Financial Performance - Revenue for the year ended December 31, 2023, was HKD 332,034,000, representing a 2.8% increase from HKD 323,028,000 in 2022[59]. - Profit attributable to owners of the company decreased by 16.5% to HKD 69,529,000 from HKD 83,265,000 in the previous year[59]. - Basic earnings per share fell by 17.0% to HKD 0.73 compared to HKD 0.88 in 2022[59]. - The group reported a profit before tax of HKD 90,765,000, slightly down from HKD 91,819,000 in the prior year[70]. - Total comprehensive income for the year was HKD 5,238,000, a recovery from a loss of HKD 52,366,000 in 2022[71]. - The group reported a decrease in other income to HKD 5,414,000 from HKD 8,152,000 in the previous year[70]. - The group’s financing costs decreased to HKD 49,176,000 from HKD 54,616,000 in the prior year[70]. - The net profit attributable to the owners of the company decreased by approximately HKD 13,736,000 or 16.5% to HKD 69,529,000, primarily due to a reduction in impairment reversals and an increase in tax expenses[128]. - The net profit margin decreased by 4.9% to 20.7%, while the EBITDA margin decreased by 1.1% to 66.1% for the year ended December 31, 2023[119]. Assets and Liabilities - As of December 31, 2023, the group's current liabilities exceeded current assets by approximately HKD 158,851,000, indicating significant uncertainty regarding the group's ability to continue as a going concern[38]. - Current liabilities primarily consisted of amounts payable for construction, plant, and equipment, totaling approximately HKD 77,256,000, down from HKD 142,966,000 as of December 31, 2022[39]. - The group’s total current liabilities amounted to HKD 304,698,000, a decrease from HKD 543,941,000 in the previous year[46]. - Non-current liabilities totaled HKD 329,866,000, compared to HKD 289,550,000 in the previous year, reflecting an increase of approximately 13.9%[48]. - The group's total assets less current liabilities stood at HKD 2,061,722,000, slightly up from HKD 2,016,168,000 in the previous year[46]. - The net asset value was reported at HKD 1,731,856,000, showing a marginal increase from HKD 1,726,618,000 year-on-year[48]. - The group’s total non-current assets were valued at HKD 2,220,573,000, down from HKD 2,367,579,000 in the previous year, indicating a decrease of approximately 6.2%[46]. - The group’s current assets totaled HKD 145,847,000, a decrease from HKD 192,530,000 in the previous year, reflecting a decline of approximately 24.2%[46]. Capital Expenditures - The group incurred capital expenditures of approximately HKD 1,945,000 for natural gas exploration, production, and distribution, with a significant portion (approximately HKD 992,000) covered by China National Petroleum Corporation[7]. - The group’s capital expenditure increased to HKD 30,829,000 for the year ended December 31, 2023[75]. - The company incurred costs of approximately HKD 30,829,000 for property, plant, and equipment in 2023, significantly higher than HKD 7,595,000 in 2022[107]. Segment Performance - The group recorded no revenue from the food and beverage segment in 2023 and 2022, with a pre-tax segment loss of approximately HKD 410,000 in 2023 (2022: approximately HKD 509,000) due to a planned reduction in reliance on this segment[2]. - For the year ended December 31, 2023, the revenue from gas exploration, production, and distribution in China was HKD 332,034,000, an increase from HKD 323,028,000 in 2022[79]. - The segment profit before tax for the year ended December 31, 2023, was HKD 113,979,000, down from HKD 117,736,000 in 2022[84]. - The reported segment profit before tax for the gas exploration, production, and distribution segment was HKD 118,413,000, while the total reported segment profit was HKD 117,736,000[77]. Governance and Compliance - The group has maintained compliance with public shareholding requirements as stipulated by listing rules during the reporting period[17]. - The audit committee consists of three independent non-executive directors, with two members holding recognized professional accounting qualifications[21]. - The consolidated financial statements for the year ending December 31, 2023, have been reviewed by the audit committee and are deemed to comply with applicable accounting standards and regulations[21]. - The audit committee has adopted a scope of authority consistent with corporate governance guidelines[21]. - The company is actively seeking to appoint a female director to comply with the new diversity requirements by December 31, 2024[33]. Risk Management - The group has not established any derivative contracts to mitigate foreign exchange risks during the year, but management will closely monitor foreign currency risks and consider hedging if necessary[6]. - The group has not established an internal audit function during the reporting period, but will review the appropriateness and effectiveness of its risk management and internal control systems[19]. - The group has no significant contingent liabilities as of December 31, 2023[168]. Future Outlook - The group will continue to evaluate the value and performance of the food and beverage segment and will review resource allocation as needed based on economic conditions[12]. - The group’s cash flow forecasts are based on several assumptions, including financial support from the largest shareholder, UK Woburn, if the company cannot meet its obligations[40]. - Management will continue to seek additional debt and/or equity financing to improve the company's financial condition and liquidity[174]. - The company anticipates sufficient operating funds to meet its financial obligations within 12 months from December 31, 2023, based on several assumptions including financial support from its largest shareholder[170]. Miscellaneous - There were no significant events affecting the group from the end of the reporting period until the date of this announcement[18]. - The company has not entered into any significant external guarantees or contracts that would generate profit or loss during the reporting period[15][16]. - The company has not disclosed any material contracts or arrangements that require reporting under the listing rules[29]. - The company did not declare any dividends for the year ended December 31, 2023, consistent with 2022[91]. - The company has not experienced any bankruptcy restructuring during the reporting period[28]. - The company has not purchased, redeemed, or sold any of its listed securities during the reporting period[184].

Financial Performance - For the six months ended June 30, 2023, the total comprehensive loss was HK$45,831,000 compared to a loss of HK$13,738,000 for the same period in 2022, indicating a significant increase in losses [10]. - The profit attributable to owners of the company for the period was HK$35,141,000, down from HK$61,875,000 in the previous year, reflecting a decrease of approximately 43.4% [10]. - Basic earnings per share decreased to HK$0.37 from HK$0.65, representing a decline of 43.1% year-over-year [10]. - Revenue for the six months ended June 30, 2023, was HK$168,281,000, a decrease of 9.3% compared to HK$185,555,000 in 2022 [22]. - Profit before income tax for the period was HK$46,054,000, down 35.3% from HK$71,072,000 in the previous year [22]. - Profit for the period decreased to HK$34,494,000, representing a decline of 44.1% from HK$61,707,000 in 2022 [22]. - Other income decreased to HK$1,043,000 from HK$2,847,000, reflecting a decline of 63.4% [22]. - Staff costs were reduced to HK$8,299,000, down 13.2% from HK$9,557,000 in the previous year [22]. - Finance costs slightly decreased to HK$26,567,000 from HK$26,883,000, a reduction of 1.2% [22]. - The accumulated losses increased to HK$284,110,000 as of June 30, 2023, compared to HK$204,351,000 at the beginning of the year [25]. - The comprehensive loss was adjusted for the impact of the fall of RMB and the appreciation of HKD, amounting to approximately HK$79,759,000 for the six months ended 30 June 2023 [184]. Assets and Liabilities - Total assets as of June 30, 2023, were HK$2,476,790,000, down from HK$2,560,109,000 at the end of 2022, a decrease of about 3.3% [11]. - Non-current assets decreased to HK$2,236,096,000 from HK$2,367,579,000, reflecting a reduction of approximately 5.5% [11]. - Current liabilities decreased to HK$510,039,000 from HK$543,941,000, showing a decline of about 6.2% [13]. - Net current liabilities improved to HK$269,345,000 from HK$351,411,000, indicating a positive change in liquidity [13]. - The total equity attributable to owners of the company decreased to HK$1,670,895,000 from HK$1,715,513,000, a decline of approximately 2.6% [13]. - The total liabilities of the Group as of June 30, 2023, were HK$796,003,000, down from HK$833,491,000 as of December 31, 2022 [93]. - Reportable segment liabilities as of June 30, 2023, were HK$648,382,000, a decrease from HK$690,618,000 as of December 31, 2022 [93]. Cash Flow and Liquidity - Net cash generated from operating activities was HK$56,483,000, compared to a cash outflow of HK$39,760,000 in the same period last year [29]. - Cash and cash equivalents at the end of the period amounted to HK$134,167,000, down from HK$150,988,000 at the end of June 2022 [29]. - The company reported a foreign exchange loss of HK$79,759,000 during the period [29]. - The Group anticipates sufficient working capital to meet financial obligations within twelve months from June 30, 2023, based on several underlying assumptions [62]. - The Group's cash flow management policy aims to minimize risks associated with foreign currency exchange rates and interest rate fluctuations [73]. Segment Information - The Group is organized into three reportable operating segments: exploration, production and distribution of natural gas; sales of food and beverages; and money lending business [57]. - Revenue from external customers for the six months ended June 30, 2023, was HK$168,281,000 [60]. - Reportable segment profit before income tax was HK$62,160,000, with a profit from natural gas exploration and production of HK$62,499,000 [60]. - No revenue was generated from the food and beverage segment for the six months ended 30 June 2023, with a segment loss before tax expenses of approximately HK$246,000 [190]. - The money lending business operated by Zhong Neng Finance Limited generated no revenue for the six months ended 30 June 2023, with a segment loss before tax expenses of approximately HK$93,000 [191]. Management and Governance - The interim financial statements for the six months ended June 30, 2023, have been reviewed by the Company's Audit Committee but not audited [72]. - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, with no significant changes to accounting policies or financial statement presentation [53][54]. - The Group's financial performance reflects a cautious approach to cash management and risk monitoring [73]. - The Group faced challenges from a slower-than-expected recovery of the PRC's economy post-COVID-19 and complex market conditions [197]. - The Group will continue to monitor the economic environment and adjust resource allocation as necessary in response to market conditions [190]. Shareholder Information - No dividends were declared or proposed for the six months ended June 30, 2023, similar to the previous year [102]. - The total issued and fully paid ordinary shares as of June 30, 2023, was 9,505,344,000 shares [161]. - The weighted average number of ordinary shares in issue remained constant at 9,505,344,000 for both periods [104]. Impairment and Asset Management - The Group recognized a reversal of impairment of approximately HK$479,000 for the Kashi Project for the six months ended 30 June 2023, compared to HK$4,316,000 for the same period in 2022 [106]. - The impairment assessment for the Kashi Project was conducted by management, using the same methodology and assumptions as at December 31, 2022 [134]. - No impairment loss of intangible assets was recognized during the six months ended June 30, 2023, consistent with the same period in 2022 [132]. - The future development of the Kashi Project is discussed in the "Management Discussion and Analysis" section of the interim report [134].

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) This section serves as the overarching announcement for the company's interim financial performance and related disclosures [Financial Summary](index=1&type=section&id=Financial%20Summary) Provides a concise overview of the company's key financial performance metrics for the period ended June 30, 2023 Financial Summary for the Six Months Ended June 30, 2023 | Metric | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | Increase/(Decrease) | | :--- | :--- | :--- | :--- | | Revenue | 168,281 | 185,555 | (9.3)% | | EBITDA | 112,859 | 140,266 | (19.5)% | | EBITDA Margin | 67.1% | 75.6% | (8.5)% | | Profit Attributable to Owners of the Company | 35,141 | 61,875 | (43.2)% | | Net Profit Margin | 20.9% | 33.3% | (12.4)% | | Basic Earnings Per Share (HK Cents) | 0.37 | 0.65 | (43.1)% | | Diluted Earnings Per Share (HK Cents) | 0.30 | 0.50 | (40.0)% | [Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Details the company's revenues, expenses, and overall profit or loss for the six months ended June 30, 2023 Condensed Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30, 2023) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 168,281 | 185,555 | | Direct Costs | (21,609) | (29,561) | | Other Income | 1,043 | 2,847 | | Selling and Distribution Expenses | (14,587) | (17,351) | | Staff Costs | (8,299) | (9,557) | | Short-term Lease Costs | (2,089) | (240) | | Depreciation of Right-of-Use Assets | (4,775) | (5,736) | | Depreciation of Property, Plant and Equipment | (18,506) | (20,834) | | Amortization of Intangible Assets | (13,277) | (15,741) | | Fair Value Gains or Losses on Financial Assets at Fair Value Through Profit or Loss | (5,995) | (5,188) | | Reversal of Impairment Loss on Property, Plant and Equipment | 479 | 4,316 | | Reversal of Impairment Loss on Intangible Assets | 1,836 | 16,603 | | Fees under Petroleum Contract | (4,761) | (2,770) | | Other Operating Expenses | (5,120) | (4,388) | | Finance Costs | (26,567) | (26,883) | | Profit Before Income Tax | 46,054 | 71,072 | | Income Tax Expense | (11,560) | (9,365) | | Profit for the Period | 34,494 | 61,707 | | Profit for the Period Attributable to Owners of the Company | 35,141 | 61,875 | | Profit for the Period Attributable to Non-controlling Interests | (647) | (168) | | Total Comprehensive Loss for the Period | (45,831) | (13,738) | | Total Comprehensive Loss for the Period Attributable to Owners of the Company | (44,618) | (12,971) | | Total Comprehensive Loss for the Period Attributable to Non-controlling Interests | (1,213) | (767) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Presents the company's assets, liabilities, and equity as of June 30, 2023, and December 31, 2022 Condensed Consolidated Statement of Financial Position (As at June 30, 2023) | Item | June 30, 2023 (HK$ Thousand) | December 31, 2022 (HK$ Thousand) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Right-of-Use Assets | 7,669 | 12,820 | | Exploration and Evaluation Assets | 253 | 265 | | Intangible Assets | 1,105,467 | 1,168,668 | | Deferred Tax Assets | 10,658 | 22,820 | | **Current Assets** | | | | Trade Receivables | 56,761 | 187 | | Financial Assets at Fair Value Through Profit or Loss | 22,858 | 28,854 | | Other Receivables, Deposits and Prepayments | 26,908 | 32,193 | | Cash and Bank Balances | 134,167 | 131,296 | | **Total Assets** | 2,476,790 | 2,560,109 | | **Current Liabilities** | | | | Other Payables and Accruals | 181,342 | 196,240 | | Lease Liabilities | 2,752 | 8,106 | | Amount Due to a Shareholder | 33,835 | 33,835 | | Other Borrowings | 292,110 | 305,760 | | **Net Current Liabilities** | (269,345) | (351,411) | | **Non-current Liabilities** | | | | Other Borrowings | 172,270 | 180,320 | | Lease Liabilities | 73 | 1,441 | | Convertible Bonds | 113,621 | 107,789 | | **Net Assets** | 1,680,787 | 1,726,618 | | **Total Equity** | 1,680,787 | 1,726,618 | [Notes to the Condensed Consolidated Interim Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) Provides detailed explanations and disclosures for the figures presented in the interim financial statements [1. Basis of Preparation](index=6&type=section&id=1.%20Basis%20of%20Preparation) Outlines the accounting standards used and the going concern assessment for the interim financial statements - The interim financial statements are prepared in accordance with HKAS 34 and Appendix 16 of the Listing Rules, consistent with the accounting policies and methods used in the 2022 annual financial statements[18](index=18&type=chunk) - As of June 30, 2023, the Group's current liabilities exceeded current assets by approximately **HK$269 million** (December 31, 2022: HK$351 million), primarily due to payables for property, plant and equipment and other borrowings[19](index=19&type=chunk) - Directors believe the Group can meet its financial obligations over the next 12 months through shareholder financial support, negotiation with contractors and creditors for extended repayment terms, bank borrowings, and maintaining operating cash flow, thus preparing the statements on a going concern basis[21](index=21&type=chunk) [2. Adoption of New and Revised HKFRSs](index=7&type=section&id=2.%20Adoption%20of%20New%20and%20Revised%20HKFRSs) Discusses the adoption of new accounting standards and their impact on the financial statements - The Group has adopted all new and revised HKFRSs effective for accounting periods beginning on or after January 1, 2023[22](index=22&type=chunk) - The adoption of new standards has not resulted in significant changes to the Group's accounting policies, financial statement presentation, or reported amounts, and directors anticipate no material impact from future applications[26](index=26&type=chunk) [3. Revenue and Segment Information](index=7&type=section&id=3.%20Revenue%20and%20Segment%20Information) Details the company's revenue sources and performance across its reportable operating segments - The Group has three reportable operating segments: natural gas exploration, production and distribution (primarily in Kashgar and Karamay, Xinjiang), sales of food and beverage business, and money lending business[23](index=23&type=chunk)[34](index=34&type=chunk) Reportable Segment Revenue and Profit (For the Six Months Ended June 30, 2023) | Segment | Revenue from External Customers (HK$ Thousand) | Reportable Segment Profit Before Income Tax (HK$ Thousand) | | :--- | :--- | :--- | | Exploration, Production and Distribution of Natural Gas | 168,281 | 62,499 | | Sales of Food and Beverage Business | – | (246) | | Money Lending Business | – | (93) | | **Total** | **168,281** | **62,160** | Reportable Segment Revenue and Profit (For the Six Months Ended June 30, 2022) | Segment | Revenue from External Customers (HK$ Thousand) | Reportable Segment Profit Before Income Tax (HK$ Thousand) | | :--- | :--- | :--- | | Exploration, Production and Distribution of Natural Gas | 185,555 | 83,064 | | Sales of Food and Beverage Business | – | (236) | | Money Lending Business | – | (62) | | **Total** | **185,555** | **82,766** | - All revenue is derived from Mainland China and entirely from natural gas sales, recognized at a point in time[45](index=45&type=chunk) [4. Other Income](index=10&type=section&id=4.%20Other%20Income) Presents a breakdown of the company's other income streams for the reporting period Other Income (For the Six Months Ended June 30, 2023) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Interest Income | 690 | 923 | | Others | 353 | 1,924 | | **Total** | **1,043** | **2,847** | [5. Finance Costs](index=10&type=section&id=5.%20Finance%20Costs) Details the company's finance-related expenses incurred during the reporting period Finance Costs (For the Six Months Ended June 30, 2023) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on Other Borrowings | 20,418 | 20,923 | | Interest on Lease Liabilities | 318 | 698 | | Interest on Convertible Bonds | 5,831 | 5,262 | | **Total Interest Expense** | **26,567** | **26,883** | [6. Profit Before Income Tax](index=11&type=section&id=6.%20Profit%20Before%20Income%20Tax) Explains the components contributing to the company's profit before income tax Components of Profit Before Income Tax (For the Six Months Ended June 30, 2023) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Depreciation of Right-of-Use Assets | 4,775 | 5,736 | | Depreciation of Property, Plant and Equipment | 18,506 | 20,834 | | Amortization of Intangible Assets | 13,277 | 15,741 | | Fair Value Loss on Financial Assets at Fair Value Through Profit or Loss | 5,995 | 5,188 | | Reversal of Impairment Loss on Property, Plant and Equipment | (479) | (4,316) | | Reversal of Impairment Loss on Intangible Assets | (1,836) | (16,603) | | Net Foreign Exchange Gain | (4) | (52) | | Staff Costs (including Directors' Emoluments) | 8,299 | 9,557 | [7. Income Tax Expense](index=11&type=section&id=7.%20Income%20Tax%20Expense) Details the company's income tax expenses and related provisions Income Tax Expense (For the Six Months Ended June 30, 2023) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Current Tax | – | – | | Deferred Tax Expense | 11,560 | 9,365 | | **Total Tax Expense for the Period** | **11,560** | **9,365** | - The Group has not made provisions for Hong Kong Profits Tax and PRC Enterprise Income Tax, as income is not sourced from Hong Kong and there are unutilized tax losses to offset profits[49](index=49&type=chunk) [8. Dividends](index=11&type=section&id=8.%20Dividends) States the company's dividend policy and declarations for the reporting period - No dividends were paid or proposed for the six months ended June 30, 2023, nor have any been proposed since the end of the reporting period[56](index=56&type=chunk) [9. Earnings Per Share](index=12&type=section&id=9.%20Earnings%20Per%20Share) Calculates the basic and diluted earnings per share for the reporting period Basic Earnings Per Share (For the Six Months Ended June 30, 2023) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (HK$ Thousand) | 35,141 | 61,875 | | Weighted Average Number of Ordinary Shares Issued | 9,505,344,000 | 9,505,344,000 | | **Basic Earnings Per Share (HK Cents)** | **0.37** | **0.65** | Diluted Earnings Per Share (For the Six Months Ended June 30, 2023) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company for Diluted EPS Calculation (HK$ Thousand) | 40,972 | 67,137 | | Weighted Average Number of Ordinary Shares Issued | 9,505,344,000 | 9,505,344,000 | | Effect of Potential Dilutive Ordinary Shares from Convertible Bonds | 4,045,654,761 | 4,045,654,761 | | **Diluted Earnings Per Share (HK Cents)** | **0.30** | **0.50** | [10. Property, Plant and Equipment](index=13&type=section&id=10.%20Property,%20Plant%20and%20Equipment) Provides details on the company's property, plant, and equipment, including depreciation and impairment reversals - For the six months ended June 30, 2023, a reversal of impairment loss of approximately **HK$479 thousand** was recognized for Kashgar project's property, plant and equipment, a significant decrease from the prior period (HK$4,316 thousand)[54](index=54&type=chunk) - The recoverable amount is determined based on value in use, using a discounted cash flow method with a pre-tax discount rate of **16.8%**[54](index=54&type=chunk) - No new property, plant and equipment were added during the period[59](index=59&type=chunk) [11. Exploration and Evaluation Assets](index=13&type=section&id=11.%20Exploration%20and%20Evaluation%20Assets) Details the company's exploration and evaluation assets, including any impairment assessments - For the six months ended June 30, 2023, the Group neither acquired exploration and evaluation assets nor recognized any impairment reversals[62](index=62&type=chunk)[63](index=63&type=chunk) - The recoverable amount of Kashgar project's exploration and evaluation assets is based on value in use, determined using a discounted cash flow method with a pre-tax discount rate of **16.8%**[63](index=63&type=chunk) [12. Intangible Assets](index=13&type=section&id=12.%20Intangible%20Assets) Provides information on the company's intangible assets, including amortization and impairment reversals - For the six months ended June 30, 2023, amortization of intangible assets was approximately **HK$13,277 thousand**, amortized using the units of production method[172](index=172&type=chunk) - A reversal of impairment loss of approximately **HK$1,836 thousand** was recognized for intangible assets during the period, a significant decrease from the prior period (HK$16,603 thousand), as the recoverable amount of the Kashgar project's cash-generating unit exceeded its carrying amount[69](index=69&type=chunk) - The recoverable amount of the Kashgar project's cash-generating unit is based on value in use, calculated using a discounted cash flow method with a pre-tax discount rate of **16.8%**[69](index=69&type=chunk) [13. Trade Receivables](index=14&type=section&id=13.%20Trade%20Receivables) Details the company's trade receivables, including aging analysis and collateral information - Trade receivables primarily arise from the natural gas exploration, production and distribution segment, with credit terms typically ranging from **30 to 60 days**, and no overdue or impaired amounts[74](index=74&type=chunk) Aging Analysis of Trade Receivables (As at June 30, 2023) | Aging | June 30, 2023 (HK$ Thousand) | December 31, 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Within 3 Months | 56,761 | 187 | - As of June 30, 2023, approximately **HK$56,761 thousand** of trade receivables were pledged as collateral for other borrowings[74](index=74&type=chunk) [14. Other Payables and Accruals](index=14&type=section&id=14.%20Other%20Payables%20and%20Accruals) Presents a breakdown of the company's other payables and accrued expenses Other Payables and Accruals (As at June 30, 2023) | Item | June 30, 2023 (HK$ Thousand) | December 31, 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Payables for Property, Plant and Equipment/Exploration and Evaluation | 121,583 | 142,966 | | Others | 59,759 | 53,274 | | **Total** | **181,342** | **196,240** | - Payables for costs represent balances due to subcontractors for exploration, evaluation, and development work in the petroleum contract area[75](index=75&type=chunk) - Advances from China National Petroleum Corporation amounted to approximately **HK$11,617 thousand** (December 31, 2022: HK$16,203 thousand)[71](index=71&type=chunk) [15. Amount Due to a Shareholder](index=14&type=section&id=15.%20Amount%20Due%20to%20a%20Shareholder) Details the amount owed to a shareholder and its terms - The amount due to a shareholder is unsecured, interest-free, and repayable on demand, totaling **HK$33,835 thousand**[72](index=72&type=chunk) [16. Other Borrowings](index=14&type=section&id=16.%20Other%20Borrowings) Provides information on the company's other borrowings, including terms and collateral Other Borrowings (As at June 30, 2023) | Item | June 30, 2023 (HK$ Thousand) | December 31, 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Secured Other Borrowings | 464,380 | 486,080 | - Other borrowings are denominated in RMB, bear an annual interest rate of **8.5%**, and are secured by the Group's trade receivables and rights to natural gas sharing amounts and sales revenue under product sharing and sales agreements[73](index=73&type=chunk) [17. Convertible Bonds](index=15&type=section&id=17.%20Convertible%20Bonds) Details the company's convertible bonds, including principal amount, conversion terms, and activity - The outstanding principal amount of convertible bonds is **HK$679,670 thousand**, maturing 30 years from the issue date, and are non-interest bearing[77](index=77&type=chunk) - The conversion price is **HK$0.168 per share** (subject to adjustment), allowing for the allotment and issue of up to **4,045,654,761 shares** if fully exercised[127](index=127&type=chunk) - No convertible bonds were converted during the six months ended June 30, 2023, or the year ended December 31, 2022[82](index=82&type=chunk) [18. Share Capital](index=15&type=section&id=18.%20Share%20Capital) Outlines the company's authorized and issued share capital structure Share Capital Structure (As at June 30, 2023) | Item | Number of Shares | Amount (HK$ Thousand) | | :--- | :--- | :--- | | Authorized Share Capital (Ordinary Shares of HK$0.05 each) | 25,000,000,000 | 1,250,000 | | Issued and Fully Paid Share Capital (Ordinary Shares of HK$0.05 each) | 9,505,344,000 | 475,267 | [19. Related Party Transactions](index=15&type=section&id=19.%20Related%20Party%20Transactions) Details significant transactions with related parties, primarily key management personnel remuneration Key Management Personnel Remuneration (For the Six Months Ended June 30, 2023) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Directors - Short-term Employee Benefits | 814 | 810 | | Directors - Bonuses | – | 2,754 | | **Total** | **814** | **3,564** | [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) Provides management's perspective on the company's financial performance, operational highlights, and future outlook [(1) Company Profile](index=16&type=section&id=(1)%20Company%20Profile) Introduces the company's principal activities and key operational projects - The Company's principal business is investment holding, with subsidiaries engaged in oil and gas exploration, natural gas distribution, food and beverage sales, and money lending businesses[92](index=92&type=chunk) - The Group owns two oil and gas exploration, development, and production projects: the Kashgar project (located in the Kashgar North Block of the Tarim Basin, Xinjiang, China) and the Karamay project (located near Karamay City, Xinjiang, China)[86](index=86&type=chunk)[87](index=87&type=chunk)[93](index=93&type=chunk) [(2) Business Review](index=16&type=section&id=(2)%20Business%20Review) Reviews the company's overall business performance, revenue drivers, and profit changes for the period - In the first half of 2023, the Group's revenue decreased by **9.3%** to approximately **HK$168 million**, primarily due to slower-than-expected domestic economic recovery, reduced natural gas demand from warmer spring temperatures, and scheduled maintenance at the Kashgar project[94](index=94&type=chunk) - Profit attributable to owners of the Company decreased by **43.2%** to approximately **HK$35,141 thousand**, and total comprehensive loss attributable to owners of the Company increased by **244.0%**, mainly impacted by RMB depreciation and HKD appreciation[94](index=94&type=chunk) [(a) Natural Gas Exploration, Production and Distribution Segment](index=17&type=section&id=(a)%20Natural%20Gas%20Exploration,%20Production%20and%20Distribution%20Segment) Focuses on the performance and key metrics of the natural gas business segment - The natural gas exploration, production and distribution segment contributed revenue of approximately **HK$168,281 thousand** (a **9.3%** year-on-year decrease) and profit before income tax of approximately **HK$62,499 thousand** (a **24.8%** year-on-year decrease)[107](index=107&type=chunk) - Natural gas allocation from the Kashgar project decreased from approximately **152 million cubic meters** in the first half of 2022 to approximately **147 million cubic meters** in the first half of 2023[107](index=107&type=chunk) - The Kashgar project's petroleum contract is for a term of **30 years** from June 1, 2009, with development costs borne by China National Petroleum Corporation and the Group at **51%** and **49%** respectively[97](index=97&type=chunk) [(b) Sales of Food and Beverage Business](index=17&type=section&id=(b)%20Sales%20of%20Food%20and%20Beverage%20Business) Reviews the performance of the food and beverage segment, noting its challenges - In the first half of 2023, the sales of food and beverage business segment recorded no revenue, with a segment loss before tax expense of approximately **HK$246 thousand** (first half of 2022: HK$236 thousand)[98](index=98&type=chunk) - The food and beverage industry has been severely impacted by the 2019 pandemic, and the Group will continue to monitor the economic environment and review future resource allocation[98](index=98&type=chunk) [(c) Money Lending Business](index=18&type=section&id=(c)%20Money%20Lending%20Business) Reviews the performance of the money lending segment and its credit policy - In the first half of 2023, the money lending business segment generated no revenue, with a segment loss before tax expense of approximately **HK$93 thousand** (first half of 2022: HK$62 thousand)[99](index=99&type=chunk) - Due to economic uncertainties from the pandemic and US-China trade tensions, the Group continues to adopt stringent credit policies to mitigate credit risk[99](index=99&type=chunk) [(3) Operating Results](index=18&type=section&id=(3)%20Operating%20Results) Analyzes the company's operating performance, including revenue, EBITDA, and profit drivers - In the first half of 2023, the Group's revenue was approximately **HK$168,281 thousand**, a **9.3%** year-on-year decrease, and EBITDA was approximately **HK$112,859 thousand**, a **19.5%** year-on-year decrease[100](index=100&type=chunk)[101](index=101&type=chunk) - Profit attributable to owners of the Company decreased by **43.2%** to approximately **HK$35,141 thousand**, primarily due to reduced revenue, increased short-term lease expenses, lower reversals of impairment losses on property/intangible assets, increased fair value losses on financial assets, and higher income tax expense[105](index=105&type=chunk) - RMB depreciation against HKD led to an increase in exchange losses on foreign operations attributable to owners of the Company from **HK$74,846 thousand** in the first half of 2022 to **HK$79,759 thousand** in the first half of 2023[106](index=106&type=chunk) - EBITDA margin decreased by **8.5%** to **67.1%**, and net profit margin decreased by **12.4%** to **20.9%**, mainly due to significantly lower reversals of impairment losses on property, plant and equipment and intangible assets[114](index=114&type=chunk) [Exchange Differences on Foreign Operations](index=19&type=section&id=Exchange%20Differences%20on%20Foreign%20Operations) Discusses the impact of foreign exchange rate fluctuations on the company's overseas operations - RMB depreciation against HKD led to an increase in exchange losses on foreign operations attributable to owners of the Company from **HK$74,846 thousand** in the first half of 2022 to **HK$79,759 thousand** in the first half of 2023[106](index=106&type=chunk) - Management believes these exchange differences represent only currency translation differences and have no material impact on the Group's operations, thus no measures are currently deemed necessary[110](index=110&type=chunk) [Natural Gas Business Analysis](index=20&type=section&id=Natural%20Gas%20Business%20Analysis) Provides a detailed financial breakdown of the natural gas exploration, production, and distribution segment Operating Results of Natural Gas Exploration, Production and Distribution Segment (For the Six Months Ended June 30, 2023) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 168,281 | 185,555 | | Direct Costs | (21,609) | (29,561) | | Other Income | 934 | 2,488 | | Selling and Distribution Expenses | (14,587) | (17,351) | | Operating Expenses | (16,423) | (15,954) | | Amortization | (13,277) | (15,741) | | Depreciation | (22,400) | (25,670) | | Reversal of Impairment | 2,315 | 20,919 | | Finance Costs | (20,735) | (21,621) | | **Operating Profit Before Income Tax Expense** | **62,499** | **83,064** | - Exploration costs for the six months ended June 30, 2023, were zero (first half of 2022: HK$106 thousand)[112](index=112&type=chunk) [(4) Financial Review](index=21&type=section&id=(4)%20Financial%20Review) Reviews the company's financial position, liquidity, and key balance sheet items - As of June 30, 2023, the Group's current ratio (current assets to current liabilities) was approximately **47.2%** (December 31, 2022: 35.4%), and the total liabilities to total assets ratio was approximately **32.1%** (December 31, 2022: 32.6%)[126](index=126&type=chunk) - As of June 30, 2023, the Group's cash and cash equivalents amounted to approximately **HK$134,167 thousand** (December 31, 2022: HK$131,296 thousand)[126](index=126&type=chunk) [Other Borrowings](index=22&type=section&id=Other%20Borrowings_Financial%20Review) Details the company's other borrowings, including repayment schedules and collateral - The Group's outstanding secured other borrowings amounted to approximately **HK$464,380 thousand** (December 31, 2022: HK$486,080 thousand)[126](index=126&type=chunk) - Approximately **HK$292,110 thousand** of other borrowings are due for repayment by June 30, 2024, and the Group plans to roll over these loans by borrowing the same amount upon maturity[125](index=125&type=chunk) [Convertible Bonds](index=22&type=section&id=Convertible%20Bonds_Financial%20Review) Provides an update on the company's convertible bonds, including principal and conversion terms - The outstanding principal amount of convertible bonds is **HK$679,670 thousand**, non-interest bearing, and convertible into ordinary shares at **HK$0.168 per share** (subject to adjustment)[127](index=127&type=chunk) - If the conversion rights are fully exercised, up to **4,045,654,761 shares** may be allotted and issued, with no conversions occurring during the period[127](index=127&type=chunk) [Exploration and Evaluation Assets](index=21&type=section&id=Exploration%20and%20Evaluation%20Assets_Financial%20Review) Discusses the reclassification and balance of exploration and evaluation assets - Directors believe that exploration and evaluation assets capitalized and used for revenue generation should be reclassified as petroleum properties under property, plant and equipment[117](index=117&type=chunk) - As of June 30, 2023, the balance of exploration and evaluation assets was **HK$253 thousand**, similar to **HK$265 thousand** as of December 31, 2022[113](index=113&type=chunk) [Fair Value of Financial Assets at Fair Value Through Profit or Loss](index=21&type=section&id=Fair%20Value%20of%20Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) Reviews the fair value of financial assets and factors influencing their changes - As of June 30, 2023, the fair value of financial assets at fair value through profit or loss decreased by **20.8%** year-on-year to approximately **HK$22,858 thousand**[118](index=118&type=chunk) - This decrease is primarily due to a subdued stock market sentiment influenced by the slow economic recovery post-pandemic[118](index=118&type=chunk) [Other Payables and Accruals](index=21&type=section&id=Other%20Payables%20and%20Accruals_Financial%20Review) Discusses changes in other payables and accrued expenses - Other payables and accruals decreased by **7.6%** year-on-year to approximately **HK$181,342 thousand**, mainly due to settlements with contractors of approximately **HK$15,000 thousand** during the period[119](index=119&type=chunk) [(5) Outlook](index=23&type=section&id=(5)%20Outlook) Outlines the company's future strategies and plans for its various business segments - The Kashgar project completed its overall development plan filing on July 8, 2019, and entered commercial production on October 1, 2020[121](index=121&type=chunk) - Management will continue to seek additional debt and/or equity financing to support the further development of the Kashgar project[134](index=134&type=chunk) - The food and beverage segment will continue to monitor the economic environment and review future resource allocation as necessary[129](index=129&type=chunk) - The money lending business will continue to seek high-quality borrowers and adopt a prudent approach to reduce the risk of default[130](index=130&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) Presents additional disclosures and corporate governance details [Treasury Management and Policy](index=24&type=section&id=Treasury%20Management%20and%20Policy) Describes the company's approach to cash management and risk mitigation - The Group adopts a prudent cash management and risk monitoring approach to minimize risks from foreign currency exchange rates and interest rate fluctuations[131](index=131&type=chunk) - Cash is generally held in short-term deposits denominated in HKD, USD, and RMB, with no significant interest rate risk anticipated[131](index=131&type=chunk) - The Group's policy is for operating entities to transact in their respective local currencies to reduce currency risk, with no significant exchange risk anticipated[131](index=131&type=chunk) [Significant Investments](index=24&type=section&id=Significant%20Investments) Discloses any significant investments held by the company - As of June 30, 2023, the Group held no significant investments other than financial assets at fair value through profit or loss (approximately **HK$22,858 thousand**)[132](index=132&type=chunk) [Significant Acquisitions and Disposals](index=24&type=section&id=Significant%20Acquisitions%20and%20Disposals) Reports on any major acquisition or disposal activities during the period - During the review period, the Group did not undertake any significant acquisitions or disposals[138](index=138&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=24&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) States whether the company engaged in any transactions involving its own listed securities - For the six months ended June 30, 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[139](index=139&type=chunk) [Pledge of Assets](index=24&type=section&id=Pledge%20of%20Assets) Details the company's assets pledged as collateral for borrowings - As of June 30, 2023, approximately **HK$56,761 thousand** of trade receivables were pledged as collateral for other borrowings[148](index=148&type=chunk) - Rights to natural gas sharing amounts and sales revenue under product sharing and sales agreements were also pledged as collateral for other borrowings[148](index=148&type=chunk) [Foreign Exchange Risk](index=25&type=section&id=Foreign%20Exchange%20Risk) Discusses the company's exposure to foreign exchange fluctuations and its management approach - The Group is primarily exposed to exchange rate fluctuations between HKD and RMB[149](index=149&type=chunk) - The Group's policy is for operating entities to transact in their respective local currencies to minimize currency risk[149](index=149&type=chunk) - No foreign exchange hedging transactions were undertaken during the period, but management will closely monitor and consider hedging significant foreign currency risks if necessary[137](index=137&type=chunk)[149](index=149&type=chunk) [Capital Commitments](index=25&type=section&id=Capital%20Commitments) Outlines the company's outstanding capital commitments Capital Commitments (As at June 30, 2023) | Item | June 30, 2023 (HK$ Thousand) | December 31, 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Capital expenditure in natural gas exploration, production and distribution segment | 54,584 | 98,246 | | Of which borne by China National Petroleum Corporation | 9,138 | 5,873 | | Capital contributions to subsidiaries | 116,523 | 127,600 | [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) Discloses any significant contingent liabilities of the company - As of June 30, 2023, and December 31, 2022, the Group had no significant contingent liabilities[151](index=151&type=chunk) [Interim Dividend](index=25&type=section&id=Interim%20Dividend) States the board's recommendation regarding interim dividend payment - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2023[144](index=144&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=Employees%20and%20Remuneration%20Policy) Provides information on employee numbers, staff costs, and remuneration policies - As of June 30, 2023, the Group employed a total of **43 employees** (December 31, 2022: 41 employees)[157](index=157&type=chunk) - Total staff costs (including directors' emoluments) for the first half of 2023 amounted to approximately **HK$8,299 thousand** (first half of 2022: HK$9,557 thousand)[157](index=157&type=chunk) - The Group previously had a share option scheme for employees and eligible participants, which expired on June 25, 2023, with no options granted during the period[157](index=157&type=chunk) [Events After the Reporting Period](index=25&type=section&id=Events%20After%20the%20Reporting%20Period) Reports on any significant events occurring after the reporting period - No significant events affecting the Group have occurred subsequent to the reporting period and up to the date of this announcement[158](index=158&type=chunk) [Changes in Information on Directors and Senior Management](index=26&type=section&id=Changes%20in%20Information%20on%20Directors%20and%20Senior%20Management) Details any changes in the company's board of directors or senior management - Mr. Gu Quanrong retired as a Non-executive Director after the Annual General Meeting on June 9, 2023[160](index=160&type=chunk) - Mr. Zhao Guoqiang ceased to be Mr. Gu Quanrong's alternate director[160](index=160&type=chunk) [Corporate Governance Practices](index=26&type=section&id=Corporate%20Governance%20Practices) Discusses the company's adherence to corporate governance standards and any deviations - The Group complies with the Corporate Governance Code, but deviations exist: the roles of Chairman and Chief Executive are not segregated, the Chairman position is vacant, and the Board intends to identify a suitable candidate to fill the role[162](index=162&type=chunk) - Non-executive Directors are not appointed for specific terms but are subject to retirement by rotation as per the Company's Articles of Association[169](index=169&type=chunk) - The Group lacks an internal audit function but will review the adequacy and effectiveness of its risk management and internal control systems[156](index=156&type=chunk) - Management does not provide monthly updates to the Board, but reports are provided at least quarterly, with urgent matters reported immediately[170](index=170&type=chunk) - All current Board members are male; the Company will seek a suitable female candidate to comply with new Listing Rules requirements on board diversity[165](index=165&type=chunk) [Standard Code for Securities Transactions by Directors](index=28&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) Confirms compliance with the standard code for directors' securities transactions - The Company has adopted the Standard Code as set out in Appendix 10 of the Listing Rules as the code of conduct for directors' securities transactions[166](index=166&type=chunk) - All incumbent directors confirm compliance with the required standards of the Standard Code throughout the review period[166](index=166&type=chunk) [Audit Committee](index=28&type=section&id=Audit%20Committee) Reports on the audit committee's review of the interim financial statements - The Audit Committee, comprising three independent non-executive directors, has adopted terms of reference consistent with the Corporate Governance Code[66](index=66&type=chunk) - The Audit Committee has reviewed the Group's unaudited financial statements for the six months ended June 30, 2023, deeming them compliant with applicable accounting standards, Listing Rules, and statutory requirements, with adequate disclosures[66](index=66&type=chunk) [Publication of Interim Results and Report](index=29&type=section&id=Publication%20of%20Interim%20Results%20and%20Report) Provides details on the publication of the interim results and report - This interim results announcement has been published on the HKEXnews website (http://www.hkexnews.hk) and the Company's website (http://www.cnenergy.com.hk)[68](index=68&type=chunk) - The interim report for the six months ended June 30, 2023, will be dispatched to shareholders and published on the aforementioned websites in due course[68](index=68&type=chunk)

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]