Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 16,771,559, an increase of 46.5% compared to HKD 11,467,941 for the same period in 2023[2] - Operating loss for the six months ended June 30, 2024, was HKD (10,180), compared to a profit of HKD 42,765 in the same period of 2023[3] - Total comprehensive loss for the period was HKD (64,887), compared to a profit of HKD 59,758 in the same period of 2023[3] - The company reported a basic and diluted loss per share of HKD (2.46) for the six months ended June 30, 2024, compared to earnings of HKD 1.40 in the same period of 2023[3] - The group reported a net loss of HKD 27,266,000 for the current period, compared to a profit of HKD 12,806,000 for the same period last year[12] - The group reported a net loss of HKD 27,018,000 for the six months ended June 30, 2024, compared to a profit of HKD 15,209,000 in the same period of 2023[24] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 3,766,326, an increase from HKD 3,684,542 as of December 31, 2023[4] - Current liabilities increased to HKD 2,221,023 as of June 30, 2024, compared to HKD 2,067,497 as of December 31, 2023[5] - The group's total liabilities increased to HKD 2,483,047,000 as of June 30, 2024, compared to HKD 2,336,376,000 as of December 31, 2023[14] - The company’s total equity decreased to HKD 1,283,279 as of June 30, 2024, from HKD 1,348,166 as of December 31, 2023[4] - The group’s total liabilities in the supply and procurement segment were HKD 1,783,526,000 as of June 30, 2024, compared to HKD 1,556,645,000 as of December 31, 2023[14] Revenue Segments - The group's revenue from the supply and procurement business segment reached HKD 16,582,456,000 for the six months ended June 30, 2024, compared to HKD 11,236,496,000 for the same period in 2023, representing an increase of approximately 47%[15] - Revenue from trading and distribution of oil-related products increased significantly to HKD 16,582,456,000, up from HKD 11,236,496,000, marking a growth of about 47.8%[16] - The Chinese oil and by-products trading business saw sales volume increase from 1.41 million tons last year to 2.13 million tons this period, with revenue rising from HKD 11,236,496,000 to HKD 16,582,456,000, representing a growth of approximately 89.5%[45] Costs and Expenses - The cost of goods sold for the six months ended June 30, 2024, was HKD 16,547,797,000, compared to HKD 11,201,659,000 in 2023, reflecting an increase of approximately 47.9%[18] - The group’s gross profit from the exploration, extraction, and operation business segment was HKD 7,932,000, down from HKD 20,068,000 in the previous year[12] - The company’s operating expenses for oilfield operations decreased from HKD 55,855,000 to HKD 48,988,000, primarily due to a reduction in production[49] - Administrative expenses were reduced by HKD 4,282,000 to HKD 37,425,000 during the review period[51] Financing and Investments - The company’s financing costs for the six months ended June 30, 2024, were HKD (17,949), down from HKD (25,193) in the same period of 2023[3] - The financing costs amounted to HKD 17,949,000, which included bank borrowing costs and interest on secured loans[54] - The company has entered into a supplemental loan agreement with the ultimate holding company for a loan of USD 22 million, extending the term for three years[33] - The company obtained a secured revolving loan of $22,000,000 from Extended Oil Hong Kong at an interest rate of 4.8%, to be repaid within three years[58] Operational Highlights - The company engaged in related party transactions, purchasing refined oil from the ultimate holding company amounting to HKD 7,479,608,000, a significant increase from HKD 3,561,849,000 in the previous year[31] - The company completed 327 deliveries to 24 self-operated gas stations without any quality disputes in the first half of 2024[41] - The railway distribution segment expanded customer base to 24, with sales volume reaching 400,800 tons, a year-on-year increase of 39.02%[40] - Novus oilfield achieved a cumulative oil sales volume of 2.1293 million tons in the first half of 2024, generating revenue of RMB 15.408 billion, with a loss of RMB 769,600[39] Governance and Compliance - The company has adhered to the corporate governance code, with the exception of certain deviations regarding independent non-executive directors serving over nine years[67] - The audit committee consists of three independent non-executive directors, who have reviewed the company's accounting policies and internal control systems[69] - The company confirmed compliance with the disclosure requirements of the Stock Exchange rules regarding related party transactions[71] - The company is in the process of appointing a new independent non-executive director to comply with governance standards[67] Employee and Management - The total employee cost for the six months ended June 30, 2024, was HKD 35,268,000, a decrease from HKD 37,614,000 for the same period in 2023[64] - The company had a total of 211 employees as of June 30, 2024, compared to 207 employees as of December 31, 2023[64] - The company’s management compensation for the first half of 2024 was HKD 7,476,000, compared to HKD 7,204,000 in the previous year, reflecting an increase of approximately 3.8%[30] Future Outlook - The company plans to maintain a prudent business strategy to effectively manage risks and enhance operational efficiency amid expected moderate global economic recovery[44] - Management highlighted the need to adjust new drilling investment plans to ensure stable oil and gas production amid geopolitical tensions and fluctuating supply-demand relationships[34] - The company is focused on enhancing transparency, accountability, and fairness in its governance practices to maximize shareholder value[67]

Production and Sales Performance - In 2023, Novus Energy Inc. produced a total of 1.076 million equivalent barrels, representing a year-on-year increase of 33.12%[5] - The sales volume of oil and gas reached 1.0935 million equivalent barrels, up 39.62% year-on-year, generating sales revenue of CAD 86.3713 million, an increase of 11.50%[5] - Novus drilled a total of 33.26 new wells in 2023, with a drilling success rate of over 98% and an average drilling cycle of under 5 days[9] - Oil and gas sales volume increased to 1,093,000 equivalent barrels, generating revenue of HKD 501,817,000, compared to 808,000 equivalent barrels and HKD 443,881,000 in the previous year[31] Financial Performance - The net profit recorded by Novus was CAD 2.8193 million, with operating cash flow of CAD 43.1171 million, indicating continuous improvement in operational conditions[5] - The company's revenue for the year ended December 31, 2023, was HKD 27,742,529,000, a decrease of 7% compared to HKD 29,936,206,000 in 2022[30] - The company recorded a profit of HKD 580,132,000 for the year ending December 31, 2023, compared to a loss of HKD 619,099,000 in 2022[50] - Net profit attributable to the owners of the company for 2023 was HKD 217,593, a significant recovery from a loss of HKD 199,510 in 2022[124] Cost Management - The average operating cost for oilfield operations was CAD 17.11 per barrel, a decrease of CAD 0.24 per barrel, or 1.38% year-on-year[8] - The company maintained a strong focus on cost control, achieving a reduction in controllable costs to CAD 28.56 per barrel, down CAD 1.29 per barrel or 4.32% year-on-year[8] - The proportion of extended reach wells increased from 46% in 2022 to 75% in 2023, enhancing single well output by approximately 50% while halving operational costs[7] Asset and Liability Management - The company's total assets decreased from HKD 4,518,209,000 in 2022 to HKD 3,684,542,000 in 2023[70] - Current liabilities reduced from HKD 3,600,546,000 in 2022 to HKD 2,067,497,000 in 2023, indicating improved financial stability[70] - The equity increased significantly from HKD 469,426,000 in 2022 to HKD 1,348,166,000 in 2023, reflecting a stronger balance sheet[70] Exploration and Reserves - As of December 31, 2023, the company's net proven reserves of oil and liquefied natural gas are 9,643.8 thousand barrels, and natural gas reserves are 18,832.0 million cubic feet, totaling 12,782.5 thousand equivalent barrels[100] - The total net proven and probable reserves as of December 31, 2023, are 13,601.3 thousand barrels of oil and liquefied natural gas, and 27,022.0 million cubic feet of natural gas, totaling 18,105.0 thousand equivalent barrels[100] - The company has conducted exploration activities by acquiring 5,245 hectares of unproven land in Canada and drilled 33 wells during the reporting period[102] Corporate Governance - The company is committed to maintaining high standards of corporate governance, with details provided in the corporate governance report[165] - The board consists of three executive directors and four independent non-executive directors, ensuring compliance with listing rules regarding board composition[173] - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, primarily composed of independent non-executive directors to enhance independence and effectiveness[190] Environmental and Safety Performance - Novus has not experienced any safety production accidents or environmental incidents throughout the year, ensuring a safe drilling foundation[12] - The company has not reported any environmental claims, lawsuits, penalties, or administrative sanctions during the review year[92] Strategic Partnerships and Customer Relations - Henan Yanchang's sales to Sinopec reached 1.978 million tons, accounting for nearly half of its total distribution volume, with sales revenue of RMB 2.627 billion[21] - In 2023, Henan Yanchang developed 8 new customers and 27 new suppliers, enhancing its strategic partnerships[17] Future Outlook - The company expects WTI prices to range between USD 70 and 80 per barrel in 2024, amid geopolitical risks and market uncertainties[28] - The company plans to diversify its business by exploring LNG imports, asphalt and crude oil imports, coal sales, and aviation fuel operations[28]

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 27,742,529, a decrease of 7.3% compared to HKD 29,936,206 in 2022[2] - Operating loss for the year was HKD 234,732, compared to a loss of HKD 557,630 in the previous year, indicating an improvement[3] - The company reported a net profit of HKD 580,132 for the year, recovering from a loss of HKD 619,099 in 2022[3] - The overall profit for the year ended December 31, 2023, was HKD 580,132,000, compared to a loss of HKD 619,099,000 in 2022, excluding the impact of oil and gas asset impairment losses and bad debt provisions[125] - The group reported a net loss of HKD 158,489,000 in 2023, compared to a net gain of HKD 169,786,000 in 2022[51] - The net profit before tax for 2023 was HKD 588.4 million, compared to a loss of HKD 608.3 million in 2022, marking a significant turnaround[44] Assets and Liabilities - Total assets decreased to HKD 3,684,542 from HKD 4,518,209 in 2022, reflecting a decline of 18.5%[4] - Total liabilities decreased from HKD 4,048,783,000 in 2022 to HKD 2,336,376,000 in 2023, representing a reduction of approximately 42.3%[5] - Current liabilities decreased from HKD 3,600,546,000 in 2022 to HKD 2,067,497,000 in 2023, a decline of about 42.6%[5] - The net current liabilities improved from HKD 1,132,738,000 in 2022 to HKD 423,960,000 in 2023, indicating a significant reduction of approximately 62.6%[10] - Total assets minus current liabilities increased from HKD 917,663,000 in 2022 to HKD 1,617,045,000 in 2023, reflecting an increase of about 76.3%[5] Cash and Receivables - Cash and bank balances increased to HKD 226,188 from HKD 133,209, showing a growth of 69.9%[4] - Cash and cash equivalents as of December 31, 2023, were HKD 226,188,000[10] - As of December 31, 2023, accounts receivable amounted to HKD 1,014,916,000, an increase of 40.5% from HKD 722,285,000 in 2022[73] - Trade receivables rose significantly to HKD 1,014,916 from HKD 722,285, an increase of 40.5%[4] Equity and Shareholder Information - The company's equity attributable to shareholders increased to HKD 1,290,913 from HKD 772,956, a growth of 67.0%[4] - The weighted average number of ordinary shares for the year ended December 31, 2023, was 1,094,075,000 shares, an increase from 916,752,000 shares in 2022[62] - The board does not recommend the payment of dividends for the year ending December 31, 2023, consistent with the previous year[170] Accounting Standards and Compliance - The company is assessing the impact of new accounting standards on its financial reporting, particularly regarding insurance contracts[13] - The adoption of Hong Kong Financial Reporting Standard No. 17 has no impact on the group's annual consolidated financial statements[16] - The revised Hong Kong Accounting Standard No. 1 requires the company to disclose significant accounting policy information, but does not affect the measurement, recognition, or presentation of any items in the financial statements[17] - The adjustments from the revised standards do not have a significant impact on the group's consolidated financial position or comprehensive income statement[23] Operational Highlights - The company plans to focus on market expansion and new product development in the upcoming year[2] - The company emphasized a focus on production efficiency, cost reduction, and safety in response to the volatile oil market conditions[80] - The company is investing in new technology development, allocating $50 million towards R&D initiatives[186] Market and Revenue Segments - Exploration, extraction, and operation business segment revenue for 2023 was HKD 501.8 million, up from HKD 443.9 million in 2022, representing an increase of 12.5%[44] - Supply and procurement business segment revenue for 2023 was HKD 27.2 billion, down from HKD 29.5 billion in 2022, reflecting a decrease of 7.6%[44] - Revenue from oil and gas sales was HKD 501,817,000, up 13% from HKD 443,881,000 in 2022[56] Legal and Regulatory Matters - The company faced significant legal claims amounting to approximately RMB 266,514,000 (equivalent to HKD 297,350,000) related to a lawsuit[76] - The restructuring process for 延长浙江 is expected to conclude by December 7, 2023, after which it will enter liquidation[163] Future Outlook - The company expects oil and gas prices to increase by 2% annually after the fourth year, consistent with previous forecasts[64] - The company plans to explore LNG imports, asphalt and crude oil imports, coal sales, and aviation fuel business to diversify and sustain growth[104] - The company provided a positive outlook for the next quarter, projecting revenue growth of 25% and aiming for $1.875 billion[186]

Financial Performance - The company's total revenue for the six months ended June 30, 2023, was reported at 12,437,336 thousand HKD, reflecting a slight increase from 12,432,827 thousand HKD as of December 31, 2022[9]. - Revenue for the first half of 2023 was CAD 39.29 million, up 17% compared to the same period last year[69]. - The company recorded a profit of HKD 12,806,000 for the six months ended June 30, 2023, compared to a loss of HKD 35,831,000 in the same period last year[130]. - The operating profit for the six months ended June 30, 2023, was HKD 12,806,000, a significant recovery from a loss of HKD 35,831,000 in the same period of the previous year[199]. - The total comprehensive income for the period was HKD 33,549, compared to a loss of HKD 17,479 in the previous year[156]. - The company reported a net foreign exchange gain of HKD 13,114 as part of other income and losses[141]. - The basic and diluted earnings per share for the period were HKD 1.40, compared to a loss per share of HKD 0.04 in the previous year[150]. - The total liabilities as of June 30, 2023, were HKD 3,311,402,000, down from HKD 4,048,783,000 at the end of 2022, indicating a reduction of approximately 18%[181]. Production and Sales - Average daily production for the first half of 2023 was reported at 2,290 barrels of oil and 2,656 thousand cubic feet of gas, indicating ongoing growth in oil and gas output despite market challenges[40]. - In the first half of 2023, Novus produced a total of 495,000 barrels of oil and gas, an increase of 164,000 barrels or 49.5% year-on-year[69]. - Total sales of oil and gas reached 500,000 barrels, reflecting a year-on-year growth of 55%[69]. - Novus achieved oil and gas sales volume of 499,885 equivalent barrels, generating revenue of HKD 231,445,000, compared to 322,754 equivalent barrels and HKD 205,222,000 in the same period last year, representing a revenue increase of approximately 12.8%[79]. - The company achieved a total oil product sales volume of 1.4125 million tons by June 30, 2023, with a significant decline in profitability due to weak market demand[46]. Expenses and Costs - Total operating expenses increased to HKD 11,435,342 from HKD 9,343,690, reflecting a rise of approximately 22%[149]. - Depreciation, depletion, and amortization expenses increased significantly from HKD 62,998 to HKD 115,790, a rise of about 84%[140]. - Financing costs amounted to HKD 25,193, which includes bank borrowing costs of HKD 9,328 and interest on secured loans of HKD 10,849[142]. - The total employee cost for the six months ended June 30, 2023, was HKD 37,614,000, down from HKD 41,327,000 in the same period last year[119]. - Administrative expenses decreased by HKD 969,000 to HKD 41,707,000 during the review period[82]. Assets and Liabilities - The company's total assets decreased to HKD 4,121,479 thousand from HKD 4,518,209 thousand, reflecting a reduction in current assets[165]. - Non-current assets increased to HKD 2,137,456 thousand from HKD 2,050,401 thousand, driven by growth in property, plant, and equipment[165]. - The company's equity attributable to owners increased to HKD 1,102,607 thousand from HKD 772,956 thousand, indicating improved financial health[165]. - Cash and cash equivalents at the end of the period rose to HKD 349,898 thousand from HKD 133,209 thousand, showing a strong liquidity position[165]. - Trade receivables decreased significantly to HKD 373,979 thousand from HKD 722,285 thousand, suggesting improved collection efforts[165]. Strategic Initiatives - The company plans to continue its strategy of expanding oil and gas reserves and production in response to market conditions[42]. - The company plans to bid for 10.75 community blocks covering approximately 27.84 square kilometers in the Major block by October 2023, enhancing its asset portfolio[71]. - The company has engaged in related party transactions involving a fuel supply agreement with its ultimate holding company, expected to last until December 31, 2025[38]. - The company has increased capital expenditures for new drilling to counteract the downward trend in international oil prices[42]. - The company aims to strengthen cooperation with major clients like Sinopec to ensure stable trade operations[76]. Market Conditions - The company faced a 16% decline in international crude oil prices compared to 2022, attributed to geopolitical tensions and market adjustments[42]. - The company has not recognized any impairment losses for exploration and evaluation assets during the reporting period[12]. - The company has not made any purchases, sales, or redemptions of its listed securities during the reporting period[127]. - The company has not recommended an interim dividend for the six months ended June 30, 2023, consistent with the previous year[120].

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 全部或任何部分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。 （於百慕達註冊成立之有限公司） （股份代號：00346） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 未 經 審 核 中 期 業 績 公 告 延長石油國際有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司 及其附屬公司（統稱「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，連同截至二零二二年六月三十日止六個月之未經審核 比較數字如下： 簡明綜合損益及其他全面收益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 附註 （未經審核） （未經審核） 千港元 千港元 收入 4 11,467,941 9,336,236 ...

Financial Performance - The company reported a revenue of RMB 25 billion in 2022, with a pre-tax profit of RMB 26.5 million[3]. - The revenue from the oil products and by-products trading business increased from RMB 19.58 billion in 2021 to RMB 29.49 billion in 2022, despite a decrease in sales volume from 4.89 million tons to 3.6 million tons[9]. - The company recorded a loss of RMB 619.1 million for the year, compared to a profit of RMB 358.5 million in the previous year[9]. - The company's total income increased by 51% from RMB 19.78 billion in 2021 to RMB 29.94 billion in 2022[9]. - The company reported a net loss of HKD 619,099,000 for the year ended December 31, 2022, compared to a profit of HKD 358,455,000 in 2021, largely due to significant losses from Zhejiang[99]. - Total revenue for the year ended December 31, 2022, was HKD 29,936,206, an increase of 51.3% from HKD 19,776,474 in 2021[169]. - Operating loss for the year was HKD 557,630 compared to a profit of HKD 423,346 in the previous year, indicating a significant decline in operational performance[169]. - The company reported a loss before tax of HKD 608,271 for 2022, compared to a profit of HKD 377,556 in 2021, indicating a significant decline in profitability[194]. Sales and Production - In 2022, Henan Yanchang achieved total refined oil sales of 3.25 million tons, with strategic sales accounting for 1.41 million tons[3]. - Novus produced 808,000 equivalent barrels in 2022, representing a 75.6% increase from 2021, and sold 783,000 equivalent barrels, up 63% year-over-year[62]. - The average selling price of crude oil in 2022 was CAD 114 per barrel, while natural gas averaged CAD 0.14 per cubic meter, leading to total revenue of CAD 77.46 million, an increase of 136% from 2021[62]. - Novus successfully drilled 52 wells in 2022, with 53 wells put into production, including 4 pre-drilled for 2023, achieving a historical high of CAD 16.26 per barrel in net revenue[62]. - The company achieved a cumulative sales volume of 129,300 tons in Hunan region in 2022, more than doubling from 41,000 tons in 2021[82]. Expenses and Liabilities - The company experienced a 140% increase in royalty expenses, rising from RMB 25.1 million in 2021 to RMB 60.3 million in 2022[9]. - Total employee costs for the year amounted to HKD 83,515,000, up from HKD 78,654,000 in the previous year, with a total employee count of 229[45]. - Sales and distribution expenses rose from HKD 97,203,000 to HKD 167,426,000, primarily due to issues related to litigation in Zhejiang[90]. - The company incurred financing costs of HKD 50,641, an increase from HKD 45,790 in the previous year[169]. - The total liabilities increased to HKD 4,048,783 in 2022 from HKD 3,341,261 in 2021, reflecting a rise of approximately 21.2%[200]. Assets and Equity - The company's cash and bank balances decreased by 66% from RMB 394.1 million in 2021 to RMB 133.2 million in 2022[12]. - As of December 31, 2022, the total assets of the group amounted to HKD 4,518,209,000, compared to HKD 4,508,705,000 in the previous year[121]. - The total equity of the group decreased to HKD 469,426,000 in 2022 from HKD 1,167,444,000 in 2021, reflecting a decline in shareholder value[121]. - The company's equity attributable to owners decreased to HKD 469,426 in 2022 from HKD 1,167,444 in 2021, a decline of approximately 59.9%[196]. Strategic Initiatives - The company plans to optimize its business and capital structure while actively pursuing energy transition initiatives, including solar energy projects[7]. - The company aims to leverage high oil prices to enhance its operational strategies and investment plans moving forward[7]. - The company has initiated a pre-restructuring application to the court to facilitate debt restructuring[35]. - The company has secured a collateralized term loan of USD 35,000,000, which has been extended for three more years until January 17, 2026, at an annual interest rate of 4.8%[46]. Exploration and Development - The company's exploration and evaluation assets increased by 791% to RMB 5.27 million in 2022[12]. - The company acquired 4,273 hectares of unproven land in Canada during the reporting period, with no exploration activities reported in Madagascar[135]. - The company plans to continue its exploration and development activities in Canada, with no current plans for expansion into new markets[135]. Governance and Audit - The company emphasizes the importance of adequate audit evidence to form opinions on the consolidated financial statements, ensuring transparency and accountability[151]. - The independent auditor's report evaluates the appropriateness of accounting policies and the reasonableness of accounting estimates and disclosures made by the board[163]. - The company has not disclosed any significant uncertainties that could impact its ability to continue as a going concern[150].

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 全部或任何部分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。 （於百慕達註冊成立之有限公司） （股份代號：00346） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 延長石油國際有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司 及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度之經審 核綜合業績，連同比較數字如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收入 4 29,936,206 19,776,474 其他收入 4 12,199 8,545 29,948,405 19,785,019 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 9,336,236, a decrease of 8.5% compared to HKD 10,208,266 for the same period in 2021[8] - Total comprehensive loss for the period was HKD 58,969, compared to a total comprehensive income of HKD 25,884 in the previous year[11] - Operating loss for the six months was HKD 1,053, a significant decline from an operating profit of HKD 59,412 in the same period last year[8] - The company reported a net loss of HKD 35,831 for the period, compared to a profit of HKD 12,083 in the previous year[8] - The total comprehensive loss for the period was HKD 35,831,000, compared to a profit of HKD 12,083,000 in the same period last year[40] - The group reported a net loss from foreign exchange of HKD 7,252,000 for the current period, compared to a gain of HKD 7,612,000 in the previous year[42] - The company recorded a loss of HKD 35,831,000 for the period, compared to a profit of HKD 12,083,000 in the previous period, primarily due to losses from its 51%-owned subsidiary in China, 延长浙江, related to pending litigation[137] Assets and Liabilities - Total assets increased to HKD 6,216,953 as of June 30, 2022, from HKD 4,508,705 at the end of 2021[13] - Current liabilities rose to HKD 4,674,786, up from HKD 2,906,621 at the end of the previous year[15] - Trade and other payables increased significantly to HKD 3,978,496 from HKD 2,198,499[15] - The total liabilities increased to HKD 5,108,478,000 as of June 30, 2022, compared to HKD 3,341,261,000 at the end of the previous year[31] - The company’s total liabilities decreased from HKD 12,428,488,000 as of December 31, 2021, to HKD 12,428,488,000 as of June 30, 2022, indicating stability in financial obligations[57] Cash Flow - Operating cash flow for the six months ended June 30, 2022, was HKD 240,326 thousand, compared to a cash outflow of HKD 151,234 thousand in the same period of 2021[20] - Net cash generated from operating activities was HKD 225,984 thousand, a significant improvement from a net cash outflow of HKD 157,382 thousand in the previous year[20] - Cash and cash equivalents at the end of the period increased to HKD 476,964 thousand, up from HKD 251,116 thousand in the prior year[20] - The company reported a net cash outflow from investing activities of HKD 112,024 thousand, compared to HKD 29,947 thousand in the previous year[20] - The company’s financing activities resulted in a net cash outflow of HKD 21,508 thousand, compared to a net cash outflow of HKD 3,079 thousand in the same period last year[20] Operational Highlights - The company plans to focus on enhancing operational efficiency and exploring new market opportunities moving forward[8] - The company operates in two main segments: exploration and production of oil and gas, and supply and procurement of oil-related products[26] - The company’s exploration and evaluation asset payments amounted to HKD 6,140 thousand for the period[20] - The company has entered into investment and cooperation agreements for the exploration and operation of the Madagascar 3113 exploration block, with capital investments shared among the company and its partners[61] Shareholder Information - The company did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the decision for the same period in 2021[47] - The weighted average number of ordinary shares for calculating basic and diluted earnings per share remained unchanged at 18,335,047 for both periods[49] - The major shareholder, 延长石油集团, holds 12,686,203,231 shares, representing approximately 69.19% of the total issued ordinary shares[162] Compliance and Governance - The company has adopted new or revised Hong Kong Financial Reporting Standards effective from January 1, 2022, which did not significantly impact the financial results for the period[24] - The company has maintained compliance with the Corporate Governance Code, with minor deviations noted regarding the separation of roles between the chairman and CEO[166] - All directors confirmed compliance with the standards set forth in the code for the six months ending June 30, 2022[176] Legal and Contingent Liabilities - The company faces legal claims totaling approximately RMB 760,028,000 (equivalent to HKD 890,829,000) related to processing fees, procurement costs, and interest, with assets amounting to RMB 457,863,000 (equivalent to HKD 536,661,000) frozen by the court[91] - Contingent liabilities were approximately RMB 493,419,000 (equivalent to HKD 578,336,000) as of June 30, 2022, arising from disputes related to processing fees and procurement costs[90] - The company has contingent liabilities amounting to approximately RMB 493,419,000 (equivalent to HKD 578,336,000) as of June 30, 2022, arising from disputes related to its 51%-owned subsidiary, 延长浙江[151] Employee and Administrative Costs - The total employee cost for the six months ended June 30, 2022, was HKD 41,327,000, compared to HKD 35,951,000 for the same period in the previous year[153] - The administrative expenses increased by HKD 4.1 million to HKD 42.68 million due to the absence of provincial subsidies provided to Novus[131]

Production and Sales Performance - In 2021, Novus Energy Inc. achieved a production volume of 460,000 barrels, compared to 446,000 barrels in the previous year, with crude oil production at 409,000 barrels and natural gas at 12.41 million cubic meters[7]. - The average selling price for crude oil in the Viking region was CAD 77.09 per barrel, while natural gas sold for CAD 0.12 per cubic meter, contributing to total sales revenue of CAD 32.8 million, an increase of CAD 16.97 million from 2020[7]. - In Henan, the company sold 4.095 million tons of refined oil products, generating operating revenue of RMB 23.36 billion and a pre-tax operating profit of RMB 31.14 million[11]. - In 2021, Yanchang Petroleum (Zhejiang) achieved sales of 1.12 million tons of oil products, a year-on-year increase of 236%, with sales revenue of RMB 3.76 billion[17]. Financial Performance - The company's revenue for the year ended December 31, 2021, was HKD 19,776,474,000, a decrease of 27% compared to HKD 27,256,800,000 in 2020[23]. - The operating profit from exploration, extraction, and operational activities was HKD 23,913,000, a significant recovery from an operating loss of HKD 68,239,000 in the previous year[25]. - The total profit for the year was HKD 358,455,000, compared to a loss of HKD 792,669,000 in the previous year[39]. - The company reported a net profit of HKD 358,455 for the year, a significant recovery from a loss of HKD 792,669 in 2020[105]. Expenses and Cost Management - The total operating expenses for Novus in 2021 amounted to CAD 9.3 million, up from CAD 9.03 million in 2020, while administrative and management expenses rose to CAD 4.06 million from CAD 2.66 million[10]. - The company saved CAD 400,000 through the federal wage subsidy program and CAD 100,000 through federal rent subsidies in 2021[10]. - The procurement expenses decreased to HKD 19,315,716,000 from HKD 27,007,663,000, reflecting a reduction in sales volume[28]. - The administrative expenses increased to HKD 110,465,000 from HKD 66,532,000, attributed to the expansion of oil trading operations in China[34]. Assets and Liabilities - Current assets increased to HKD 2,855,109,000 in 2021 from HKD 1,499,139,000 in 2020, while total assets rose to HKD 4,508,705,000 from HKD 2,636,012,000[50]. - Total liabilities increased to HKD 3,341,261,000 in 2021 from HKD 1,834,876,000 in 2020, resulting in a capital-to-debt ratio of 286.2%, up from 229.0%[50][52]. - The current ratio decreased to 98.2% in 2021 from 113.2% in 2020, indicating a decline in short-term financial health[50][52]. - The company reported a net current liability of HKD 51,512,000 as of December 31, 2021, indicating significant uncertainty regarding its ability to continue as a going concern[191]. Investments and Capital Commitments - The company plans to enhance investments in technology, capital, and management to adapt to the evolving energy landscape[20]. - The company has a total of HKD 4,144,000 in capital commitments related to property, plant, and equipment as of December 31, 2021[58]. - The company’s property, plant, and equipment amounted to HKD 1,480,631,000, with increases attributed to the acquisition of oil and gas assets in Canada[42]. Corporate Governance and Management - The board of directors is committed to maintaining high standards of corporate governance and will regularly review and improve governance practices[156]. - The company has adopted the corporate governance practices as outlined in Appendix 10 of the listing rules[147]. - The board consists of four independent non-executive directors, ensuring objectivity and independence without performance-based equity compensation[172]. - The audit committee is composed entirely of independent non-executive directors, enhancing its independence and effectiveness[175]. Risk Management and Compliance - The company has adopted a risk management system based on the COSO framework to enhance operational effectiveness and compliance with applicable laws[197]. - The board has reviewed and monitored the effectiveness of the risk management and internal control systems at least annually[194]. - The independent auditor has reviewed the financial statements without reservation, confirming that they reflect a true and fair view[192]. Employee and Operational Metrics - As of December 31, 2021, the total number of employees was 240, an increase from 218 in 2020, with total employee costs amounting to HKD 78,654,000, up from HKD 55,026,000 in 2020[63]. - The company has implemented various preventive measures in response to the COVID-19 pandemic, ensuring employee health and safety[146]. - The company continues to assess the impact of the COVID-19 pandemic on its financial condition and future cash flows[146]. Related Party Transactions - The company has ongoing related party transactions with 河南延長, involving the supply and purchase of refined oil products[139]. - The total value of related party transactions under the supply agreement for the year ended December 31, 2021, did not exceed RMB 9,675,000,000 (approximately HKD 11,843,167,500)[143]. - The anticipated total value of related party transactions between Henan Yanchang and Yan'an Energy Chemical under the sales agreement did not exceed RMB 16,000,000 (approximately HKD 19,585,600) and RMB 120,000,000 (approximately HKD 146,892,000) for the year ended December 31, 2021[143].

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 10,208,266 thousand, representing a 25.1% increase from HKD 8,161,298 thousand in the same period of 2020[6]. - Operating profit for the period was HKD 59,412 thousand, compared to an operating loss of HKD 22,016 thousand in the previous year[6]. - The net profit for the period was HKD 12,083 thousand, a recovery from a net loss of HKD 61,530 thousand in the same period last year[6]. - Total comprehensive income for the period was HKD 25,884 thousand, compared to a loss of HKD 123,495 thousand in the previous year[8]. - The company reported a basic and diluted earnings per share of HKD 0.02, recovering from a loss per share of HKD 0.50 in the previous year[8]. - The company reported a total comprehensive loss for the six months ended June 30, 2021, reflecting ongoing challenges in the market[18]. - The company’s revenue for the six months ended June 30, 2021, was HKD 10,132,979,000, an increase from HKD 8,122,552,000 for the same period in 2020, representing a growth of approximately 25%[29]. - The gross profit for the exploration, extraction, and operation segment was HKD 1,055,000, compared to a loss of HKD 40,116,000 in the previous year[29]. - The company reported a foreign exchange gain of HKD 7,612,000 for the period, recovering from a loss of HKD 12,953,000 in the previous year[44]. - The company recorded a profit of HKD 12.08 million in the reporting period, a turnaround from a loss of HKD 61.53 million in the same period last year, attributed to rising international oil prices and improved performance in oil and gas production[149]. Cash Flow and Liquidity - Current assets increased significantly to HKD 3,504,317 thousand from HKD 1,499,139 thousand, indicating strong liquidity[10]. - The company’s cash and bank balances decreased to HKD 251,116 thousand from HKD 436,084 thousand, indicating a need for cash management strategies[10]. - For the six months ended June 30, 2021, the net cash outflow from operating activities was HKD 157,382 thousand, a decrease of 38% compared to HKD 253,721 thousand for the same period in 2020[16]. - The total cash and cash equivalents at the end of the period stood at HKD 251,116 thousand, up from HKD 196,070 thousand at the end of June 2020, showing improved liquidity[16]. - As of June 30, 2021, the group had cash and bank balances of HKD 251,116,000, down from HKD 436,084,000 as of December 31, 2020[152]. Assets and Liabilities - Total liabilities rose to HKD 3,828,308 thousand from HKD 1,834,876 thousand, reflecting increased operational scale[12]. - The total assets as of June 30, 2021, were HKD 4,655,328 thousand, up from HKD 2,636,012 thousand at the end of 2020[10]. - The company’s total liabilities increased to HKD 3,791,233,000 as of June 30, 2021, from HKD 3,662,305,000 at the end of 2020, marking an increase of approximately 3.5%[56]. - As of June 30, 2021, trade receivables amounted to HKD 1,070,834,000, a significant increase from HKD 344,351,000 as of December 31, 2020[75]. - Overdue trade receivables exceeding 90 days reached HKD 217,604,000 as of June 30, 2021, compared to HKD 2,039,000 as of December 31, 2020[76]. - The company’s exploration and evaluation assets remained at a cost of HKD 12,428,488,000 with no impairment recorded as of June 30, 2021[64]. Operational Highlights - The company operates in two main segments: exploration, extraction, and operation of oil and gas, and supply and procurement of oil-related products, indicating a diversified operational focus[24]. - The company plans to continue focusing on market expansion and new product development to drive future growth[29]. - The group plans to expand its distribution network and sales channels, having developed 3 new customer resources in the first half of 2021[125]. - The company achieved a total sales volume of 486,000 tons of oil products in Zhejiang, a fivefold increase year-on-year, generating revenue of RMB 1.42 billion, with a total profit of RMB 5.97 million[129]. - The company successfully upgraded and opened three gas stations, with a single-day sales volume exceeding 22.5 tons, demonstrating the brand's influence[128]. Compliance and Governance - The financial statements are prepared in accordance with Hong Kong Accounting Standards, ensuring compliance with local regulations[19]. - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2021, which did not have a significant impact on the financial results for the period[20]. - The company has confirmed compliance with disclosure requirements regarding related party transactions as per the listing rules[188]. - The company adopted the standard code of conduct for securities trading by directors, confirming adherence during the six months ending June 30, 2021[193]. - The company has complied with the Corporate Governance Code, with exceptions regarding the separation of the roles of Chairman and CEO due to a temporary vacancy[181]. Future Outlook - The company plans to continue expanding its business and improving efficiency while introducing strategic investors to lay a solid foundation for long-term development[133]. - The company expects to recognize the entire contract liabilities as revenue within one year, indicating strong future revenue potential[87].