Company Overview - 延长石油国际有限公司 operates across the upstream and downstream sectors of the oil and gas industry, with upstream activities including exploration, development, and production, while downstream activities involve the sale and distribution of fuel [2] - The company is a significant platform for 延长石油集团, which is one of China's four state-owned enterprises engaged in oil and gas exploration and development [2] - 延长石油集团 ranked 234th in the Fortune Global 500 in 2021, indicating its substantial market presence and support for 延长石油国际's international expansion efforts [2] Financial Performance - As of December 31, 2024, 延长石油国际 reported total revenue of 27.026 billion yuan, representing a year-on-year growth of 5.2% [1] - The company's net profit attributable to shareholders was 50.1247 million yuan, showing a significant decline of 75.12% compared to the previous year [1] - The gross profit margin stood at 1.07%, with a debt-to-asset ratio of 53.57% [1] Market Position and Valuation - 延长石油国际's price-to-earnings (P/E) ratio is 5.59, ranking 8th in the oil and gas industry, which has an average P/E ratio of -18.17 and a median of 2.43 [1] - The company has underperformed the Hang Seng Index, with a cumulative increase of 5.77% over the past month and year, lagging behind the index's 14% rise [1] Business Operations - The upstream segment includes Novus Energy Inc., which has successfully entered the North American oil and gas market, focusing on production in Saskatchewan and Alberta [2] - Novus has drilled approximately 360 horizontal wells since its inception in 2009 and currently holds 160,000 net acres of land, indicating significant development potential [2] - The downstream segment operates through 河南延长, which has a distribution capacity exceeding 2 million tons of refined oil annually and maintains a 100% cash collection rate under its "payment before delivery" policy [2]

Financial Performance - In 2024, Novus Energy Inc. sold 843,000 equivalent barrels of oil and gas, a year-on-year decrease of 22.95%, with sales revenue of CAD 60.8 million, down 29.61%[7]. - The average natural gas sales price dropped significantly by 41.02%, while the mixed oil and gas sales price decreased by 8.65%[7]. - Novus achieved a net profit of CAD 11.6 million, aided by a reversal of impairment on oil and gas assets amounting to CAD 25.26 million[7]. - The company's revenue for the fiscal year ending December 31, 2024, was HKD 29,184,915,000, representing a 5% increase from HKD 27,742,529,000 in 2023[28]. - Other income decreased by 49% to HKD 9,132,000 from HKD 17,784,000 in the previous year[31]. - The cost of revenue increased to HKD 28,782,973,000, up 6% from HKD 27,145,282,000, primarily due to increased sales in the oil and by-products trade in China[32]. - The operating loss from exploration, extraction, and production business was HKD 4,300,000, compared to an operating profit of HKD 33,431,000 in 2023, with oil and gas sales volume dropping to 843,000 equivalent barrels from 1,093,000[29]. - Revenue from oil and by-products trade in China increased to HKD 28,853,582,000 from HKD 27,240,712,000, despite a decrease in selling prices[30]. - The company recorded a profit of HKD 55,578,000 for the year, a significant decrease from HKD 580,132,000 in the previous year, primarily due to the absence of one-time gains recognized in 2023[46]. Production and Operations - Total capital expenditure for the year was CAD 11.31 million, with 5 new one-mile wells drilled, contributing 7,300 tons of new well production[8]. - Novus implemented over 105 production optimization measures, resulting in an increase of 129 equivalent barrels per day in production[9]. - The company signed a 5-year transportation agreement with a pipeline company, reducing transportation rates by 11% and saving CAD 650,000 in transportation costs for 2024[9]. - Novus completed a comprehensive geological study of its oilfield, which was recognized with a first-class award from the Shaanxi Petrochemical Science and Technology Award[10]. - The company successfully maintained over 80 drillable locations to avoid expiration risks, ensuring operational readiness[9]. - Novus's single well completion cost decreased by CAD 80,000 per well compared to the previous year[9]. - Novus drilled 5 one-mile wells with a total footage of 11,628 meters, achieving a drilling cycle of under 5 days and a 100% drilling success rate[11]. - Novus completed the drilling of one exploratory well in the "Success" reservoir, producing a cumulative output of 5,000 equivalent barrels over six months[15]. Reserves and Assets - The 2P reserves increased by 124.7 thousand equivalent barrels, reaching 18.52 million equivalent barrels by the end of 2024, a year-on-year increase of 2.3%[12]. - As of December 31, 2024, the group's capital commitments for property, plant, and equipment amounted to HKD 179,000, down from HKD 275,000 as of December 31, 2023[69]. - The group's confirmed and probable reserves as of January 1, 2024, were estimated at 13,601.3 thousand barrels of oil equivalent, increasing to 13,737.0 thousand barrels by December 31, 2024[85]. - The total assets decreased from HKD 3,684,542,000 in 2023 to HKD 2,799,999,000 in 2024, representing a decline of approximately 24%[62]. - The company's property, plant, and equipment decreased by 5% from HKD 1,859,533,000 in 2023 to HKD 1,771,918,000 in 2024[44]. - The company's exploration and evaluation assets decreased by 22% from HKD 11,384,000 in 2023 to HKD 8,898,000 in 2024[44]. Liabilities and Financial Health - The company’s total liabilities decreased from HKD 2,336,376,000 in 2023 to HKD 1,499,820,000 in 2024, a reduction of approximately 36%[62]. - The company's current ratio improved from 79.5% in 2023 to 107.0% in 2024, indicating better short-term financial health[62]. - The company’s capital debt ratio improved from 173.3% in 2023 to 115.4% in 2024, reflecting a stronger equity position[62]. - Trade receivables decreased by 55% from HKD 1,014,916,000 in 2023 to HKD 457,758,000 in 2024[53]. - Cash and bank balances increased by 23% from HKD 226,188,000 in 2023 to HKD 278,675,000 in 2024[55]. Corporate Governance - The board did not recommend any dividend for the year ending December 31, 2024, consistent with the previous year[73]. - The company has adopted the standard code of corporate governance as per the listing rules and confirmed compliance for the year ending December 31, 2024[144]. - The board is committed to high standards of corporate governance and will continue to review and improve governance practices to enhance shareholder value[151]. - The company has established three board committees: the audit committee, remuneration committee, and nomination committee, to assist the board in fulfilling its responsibilities[168]. - The audit committee is tasked with overseeing the financial reporting, risk management, and internal control systems of the group[169]. - The company has engaged external independent consultants for annual reviews of its risk management and internal control systems[184]. - The board has confirmed compliance with the standards set out in the listing rules regarding securities transactions throughout the year[177]. Shareholder Relations - The company maintains a shareholder communication policy to enhance transparency and facilitate effective communication between shareholders and management[198]. - The board of directors is open to addressing shareholder inquiries during annual general meetings[196]. - The company has a clear procedure for shareholders to propose resolutions at special meetings, requiring a written request from shareholders holding at least 10% of the paid-up capital[194]. - The company actively communicates with shareholders through annual and interim reports, ensuring timely disclosure of relevant information[196]. Environmental and Social Responsibility - The company achieved a carbon dioxide reduction of 136,000 tons, avoiding penalties of CAD 13.52 million for carbon emissions[18]. - The company has established a robust anti-corruption policy, ensuring no incidents of corruption were reported during the year[187]. - Employees are encouraged to report suspicious activities anonymously, with investigations conducted confidentially and without retaliation[189]. - The company has implemented a fair procurement process to eliminate potential corruption risks[187]. - The company's internal anti-corruption policies are mandatory for all employees, promoting a culture of integrity[187].

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 29,194,047, an increase of 5.2% from HKD 27,760,313 in 2023[2] - The company reported a net profit of HKD 55,578 for the year, down 90.4% from HKD 580,132 in the previous year[3] - Basic earnings per share decreased to HKD 4.92, compared to HKD 19.89 in 2023, representing a decline of 75.2%[3] - The group reported a net profit of HKD 55,578 thousand for the year, down from HKD 580,132 thousand in the previous year, indicating a decline of about 90%[24] - The annual profit for 2024 was HKD 55,578,000, significantly down from HKD 580,132,000 in 2023, mainly due to the absence of one-time gains from the previous year[88] Revenue Breakdown - The group's revenue from external customers for the exploration, extraction, and operation segment was HKD 331,333 thousand in 2024, down from HKD 501,817 thousand in 2023, representing a decrease of approximately 34%[24] - The supply and procurement segment generated revenue of HKD 28,853,582 thousand in 2024, an increase from HKD 27,240,712 thousand in 2023, reflecting a growth of about 5.9%[24] - Revenue from oil and gas sales was HKD 331,333,000 in 2024, down from HKD 501,817,000 in 2023, indicating a decline of about 34%[34] - Revenue from trading and distribution of petroleum-related products increased to HKD 28,853,582,000 in 2024, compared to HKD 27,240,712,000 in 2023, reflecting a growth of approximately 5.9%[34] Assets and Liabilities - Total assets decreased to HKD 2,799,999 from HKD 3,684,542, a reduction of 24.0%[4] - Total liabilities decreased from HKD 2,336,376 thousand in 2023 to HKD 1,499,820 thousand in 2024, representing a reduction of approximately 36%[5] - Current liabilities decreased from HKD 2,067,497 thousand in 2023 to HKD 816,878 thousand in 2024, a decline of about 60%[5] - Non-current liabilities increased from HKD 268,879 thousand in 2023 to HKD 682,942 thousand in 2024, an increase of approximately 154%[5] - Total equity and liabilities decreased from HKD 3,684,542 thousand in 2023 to HKD 2,799,999 thousand in 2024, a reduction of around 24%[5] Cash Flow and Financial Position - Cash and bank balances increased to HKD 278,675 from HKD 226,188, showing a growth of 23.2%[4] - The net current assets improved from a negative HKD 423,960 thousand in 2023 to a positive HKD 56,884 thousand in 2024[5] - Total assets minus current liabilities increased from HKD 1,617,045 thousand in 2023 to HKD 1,983,121 thousand in 2024, an increase of about 23%[5] - Trade receivables as of December 31, 2024, include HKD 434,230,000 aged 0 to 30 days, down from HKD 992,263,000 in 2023[51] - Trade payables as of December 31, 2024, total HKD 468,732,000, compared to HKD 938,645,000 in 2023[52] Operational Efficiency and Strategy - The company plans to focus on market expansion and new product development in the upcoming year[2] - The company has allocated resources for technology research and development to enhance operational efficiency[2] - The company focused on cost control measures, reducing single well completion costs by CAD 80,000 per well compared to the previous year[60] - Novus's operational strategy emphasized enhancing production efficiency and optimizing operational management amidst challenging market conditions[57] Compliance and Governance - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which may impact future financial reporting[9] - Management continues to review estimates and assumptions that affect the financial statements, ensuring compliance with Hong Kong Financial Reporting Standards[8] - The board is committed to high standards of corporate governance and has reviewed its practices to ensure effective leadership and long-term shareholder value[125] - The audit committee, consisting of three independent non-executive directors, has reviewed the company's financial performance for the year ending December 31, 2024[128] Environmental and Social Responsibility - The company has maintained compliance with all relevant environmental laws and regulations in Hong Kong, Canada, and China as of the reporting date[123] - The company has not reported any significant environmental claims, lawsuits, penalties, or administrative sanctions[123] - Novus's carbon emissions reduction efforts resulted in a total reduction of 136,000 tons of CO2, avoiding penalties of CAD 13.52 million[64] Future Outlook - The company anticipates challenges in the international oil market in 2025, including weak demand recovery and high supply volatility[70] - The company aims to enhance the efficiency of the entire oil and gas industry chain and strengthen cost control through digital tools[70]

xxxxxxc bETROLEDMALLAND COMMED (京百慕迪柱俄成立之有限公司) 股份代號: 00346 00 中 期 報 告 ２０２ ４ ● 公司資料 | --- | --- | |-------|----------------------------------------------------| | | | | | 執行董事 封銀國先生 （主席） 王海寧女士 丁嘉晟先生 | | | | | | 非執行董事 孫健先生 | | | 獨立非執行董事 | | | | | | 梁廷育先生 孫立明先生 牟國棟博士 | | | 吳永嘉先生 | | | 公司秘書 | | | 羅慶林先生 | | | 審核委員會 | | | 梁廷育先生 （主席） 吳永嘉先生 孫立明先生 | | | 薪酬委員會 | | | 孫立明先生 （主席） 梁廷育先生 | 封銀國先生 提名委員會 吳永嘉先生（主席） 孫立明先生 封銀國先生 授權代表 封銀國先生 羅慶林先生 核數師 香港立信德豪會計師事務所有限公司 於《財務匯報局條例》下的註冊公眾利益 實體核數師 執業會計師 香港 干諾道中111號 永安中心25樓 註冊辦事處 Clare ...

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].