香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：228） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 中國能源開發控股有限公司（「本公司」）之董事（「董事」）會（「董事會」）謹此宣佈 本公司及其附屬公司（「本集團」）截至二零二三年六月三十日止六個月之未經 審核簡明綜合中期業績以及以下比較數字。本中期財務報表未經審核，但已由 本公司審核委員會審閱。 財務摘要 截止六月三十日止 增加╱ 二零二三年 二零二二年 （減少） 收益（千港元） 168,281 185,555 (9.3)% EBITDA(（1) 千港元） 112,859 140,266 (19.5)% EBITDA 利率（%） 67.1% 75.6% (8.5)% ...

Financial Performance - EBITDA decreased from approximately HK$235,473,000 in 2021 to approximately HK$216,958,000 in 2022, a decline of approximately HK$18,515,000 or 7.9%[4] - Revenue decreased by approximately HK$30,560,000 or 8.6% year-on-year[4] - For the year ended December 31, 2022, the operating profit before income tax decreased by approximately HK$102,873,000 or 46.4% to about HK$118,821,000, primarily due to the impact of COVID-19 on natural gas demand and increased debt financing costs[56] - The Group did not record any revenue from the food and beverages segment in 2022, with a segment loss before tax of approximately HK$509,000[33] Costs and Liabilities - Direct costs increased by approximately HK$1,450,000 or 3.0% to HK$49,133,000 as of December 31, 2022[6] - Finance costs increased by approximately HK$7,309,000 or 19.9% to approximately HK$44,091,000 due to higher debt financing for the Kashi Project[27] - Outstanding secured other borrowings amounted to approximately HK$486,080,000 as of December 31, 2022, compared to approximately HK$453,750,000 in 2021[35] - Other borrowings amounted to approximately HKD 305,760,000, an increase from approximately HKD 79,860,000 as of December 31, 2021[94] Financial Position - As of December 31, 2022, the Group's current ratio was approximately 35.4%, down from 40.5% in 2021[35] - The ratio of total liabilities to total assets improved to approximately 32.6% from 37.6% in 2021[35] - The Group's cash and cash equivalents were approximately HK$131,296,000 as of December 31, 2022, down from approximately HK$167,280,000 in 2021[64] - The Group's financial position as of December 31, 2022, is detailed in the Consolidated Statement of Financial Position[64] Corporate Governance - The company is committed to maintaining good corporate governance standards to attract investment from international institutional investors[115] - The board recognizes the importance of good corporate governance practices in enhancing shareholder value[115] - The Group has complied with the Corporate Governance Code during the Reporting Period, with exceptions regarding the separation of roles between the chairman and CEO, and the attendance of the chairman at the annual general meeting[118] - The Company acknowledges its responsibility to maintain a sound and effective internal control system to safeguard shareholders' investments and assets[136] Risk Management - The Board acknowledges its responsibility for maintaining effective risk management and internal control systems to safeguard shareholder investments and company assets[124] - The management conducts regular reviews of risk management and internal control systems, covering financial, operational, and compliance controls[146] - The company emphasizes the importance of risk management regarding directors' liabilities and has arranged appropriate liability insurance for directors and senior management, reviewed annually[157] - The Company will conduct a review on the adequacy and effectiveness of the risk management and internal control systems[140] Financing and Future Plans - The Group plans to secure new financing through equity or debt to improve its financial position and address going concern issues[44] - The Group plans to pursue additional debt and/or equity financing for further development of the Kashi Project[75] - The Company acknowledges the material uncertainty regarding its ability to continue as a going concern due to potential repayment demands from contractors and creditors[85] Board Composition and Diversity - The Company is seeking to appoint at least one female director by December 31, 2024, in compliance with new Main Board Listing Rules[123] - The Company has adopted a diversity policy for its board members, considering skills, knowledge, gender, age, culture, and professional experience[186] - The nomination policy emphasizes a board with diverse skills and experience, with criteria including the ability to devote sufficient time and attention to board affairs[198] - The Company aims to find a suitable female candidate for the Board to enhance diversity and comply with listing rules[143] Audit and Financial Oversight - The audit committee is responsible for assessing matters related to financial statements and providing recommendations to the Board[176] - The audit committee consists of one non-executive director and three independent non-executive directors, ensuring sufficient financial management expertise[176] - The Company received HK$980,000 for audit services provided by ZHONGHUI ANDA CPA Limited, which was approved by the audit committee without disagreement from the Board[176] - The Group's financial statements for the year ended December 31, 2022, have been audited and presented in the annual report[129]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：228） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 公 告 摘要 截止十二月三十一日止 增加╱ 二零二二年 二零二一年 （減少） 收益（千港元） 323,028 353,588 (8.6%) EBITDA(（1) 千港元） 216,958 235,473 (7.9%) EBITDA 利率（%） 67.2% 66.6% 0.6% 本公司擁有人應佔利潤（千港元） 83,265 123,775 (32.7%) 凈利率（%） 25.8% 35.0% (9.2%) 每股收益 －基本（港仙） 0.88 1.30 (32.3%) －攤薄（港仙） 0.69 0.98 (29.6%) ...

Revenue and Profit - Revenue for the six months ended June 30, 2022, was HK$185,555,000, a decrease of 8.9% from HK$202,564,000 in the same period of 2021[10] - Profit for the period increased to HK$61,707,000, up 30.3% from HK$47,331,000 in the previous year[10] - For the six months ended June 30, 2022, the profit attributable to owners of the company was HK$61,875,000, compared to HK$48,061,000 in 2021, representing a 28.5% increase[12] - Basic earnings per share attributable to owners of the company increased to HK$0.65 from HK$0.51, reflecting a 27.5% growth[12] - Profit before income tax for the six months ended June 30, 2022, was HK$71,072,000, a decrease of 4.4% from HK$74,373,000 in the previous year[10] Expenses and Costs - Finance costs rose to HK$26,883,000, compared to HK$21,791,000 in the same period last year, reflecting an increase of 23.5%[10] - Selling and distribution expenses decreased to HK$17,351,000, down 14.9% from HK$20,256,000 in the same period of 2021[10] - Direct costs increased to HK$29,561,000, up from HK$21,710,000, reflecting an increase of 36.1%[10] - Staff costs increased slightly to HK$9,557,000, compared to HK$9,021,000 in the previous year, an increase of 5.9%[10] Income and Other Gains - Other income increased significantly to HK$2,847,000, compared to HK$990,000 in the previous year, marking a growth of 187.9%[10] - The company reported a reversal of impairment of intangible assets amounting to HK$16,603,000, compared to no such reversal in the previous year[10] Assets and Liabilities - Non-current assets decreased to HK$2,481,681,000 from HK$2,611,263,000, a decline of 4.9%[14] - Current assets increased to HK$279,140,000 from HK$240,315,000, marking a 16.2% rise[14] - Total assets decreased to HK$2,760,821,000 from HK$2,851,578,000, a reduction of 3.2%[14] - Current liabilities decreased to HK$475,998,000 from HK$593,828,000, a decrease of 19.8%[16] - Total equity attributable to owners of the company was HK$1,753,529,000, slightly down from HK$1,766,500,000[16] Cash Flow and Financing - For the six months ended June 30, 2022, the company reported a net cash used in operating activities of HK$39,760,000, compared to a net cash generated of HK$78,182,000 in the same period of 2021[23] - The company generated net cash from financing activities of HK$36,199,000 in the first half of 2022, compared to a net cash used of HK$22,078,000 in the same period of 2021[23] - The company’s cash and cash equivalents at the end of the period amounted to HK$150,988,000, down from HK$180,653,000 at the end of June 2021[23] Financial Position and Going Concern - As of June 30, 2022, the Group's current liabilities exceeded current assets by approximately HK$196,858,000, indicating significant doubt on the Group's ability to continue as a going concern[35] - The Directors consider that the Group will have sufficient working capital to meet its financial obligations within the next twelve months[38] Segment Performance - Reportable segment profit before income tax for the six months ended June 30, 2022, was HK$82,766,000, compared to HK$82,927,000 in the same period of 2021, indicating a slight decline[46] - The exploration, production, and distribution of natural gas segment reported a profit before income tax of HK$83,064,000 for the six months ended June 30, 2022[46] - The food and beverage sales segment did not generate any revenue for the six months ended June 30, 2022, indicating a potential area for strategic review[46] - The money lending business segment reported a loss before income tax of HK$62,000 for the six months ended June 30, 2022, highlighting challenges in this area[46] Impairment and Amortization - Amortization of intangible assets for the six months ended June 30, 2022, was HK$15,741,000, reflecting ongoing investment in intangible assets[46] - The reversal of impairment of property, plant, and equipment amounted to approximately HK$4,316,000 during the period[198] - No impairment loss of intangible assets was recognized during the six months ended June 30, 2022, while a reversal of impairment of approximately HK$16,603,000 was recognized for the same period in 2021[152] Shareholder and Equity Information - The balance of total equity attributable to owners of the company as of June 30, 2022, was HK$1,661,610,000, an increase from HK$1,600,182,000 at the beginning of the year[1] - The company had convertible notes with an outstanding principal amount of HK$679,670,000 as of 30 June 2022[177]

Financial Performance - The Group recorded a revenue of approximately HK$353,588,000 for the year ended December 31, 2021, representing an increase of approximately HK$180.1 million or 103.8% compared to HK$173,480,000 in 2020[11]. - The profit attributable to the owners of the Company was approximately HK$123,775,000, a turnaround from a loss of approximately HK$14,173,000 in the previous year[12]. - Basic and diluted earnings per share for the year ended December 31, 2021, were 1.30 HK cents and 0.98 HK cents, respectively, compared to a loss of 0.15 HK cents per share in 2020[12]. - The revenue was primarily derived from the exploration, production, and distribution of natural gas segment, which accounted for the entire revenue of HK$353,588,000[11]. - The increase in profit was mainly due to a reversal of impairment of approximately HK$98.5 million, despite increases in various costs including depreciation and finance costs[12]. - The Kashi Project and natural gas distribution in Karamay generated revenue of approximately HK$353,588,000 in 2021, up from HK$173,480,000 in 2020, marking a significant increase of 103.5%[21]. - Segment profit before income tax for the Kashi Project was approximately HK$222,969,000 in 2021, compared to a loss of approximately HK$4,700,000 in 2020, indicating a turnaround in performance[21]. Costs and Expenses - The increase in depreciation of property, plant, and equipment was approximately HK$17.3 million, and the increase in finance costs was approximately HK$21.1 million[12]. - The income tax charge increased by approximately HK$81.4 million compared to the previous year[12]. - Operating expenses decreased to HK$32,371,000 in 2021 from HK$37,273,000 in 2020, showing a reduction of 19.3%[23]. - Exploration costs incurred in 2021 amounted to HK$40,881,000, a decrease from HK$71,104,000 in 2020, reflecting a reduction of 42.5%[23]. Strategic Focus and Projects - The Group's strategic focus remains on the natural gas sector, with no revenue contributions from other segments in the current year[11]. - The Company entered into a petroleum contract with China National Petroleum Corporation for the drilling and exploration of oil and/or natural gas in the Kashi Project, which has a term of 30 years[14]. - The overall development program for the Kashi Project was completed on July 8, 2019, with commercial production commencing on October 1, 2020[21]. - The management has focused resources on exploration and research during the exploration period of six years as per the Petroleum Contract[21]. - In the second half of 2021, new production wells commenced operation or construction at the Akemomu Gas Field, including well WD-1, which was converted from exploratory to production due to commercial gas flow[41]. Financial Position and Liabilities - As of December 31, 2021, the Group had outstanding secured other borrowings of approximately HK$453,750,000 (2020: HK$389,400,000)[27]. - The Group's cash and cash equivalents were approximately HK$167,280,000 as of December 31, 2021 (2020: HK$167,985,000)[27]. - The current ratio was approximately 40.5% as of December 31, 2021 (2020: 50.4%)[27]. - The ratio of total liabilities to total assets was approximately 37.6% as of December 31, 2021 (2020: 41.6%)[27]. - The Group's current liabilities primarily stem from payables related to property, plant, and equipment, totaling approximately HK$399,660,000 as of December 31, 2021, down from approximately HK$474,364,000 a year earlier[36]. - As of December 31, 2021, the Group's current liabilities exceeded current assets by HK$353,513,000, indicating material uncertainty regarding the Group's ability to continue as a going concern[36]. Corporate Governance - The company recognizes the importance of good corporate governance practices to attract international institutional investors and enhance shareholder value[70]. - The company has complied with the Corporate Governance Code except for the separation of roles between the chairman and CEO, which is currently held by Mr. Zhao Guoqiang[71]. - The position of chairman is currently vacant, and the board intends to identify a suitable candidate to fill the vacancy[71]. - The board held regular meetings only on a half-yearly basis, which is below the recommended quarterly meetings as per the corporate governance code[79]. - The Company has established three Board committees: audit committee, remuneration committee, and nomination committee to oversee specific aspects of the Group's affairs[103]. Risk Management and Internal Control - The audit committee acknowledges its responsibility in maintaining a sound and effective internal control system to safeguard shareholders' investments and the Company's assets[154]. - The Company did not have an internal audit function during the year due to cost-control measures, but will review the adequacy of its risk management and internal control systems[80]. - The Company emphasizes risk management regarding directors' liabilities and has arranged appropriate liability insurance for directors and senior management, reviewed annually[109]. Shareholder Engagement - The Company continues to enhance communications with investors, maintaining regular dialogue with investors and analysts[170]. - The Company is committed to addressing investor inquiries in an informative and timely manner[169]. - Shareholders can propose candidates for election as Directors by submitting required documents at least seven clear days before the general meeting[164]. Dividend Policy - The Company adopts a dividend policy considering financial performance, growth opportunities, and macroeconomic factors before declaring dividends[171]. - The directors do not recommend the payment of a final dividend for the year ended December 31, 2021[187].

Financial Performance - Revenue for the six months ended June 30, 2021, was HK$202,564,000, compared to HK$0 for the same period in 2020[13] - Profit for the period was HK$47,331,000, a significant increase from a loss of HK$30,536,000 in the same period of 2020[14] - Total comprehensive income for the period was HK$60,810,000, compared to a loss of HK$59,065,000 in the previous year[14] - Basic and diluted earnings per share were both HK$0.51, compared to a loss of HK$0.31 per share in 2020[14] - The company reported a profit of HK$48,061,000 for the period, compared to a loss in the previous period[26] - Total comprehensive income for the period was HK$61,428,000, reflecting a significant recovery from previous losses[26] - Revenue from external customers for the six months ended June 30, 2021, was HK$202,564,000, a significant increase from HK$72,174,000 in the same period of 2020, representing a growth of 180%[175] - The Group reported a profit attributable to owners of the Company of HK$48,061,000 for the six months ended 30 June 2021, compared to a loss of HK$29,297,000 in the same period of 2020, representing a significant turnaround[195] - Basic earnings per share increased to HK$0.51 for the six months ended 30 June 2021, compared to a loss per share of HK$0.31 for the same period in 2020[195] Assets and Liabilities - Total assets as of June 30, 2021, amounted to HK$2,736,301,000, a slight decrease from HK$2,757,368,000 as of December 31, 2020[18] - Current liabilities decreased to HK$573,200,000 from HK$664,594,000, reflecting a reduction of approximately 13.8%[21] - Net current liabilities improved to HK$(259,437,000) from HK$(329,524,000), indicating a positive change of 21.2%[21] - Non-current assets totaled HK$2,422,538,000, showing a marginal increase from HK$2,422,298,000[18] - Net assets increased to HK$1,672,179,000 from HK$1,611,369,000, representing a growth of approximately 3.8%[21] - The Group's reportable segment assets as of 30 June 2021 totaled HK$2,603,270,000[58] - The reportable segment liabilities as of 30 June 2021 were HK$941,717,000[58] Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2021, was HK$78,182,000, a decrease of 30% from HK$111,830,000 in 2020[30] - Net cash used in investing activities was HK$45,111,000, significantly reduced from HK$146,851,000 in the previous year, indicating a 69% decrease[30] - Net cash used in financing activities amounted to HK$22,078,000, compared to HK$6,226,000 in 2020, reflecting a substantial increase[30] - Cash and cash equivalents at the end of the period were HK$180,653,000, compared to HK$194,198,000 at the end of the previous year[30] - The effect of foreign exchange rate changes on cash and cash equivalents was an increase of HK$1,675,000[30] - The Group's cash flow from operating activities showed a downward trend, which may impact future operational strategies[30] Operational Costs - The company incurred finance costs of HK$21,791,000 during the reporting period[13] - Direct costs amounted to HK$21,710,000, indicating a focus on managing operational expenses[13] - The Group's staff costs, including wages and salaries, increased to HK$9,021,000 for the six months ended 30 June 2021, compared to HK$8,736,000 in the same period of 2020[182] Investments and Development - The company is actively pursuing strategies for market expansion and new product development, although specific details were not provided in the content[17] - Exploration and evaluation assets rose to HK$113,813,000 from HK$97,172,000, marking an increase of approximately 17.2%[18] - The Group purchased property, plant, and equipment amounting to approximately HK$30,124,000 during the six months ended 30 June 2021, a decrease from HK$99,199,000 in the same period of 2020[198] - Exploration and evaluation assets purchased during the six months ended 30 June 2021 were approximately HK$15,818,000, down from HK$48,798,000 in the prior year[198] Segment Information - The reportable segment profit before income tax for the Exploration, Production and Distribution of Natural Gas segment was HK$83,534,000[58] - Interest income for the Exploration, Production and Distribution of Natural Gas segment was HK$586,000[58] - Interest expense for the same segment amounted to HK$17,043,000[58] - Amortization of intangible assets for the Group was HK$17,463,000[58] - Depreciation of property, plant, and equipment was HK$20,208,000[58] Compliance and Standards - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective from 1 January 2021[51] - The Directors anticipate that the application of new standards will not have a material impact on the unaudited condensed consolidated financial statements[51] Other Information - No dividend was paid or proposed for the six months ended 30 June 2021, consistent with the same period in 2020[191] - The weighted average number of ordinary shares in issue remained stable at 9,505,344,000 for both periods[195] - The pre-tax discount rates used for value in use calculations were 16.2% for the six months ended 30 June 2021 and 16.8% for the year ended 31 December 2020[198] - The Group's deferred tax charge for the six months ended 30 June 2021 was HK$27,042,000, a substantial increase from HK$2,775,000 in the prior year[187] - The major product driving revenue growth was natural gas, which accounted for the entire revenue of HK$202,564,000 for the six months ended June 30, 2021[175]

Financial Performance - The Group recorded a revenue of approximately HK$173,480,000 for the year ended 31 December 2020, an increase of 9.0% from HK$158,060,000 in 2019[12] - The loss attributable to the owners of the Company was approximately HK$14,173,000, significantly reduced from a loss of approximately HK$72,352,000 in the previous year[12] - Loss per share attributable to the owners of the Company was 0.15 HK cents, compared to a loss per share of 0.76 HK cents in 2019[12] - The revenue was primarily derived from the exploration, production, and distribution of natural gas segment, which accounted for the entire revenue of HK$173,480,000[12] - The money lending and food and beverage segments did not contribute any revenue to the Group in 2020, consistent with 2019[12] - The fair value gain in financial assets at fair value through profit or loss was approximately HK$5,205,000 in 2020, compared to a fair value loss of approximately HK$26,758,000 in 2019[12] - The decrease in deferred tax credit amounted to HK$107,280,000, impacting the overall financial results[12] Operational Focus - The Group's operational focus remains on the natural gas sector, with no diversification into other revenue-generating segments reported for the year[12] - Revenue from natural gas distribution operation in Karamay, Xinjiang was approximately HK$173,480,000 in 2020, an increase from HK$158,060,000 in 2019, representing a growth of 9%[20] - The segment loss before income tax improved to approximately HK$4,700,000 in 2020 from a loss of HK$137,024,000 in 2019, indicating a significant reduction in losses[20] - Exploration costs incurred for the year amounted to HK$71,104,000, reflecting the company's ongoing investment in exploration activities[27] Contracts and Agreements - The Company has a petroleum contract with China National Petroleum Corporation for a term of 30 years, commencing from 1 June 2009, for oil and natural gas exploration in Xinjiang, PRC[13] - The Gas Sales Agreement was signed on April 27, 2020, outlining volume commitments and price terms for gas sales[18] - The company entered into a second supplemental agreement with CNPC on June 20, 2019, to agree on profit sharing from 2009 to 2017[18] Financial Position - As of December 31, 2020, the Group had outstanding secured borrowings of approximately HK$389,400,000, compared to nil in 2019[35] - The Group's cash and cash equivalents were approximately HK$167,985,000 as of December 31, 2020, down from HK$226,798,000 in 2019[35] - The current ratio was approximately 50.4% as of December 31, 2020, compared to 59.7% in 2019[35] - The ratio of total liabilities to total assets was approximately 41.6% as of December 31, 2020, up from 37.1% in 2019[35] - The Group had capital commitments of approximately HK$115,501,000 as of December 31, 2020, down from HK$522,640,000 in 2019[43] Management and Governance - The Company is committed to maintaining good corporate governance standards and recognizes its importance in attracting international institutional investors[77] - The Company complied with all Corporate Governance Code provisions except for the separation of roles between the chairman and CEO, which was not established during the year[78] - The position of chairman was vacated during the year, and the board intends to identify a suitable candidate to fill the vacancy[78] - The Board consists of five members, including one executive director, one non-executive director, and three independent non-executive directors, with independent directors representing at least one-third of the Board[93] Risk Management - The board acknowledges its responsibility for maintaining effective risk management and internal control systems to safeguard shareholder investments and company assets[88] - The risk management systems are designed to provide reasonable assurance against material misstatements in financial statements[88] - The Company emphasizes risk management regarding directors' liabilities and has arranged appropriate liability insurance for directors and senior management, with coverage reviewed annually[114] Audit and Compliance - The audit committee comprises one non-executive director and three independent non-executive directors, ensuring sufficient financial management expertise[155] - The audit committee is responsible for monitoring the integrity of the Company's financial statements and annual reports, focusing on significant financial reporting judgments[160] - The committee must meet at least twice a year with the Company's auditors to discuss the audit process and any significant items that may need to be reflected in reports[163] Shareholder Engagement - The Company continues to enhance communications and relationships with its investors, maintaining regular dialogue with investors and analysts[188] - The Company adopts a dividend policy considering current and projected financial performance, growth opportunities, and macroeconomic factors[189] - Shareholders can submit written enquiries to the Company regarding their rights[192]

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$72,174,000, a decrease of 13% compared to HK$82,834,000 in 2019[9] - Loss for the period was HK$30,536,000, compared to a loss of HK$29,412,000 in the same period of 2019, indicating a slight increase in losses[9] - Total comprehensive loss for the period was HK$59,065,000, up from HK$42,985,000 in 2019, reflecting a worsening financial position[11] - Basic and diluted loss per share for the period was HK$0.31, compared to HK$0.30 in 2019, showing a marginal increase in loss per share[11] - Other income for the period was HK$1,310,000, slightly down from HK$1,372,000 in 2019[9] - Selling and distribution expenses increased to HK$18,699,000 from HK$17,043,000 in 2019, representing an increase of approximately 9.7%[9] - Staff costs rose significantly to HK$8,736,000, up from HK$5,987,000 in 2019, marking an increase of about 45.9%[9] - Finance costs decreased to HK$7,049,000 from HK$16,515,000 in 2019, a reduction of approximately 57.5%[9] - Fair value loss of financial assets at fair value through profit or loss was HK$6,329,000, down from HK$14,159,000 in 2019, indicating an improvement[9] Assets and Liabilities - As of June 30, 2020, total assets decreased to HK$2,383,210, down from HK$2,417,204 as of December 31, 2019, representing a decline of approximately 1.4%[13] - Non-current assets increased to HK$2,054,989 from HK$1,967,607, reflecting an increase of about 4.4%[13] - Current liabilities rose to HK$775,456, compared to HK$752,522 at the end of 2019, indicating an increase of approximately 3.0%[15] - Net current liabilities increased significantly to HK$447,235 from HK$302,925, marking a rise of about 47.5%[15] - Total equity decreased to HK$1,461,444 from HK$1,520,508, a decline of approximately 3.9%[15] - Cash and bank balances decreased to HK$194,198 from HK$226,798, a reduction of about 14.4%[13] Cash Flow and Investments - Net cash generated from operating activities for the six months ended 30 June 2020 was HK$111,830,000, an increase of 31.7% compared to HK$84,902,000 in 2019[20] - Net cash used in investing activities amounted to HK$146,851,000, significantly higher than HK$76,402,000 in the previous year, indicating increased investment outflows[20] - The Group's financing activities resulted in a net cash outflow of HK$6,226,000, a significant decrease from the inflow of HK$30,501,000 in the same period last year[20] - The acquisition of exploration and evaluation assets amounted to HK$48,798,000, down from HK$80,853,000 in 2019, indicating a reduction in investment in this area[20] Future Outlook and Guidance - The company has not provided specific guidance for future performance or new product developments in the conference call[7] - The Group's directors believe there will be sufficient working capital to meet financial obligations within twelve months from June 30, 2020[33] - The Group's cash flow forecast covers a period of not less than twelve months from the end of the reporting period[33] - The Group anticipates no material impact from the application of new standards and amendments on the unaudited condensed consolidated financial statements[40] Segment Performance - The Group's operating segments include Exploration, Production and Distribution of Natural Gas, Sales of Food and Beverages, and Money Lending Business[43] - Revenue from external customers for the six months ended June 30, 2020, was HK$72,174,000, a decrease of 12.8% compared to HK$82,834,000 for the same period in 2019[51] - Reportable segment loss before income tax for the six months ended June 30, 2020, was HK$12,195,000, compared to a loss of HK$6,020,000 in 2019, indicating a significant increase in losses[51] - The food and beverages business segment did not generate any revenue for the six months ended June 30, 2020, maintaining the same status as the previous year[124] - The money lending business segment also reported no revenue for the six months ended June 30, 2020, consistent with the previous year[125] Corporate Governance - The audit committee, comprising one non-executive director and three independent non-executive directors, reviewed the unaudited financial statements for the six months ended June 30, 2020, and confirmed compliance with applicable accounting standards and legal requirements[180] - The company has complied with the Corporate Governance Code except for the separation of the roles of chairman and CEO, which are currently held by the same individual[171] - The company plans to identify a suitable candidate to fill the vacant chairman position[171] - All existing directors confirmed compliance with the Model Code regarding securities transactions throughout the review period[177] Shareholder Information - As of June 30, 2020, U.K. Prolific Petroleum Group Company Ltd. holds 1,860,000,000 shares and 4,045,654,762 underlying shares, totaling 5,905,654,762 shares, representing approximately 62.13% of the issued share capital[166] - Cypress Dragons Limited owns 970,000,000 shares, accounting for approximately 10.20% of the issued share capital[166] - Wang Guoju has a controlled interest of 2,830,000,000 shares and 4,045,654,762 underlying shares, totaling 6,875,654,762 shares, which is approximately 72.33% of the issued share capital[166] Strategic Initiatives - The Group intends to reduce reliance on the food and beverage sales and will continue to monitor the economic environment for future resource allocation[124] - The management is taking a cautious approach in the food and beverages segment, continuously assessing its value and performance[150] - The money lending business is being managed carefully, focusing on high-quality borrowers to minimize default risk[150] - The Group will review future resource allocation as necessary based on economic conditions[150]

Financial Performance - The Group recorded a revenue of approximately HK$158,060,000 for the year ended 31 December 2019, a decrease of 66.9% compared to HK$477,789,000 in 2018[9]. - The loss attributable to the owners of the Company was approximately HK$72,352,000, compared to a profit of approximately HK$27,544,000 in the previous year, marking a significant decline in performance[10]. - Loss per share attributable to the owners of the Company was 0.76 HK cents, a decrease from earnings per share of 0.29 HK cents in 2018[10]. - The revenue from the natural gas exploration, production, and distribution segment was approximately HK$158,060,000, consistent with the previous year's figure of HK$477,784,000[9]. - The money lending business segment did not contribute any revenue in 2019, down from HK$5,000 in 2018[9]. - The revenue from the natural gas distribution operation in Karamay, Xinjiang for the year was approximately HK$158,060,000, a decrease from HK$477,784,000 in 2018[18]. - The segment loss before income tax was approximately HK$137,024,000, compared to a profit of HK$163,523,000 in 2018[19]. - Impairment losses on intangible assets amounted to HK$76,458,000, while exploration and evaluation assets impairment was HK$1,000,000, and property, plant, and equipment impairment was HK$33,000,000[21]. - Exploration costs incurred for the year were HK$19,282,000, significantly lower than HK$162,326,000 in 2018[24]. - The Group reported a loss of HK$73,491,000 for the year ended 31 December 2019, with current liabilities exceeding current assets by HK$302,925,000[65]. Assets and Liabilities - As of December 31, 2019, the Group's net entitlement interests of gas reserves were estimated at 6.83 billion cubic meters (1P) and 9.19 billion cubic meters (2P)[27]. - Current liabilities as of 31 December 2019 include exploration and evaluation cost payables amounting to HK$419,069,000, up from HK$353,956,000 as of 31 December 2018[66]. - The impairment loss on Kashi Project Assets was primarily due to changes in production volume forecasts reflecting current market conditions[59]. - The post-tax discount rate decreased from 16% in 2018 to 14% in 2019, attributed to a reduction in equity risk premium in China from 10.8% to 8.76%[60]. - The valuation of Kashi Project Assets utilized the income approach, specifically the discounted cash flow method, with a 30% discount for lack of marketability applied[61]. - The Group had capital commitments of approximately HK$522,640,000 as of December 31, 2019, with HK$199,564,000 to be borne by CNPC, compared to HK$104,834,000 in 2018[41][44]. - As of December 31, 2019, the Group had no outstanding secured bank borrowings, a decrease from HK$65,931,000 in 2018, with cash and cash equivalents amounting to approximately HK$226,798,000, up from HK$68,084,000 in 2018[36]. Corporate Governance - The company emphasizes the importance of good corporate governance to attract international institutional investors and enhance shareholder value[98]. - The board recognizes that improved corporate governance assists in effective supervision and control of business operations[98]. - The Company has complied with all Corporate Governance Code provisions except for the separation of the roles of chairman and CEO, which is currently held by Mr. Zhao Guoqiang[102]. - The Board consists of five members, including one executive director, one non-executive director, and three independent non-executive directors, with independent directors representing not less than one-third of the Board[114]. - The Company has established risk management and internal control systems to safeguard shareholder investments and assets, providing reasonable assurance against material misstatements[107]. - The Company aims to ensure that its corporate governance practices regarding directors' appointments are as rigorous as those in the Corporate Governance Code[105]. - The Company has a nomination policy to ensure a board of directors with a diversity of skills and experience, with independent non-executive directors comprising at least one-third of the Board[158]. Audit and Compliance - The Group's auditors issued a qualified opinion for the year ended December 31, 2019, due to insufficient audit evidence regarding revenue recognition and asset valuations[52][54]. - The audit committee consists of one non-executive director and three independent non-executive directors, ensuring sufficient financial management expertise[168]. - The audit committee is responsible for reviewing the external auditor's independence and the effectiveness of the audit process according to applicable standards[168]. - The audit committee discusses the nature and scope of the audit with external auditors before the audit commences[168]. - The committee must consider any findings of major investigations on risk management and internal control matters as delegated by the Board[173]. Management and Strategy - The Group aims to enhance shareholder returns through sustainable growth strategies[84]. - The management is focused on finding high-quality borrowers in the money lending business to minimize default risks[83]. - The Group's cash flow forecast indicates sufficient working capital to meet financial obligations within twelve months, based on certain underlying assumptions[67]. - The Group engaged an independent third-party consulting firm to review gas reserves in accordance with internationally recognized standards[73]. - The Company will continue to monitor the impact of the COVID-19 epidemic on its operations, noting that the impact is expected to be minimal due to the nature of its gas supply operations[75]. Shareholder Relations - The Company continues to enhance communications and relationships with its investors, maintaining regular dialogue with investors and analysts to keep them informed of developments[192]. - The Company adopts a dividend policy considering factors such as current and projected financial performance, growth opportunities, and macroeconomic conditions before declaring dividends[193]. - Shareholders holding not less than one-tenth of the paid-up capital can requisition an extraordinary general meeting, which must be held within two months of the requisition[182]. - The Company ensures that all shareholder votes at general meetings are taken by poll, with results published on the Company and Stock Exchange websites[12].

Financial Performance - Revenue for the six months ended June 30, 2019, was HK$82,834,000, a decrease of 75.8% compared to HK$342,939,000 in 2018[10]. - Loss before income tax for the period was HK$29,068,000, compared to a profit of HK$206,693,000 in the same period of 2018[10]. - Loss for the period amounted to HK$29,412,000, a significant decline from a profit of HK$122,808,000 in 2018[10]. - Total comprehensive loss for the period was HK$42,985,000, compared to a comprehensive income of HK$102,475,000 in 2018[12]. - Basic and diluted loss per share was HK$0.30, compared to earnings per share of HK$1.31 in the previous year[12]. - The Group reported a loss of HK$29,412,000 for the six months ended June 30, 2019, with current liabilities exceeding current assets by HK$42,694,000, indicating significant financial uncertainty[36]. - For the six months ended June 30, 2019, the company reported a loss attributable to owners of HK$28,782,000 compared to a profit of HK$124,175,000 for the same period in 2018, representing a significant decline[150]. Income and Expenses - Other income increased to HK$1,372,000 from HK$689,000, reflecting a growth of 99.3% year-on-year[10]. - The company incurred finance costs of HK$16,515,000, up from HK$3,813,000 in 2018, indicating a significant increase in financing expenses[10]. - Selling and distribution expenses increased by HK$37,770,000, finance costs rose by HK$12,702,000, and fair value losses on financial assets held for trading increased by HK$10,308,000[187]. - Interest income for the period was HK$263,000, while interest expense amounted to HK$11,694,000[79][80]. Assets and Liabilities - As of June 30, 2019, total assets increased to HK$2,426,696,000 from HK$2,411,573,000 at the end of 2018, representing a growth of approximately 0.63%[14]. - Non-current assets totaled HK$1,876,123,000, up from HK$1,808,681,000, indicating an increase of about 3.74%[14]. - Current liabilities rose to HK$593,267,000 from HK$550,062,000, reflecting an increase of approximately 7.85%[16]. - Net assets decreased to HK$1,591,674,000 from HK$1,634,659,000, a decline of about 2.62%[16]. - Total liabilities as of June 30, 2019, were HK$835,022, an increase of 7.4% from HK$776,914 as of December 31, 2018[119]. Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2019, was HK$84,902,000, a significant increase from HK$5,673,000 in 2018, representing a growth of approximately 1397%[23]. - Net cash used in investing activities was HK$76,402,000, a decrease from HK$83,458,000 in the previous year, indicating a reduction of about 8%[23]. - Net cash generated from financing activities amounted to HK$30,501,000, compared to HK$1,832,000 in 2018, reflecting an increase of approximately 1567%[23]. - The total cash and cash equivalents at the end of the period reached HK$110,160,000, up from HK$84,688,000 in 2018, marking an increase of about 30%[23]. Shareholder and Equity Information - The company’s equity attributable to owners decreased to HK$1,580,112,000 from HK$1,622,353,000, a decrease of approximately 2.59%[20]. - The total number of issued and fully paid ordinary shares as of June 30, 2019, was 9,505,344,000, amounting to HK$475,267,000[174]. - The company’s authorized share capital was 25,000,000,000 ordinary shares, amounting to HK$1,250,000,000[174]. Taxation - The current tax charge for the period was HK$29,000, while the deferred tax charge amounted to HK$315,000, compared to HK$83,885,000 in the previous year[145]. - The total tax expense for the period was HK$344,000, significantly lower than HK$83,885,000 in the previous year[145]. Strategic Initiatives - The company continues to explore opportunities for market expansion and new product development as part of its strategic initiatives[151]. - The Group is expected to have sufficient working capital to meet its financial obligations within the next twelve months[41]. Exploration and Development - The Group's wholly-owned subsidiary entered into a petroleum contract with CNPC for the Kashi Project, which has a term of 30 years starting from June 1, 2009[188]. - The actual volume of gas production from the Kashi Project increased to 153,558,000 cubic meters for the six months ended June 30, 2019, compared to 122,500,000 cubic meters in the same period of 2018[155]. - No development and production activity was carried out under the Petroleum Contract, as the contract remains in the exploration phase[199].