, compared to a profit of HKD 236.7 million in the same period of 2022[12]. - The company recorded a profit of HKD 57.9 million for the first half of 2023, despite a significant drop in natural gas commodity prices compared to the same period in 2022[45]. - For the six months ended June 30, 2023, the company reported revenue of HKD 16,602.2 million, a slight increase from HKD 16,587.3 million in the same period of 2022[6]. - Gross profit for the same period was HKD 14.9 million, significantly down from HKD 294.9 million year-on-year[6]. - The company recorded a net profit of HKD 57.9 million, a decrease of 73.1% compared to HKD 214.9 million in the previous year[6]. - Other income and gains amounted to HKD 139.0 million, a substantial increase from HKD 1.0 million in the previous year[6]. - The company experienced a pre-tax profit of HKD 69.3 million, down from HKD 229.1 million year-on-year[6]. - The total comprehensive income for the period was HKD 100.7 million, compared to HKD 172.9 million in the same period last year[130]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 2,327.4 million, up from HKD 2,165.4 million at the end of 2022[12]. - Reported liabilities increased to HKD 796.8 million from HKD 726.2 million year-on-year[12]. - The company’s cash and bank balances were HKD 239.9 million, slightly down from HKD 240.9 million at the end of 2022[12]. - The company’s trade receivables decreased to HKD 68.6 million as of June 30, 2023, from HKD 103.9 million as of December 31, 2022[29]. - The company’s current liabilities increased to HKD 244.2 million as of June 30, 2023, compared to HKD 166.7 million as of December 31, 2022[29]. - Total equity increased to HKD 1,435.2 million from HKD 1,321.6 million, reflecting a growth of 8.6%[141]. Investment and Capital Expenditure - The company’s investment properties were valued at HKD 219.2 million as of June 30, 2023[12]. - The new precious metals refining plant, with an annual processing capacity of approximately 50 tons of 99.99% gold, is expected to commence trial operations in August 2023, which is anticipated to enhance profitability[47]. - The company’s capital expenditure included new exploration and evaluation assets amounting to HKD 30.6 million for the six months ended June 30, 2023, compared to HKD 17.8 million in the same period of 2022[185]. Dividends and Share Repurchase - The company did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[25]. - The company repurchased a total of 67,104,000 shares at a total cost of HKD 7.8 million during the six months ended June 30, 2023[109]. - The company believes that the share repurchase will enhance earnings per share and increase net asset value per share for shareholders[109]. Operational Efficiency and Future Outlook - The company is actively seeking process efficiency improvements and cost optimization opportunities to maximize financial performance, including renegotiating fees for gas pipelines and reducing carbon emissions[49]. - The company expects natural gas commodity prices to rebound in the second half of 2023, leading to higher profit levels[45]. - The company aims to improve its oil and gas business performance in Canada and Argentina, anticipating stronger energy commodity prices for the remainder of 2023[58]. Governance and Compliance - The company plans to appoint at least one female board member by the end of 2023 to comply with the new listing rules[106]. - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[100]. - The company has maintained good relationships with suppliers, customers, and government entities, with no significant disputes reported for the six months ended June 30, 2023[80]. Financial Risk Management - Financial risk management policies have remained unchanged since the end of the last fiscal year, addressing market, credit, and liquidity risks[170]. - The company’s financial risk factors include market risk, credit risk, and liquidity risk, which are not fully detailed in the mid-year financial report[169].

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) For the six months ended June 30, 2023, the Group reported a significant revenue increase to HK$16.6 billion, yet profit before tax and net profit sharply declined, resulting in lower basic earnings per share and no interim dividend Financial Summary for the six months ended June 30 | Indicator | 2023 (HK$ Million) | 2022 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 16,602.2 | 10,402.8 | +59.6% | | Profit before tax | 69.3 | 229.1 | -69.7% | | Profit for the period | 57.9 | 214.9 | -73.1% | | Earnings per share - basic (HK cents) | 0.66 | 2.45 | -73.1% | - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2023[7](index=7&type=chunk) [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) In H1 2023, revenue grew to HK$16.6 billion, but gross profit plummeted to HK$14.9 million due to increased cost of sales, partially offset by a HK$139.0 million gain from property revaluation, resulting in a 73% decrease in profit for the period to HK$57.9 million Key Profit or Loss Items (Unaudited, for the six months ended June 30) | Item | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Revenue | 16,602.2 | 10,402.8 | | Cost of sales | (16,587.3) | (10,107.9) | | **Gross Profit** | **14.9** | **294.9** | | Other income, gains and net losses | 139.0 | 1.0 | | General and administrative expenses | (49.4) | (53.5) | | Finance costs | (28.0) | (14.3) | | **Profit before tax** | **69.3** | **229.1** | | Income tax expense | (11.4) | (14.2) | | **Profit for the period** | **57.9** | **214.9** | - Basic and diluted earnings per share were both **HK$0.66 cents**, down from **HK$2.45 cents** in the same period of 2022[16](index=16&type=chunk) [Condensed Consolidated Balance Sheet](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheet) As of June 30, 2023, total assets increased to HK$2,327.4 million, driven by investment properties, while total liabilities slightly rose, leading to growth in net assets to HK$1,435.2 million and a stable debt-to-asset ratio of 38.3% Balance Sheet Summary | Item | June 30, 2023 (Unaudited, HK$ Million) | Dec 31, 2022 (Audited, HK$ Million) | | :--- | :--- | :--- | | **Total Non-current Assets** | 1,086.4 | 980.2 | | **Total Current Assets** | 1,241.0 | 1,185.2 | | **Total Assets** | **2,327.4** | **2,165.4** | | **Total Current Liabilities** | 392.3 | 329.8 | | **Total Non-current Liabilities** | 499.9 | 514.0 | | **Total Liabilities** | **892.2** | **843.8** | | **Net Assets** | **1,435.2** | **1,321.6** | | **Total Equity** | **1,435.2** | **1,321.6** | - The Group's cash and bank balances stood at **HK$808.3 million**, a slight decrease from **HK$851.2 million** at the end of 2022[19](index=19&type=chunk) - A new line item, Investment Property, was added to non-current assets with a value of **HK$219.2 million**[19](index=19&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) The financial statements, prepared under HKAS 34, reflect new accounting policies for hedge accounting and investment properties, segmenting business into 'Upstream' and 'Ordinary and commodity refining and trading', with Hong Kong as the primary revenue source and Canada holding most non-current assets, while an Argentinian lawsuit is deemed unlikely to succeed - The Group adopted new accounting policies for hedge accounting for derivative financial instruments and for investment properties, which were reclassified from property, plant and equipment[22](index=22&type=chunk)[23](index=23&type=chunk)[26](index=26&type=chunk) Segment Revenue (for the six months ended June 30) | Segment | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Upstream | 326.0 | 589.0 | | Ordinary and commodity refining and trading | 16,276.2 | 9,813.8 | | **Total** | **16,602.2** | **10,402.8** | Revenue by Geographical Location (for the six months ended June 30) | Location | 2023 (HK$ Million) | 2022 (HK$ Million) | | :--- | :--- | :--- | | Hong Kong | 16,276.2 | 9,813.8 | | Canada | 275.0 | 548.7 | | Argentina | 51.0 | 40.3 | | **Total** | **16,602.2** | **10,402.8** | - The Board did not recommend an interim dividend for the period[78](index=78&type=chunk) - Basic EPS was calculated based on a profit of **HK$57.9 million** and a weighted average of **8,790.6 million shares**[74](index=74&type=chunk) - The Group is involved in an arbitration proceeding initiated by a partner in Argentina concerning the Los Blancos concession. The Group believes the partner's claim to its **50% participating interest** is unlikely to succeed and has not made a provision for it[158](index=158&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) [Overall Review](index=19&type=section&id=Overall%20Review) Despite falling natural gas prices, the Group achieved a HK$57.9 million profit in H1 2023, maintaining a robust financial position with no external debt and high liquidity of HK$855.9 million, driven by strong precious metals trading and ongoing energy transition initiatives in Canada and new refinery preparations - The Group recorded a profit of **HK$57.9 million** despite a sharp drop in natural gas prices compared to the same period in 2022[160](index=160&type=chunk) - Financial position is strong with no external debt and highly liquid assets of **HK$855.9 million**, including **HK$808.3 million** in cash[160](index=160&type=chunk) - The precious metals trading business saw net profit **triple** compared to the same period last year[107](index=107&type=chunk) - The Group is committed to an energy transition, focusing on redeveloping Discovery Park in Canada into a green ecosystem center[106](index=106&type=chunk) [Business Operations Review](index=20&type=section&id=Business%20Operations%20Review) The Group's diversified operations saw Canadian upstream business impacted by low gas prices and wildfires, Argentinian oil production stable but challenged by economic factors, while Hong Kong's commodity refining and trading business achieved strong growth with a new refinery nearing completion [Canada Operations](index=20&type=section&id=Canada%20Operations) In H1 2023, Canadian operations produced 12,152 boe/d, but revenue fell 50% to HK$275.0 million due to low natural gas prices and wildfires, prompting focus on cost reduction and green redevelopment of Discovery Park, though hydrogen plant plans are stalled - Average daily production was **12,152 barrels of oil equivalent (boe/d)**, with **95%** being natural gas[109](index=109&type=chunk) - Revenue from Canadian operations decreased by **50%** to **HK$275.0 million** due to a significant drop in natural gas prices[110](index=110&type=chunk) - Wildfires forced a production shutdown at the Horn River Basin facilities from July 1, 2023, reducing daily output by **3,200 boe/d**[161](index=161&type=chunk) - The Group is redeveloping the **1,200-acre** Discovery Park into a green ecosystem center to create a circular economy[169](index=169&type=chunk) - Plans for a new liquid hydrogen plant at Discovery Park are stalled due to economic feasibility issues and competition from subsidized US projects[84](index=84&type=chunk) [Argentina Operations](index=22&type=section&id=Argentina%20Operations) Argentina's Los Blancos oilfield maintained stable production of 1,320 barrels per day of high-quality light crude, recognized as the country's most productive conventional well, despite severe financial constraints from price caps, hyperinflation, and capital controls, remaining financially self-sufficient with positive cash flow - The Los Blancos concession produced a stable average of **1,320 barrels per day** of light crude oil and is recognized as Argentina's most productive conventional oil well[86](index=86&type=chunk) - Financial performance is significantly hampered by adverse factors including low domestic oil prices (about **30% below Brent**), hyperinflation, capital controls, high taxes, and social unrest[87](index=87&type=chunk) - Despite challenges, the Argentinian operation generates positive cash flow and is financially self-sufficient[87](index=87&type=chunk) [Commodity Refining and Trading Business](index=23&type=section&id=Commodity%20Refining%20and%20Trading%20Business) The physical precious metals trading business performed exceptionally well, with transaction volume growing to HK$16.3 billion and net profit tripling to HK$16.2 million, with a new refinery capable of processing 50 tonnes of gold annually scheduled for testing in August 2023 to further enhance profitability - The physical gold and silver refining and trading business saw total transaction volume grow to **HK$16,276.2 million**[90](index=90&type=chunk) - Net profit from this segment **tripled** to **HK$16.2 million** compared to the same period in 2022, aided by improved profit margins per transaction[90](index=90&type=chunk) - The new refinery, capable of processing approximately **50 tonnes of 99.9% gold** annually, is scheduled for initial testing and commissioning in August 2023[91](index=91&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) In H1 2023, total revenue increased to HK$16.6 billion, primarily from precious metals sales, offsetting upstream declines, while gross profit fell sharply to HK$14.9 million due to lower natural gas prices, though a HK$115.0 million property revaluation gain boosted other income, resulting in a net profit of HK$57.9 million and EPS of HK$0.66 cents Revenue Breakdown (H1 2023) | Business Segment | Revenue (HK$ Million) | Compared to H1 2022 (HK$ Million) | | :--- | :--- | :--- | | Upstream Oil & Gas | 326.0 | 589.0 | | Precious Metals Sales | 16,276.2 | 9,813.8 | - Gross profit was **HK$14.9 million**, a significant decrease from **HK$294.9 million** in H1 2022, reflecting the sharp fall in Canadian natural gas prices[95](index=95&type=chunk) - Other income, gains and net losses amounted to **HK$139.0 million**, which included a fair value gain of **HK$115.0 million** from designating property, plant and equipment to investment property[95](index=95&type=chunk) - General and administrative expenses decreased by **8%** to **HK$49.4 million** due to cost savings in the upstream business[96](index=96&type=chunk) - Profit attributable to owners of the Company was **HK$57.9 million**, with basic and diluted EPS at **HK$0.66 cents**[96](index=96&type=chunk) [Capital Structure, Liquidity, and Financial Resources](index=25&type=section&id=Capital%20Structure%2C%20Liquidity%2C%20and%20Financial%20Resources) The Group maintains a strong financial position with no interest-bearing debt and a 0% gearing ratio, reporting net current assets of HK$848.7 million and cash of HK$808.3 million as of June 30, 2023, while utilizing derivatives for hedging and earmarking HK$161.7 million from a 2017 offering for future energy investments - As of June 30, 2023, the Group had no interest-bearing borrowings, resulting in a gearing ratio of **0%**[121](index=121&type=chunk) Key Liquidity and Capital Structure Metrics (as of June 30, 2023) | Metric | Value (HK$ Million) | Compared to Dec 31, 2022 | | :--- | :--- | :--- | | Net Current Assets | 848.7 | 855.4 | | Cash and Bank Balances | 808.3 | 851.2 | | Total Equity | 1,435.2 | 1,321.6 | | Debt-to-Asset Ratio | 38.3% | 39.0% | - An unutilized balance of **HK$161.7 million** from a 2017 public offering is expected to be used for investments in oil and gas, power generation, and renewable energy by the end of 2024[116](index=116&type=chunk) - The Group uses derivative financial instruments for hedging purposes to mitigate the financial impact of price fluctuations on its precious metals inventory[117](index=117&type=chunk) [Corporate Governance and Other Information](index=28&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance and Compliance](index=28&type=section&id=Corporate%20Governance%20and%20Compliance) The company complied with all applicable Corporate Governance Code provisions, with interim results reviewed by the Audit Committee and PricewaterhouseCoopers, and confirmed adherence to relevant laws and regulations without material breaches - The Board believes the company has complied with all applicable code provisions of the Corporate Governance Code for the six months ended June 30, 2023[139](index=139&type=chunk) - The interim results for the six months ended June 30, 2023, have been reviewed by the Company's Audit Committee and by the independent auditor, PricewaterhouseCoopers[143](index=143&type=chunk) - The Group has complied in all material respects with the relevant laws and regulations that have a significant impact on its business and operations[148](index=148&type=chunk) [Share Repurchase and Dividends](index=29&type=section&id=Share%20Repurchase%20and%20Dividends) In H1 2023, the company repurchased 67,104,000 ordinary shares for HK$7.8 million, and the Board decided not to declare an interim dividend for the period - The company repurchased a total of **67,104,000 ordinary shares** for a total consideration (before expenses) of **HK$7.8 million** during the period[144](index=144&type=chunk) Share Repurchase Details (2023) | Month | Number of Shares Repurchased | Price per Share (HK$) | Total Consideration (HK$) | | :--- | :--- | :--- | :--- | | March | 2,468,000 | 0.081 - 0.082 | 201,882 | | April | 23,314,000 | 0.091 - 0.126 | 2,514,322 | | May | 22,114,000 | 0.114 - 0.130 | 2,755,568 | | June | 19,208,000 | 0.111 - 0.125 | 2,362,829 | - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2023[149](index=149&type=chunk)

[Supplemental Announcement Overview](index=1&type=section&id=Supplemental%20Announcement%20Overview) This section provides an overview of the supplemental announcement, detailing its purpose, scope, and disclaimers regarding content responsibility [Purpose and Scope](index=1&type=section&id=Purpose%20and%20Scope) This announcement supplements New Era Energy Co., Ltd.'s 2022 Annual Report, providing specific clarifications without altering other original report information - This supplemental announcement clarifies the 2022 Annual Report, with all other original report information remaining unchanged[1](index=1&type=chunk)[2](index=2&type=chunk) [Disclaimer](index=1&type=section&id=Disclaimer) HKEX and HKSE disclaim responsibility for this announcement's content, accuracy, completeness, or any resulting losses - HKEX and HKSE disclaim responsibility for the content, accuracy, or completeness of this announcement[7](index=7&type=chunk) [Clarifications to 2022 Annual Report](index=1&type=section&id=Clarifications%20to%202022%20Annual%20Report) This section clarifies specific details within the 2022 Annual Report, focusing on share option schemes and the current Board of Directors composition [Share Option Scheme Details](index=1&type=section&id=Share%20Option%20Scheme%20Details) This section clarifies details of the company's share option schemes, including total issuable shares and grantable options for FY2022 Total shares issuable under all share option schemes for FY2022 | Metric | Value | | :----- | :---- | | Total shares issuable as % of weighted average shares issued | 0.91% | Share options grantable under the Share Option Scheme | Date | Total Options Grantable | % of Issued Shares (as of 2022 Annual Report date) | | :--- | :---------------------- | :------------------------------------------------- | | Jan 1, 2022 | 0 (conditionally approved June 23, 2022) | N/A | | Dec 31, 2022 | 745,888,098 | 8.47% | [Board of Directors Composition](index=2&type=section&id=Board%20of%20Directors%20Composition) This section provides an updated list of the Board of Directors, including executive, non-executive, and independent non-executive members Board of Directors Members | Role | Name | Position | | :--- | :--- | :------- | | Executive Director | Mr. ZHENG Jin Chao | Chairman | | Executive Director | Mr. DENG Wing Yan | CEO | | Non-Executive Director | Mr. LI Chi Huen | | | Independent Non-Executive Director | Mr. WENG Chun Fai | | | Independent Non-Executive Director | Mr. CHIU Wai On | | | Independent Non-Executive Director | Mr. WONG Wai Tak | |

Financial Performance - New Times Energy reported an annual profit of HK$285.9 million for 2022, a decrease from HK$329.4 million in 2021[18]. - The Group's revenue for 2022 was HK$20,913.2 million, up from HK$11,167.1 million in 2021, representing an increase of approximately 87.5%[15]. - Earnings per share for 2022 was HK$3.26, down from HK$3.76 in 2021, reflecting a decrease of approximately 13.3%[15]. - The Group reported a profit after tax of HK$285.9 million for 2022, down from HK$329.4 million in 2021[46]. - The Group's financial position improved with no external borrowings and highly liquid current assets of approximately HK$907.1 million as of December 31, 2022, compared to HK$642.6 million in 2021[50]. - The return on equity for the Group was 21.6% for the year ended December 31, 2022, down from 29.9% in 2021[50]. - Gross profit for the year was HK$421.5 million, up from HK$90.7 million in 2021, primarily due to strong energy commodity prices and contributions from Canadian operations[109]. - The Group recognized a net investment gain of HK$24.9 million during the year, recovering from a loss of HK$40.9 million in 2021, reflecting improved performance in certain listed equity securities[109]. - Finance costs for the year were HK$27.8 million, approximately doubling from HK$13.9 million in 2021, attributed to the full-year consolidation effect of Canadian operations[111]. - Profit attributable to the owners of the Company was HK$285.9 million for the year, down from HK$329.4 million in 2021, with basic and diluted earnings per share at 3.26 HK cents compared to 3.76 HK cents in 2021[112]. Production and Operations - The Group's Canadian oil and gas business produced approximately 11,500 barrels of oil equivalent (boe) per day, with 95% being natural gas[18]. - The overall production in Canada increased by approximately 1,150 boe per day as of early 2023 due to successful drilling and optimization programs[19]. - The Canadian oil and gas subsidiary, NTE Energy Canada Ltd., operates over 800 active wells, producing approximately 11,500 barrels of oil equivalent (95% natural gas) per day[46]. - Successful drilling and completion of six unconventional wells in 2022 increased total production in Canada by approximately 1,150 barrels of oil equivalent per day by early 2023[23]. - The Group's Argentinean oil production increased to approximately 1,350 barrels per day, although operations remain challenging due to various economic factors[33]. - NTEC's average daily production was approximately 11,500 barrels of oil equivalent (boe) per day, with 95% being natural gas, and natural gas sales accounted for 85% of total revenue for the year[60]. - NTEC increased oil production at the Los Blancos concession from approximately 800 barrels per day to 1,200 barrels per day, and subsequently to 1,350 barrels per day from September 2022 due to positive well behavior[78]. - The Group's Canadian oil and gas assets include over 800 active wells across approximately 761,000 acres, with Proved (1P) reserves estimated at 26.1 million boe, down from 30.2 million boe in 2021[57]. Sustainability and Environmental Initiatives - New Times Energy is transforming its 1,200 acres Discovery Park site into a green ecosystem hub powered by hydroelectricity as part of its energy transition strategy[21]. - The Group aims to work with local authorities to achieve net zero emissions while maintaining positive cash flows from its oil and gas operations[20]. - The Group is developing Discovery Park into a green ecosystem hub, focusing on sustainable energy and social responsibility[35]. - The planned facilities at Discovery Park include a liquid hydrogen plant capable of producing 60 tonnes of hydrogen daily and a renewable natural gas facility utilizing local biomass[31]. - The Group aims to create a circular economy at Discovery Park through vertical farming and modular construction manufacturing[26]. - Environmental and sustainability considerations will increasingly influence the Group's future business operations[36]. - The Group is actively exploring eco-investment opportunities to achieve net zero emissions, including Blue & Green Hydrogen and Carbon Capture, Utilization and Sequestration (CCUS)[55]. - The Group is transitioning its Discovery Park site into a green energy and ecosystem hub, aiming to develop industries such as hydrogen and bio-fuel production[102]. Market and Strategic Developments - The Group is optimistic about the new precious metals refinery expected to commence operations in Q2 2023, which is anticipated to enhance future profitability[34]. - The Group's commodities trading business, particularly in physical gold and silver, performed solidly, but the new precious metals refinery's operations have been deferred to Q2 2023 due to supply chain issues[54]. - The Group anticipates higher margins in the long term by bringing the refining process in-house once the new refinery is operational[98][100]. - The Group is actively seeking partnerships with established ag-tech companies to provide localized food supply solutions using indoor farming technologies[69]. - The Group is redeveloping its 1,200 acres Discovery Park site in British Columbia, aiming to enter the Vancouver market for green vegetables by the end of 2023[49]. Financial Position and Assets - Total assets increased to HK$2,165.4 million in 2022 from HK$1,736.4 million in 2021, reflecting a growth of about 24.7%[15]. - Market capitalization as of December 31, 2022, was HK$854.46 million, with a closing price of HK$0.097 per share[11]. - The Group's net working capital increased to HK$193.9 million as of December 31, 2022, compared to HK$151.0 million in 2021, mainly due to higher precious metal inventories[116]. - As of December 31, 2022, the Group's net current assets amounted to approximately HK$855.4 million, an increase from HK$684.1 million in 2021[128]. - Cash and bank balances as of December 31, 2022, were HK$851.2 million, up from HK$495.0 million in 2021[128]. - Total equity of the Group was HK$1,321.6 million as of December 31, 2022, compared to HK$1,101.5 million in 2021[129]. - The net asset value per share increased to HK$0.15 in 2022 from HK$0.13 in 2021[129]. - The Group's debt ratio was 39.0% as of December 31, 2022, compared to 36.6% in 2021[129]. - The Group did not have unsecured debt securities or short-term loans as of December 31, 2022, resulting in a gearing ratio of 0%[130]. Management and Governance - Mr. Cheng, the Executive Director, has extensive experience in property development and engineering management, having held various senior positions since 1984[174]. - Mr. Tang, the CEO, has over 20 years of senior management experience and has been with the group since August 2015[175]. - Mr. Lee, a non-executive director, has over 15 years of experience in corporate finance and investment, currently serving as a senior vice president at Chow Tai Fook Enterprises Limited[179]. - Mr. Yung, an independent non-executive director, has over 27 years of experience in finance and banking, previously serving as CEO of Landbridge Holdings Limited[184]. - Mr. Chiu, an independent non-executive director, has extensive experience in accounting and auditing services, currently serving as an independent director at DeTai New Energy Group Limited[185]. - Mr. Huang, an independent non-executive director, has over 30 years of experience in professional accounting, capital markets, and mergers and acquisitions[186]. - The company is focused on expanding its market presence and enhancing its strategic investments globally[179]. - The board includes members with diverse backgrounds in engineering, finance, and management, contributing to a well-rounded leadership team[190]. - The company is committed to innovation, as evidenced by Mr. Tang's U.S. Patent for wireless solar power transmission technology[177]. - The management team is well-equipped to navigate the complexities of the energy sector, leveraging their extensive industry experience[193]. Exploration and Reserves - The Group's total proved oil and gas reserves are 34.1 million barrels of oil equivalent (mmboe), a decrease from 40.0 mmboe as of December 31, 2021, representing a reduction of approximately 15%[162]. - The Greater Sierra Area holds 23.3 mmboe of total reserves as of December 31, 2022, down from 27.1 mmboe in 2021, indicating a decline of about 14%[162]. - In the Los Blancos Concession, proved oil reserves decreased from 1.3 million barrels (mmbbl) in 2021 to 0.5 mmbbl in 2022, a decline of approximately 62%[165]. - The Group holds approximately 92% average working interest in the mineral acreage on a Held By Production (HBP) basis, ensuring indefinite continuation of leases as long as there are producing wells[166]. - The reserves primarily consist of natural gas, accounting for approximately 95% of the total reserves[166]. - The Group's exploration and production activities are primarily located in British Columbia and Alberta, Canada[166]. - The Group's strategic focus includes enhancing oil and gas reserves through exploration and development in existing concessions[168].

[Annual Results Overview](index=1&type=section&id=I.%20Annual%20Results%20Overview) The company reported significant revenue growth in 2022, but profit before tax and profit for the year declined, with no final dividend recommended [Summary Financial Highlights](index=1&type=section&id=Summary%20Financial%20Highlights) The company reported significant revenue growth in 2022, but profit before tax and profit for the year decreased, leading to lower basic EPS and no final dividend Key Financial Data for 2022 | Indicator | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :------------------------- | :------------------- | :------------------- | | Revenue | 20,913,216 | 11,167,076 | | Profit Before Tax | 300,705 | 343,636 | | Profit for the Year | 285,902 | 329,403 | | Basic Earnings Per Share | 3.26 HK Cents | 3.76 HK Cents | - The Board of Directors recommended **not to pay a final dividend** for the year ended December 31, 2022 (2021: nil)[22](index=22&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=II.%20Consolidated%20Financial%20Statements) This section presents the consolidated financial statements, detailing the company's financial performance and position [Consolidated Statement of Profit or Loss](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue and gross profit significantly increased in 2022, but profit before tax and profit for the year declined due to higher finance and administrative costs Key Data from Consolidated Statement of Profit or Loss | Indicator | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :-------------------------------------- | :------------------- | :------------------- | | Revenue | 20,913,216 | 11,167,076 | | Cost of Sales | (20,491,757) | (11,076,418) | | Gross Profit | 421,459 | 90,658 | | Other Income and Gains, Net | 12,965 | 10,045 | | Net Investment Income/(Loss) | 24,941 | (40,941) | | Bargain Purchase Gain | – | 407,655 | | General and Administrative Expenses | (130,865) | (109,849) | | Finance Costs | (27,791) | (13,927) | | Profit Before Tax | 300,705 | 343,636 | | Profit for the Year | 285,902 | 329,403 | | Profit Attributable to Owners of the Company | 285,905 | 329,401 | | Basic Earnings Per Share (HK Cents) | 3.26 | 3.76 | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for 2022 significantly decreased to HKD 151.6 million, primarily due to higher foreign currency translation losses Key Data from Consolidated Statement of Comprehensive Income | Indicator | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :-------------------------------------------- | :------------------- | :------------------- | | Profit for the Year | 285,902 | 329,403 | | Fair value changes of financial assets at fair value through other comprehensive income | (8) | 2 | | Exchange differences on translating overseas operations | (134,309) | (33,728) | | Other comprehensive loss for the year, net of tax | (134,317) | (33,726) | | Total comprehensive income for the year | 151,585 | 295,677 | | Total comprehensive income attributable to owners of the Company | 151,588 | 295,675 | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The Group's total assets and net assets increased in 2022, with notable growth in property, plant, and equipment, cash, and inventories Key Data from Consolidated Statement of Financial Position | Indicator | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :-------------------------------------- | :------------------- | :------------------- | | **Non-current Assets** | | | | Property, Plant and Equipment | 961,674 | 845,610 | | Prepayments, Deposits and Other Receivables | 17,579 | 6,220 | | **Current Assets** | | | | Inventories | 111,473 | 44,196 | | Trade and Other Receivables | 166,684 | 196,617 | | Financial Assets at Fair Value Through Profit or Loss | 55,913 | 81,528 | | Gold Investments | – | 66,082 | | Cash and Bank Balances | 851,171 | 494,955 | | **Current Liabilities** | | | | Trade and Other Payables | 237,046 | 122,538 | | Net Current Assets | 855,408 | 684,144 | | Total Assets Less Current Liabilities | 1,835,595 | 1,536,920 | | **Non-current Liabilities** | | | | Deferred Tax Liabilities | 59,792 | 46,221 | | Provisions | 433,162 | 365,713 | | Net Assets | 1,321,637 | 1,101,481 | | Total Equity | 1,321,637 | 1,101,481 | [Notes to the Consolidated Financial Statements](index=6&type=section&id=III.%20Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed notes to the consolidated financial statements, covering general information, accounting policies, and specific financial line items [General Information and Basis of Preparation](index=6&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The Group primarily engages in oil and gas exploration, development, production, and sales, alongside refining and trading of general commodities, with financial statements prepared under HKFRS - The principal activities of the Company and its subsidiaries are oil and gas exploration, development, production and sales, and refining and trading of general and commodity products[40](index=40&type=chunk) - The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of the Hong Kong Companies Ordinance Cap. 622[42](index=42&type=chunk) - The adoption of amendments to standards for the annual reporting period beginning January 1, 2022, had no impact on the Group's results and financial position[43](index=43&type=chunk) [Revenue and Segment Reporting](index=7&type=section&id=Revenue%20and%20Segment%20Reporting) The Group identifies two reportable segments: upstream operations and general and commodity refining and trading, both showing significant revenue growth in 2022, primarily from the latter - The Group has two reportable segments: upstream operations (oil and gas exploration, development, production, and sales) and general and commodity refining and trading (refining and trading of non-ferrous metals and petroleum-related products)[71](index=71&type=chunk) [Segment Performance, Assets, and Liabilities](index=7&type=section&id=Segment%20Performance,%20Assets,%20and%20Liabilities) Both upstream operations and general and commodity refining and trading segments saw substantial growth in revenue and performance in 2022, driven by Canadian operations and expanded gold trading Segment Revenue and Results | Indicator | Upstream Operations 2022 (HKD Thousands) | Upstream Operations 2021 (HKD Thousands) | General & Commodity Refining & Trading 2022 (HKD Thousands) | General & Commodity Refining & Trading 2021 (HKD Thousands) | | :------------------------- | :--------------------------------------- | :--------------------------------------- | :---------------------------------------------------------- | :---------------------------------------------------------- | | Reportable Segment Revenue | 1,002,555 | 259,633 | 19,910,661 | 10,907,443 | | Reportable Segment Results | 309,173 | 44,499 | 3,935 | 2,859 | - Sales of oil and natural gas products more than **tripled**, primarily due to the full-year consolidation of Canadian operations acquired in 2021 and strong energy commodity prices in the first half of 2022[9](index=9&type=chunk) - Sales in the general and commodity refining and trading business also nearly **doubled**, driven by the Group's continued expansion of its gold trading business[9](index=9&type=chunk) [Geographical Information](index=9&type=section&id=Geographical%20Information) In 2022, the Group's revenue from external customers primarily originated from Hong Kong and Canada, with non-current assets mainly located in Canada and Argentina Revenue from External Customers and Specific Non-current Assets (by Geographical Location) | Region | Revenue from External Customers 2022 (HKD Thousands) | Revenue from External Customers 2021 (HKD Thousands) | Specific Non-current Assets 2022 (HKD Thousands) | Specific Non-current Assets 2021 (HKD Thousands) | | :----------- | :------------------------------------------------- | :------------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Hong Kong | 19,910,661 | 10,824,703 | 29,602 | 13,807 | | Canada | 900,845 | 212,665 | 872,470 | 718,292 | | Mainland China | – | 82,740 | – | 233 | | Argentina | 101,710 | 46,968 | 78,113 | 120,434 | | **Total** | **20,913,216** | **11,167,076** | **980,185** | **852,766** | [Revenue Disaggregation](index=9&type=section&id=Revenue%20Disaggregation) The Group's 2022 revenue was primarily derived from the refining and sales of precious metals in general and commodity trading, and oil and gas product sales from exploration and production Revenue from Contracts with Customers (by Product or Service Line) | Product or Service Line | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :---------------------------------------------------- | :------------------- | :------------------- | | Refining and sales of precious metals in general and commodity trading | 19,910,661 | 10,824,703 | | Sales of petroleum-related products in general and commodity trading | – | 82,740 | | Sales of oil and gas products from oil and gas exploration and production | 1,002,555 | 259,633 | | **Total** | **20,913,216** | **11,167,076** | [Other Income, Gains, and Losses](index=10&type=section&id=Other%20Income,%20Gains,%20and%20Losses) In 2022, the Group's net other income, gains, and losses increased to HKD 12.965 million, mainly due to a significant rise in hyperinflation monetary adjustments and expanded net exchange losses Other Income, Gains, and Losses, Net | Item | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :---------------------------------- | :------------------- | :------------------- | | Bank interest income | 7,630 | 3,383 | | Drilling service income | 1,507 | 1,289 | | Gains on derivative financial instruments | 963 | 10,291 | | Fair value loss on gold investments | (989) | (2,507) | | Hyperinflation monetary adjustment | 19,311 | 5,870 | | Net exchange losses | (27,410) | (8,236) | | Trading gains | 2,008 | – | | Rental income | 6,906 | 5,830 | | Loss on disposal of property, plant and equipment | – | (4,218) | | Others | 3,039 | (1,657) | | **Total** | **12,965** | **10,045** | - The Argentine Peso experienced severe depreciation, leading to cumulative inflation exceeding 100% over three years, thus requiring Argentine subsidiaries and branches to transition to hyperinflation accounting under HKAS 29 "Financial Reporting in Hyperinflationary Economies" since January 1, 2018[93](index=93&type=chunk) - The hyperinflation monetary adjustment for 2022 significantly increased to **HKD 19,311,000**, compared to HKD 5,870,000 in 2021[94](index=94&type=chunk) [Investment Income and Expenses by Nature](index=11&type=section&id=Investment%20Income%20and%20Expenses%20by%20Nature) In 2022, net investment income turned positive to HKD 24.9 million, driven by improved performance of listed equity securities, while finance costs nearly doubled due to the full-year consolidation of Canadian operations Net Investment Income/(Loss) | Item | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :---------------------------------------- | :------------------- | :------------------- | | Net income/(loss) from listed equity securities | 23,649 | (35,675) | | Net income/(loss) from listed and unlisted debt securities | 64 | (5,904) | | Others | 1,228 | 638 | | **Total** | **24,941** | **(40,941)** | Finance Costs | Item | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :------------------------- | :------------------- | :------------------- | | Interest on borrowings | – | 4,462 | | Interest on lease liabilities | 1,589 | 675 | | Imputed interest on provisions | 26,164 | 8,790 | | Others | 38 | – | | **Total** | **27,791** | **13,927** | Expenses by Nature | Item | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :------------------------------------ | :------------------- | :------------------- | | Cost of inventories recognized as expense | 20,321,737 | 11,036,303 | | Depreciation of property, plant and equipment | 132,594 | 37,558 | | Employee benefit expenses | 102,578 | 30,985 | | Legal, professional and transaction related expenses | 21,417 | 48,157 | | **Total Cost of Sales and General and Administrative Expenses** | **20,622,622** | **11,186,267** | [Income Tax](index=12&type=section&id=Income%20Tax) Income tax expense for 2022 was HKD 14.8 million, primarily from adjustments to deferred tax expenses in Argentina, with varying corporate income tax rates across different regions Income Tax Expense | Item | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :------------- | :------------------- | :------------------- | | Current tax | (1,037) | 11 | | Deferred tax | 15,840 | 14,222 | | **Total** | **14,803** | **14,233** | - Hong Kong profits tax rate is **16.5%**, but no provision was made as the Group's Hong Kong operations had no assessable profits[98](index=98&type=chunk) - Argentine subsidiaries are subject to Argentine corporate income tax and presumptive minimum income tax at a rate of **35%**[98](index=98&type=chunk) - Canadian subsidiaries are subject to Canadian corporate income tax at a rate of **38%**, with a federal net tax rate of **15%** and provincial/territorial rates ranging from **8% to 12%**[99](index=99&type=chunk) [Earnings Per Share](index=13&type=section&id=Earnings%20Per%20Share) Basic earnings per share for 2022 decreased to 3.26 HK Cents from 3.76 HK Cents in 2021, with basic and diluted EPS being identical due to no potentially dilutive ordinary shares issued - Basic earnings per share is calculated based on the Group's profit attributable to owners of the Company of **HKD 285,905,000** (2021: HKD 329,401,000) and the weighted average number of ordinary shares in issue of approximately **8,780,799,000** (2021: 8,758,881,000) for the year[104](index=104&type=chunk) - For the years ended December 31, 2022 and 2021, basic and diluted earnings per share were identical as no potentially dilutive ordinary shares were issued during the year[105](index=105&type=chunk) [Trade and Other Receivables](index=13&type=section&id=Trade%20and%20Other%20Receivables) Total trade and other receivables decreased to HKD 184.263 million as of December 31, 2022, with a reduction in trade receivables overdue by more than 90 days Trade and Other Receivables | Item | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :---------------------------------- | :------------------- | :------------------- | | Trade receivables | 103,867 | 124,786 | | Other receivables | 10,102 | 8,430 | | Deposits | 38,962 | 31,625 | | Amounts due from joint ventures | 582 | 577 | | Recoverable value-added tax | 2,298 | 3,485 | | Other recoverable taxes | 19,190 | 30,427 | | Other prepayments | 9,262 | 3,507 | | **Total** | **184,263** | **202,837** | | Non-current | 17,579 | 6,220 | | Current | 166,684 | 196,617 | Ageing Analysis of Trade Receivables | Ageing | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :------------ | :------------------- | :------------------- | | 0 to 30 days | 88,107 | 88,155 | | 31 to 60 days | 422 | 184 | | 61 to 90 days | 1,423 | 543 | | Over 90 days | 13,915 | 35,904 | | **Total** | **103,867** | **124,786** | [Financial Assets at Fair Value Through Profit or Loss](index=14&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Financial assets at fair value through profit or loss decreased to HKD 55.913 million as of December 31, 2022, mainly due to listed debt securities being valued at zero and full recovery of unlisted debt securities Financial Assets at Fair Value Through Profit or Loss | Item | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :---------------------------------- | :------------------- | :------------------- | | Listed equity securities | 54,275 | 28,650 | | Listed debt securities | – | 2,401 | | Unlisted debt securities | – | 36,789 | | Unlisted funds | 1,638 | 13,688 | | **Total** | **55,913** | **81,528** | - For 2022, net investment income of approximately **HKD 23,649,000** was recognized from listed equity securities (2021: loss of HKD 35,675,000)[110](index=110&type=chunk) - Two listed debt securities held by the Group were valued at **zero HKD** as of December 31, 2022, due to the issuer's default on repayment at maturity[111](index=111&type=chunk) - Unlisted debt securities with a fair value of HKD 36,789,000 in 2021 were **fully recovered** in 2022 without any loss[111](index=111&type=chunk) [Gold Investments](index=15&type=section&id=Gold%20Investments) As of December 31, 2022, the Group had no gold investments as all physical gold bars held for investment were sold, with a fair value loss of HKD 989,000 recognized during the year Gold Investments | Item | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :---------------------------------- | :------------------- | :------------------- | | Gold held for investment, at fair value | – | 66,082 | - A fair value loss of **HKD 989,000** was recognized in the consolidated statement of profit or loss for the year ended December 31, 2022 (2021: HKD 2,507,000), and all physical gold bars were sold during the year[118](index=118&type=chunk) [Trade and Other Payables](index=15&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables significantly increased to HKD 237.046 million as of December 31, 2022, driven by higher other payables, accrued expenses, and overdue trade payables Trade and Other Payables | Item | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :---------------------------------- | :------------------- | :------------------- | | Trade payables | 21,434 | 17,987 | | Other payables and accrued expenses | 188,287 | 100,072 | | Other taxes payable | 7,226 | 4,085 | | Contract liabilities | 20,099 | 394 | | **Total** | **237,046** | **122,538** | Ageing Analysis of Trade Payables | Ageing | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :------------ | :------------------- | :------------------- | | 0 to 30 days | 13,392 | 13,695 | | 31 to 60 days | 2,837 | 2,745 | | 61 to 90 days | 2,105 | 143 | | Over 90 days | 3,100 | 1,404 | | **Total** | **21,434** | **17,987** | - Other payables and accrued expenses include **HKD 44,994,000** received as deposits from two independent third parties for a potential acquisition that was cancelled, with deposits to be refunded[114](index=114&type=chunk) [Share Capital and Commitments](index=16&type=section&id=Share%20Capital%20and%20Commitments) As of December 31, 2022, the company's issued ordinary share capital slightly increased to HKD 88.089 million due to share issuance under a share option scheme, with total capital commitments at HKD 138.656 million Issued and Fully Paid Share Capital | Item | 2022 Number of Shares (Thousands) | 2022 (HKD Thousands) | 2021 Number of Shares (Thousands) | 2021 (HKD Thousands) | | :---------------------------------- | :-------------------------------- | :------------------- | :-------------------------------- | :------------------- | | Ordinary shares at January 1 | 8,758,881 | 87,589 | 8,758,881 | 87,589 | | Shares issued under share option scheme | 50,000 | 500 | – | – | | Ordinary shares at December 31 | 8,808,881 | 88,089 | 8,758,881 | 87,589 | Capital Commitments | Item | 2022 (HKD Thousands) | 2021 (HKD Thousands) | | :------------------------ | :------------------- | :------------------- | | Authorized but not contracted | 124,956 | 124,763 | | Authorized and contracted | 13,700 | – | | **Total** | **138,656** | **124,763** | [Management Discussion and Analysis](index=17&type=section&id=IV.%20Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's operational and financial performance, strategic initiatives, and key risks for the year [Overall Review](index=17&type=section&id=Overall%20Review) The Group reported a post-tax profit of HKD 285.9 million in 2022, driven by strong performance from its Canadian oil and gas subsidiary and rising energy commodity prices, while maintaining a robust financial position with no external borrowings - The Group reported a post-tax profit of **HKD 285.9 million** for 2022 (2021: HKD 329.4 million)[126](index=126&type=chunk) - The net profit was primarily due to the strong performance of the Group's wholly-owned Canadian oil and gas subsidiary, NTE Energy Canada Ltd. ("NTEC"), and robust energy commodity prices in the first half of 2022[126](index=126&type=chunk) - As of December 31, 2022, the Group had **no external borrowings** (2021: nil) and highly liquid current assets of approximately **HKD 907.1 million** (2021: HKD 642.6 million)[127](index=127&type=chunk) - The Group made significant progress in redeveloping its 1,200-acre (4.9 sq km) Discovery Park campus in Campbell River, British Columbia, Canada, planning to transform it into a green technology industrial hub, including inland aquaculture facilities, a liquid hydrogen production plant, and renewable natural gas facilities[128](index=128&type=chunk) - The Group's commodity trading business, particularly in physical gold and silver, continued to perform robustly with stable trading volumes, but the start of operations for the precious metals refinery has been delayed to the second quarter of 2023[131](index=131&type=chunk) [Canada Operations](index=18&type=section&id=Canada%20Operations) The Group's Canadian oil and gas assets, comprising over 800 active wells, achieved an average daily production of 11,500 boe in 2022, while Discovery Park is being transformed into a green technology hub leveraging its low-cost hydropower - The Group's oil and gas assets in Canada include **over 800 active wells** across approximately **761,000 acres** in British Columbia's Greater Sierra region and Horn River Basin, as well as Wapiti and Willesden Green in Alberta[132](index=132&type=chunk) - In 2022, NTEC's average daily oil and gas production was approximately **11,500 barrels of oil equivalent per day** (95% natural gas), with an average realized price of CAD 35.2 per barrel of oil equivalent[133](index=133&type=chunk) - NTEC's production significantly increased in 2022 following the redesign of its gathering system and the launch of optimization programs[133](index=133&type=chunk) - Discovery Park offers over **200 MW of 100% renewable hydropower** from BC Hydro at prices as low as CAD 0.05/kWh, along with an industrial solid waste landfill, wastewater treatment facilities, freshwater supply, and a deep-water port[136](index=136&type=chunk) - The Group is fully redeveloping Discovery Park into a green technology hub to attract new tenants aligned with ESG mandates and has received three significant Letters of Intent for inland aquaculture facilities, a liquid hydrogen plant, and renewable natural gas facilities[137](index=137&type=chunk)[141](index=141&type=chunk) [Argentina Operations](index=20&type=section&id=Argentina%20Operations) The Group's Los Blancos concession in Argentina maintained stable light crude oil production, increasing to 1,350 barrels per day, generating positive cash flow despite hyperinflation and political challenges, while facing arbitration and pressure for uneconomical drilling - The Los Blancos concession is operated by the Group's wholly-owned Argentine subsidiary, High Luck Group Limited, in which the Group holds a **50% participating interest**[142](index=142&type=chunk) - Oil production at Los Blancos increased from approximately **800 barrels per day to 1,200 barrels per day**, subsequently rising to **1,350 barrels per day** from September 2022[142](index=142&type=chunk) - High Luck's adjusted EBITDA for 2022 was approximately **HKD 51.2 million** (2021: HKD 14.9 million)[143](index=143&type=chunk) - The Argentine Peso depreciated by approximately **71.7%** in 2022, with annual inflation reaching a record **94.8%**[145](index=145&type=chunk) - Pampa Energia S.A. initiated arbitration against High Luck regarding a disputed amount of approximately **USD 180,000** and demanded the return of High Luck's 50% participating interest in the Los Blancos concession[147](index=147&type=chunk) - Salta provincial authorities are pressuring High Luck to drill another development well in Los Blancos by the end of 2023, risking potential sanctions on the concession, despite independent expert opinions deeming the drilling uneconomical[148](index=148&type=chunk) [Commodity Trading](index=22&type=section&id=Commodity%20Trading) The Group's physical gold and silver trading business achieved total transactions of approximately HKD 19,910.7 million in 2022, but net profit margins were reduced by fixed costs from the delayed opening of a new precious metals refinery - In 2022, the Group's total transaction value for physical gold and silver trading business was approximately **HKD 19,910.7 million** (2021: HKD 10,824.7 million)[152](index=152&type=chunk) - Net profit margins for the year were reduced by fixed costs incurred due to the delayed opening of the Group's newly constructed precious metals refinery in Hong Kong[152](index=152&type=chunk) - The target commissioning date for the Group's gold, silver, and other precious metals refinery has been postponed to the **second quarter of 2023**[152](index=152&type=chunk) - By bringing the refining process in-house, the Group anticipates **improved long-term profit margins**[82](index=82&type=chunk) - All physical gold trading and the Group's physical gold inventory are hedged with financial hedging instruments to ensure the Group is not exposed to financial risks from daily gold price fluctuations[150](index=150&type=chunk) [Financial Review (MD&A perspective)](index=23&type=section&id=Financial%20Review%20(MD%26A%20perspective)) The Group's 2022 revenue reached HKD 20,913.2 million, driven by Canadian operations and strong energy prices, leading to higher gross profit but decreased net profit and EPS due to increased operating and finance costs - For the year ended December 31, 2022, the Group's revenue was **HKD 20,913.2 million** (2021: HKD 11,167.1 million)[9](index=9&type=chunk) - Gross profit for the year was **HKD 421.5 million** (2021: HKD 90.7 million), primarily benefiting from Canadian operations and strong energy commodity prices during the year[84](index=84&type=chunk) - General and administrative expenses for the year were **HKD 130.9 million**, an increase of HKD 21.1 million from the previous year, mainly due to the full-year consolidation of Canadian operations[10](index=10&type=chunk) - Finance costs for the year were **HKD 27.8 million**, approximately double the previous year, due to the full-year consolidation of Canadian operations[85](index=85&type=chunk) - Profit attributable to owners of the Company for the year was **HKD 285.9 million** (2021: HKD 329.4 million), with basic and diluted earnings per share of **3.26 HK Cents** (2021: 3.76 HK Cents)[12](index=12&type=chunk) - As of December 31, 2022, the Group had net working capital of **HKD 193.9 million** (2021: HKD 151.0 million), mainly due to increased precious metals inventory from the expansion of its gold trading business at year-end[13](index=13&type=chunk) - For the year ended December 31, 2022, the actual amount utilized from the 2016 subscription shares was **HKD 20.4 million** for investments in short-to-medium term financial instruments and general administrative purposes, with all funds fully utilized[14](index=14&type=chunk) - For the year ended December 31, 2022, the actual use of proceeds from the public offer for expanding metal commodity trading amounted to **HKD 106.5 million**, with an unutilized balance of **HKD 161.7 million** as of December 31, 2022[89](index=89&type=chunk) [Capital Structure, Liquidity and Financial Resources](index=26&type=section&id=Capital%20Structure,%20Liquidity%20and%20Financial%20Resources) The Group maintains a treasury policy of investing surplus cash, with net current assets of HKD 855.4 million and cash balances of HKD 851.2 million as of December 31, 2022, with no external debt or asset charges - The Group maintains a treasury policy of investing surplus cash, primarily in time deposits with licensed banks[67](index=67&type=chunk) - As of December 31, 2022, the Group's net current assets were approximately **HKD 855.4 million** (2021: HKD 684.1 million), with cash and bank balances of **HKD 851.2 million** (2021: HKD 495.0 million)[67](index=67&type=chunk) - As of December 31, 2022, the Group had **no unsecured debt securities or unsecured short-term loans**, and its debt-to-equity ratio was **0%** (2021: 0%)[69](index=69&type=chunk) - As of December 31, 2022, the Group had **no assets pledged** (2021: nil)[70](index=70&type=chunk) - The Group enters into certain derivative financial instruments for economic hedging purposes to mitigate the financial impact of price fluctuations in its precious metals inventory and gold bars[3](index=3&type=chunk) [Major Risks and Uncertainties](index=27&type=section&id=Major%20Risks%20and%20Uncertainties) The Group faces various risks, including development and supply chain risks in commodity trading, and geological, exploration, and development risks in oil and gas, alongside financial risks such as credit, liquidity, and price volatility - The Group's commodity trading business faces development and supply chain risks, which are mitigated by developing its customer base and expanding its supplier base[154](index=154&type=chunk) - The Group's business activities in oil and gas exploration, development, production, and sales are susceptible to geological, exploration, and development risks, managed through establishing technical and operational teams, meticulous planning, and expert support[154](index=154&type=chunk) - In its ordinary course of business, the Group is exposed to credit risk, liquidity risk, interest rate risk, currency risk, price risk arising from fluctuations in crude oil, natural gas, and commodity prices, and share price risk from equity securities investments[154](index=154&type=chunk) [Foreign Exchange Risk](index=27&type=section&id=Foreign%20Exchange%20Risk) The Group's assets and liabilities are primarily denominated in HKD, USD, CAD, Argentine Peso, and RMB, with foreign exchange risk mainly stemming from Canadian and Argentine exploration and production activities and foreign investments - The Group's assets and liabilities are primarily denominated in Hong Kong Dollars, US Dollars, Canadian Dollars, Argentine Pesos, and Renminbi[156](index=156&type=chunk) - Currency foreign exchange risk primarily arises from the Group's exploration and production activities in Canada and Argentina, as well as investments in foreign companies[156](index=156&type=chunk) - The Group currently has no foreign currency hedging policy, but management continuously monitors foreign exchange risk and will consider hedging instruments when necessary[156](index=156&type=chunk) [Employees and Stakeholder Relationships](index=28&type=section&id=Employees%20and%20Stakeholder%20Relationships) As of December 31, 2022, the Group employed 132 permanent staff with total remuneration of HKD 102.6 million, maintaining positive relationships with suppliers, customers, and government bodies without significant disputes - As of December 31, 2022, the Group employed a total of **132 permanent employees** (2021: 99 employees) in Hong Kong, Canada, Argentina, and China[158](index=158&type=chunk) - Total employee remuneration (including directors' remuneration and benefits) for the year ended December 31, 2022, was **HKD 102.6 million** (2021: HKD 31.0 million)[158](index=158&type=chunk) - The Group had no significant or material disputes with its suppliers, customers, and/or stakeholders for the year ended December 31, 2022[159](index=159&type=chunk) [Major Acquisitions, Disposals, and Investments](index=28&type=section&id=Major%20Acquisitions,%20Disposals,%20and%20Investments) The Group had no major acquisitions or disposals of subsidiaries, associates, or joint ventures in 2022, and its financial assets at fair value through profit or loss did not include any significant individual investments - The Group had **no major acquisitions or disposals** of subsidiaries, associates, or joint ventures for the year ended December 31, 2022[160](index=160&type=chunk) - As of December 31, 2022, the Group held financial assets at fair value through profit or loss (including listed equity securities and unlisted funds) totaling **HKD 55.9 million**, with no single investment constituting a major investment for the Group[161](index=161&type=chunk) - The Group adopts a prudent investment strategy for surplus funds, aiming to maximize returns on idle capital[161](index=161&type=chunk) [Corporate Governance and Other Information](index=29&type=section&id=V.%20Corporate%20Governance%20and%20Other%20Information) This section covers corporate governance compliance, post-reporting period events, auditor's scope of work, and other relevant shareholder information [Post-Reporting Period Events](index=29&type=section&id=Post-Reporting%20Period%20Events) Except for the matters disclosed, the Group had no significant post-reporting period events after December 31, 2022, up to the date of this announcement - Except as disclosed above, the Group had no significant post-reporting period events after December 31, 2022, up to the date of this announcement[163](index=163&type=chunk) [Corporate Governance Code Compliance](index=29&type=section&id=Corporate%20Governance%20Code%20Compliance) The company has adopted and complied with all code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules for the year ended December 31, 2022 - The Company has adopted and applied the principles of the code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules of the Stock Exchange[164](index=164&type=chunk) - For the year ended December 31, 2022, the Company has complied with all code provisions of the Corporate Governance Code and adopted recommended best practices where relevant and practicable[164](index=164&type=chunk) [Directors' Securities Transactions](index=29&type=section&id=Directors%27%20Securities%20Transactions) The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance with its required standards during 2022 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules[165](index=165&type=chunk) - Following specific enquiry with all Directors, each Director has confirmed compliance with the required standards set out in the Model Code throughout the year[165](index=165&type=chunk) [Auditor's Scope of Work](index=29&type=section&id=Auditor%27s%20Scope%20of%20Work) PricewaterhouseCoopers has acknowledged the figures in the preliminary announcement's consolidated financial statements for 2022, confirming their consistency with the audited statements, but their work does not constitute an assurance engagement - The figures in the preliminary announcement for the Group's consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of financial position, and related notes for the year ended December 31, 2022, have been agreed by the Group's auditor, PricewaterhouseCoopers, to the amounts set out in the Group's audited consolidated financial statements for the year[166](index=166&type=chunk) - The work performed by PricewaterhouseCoopers in this respect does not constitute an assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements or Hong Kong Standards on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants, and consequently, PricewaterhouseCoopers provides no assurance on the preliminary announcement[166](index=166&type=chunk) [Review of Financial Statements](index=30&type=section&id=Review%20of%20Financial%20Statements) The Group's 2022 consolidated financial statements have been reviewed and approved by the Audit Committee, which found them compliant with applicable accounting standards and legal requirements, recommending board approval - The Group's consolidated financial statements for the year have been reviewed and approved by the Audit Committee, which considers them to be in compliance with applicable accounting standards, the Listing Rules, and all other applicable legal requirements[168](index=168&type=chunk) - The Audit Committee recommends the Board of Directors to approve the Group's consolidated financial statements for the year[168](index=168&type=chunk) [Distributable Reserves and Dividends](index=30&type=section&id=Distributable%20Reserves%20and%20Dividends) As of December 31, 2022, the company had no retained profits available for cash or in-kind distribution, with contributed surplus being non-distributable, though the share premium account could be distributed as bonus shares - As of December 31, 2022, the Company had **no retained profits** available for cash and/or in-kind distribution[169](index=169&type=chunk) - The Company's contributed surplus of **HKD 740,884,000** is currently not distributable[169](index=169&type=chunk) - The Company's share premium account of **HKD 4,878,364,000** may be distributed in the form of fully paid bonus shares[169](index=169&type=chunk) - The Directors recommended **not to pay a final dividend** for the year (2021: nil)[174](index=174&type=chunk) [Share Transactions and Public Float](index=30&type=section&id=Share%20Transactions%20and%20Public%20Float) Neither the company nor its subsidiaries purchased, sold, or redeemed any of its listed securities in 2022, and the company maintained the minimum 25% public float throughout the year - During the year, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[175](index=175&type=chunk) - Based on publicly available information and to the best of the Directors' knowledge, the Company maintained the minimum public float of **25%** throughout the year and up to the date of this announcement, in accordance with the Listing Rules[176](index=176&type=chunk) [Annual General Meeting and Litigation](index=30&type=section&id=Annual%20General%20Meeting%20and%20Litigation) The company will hold its Annual General Meeting on June 23, 2023, and was not involved in any significant litigation or arbitration during 2022, nor was aware of any pending or threatened major claims - The Company will hold its Annual General Meeting on **Friday, June 23, 2023**[177](index=177&type=chunk) - The Company was not involved in any significant litigation or arbitration for the year ended December 31, 2022[178](index=178&type=chunk) - The Directors are also unaware of any pending or threatened significant litigation or claims against the Group for the year ended December 31, 2022[178](index=178&type=chunk) [Suspension of Share Transfer Registration](index=31&type=section&id=Suspension%20of%20Share%20Transfer%20Registration) To determine eligibility for attending and voting at the Annual General Meeting, the company will suspend share transfer registration from June 19 to June 23, 2023 - The Company will suspend share transfer registration from **Monday, June 19, 2023, to Friday, June 23, 2023** (both dates inclusive)[172](index=172&type=chunk) - To be eligible to attend and vote at the Annual General Meeting, all transfer documents, along with the relevant share certificates, must be lodged with the Company's Hong Kong Share Registrar, Tricor Investor Services Limited, for registration by **4:30 p.m. on Friday, June 16, 2023**[172](index=172&type=chunk) [Publication of Annual Results Announcement and Annual Report](index=31&type=section&id=Publication%20of%20Annual%20Results%20Announcement%20and%20Annual%20Report) This annual results announcement is published on the company's and HKEX websites, with the annual report to be dispatched to shareholders and available online in due course - This annual results announcement is published on the Company's website (www.nt-energy.com) and the website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk), respectively[180](index=180&type=chunk) - The Company's annual report for the year will be dispatched to shareholders and will also be available on the aforementioned websites in due course[180](index=180&type=chunk)

Corporate Governance - New Times Energy Corporation Limited held its annual general meeting on June 23, 2022, with all directors present[2] - The company provided supplementary information regarding the voting results from the annual general meeting[2] - The company secretary, Mr. Li Guanxian, was appointed on March 10, 2020[5] - The board of directors includes executive directors Zheng Jinchao (Chairman) and Deng Yong'en (CEO)[7] Financial Reporting - The annual report covers the financial year ending December 31, 2020, and December 31, 2021[4]

Financial Performance - Revenue for the six months ended June 30, 2022, was HK$10,402,767,000, representing a 111.9% increase from HK$4,928,637,000 in the same period of 2021[22]. - Gross profit for the same period was HK$294,881,000, compared to HK$5,421,000 in the prior year, indicating a significant improvement[22]. - Profit before taxation was HK$229,041,000, a turnaround from a loss of HK$19,286,000 in the previous year[22]. - Profit for the period attributable to owners of the Company was HK$214,868,000, compared to a loss of HK$21,681,000 in the same period last year[22]. - Basic and diluted earnings per share for the period were both 2.45 HK cents, a recovery from a loss of 0.25 HK cents per share in the prior year[22]. - Total comprehensive income for the period was HK$172,879,000, a recovery from a loss of HK$42,831,000 in 2021[27]. - The profit for the period increased to HK$214,868,000 compared to a loss of HK$21,681,000 in the previous year, marking a significant turnaround[27]. Financial Position - Current assets rose to HK$1,130,176,000, up from HK$883,574,000 at the end of 2021, indicating improved liquidity[30]. - Cash and cash equivalents increased significantly to HK$700,046,000 from HK$494,955,000, reflecting a strong cash position[30]. - Inventories surged to HK$103,901,000, compared to HK$44,196,000 in the previous year, suggesting increased stock levels[30]. - Net current assets improved to HK$929,413,000, up from HK$684,144,000, indicating better short-term financial health[30]. - Non-current assets decreased slightly to HK$826,292,000 from HK$852,776,000, reflecting a minor reduction in long-term investments[30]. - Total equity attributable to owners of the Company increased to HK$1,305,535,000 from HK$1,101,481,000, showing growth in shareholder value[32]. Cash Flow - For the six months ended June 30, 2022, the company generated net cash from operating activities of HK$204,591,000, compared to a net cash used of HK$61,395,000 in the same period of 2021[42]. - The net cash used in financing activities was HK$5,000,000, compared to HK$108,874,000 in the same period of 2021[44]. - Cash and cash equivalents at June 30, 2022, amounted to HK$700,046,000, an increase from HK$341,663,000 at the end of June 2021[44]. Taxation - The income tax expense for the period was HK$14,173,000, compared to HK$2,395,000 in the prior year[22]. - The effective tax rate for Hong Kong profits tax remained at 16.5% for both 2022 and 2021, with no provision made for assessable profits in 2022[180]. - The subsidiaries in Argentina are now subject to a corporate income tax rate of 35%, an increase from 30% in the previous year[181]. Segment Information - The Group's upstream segment, which includes exploration and production of oil and gas in Argentina and Canada, is a key focus area for future growth[139]. - The Group has expanded its commodities refinery and trading operations to include trading of physical silver and platinum, in addition to nonferrous metals and physical gold[138]. - The Group's management has identified two reportable segments: Upstream and General and commodities refinery and trading, to streamline operations and reporting[139]. Financial Instruments - As of June 30, 2022, the total fair value of financial instruments measured at fair value was HK$55,772,000, with HK$21,631,000 in Level 1, HK$4,000 in Level 2, and HK$34,137,000 in Level 3[90]. - The Group's financial assets at fair value through profit or loss (FVPL) included listed equity investments valued at HK$29,949,000 and unlisted debt investments valued at HK$23,437,000 as of June 30, 2022[90]. - The Group's financial risk factors include market risk, credit risk, and liquidity risk[80]. Operational Highlights - The Group's drilling service income was HK$739,000 in 2022, a new revenue stream compared to no income reported in 2021[163]. - Employee benefit expenses, including directors' remuneration, amounted to HK$34,268,000 in 2022, significantly higher than HK$8,018,000 in 2021, marking an increase of approximately 328%[174]. - The total cost of sales and general and administrative expenses for the six months ended June 30, 2022, was HK$10,161,481,000, compared to HK$4,950,068,000 in 2021, indicating an increase of approximately 105%[174]. Management and Governance - The interim report was approved by the Board on August 26, 2022[54]. - The Group's registered office is located in Bermuda, and its main business location is in Hong Kong[53].

Financial Performance - New Times Energy reported a profit of HK$329 million for the year ended 31 December 2021, a significant turnaround from a loss of HK$79.5 million in 2020[23]. - The company achieved revenue of HK$11.17 billion in 2021, compared to HK$5.03 billion in 2020, representing a year-over-year increase of approximately 121%[23]. - Total assets increased to HK$1.74 billion in 2021 from HK$1.02 billion in 2020, reflecting a growth of about 70%[23]. - The Group reported a profit after tax of HK$329.4 million for 2021, a turnaround from a loss of HK$79.5 million in 2020[45]. - The profit increase was primarily due to the acquisition of a private Canadian oil and gas company and a global recovery in commodity prices[45]. - The Group reported a gross profit of approximately HK$90.66 million for the year, compared to HK$23.50 million in 2020, with the increase mainly from contributions by NTEC in Canada and higher crude oil prices[94]. - The Group recorded a profit of approximately HK$329.40 million for the year, a turnaround from a loss of approximately HK$79.49 million in 2020, largely due to the gain on bargain purchase and subsequent operational profit[96]. - Basic earnings per share for the year was approximately HK3.76 cents, compared to a loss per share of approximately HK0.91 cents in 2020[96]. Operational Highlights - The company operates in multiple countries including Canada, the United States, Argentina, and China, indicating a diverse geographical presence[4]. - The company is engaged in the energy sector, focusing on oil and gas reserves, which is a critical aspect of its business strategy[30]. - Daily oil and gas production from the Canadian acquisition exceeds 12,000 barrels of oil equivalent, with total estimated Proved reserves of 30.2 million boe and Proved plus Probable reserves of 40.0 million boe[23]. - The Group's Los Blancos Concession in Argentina continues to produce approximately 800 barrels of oil per day, although operations in Argentina face challenges due to low domestic oil prices and hyperinflation[45]. - NTE Energy Canada Ltd. operates over 800 producing wells across approximately 761,000 acres, with current average daily production exceeding 12,000 barrels of oil equivalent, 95% of which is natural gas[45]. - The Group has 12 highly economic drilling locations at Willesden Green, with plans to drill 3 wells in Q3 2022 and another 3 in the second half of 2022, which will enhance cash flow for the next 2 to 3 years[82]. Strategic Initiatives - The company plans to drill a minimum of six development wells in Canada in 2022, which is expected to enhance profitability in the oil and gas segment[29]. - The Group aims to participate in the global Energy Transition by investing in clean energy and exploring eco-investment opportunities such as Blue & Green Hydrogen and Carbon Capture, Utilization and Sequestration (CCUS)[48]. - The Group is actively evaluating suitable merger and acquisition opportunities to enhance its portfolio[48]. - The Group is committed to exploring environmental investments, including blue-green hydrogen and carbon capture technologies, to achieve net-zero emissions[50]. - The Group is witnessing continued growth in daily trading volume of precious metals, and expects this trend to continue despite supply chain issues affecting the refinery startup[88]. Financial Position - The Group maintains a healthy financial position with HK$495.0 million in cash and cash equivalents, plus HK$147.6 million in financial assets, totaling HK$642.6 million in highly liquid current assets as of December 31, 2021[48]. - The Group's net current assets as of December 31, 2021, amounted to approximately HK$684.14 million, an increase from HK$649.84 million in 2020[123]. - Total equity of the Group as of December 31, 2021, was approximately HK$1,101.48 million, up from HK$758.96 million in 2020[124]. - The debt ratio increased to 36.56% in 2021 from 25.68% in 2020, indicating a higher level of leverage[23]. - The Group's gearing ratio was 0% as of December 31, 2021, a decrease from 19.25% as of December 31, 2020[131]. Investments and Acquisitions - The acquisition of a private oil and gas company in Canada included over 800 active wells and is expected to generate significant positive cash flow due to rising natural gas prices[23]. - The acquisition of the Canadian company was completed for a total commitment of C$20,000,001 (approximately HK$122 million)[49]. - The Group recognized a gain on bargain purchase of approximately HK$407.66 million from the acquisition of a private Canadian oil and gas company[94]. - The company entered into agreements to provide a loan and acquire all shares of NTEC in Canada for a total commitment of C$20,000,001 (approximately HK$122 million) on 21 September 2021[143]. Market and Trading - The Group's revenue for the year ended December 31, 2021, was approximately HK$11,167.08 million, a significant increase from HK$5,034.52 million in 2020, primarily driven by general and commodity trading as well as oil and gas exploration and production[92]. - Revenue from the general and commodities refinery and trading business was approximately HK$10,907.44 million for 2021, up from HK$5,008.93 million in 2020, attributed to the expansion of gold trading and the commencement of trading other precious metals[90]. - The oil and gas exploration and production business generated revenue of approximately HK$259.63 million in 2021, representing a 914.6% increase compared to HK$25.59 million in 2020, driven by new sales in Canada and rising crude oil prices in Argentina[90]. Management and Governance - Mr. Tang has over 20 years of senior management experience and has held top executive positions in various international companies[189]. - Mr. Lee has over 15 years of professional experience in corporate finance, investment, international capital markets, and asset management[195]. - The company emphasizes the importance of academic qualifications and professional certifications among its directors[194][195].

Financial Performance - Revenue for the six months ended June 30, 2021, was HK$4,928,637,000, a significant increase from HK$298,002,000 in the same period of 2020, representing a growth of approximately 1,553%[17] - Gross profit for the period was HK$5,421,000, compared to HK$9,872,000 in 2020, indicating a decrease of about 45%[17] - Loss for the period was HK$21,681,000, an improvement from a loss of HK$51,990,000 in the previous year, reflecting a reduction of approximately 58%[17] - Basic loss per share attributable to owners of the Company was HK$0.25, compared to HK$0.59 in 2020, showing a decrease of about 58%[17] - Other income, gains, and losses, net, amounted to HK$11,517,000, compared to a loss of HK$3,443,000 in 2020, indicating a positive turnaround[17] - Total comprehensive loss for the period was HK$42,831,000, down from HK$82,796,000 year-over-year, indicating a decrease of about 48%[21] - The company reported a loss for the period of HK$21,681,000, a significant improvement from a loss of HK$51,990,000 in the same period last year, representing a reduction of approximately 58%[21] - The Group reported a basic loss attributable to owners of approximately HK$21,685,000 for the six months ended June 30, 2021, a decrease from HK$51,975,000 in 2020[166] Assets and Liabilities - Non-current assets increased to HK$265,698,000 from HK$130,543,000, reflecting a growth of approximately 103%[23] - Current assets, particularly inventories, rose significantly to HK$194,850,000 from HK$28,800,000, marking an increase of about 577%[23] - The company's net current assets were reported at HK$502,815,000, down from HK$649,836,000, indicating a decrease of about 23%[23] - Total equity attributable to owners of the company was HK$737,020,000, slightly down from HK$758,956,000, a reduction of approximately 3%[25] - The company’s borrowings decreased significantly from HK$143,067,000 to HK$38,000,000, a reduction of about 73%[23] - The reportable segment liabilities were HK$111,304,000 as of June 30, 2021, compared to HK$50,172,000 at the end of 2020, indicating an increase in liabilities[127] - Total consolidated assets as of June 30, 2021, were HK$958,543, down from HK$1,021,168 as of December 31, 2020, a decrease of about 6%[133] Cash Flow - For the six months ended June 30, 2021, the net cash used in operating activities was HK$61,395,000, a decrease from HK$124,714,000 in the same period of 2020[35] - The company incurred a net cash outflow from investing activities of HK$128,210,000, compared to a cash inflow of HK$10,346,000 in the same period of 2020[35] - The company reported a net decrease in cash and cash equivalents of HK$298,479,000 for the period[37] - Cash and cash equivalents decreased to HK$341,663,000 from HK$640,915,000, a decline of approximately 47%[25] Segment Performance - The revenue from the upstream segment, which includes crude oil exploration and production in Argentina, was HK$16,963,000, up from HK$11,594,000 in 2020, marking an increase of about 46%[127] - The general and commodities trading segment generated revenue of HK$4,911,674,000, compared to HK$286,408,000 in the previous year, reflecting a growth of approximately 1,613%[127] - The Group's reportable segment profit for the upstream segment was HK$543,000, recovering from a loss of HK$5,115,000 in 2020[127] - The general and commodities trading segment reported a profit of HK$2,635,000, compared to a loss of HK$1,710,000 in the prior year[127] Financial Risks and Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[75] - There have been no changes in the Group's financial risk management policies and practices since the year-end[81] - The fair value of financial instruments is categorized into three levels based on the lowest level of input that is significant to the fair value measurement[83] Accounting Policies and Changes - The Group's accounting policies remain consistent with those applied in the preparation of the annual financial statements for the year ended 31 December 2020[49] - The Group adopted amendments to standards including COVID-19 Related Rent Concessions and Interest Rate Benchmark Reform, which did not impact the financial results[50] - The Group is preparing for the adoption of new standards and amendments that will take effect in 2022 and 2023, which may impact future financial reporting[58] Exploration and Evaluation Assets - The Group holds a 69.25% interest in the Tartagal and Morillo concessions in Salta, Argentina, with exploration permits initially granted for four years starting from December 29, 2006, and extensions possible up to nine years[177] - The Group's total costs of exploration rights and exploratory drilling amounted to approximately HK$3,225,575,000, a slight decrease from HK$3,226,181,000 as of December 31, 2020[177] - The Group's total exploration and evaluation assets as of June 30, 2021, were HK$3,406,791,000, unchanged from the previous period[181] Employee and Operational Costs - Employee benefit expenses, including directors' remuneration, amounted to HK$8,018, a slight decrease from HK$8,892 in 2020[149] - Legal and professional fees increased to HK$8,228 from HK$2,119 in the previous year, indicating higher costs in these areas[149] - Cost of inventories recognized as an expense increased significantly to HK$4,908,028, compared to HK$287,637 in 2020, reflecting a substantial rise in operational costs[149]