Financial Performance - The Group recorded a revenue of approximately HK$477,789,000 for the year ended 31 December 2018, a significant increase from HK$13,039,000 in 2017[14]. - Revenue from the exploration, production, and distribution of natural gas was approximately HK$477,784,000, up from HK$12,630,000 in the previous year[14]. - The profit attributable to the owners of the Company was approximately HK$27,544,000, compared to a loss of approximately HK$235,510,000 in 2017[15]. - Earnings per share attributable to the owners of the Company was 0.29 HK cents, a recovery from a loss per share of 2.48 HK cents in the prior year[15]. - China Era recorded revenue of approximately HK$466,880,000 for the year ended December 31, 2018, with settlements from CNPC amounting to approximately HK$83,449,000 received by the date of the annual report[30]. - The operation, including natural gas distribution in Karamany, Xinjiang, contributed revenue of approximately HK$477,784,000, a significant increase from HK$12,630,000 in 2017[32]. - Segment profit before income tax was approximately HK$163,523,000, compared to a loss of HK$216,136,000 in 2017[32]. - The Group recorded a total revenue of HK$477,784,000 for the year ended 31 December 2018, which included approximately HK$466,880,000 from the Kashi Project and approximately HK$10,904,000 from the Karamay pipelined gas project[51]. Project Development - The Company entered into a petroleum contract with China National Petroleum Corporation for oil and natural gas exploration in the North Kashi Block, Tarim Basin, Xinjiang, PRC[16]. - Under the petroleum contract, development costs for any discovered oil or gas fields will be shared 51% by CNPC and 49% by China Era Energy Power Investment[22]. - The Overall Development Program (ODP) for the Kashi Project was approved internally by CNPC in December 2018, and the approval requirement by the National Development and Reform Commission (NDRC) was relaxed[30]. - The directors expect the progress of the Kashi Project to be expedited by the new procedures, with the development period starting immediately after the ODP finalization and filing[30]. - As of December 31, 2018, negotiations for the Gas Sales Agreements (GSA) with CNPC were ongoing, with expectations to finalize and sign the GSA in 2019[30]. - The Kashi Project made significant progress in the first half of 2018, including obtaining a new RMB100 million banking facility secured by accounts receivable under the Petroleum Contract[84][86]. - The development period for the Kashi Project will commence upon ODP filing/approval and will last until the completion of required development operations[89]. - The management is actively pursuing the finalization of the Overall Development Plan (ODP) and Gas Sale Agreement (GSA) for the Kashi Project to expedite the commencement of commercial production[90][93]. Financial Position - As of December 31, 2018, the Group's cash and cash equivalents were approximately HK$68,084,000, down from HK$171,926,000 in 2017[45]. - The Group had outstanding secured bank borrowings of approximately HK$65,931,000 as of December 31, 2018, compared to none in 2017[45]. - The current ratio improved to approximately 109.6% in 2018 from 55.7% in 2017[45]. - The ratio of total liabilities to total assets was approximately 32.2% in 2018, up from 27.6% in 2017[45]. - The Group's convertible notes outstanding amounted to HK$679,670,000, due in 2041, with a conversion price of HK$0.168 per share[45]. - The Company's net current asset position improved from net current liabilities of HK$258,872,000 as of December 31, 2017, to net current assets of HK$52,830,000 as of December 31, 2018[71][72]. Impairment and Exploration Costs - Impairment losses on intangible assets and exploration and evaluation assets were recognized at HK$95,000,000 and HK$36,000,000, respectively, during the current year[32]. - Exploration costs incurred during the year amounted to HK$162,326,000, with no costs reported in 2017[38]. - Impairment losses for intangible assets and exploration and evaluation assets were HK$212,727,000 and HK$36,000,000 respectively, compared to HK$162,000,000 and HK$39,000,000 in 2017[35]. - The impairment of Kashi Project Assets was primarily due to the adjustment of gas sales price from RMB1.094 to RMB0.9856 per cubic meter, and the adjustment of capital expenditure budget from USD 74.0 million to USD 92.6 million[63]. Corporate Governance - The board consists of five members, including three independent non-executive directors, ensuring diverse expertise and governance[131]. - The Company has established three Board committees: audit, remuneration, and nomination, to oversee specific aspects of the Group's affairs[141]. - The Company emphasizes risk management related to directors' liabilities and has arranged appropriate liability insurance for directors and senior management, reviewed annually[144]. - The Company has complied with all Corporate Governance Code provisions except for the separation of the roles of chairman and CEO, which is currently under review[124]. - The Company considers all independent non-executive directors to be independent, confirming no material relationships among them[137]. Shareholder Engagement - The Company provides a forum for communication between shareholders and the Board during general meetings[185]. - Shareholders holding not less than one-tenth of the paid-up capital can requisition an extraordinary general meeting[188]. - The extraordinary general meeting must be held within two months after the requisition is deposited[188]. - The Company continues to enhance communications and relationships with its investors through regular dialogue with designated senior management[196]. Future Outlook - The company has set a target revenue growth of 10% for the upcoming fiscal year, aiming to reach HKD 1.32 billion[115]. - New product launches are expected to contribute an additional HKD 200 million in revenue in 2019[115]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[115]. - The Group aims to secure additional debt and/or equity funding to support the further development of the Kashi Project[90][93].