Financial Performance - In 2020, Novus Energy Inc. produced 445,000 equivalent barrels, a decrease of 40% compared to 746,000 equivalent barrels in 2019, with crude oil production at 363,000 barrels and natural gas at 13.99 million cubic meters[12]. - The average selling price for crude oil in the Viking area was CAD 41.16 per barrel, while in the Success area it was CAD 31.74 per barrel, with natural gas selling at CAD 0.07 per cubic meter, resulting in total sales revenue of CAD 15.84 million for the year[12]. - The company reported a profit of RMB 7.66 million in 2020 with a 100% collection rate on receivables[21]. - Total revenue for the year reached HKD 27,256.8 million, a 233% increase compared to HKD 8,197.4 million in 2019[29]. - The company recorded a net loss of HKD 792.7 million for the year, an increase of 82% from the previous year's loss of HKD 434.8 million[29]. - The company reported a loss before tax of $(779.5) million, indicating a challenging financial environment[130]. - Total assets amounted to $2,636.0 million, reflecting a stable asset base despite losses[130]. - The total liabilities were $1,834.9 million, resulting in total equity of $801.1 million[130]. Operational Efficiency - The operational expenditure for Novus in 2020 totaled CAD 9 million, a reduction of CAD 3.2 million from CAD 12.2 million in 2019, while administrative and management expenses decreased by 31.6% to CAD 2.6 million[14]. - The new pipeline transportation agreement with Inter Pipeline is expected to save Novus approximately CAD 600,000 by the end of 2020 and an additional CAD 150,000 in 2021[15]. - The company implemented strict cost-cutting measures, including temporarily shutting down inefficient wells to maintain liquidity during the pandemic and oil price collapse[14]. - Sales and distribution expenses rose significantly from HKD 13.35 million to HKD 46.03 million, driven by increased trading volumes in China[43]. Sales and Market Expansion - In Henan, the company sold 6.024 million tons of refined oil, a year-on-year increase of 49%, achieving operating revenue of RMB 22.18 billion and a total profit of RMB 17.04 million[16]. - The company expanded its external procurement and sales, achieving a total sales volume of 3.266 million tons in 2020, more than doubling year-on-year, with sales revenue of RMB 18.069 billion and gross profit of RMB 30.88 million[18]. - The company added 3 oil depots and 4 gas stations in 2020, with sales of oil products exceeding 60,000 tons, and gasoline sales reaching over 3,000 tons per month[20]. - The proportion of road direct sales to external procurement sales reached 1:3, with railway direct sales significantly increasing, accounting for 22.77% of total sales in the northwest region[17]. Assets and Liabilities - Current assets increased to HKD 1,499,139,000 from HKD 768,645,000, representing an increase of 95%[71]. - Cash and bank balances rose to HKD 436,084,000, up 46% from HKD 298,688,000 in the previous year[62]. - Trade receivables increased by 102% to HKD 344,351,000 from HKD 170,711,000[61]. - Inventory surged by 521% to HKD 195,992,000 from HKD 31,541,000[51]. - The total liabilities increased to HKD 1,834,876,000 from HKD 1,452,038,000, reflecting a rise of 26.4%[71]. - The company’s capital debt ratio rose to 229.0% from 132.8%[71]. - The company’s property, plant, and equipment decreased by 42% to HKD 955,951,000 from HKD 1,653,657,000[51]. Corporate Governance - The board consists of four executive directors and four independent non-executive directors, with independent directors accounting for over one-third of the board[188]. - The company has not established a corporate governance committee; instead, the board is responsible for corporate governance functions, including policy formulation and compliance monitoring[191]. - The company aims to ensure diversity in board membership, considering factors such as gender, age, cultural background, and professional experience[193]. - The company has implemented a share option scheme, details of which are included in the consolidated financial statements[160]. Compliance and Risk Management - The company is actively monitoring the impact of COVID-19 on its operations and financial condition, with capital and liquidity levels deemed sufficient to mitigate the pandemic's effects[174]. - The company confirmed compliance with the standards of the Securities Trading Code during the fiscal year ending December 31, 2020[175]. - The company acknowledged a compliance issue regarding related party transactions, where the applicable percentage exceeded 5% and the transaction amount exceeded HKD 10,000,000[167]. - The company is taking remedial measures to strengthen internal controls to prevent similar compliance issues in the future[170]. Strategic Partnerships and Future Outlook - The company is actively exploring strategic partnerships with various funds and investment companies to strengthen its capital structure[25]. - The management aims to leverage the recovery of global economies and rising oil prices to increase revenue and establish a sustainable profit mechanism[25].

Revenue and Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 8,161,298 thousand, a significant increase of 138.5% compared to HKD 3,423,727 thousand for the same period in 2019[6] - The company reported a loss of HKD 61,530 thousand for the period, compared to a loss of HKD 43,103 thousand in the previous year, representing a 42.8% increase in losses[6] - Total comprehensive loss for the period was HKD 123,495 thousand, compared to a gain of HKD 7,822 thousand in the same period last year[9] - The company reported a net cash outflow from operating activities of HKD (253,721) thousand for the six months ended June 30, 2020, compared to a net inflow of HKD 89,337 thousand for the same period in 2019[20] - The company’s total comprehensive income for the period was HKD 50,634 thousand, reflecting a decrease from the previous year[20] - The group reported a total loss for the period of HKD 61,530,000 for the six months ended June 30, 2020, compared to a loss of HKD 43,103,000 in 2019[32] - The company recorded a loss of HKD 61,530,000 for the period, compared to a loss of HKD 43,103,000 in the same period last year, mainly due to the impact of COVID-19 on global oil demand[146] Assets and Liabilities - The company's total assets increased to HKD 3,123,119 thousand as of June 30, 2020, up from HKD 2,545,384 thousand at the end of 2019[14] - Current liabilities rose to HKD 1,273,914 thousand, compared to HKD 1,032,930 thousand in the previous year, indicating a 23.3% increase[14] - The company's equity attributable to owners increased to HKD 1,306,049 thousand from HKD 964,061 thousand, reflecting a growth of 35.5%[12] - Non-current liabilities decreased slightly to HKD 408,780 thousand from HKD 419,108 thousand, showing a reduction of 2.8%[14] - The total liabilities as of June 30, 2020, were HKD 1,682,694,000, an increase from HKD 1,452,038,000 as of December 31, 2019[37] - The company’s cash and bank balances decreased to HKD 196,070 thousand from HKD 298,688 thousand, a decline of 34.3%[14] - The company’s cash and cash equivalents at the end of the period stood at HKD 196,070 thousand, down from HKD 349,202 thousand at the end of the previous year[20] - The company reported uncollateralized bank borrowings of HKD 438,480,000 as of June 30, 2020, an increase from HKD 257,025,000 as of December 31, 2019, indicating a rise in financing activities[95] Cash Flow and Financing Activities - The company experienced a significant decrease in cash and cash equivalents, with a net decrease of HKD (96,332) thousand, compared to an increase of HKD 32,234 thousand in the prior year[20] - The company reported a net cash inflow from financing activities of HKD 164,855 thousand for the six months ended June 30, 2020, compared to HKD 15,701 thousand in the same period of 2019[20] - The company’s operating cash flow was negatively impacted by a significant increase in operational expenses, leading to a cash outflow[20] - The company is actively exploring financing partnerships with domestic and international funds and banks to improve its capital structure and financial condition[129] Operational Performance - The company’s exploration and evaluation expenses were HKD 759 thousand, down from HKD 1,103 thousand, indicating a decrease of 30.2%[6] - The exploration, extraction, and operation segment reported a loss of HKD 40,116,000 for the six months ended June 30, 2020, compared to a loss of HKD 26,034,000 in 2019[32] - The company’s oil trading business in China reported revenue of HKD 8,122,552,000, up from HKD 3,323,308,000 year-on-year, driven by an increase in sales volume from 1.65 million tons to 2.57 million tons[132] - In the first half of 2020, Novus averaged daily production of 1,220 equivalent barrels, a decrease of 32% compared to 1,792 equivalent barrels in the same period last year[119] - For the six months ended June 30, 2020, the company produced 222,019 equivalent barrels of oil and gas, generating revenue of HKD 38,746,000, a significant decrease from HKD 100,419,000 in the same period last year[132] Cost Management and Expenses - The group reported a cost of sold inventory of HKD 8,063,522 thousand for the six months ended June 30, 2020, compared to HKD 3,276,440 thousand for the same period in 2019, representing a significant increase[47] - The company reduced operating expenses by 1 million CAD compared to the same period last year[119] - Total employee costs for the six months ended June 30, 2020, were HKD 24,658,000, down from HKD 36,142,000 for the same period in 2019[161] - The group’s depreciation and amortization expenses for property, plant, and equipment were HKD 39,875 thousand for the six months ended June 30, 2020, compared to HKD 51,626 thousand in 2019, showing a decrease of about 22.8%[47] Strategic Initiatives and Future Outlook - The company plans to continue focusing on market expansion and new technology development to enhance future performance[6] - The company anticipates cautious oil demand in the second half of 2020 due to ongoing COVID-19 impacts and will implement cost-cutting measures to protect assets and shareholder interests[130] - The company has entered into an investment and cooperation agreement for the Madagascar 3113 exploration block, with capital contributions of 31% from the company, 40% from a partner, and 29% from another partner[71] - The company has laid out a strategic cooperation oil depot in Ningxia to enhance its market presence in the northwest region[126] Governance and Compliance - The company has adopted revised accounting standards, which may impact future financial reporting[25] - The company appointed KPMG as the new auditor after the resignation of Guowei Accounting Firm, indicating good corporate governance practices[178] - The audit committee consists of three independent non-executive directors, with Mr. Liang Ting-yuk as the chairman, who reviewed the accounting principles and policies adopted by the company[177]

Production and Sales Performance - In 2019, Novus Energy Inc. achieved an average daily production of 2,044 equivalent barrels, successfully meeting production targets while reducing capital expenditures by 26.3%[5] - Novus increased initial production from new wells to 86 barrels per day in 2019, up from 72 barrels per day in 2018, and achieved an operating netback of CAD 28.93 per barrel, exceeding budget by 20.8%[6] - In 2019, Henan Yanchang sold 3.7 million tons of oil products, a year-on-year increase of 14.78%, generating revenue of RMB 7.06 billion and a total profit of RMB 28.2 million[11] - The company developed 201 new customers in 2019, representing a 68.91% increase, resulting in sales of 245,700 tons[12] - The upgrade of three new recovery gas stations led to a 76.39% increase in sales of refined oil, totaling 10,805 tons in 2019[13] Financial Performance - The company's revenue for the year ended December 31, 2019, was HKD 8,197,422,000, representing a 38% increase from HKD 5,933,388,000 in 2018[21] - The oil and gas production in Canada contributed HKD 228,803,000 in revenue, down from HKD 272,895,000 in the previous year, with production decreasing from 844,000 to 746,000 equivalent barrels[21] - The revenue from oil product trading in China increased by 41% to HKD 7,968,619,000, up from HKD 5,660,493,000, with operating profit rising from HKD 20,237,000 to HKD 42,370,000[21] - The total procurement costs rose to HKD 7,878,319,000 from HKD 5,602,190,000, primarily due to increased sales in the oil product trading business[25] - The company recorded a loss of HKD 434,764,000 for the year, compared to a profit of HKD 6,268,000 in the previous year[36] Assets and Liabilities - The company's total assets decreased, with property, plant, and equipment valued at HKD 1,653,657,000, down 13% from HKD 1,909,854,000[39] - The total current assets decreased to HKD 768,645,000 from HKD 893,252,000 in 2018, reflecting a decline of approximately 13.97%[60] - The total assets decreased to HKD 2,545,384,000 in 2019 from HKD 2,989,682,000 in 2018, a reduction of about 14.83%[60] - The total liabilities decreased to HKD 1,452,038,000 in 2019 from HKD 1,518,745,000 in 2018, showing a decrease of approximately 4.37%[60] - The total equity decreased to HKD 1,093,346,000 in 2019 from HKD 1,470,937,000 in 2018, a decline of about 25.66%[60] Strategic Focus and Future Plans - The company plans to focus on exploration and development in 2020, aiming for stable production and cost reduction while expanding domestic and international oil trade[15] - The management emphasized the importance of identifying new strategic partners and investors to enhance profitability and business scale[15] - The company has a strong focus on international cooperation and project management, particularly in overseas investments[94] Governance and Compliance - The company has adopted the corporate governance practices as outlined in Appendix 10 of the Listing Rules, ensuring compliance with the standards for securities trading by directors[152] - The company has maintained high standards of corporate governance, with ongoing reviews to enhance transparency, independence, accountability, and fairness[162] - The board of directors is responsible for leading and overseeing the company, with a focus on strategic decision-making and monitoring financial and operational performance[165] - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, all composed mainly of independent non-executive directors to enhance independence and effectiveness[176] Risk Management - The company has adopted a risk management system to identify, assess, and manage risks associated with its business operations[193] - The risk management and internal control system is based on the COSO framework, which includes five key components aimed at operational effectiveness and compliance[195] - The board and audit committee review the effectiveness of the risk management and internal control systems annually, ensuring they are adequate and effective[198] Environmental and Safety Compliance - The company maintained compliance with all relevant environmental laws and regulations in Hong Kong, Canada, and China[76] - The company has not reported any environmental claims, lawsuits, penalties, or administrative sanctions[76] - The company has a commitment to continuous improvement in safety and environmental performance[79] Shareholder Information - The annual general meeting serves as an effective channel for shareholders to exchange views with the board[199] - The company has established procedures for shareholders to convene special meetings and submit inquiries to the board[187] - As of the report date, over 25% of the company's issued share capital is held by the public[155]

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 3,423,727,000, an increase of 49.7% compared to HKD 2,288,147,000 for the same period in 2018[4] - The company reported a loss of HKD 43,103,000 for the period, compared to a loss of HKD 21,786,000 in the previous year, representing a 97.5% increase in losses[5] - The basic and diluted loss per share for the period was HKD 0.39, compared to HKD 0.21 in the same period last year, indicating a worsening of 85.7%[5] - For the six months ended June 30, 2019, the company reported a net loss of HKD 43,103,000, compared to a net loss of HKD 24,991,000 for the same period in 2018[11] - Total comprehensive income for the period was HKD 3,523,000, a significant improvement from a total comprehensive loss of HKD 90,085,000 in the prior period[10] - The company reported a decrease in sales of crude oil and natural gas to HKD 100,419,000, down from HKD 146,521,000 in the same period of 2018, representing a decline of approximately 31%[45] - The group reported a total loss of HKD 43,103,000 for the period, compared to a loss of HKD 21,786,000 in the same period last year[122] Assets and Liabilities - Total assets as of June 30, 2019, amounted to HKD 3,167,391,000, up from HKD 2,989,682,000 at the end of 2018, indicating a growth of 6.0%[6] - The company's total liabilities increased to HKD 1,666,210,000 from HKD 1,518,745,000, reflecting a rise of 9.7%[7] - The company has a net current liability of HKD 50,311,000 as of June 30, 2019, raising concerns about its ability to continue as a going concern[11] - The company's cash and bank balances increased to HKD 349,202,000 from HKD 316,768,000, representing a growth of 10.2%[6] - Trade receivables decreased to HKD 221,159,000 from HKD 239,188,000, a decline of 7.5%[6] - The company’s non-controlling interests increased to HKD 133,291,000 from HKD 106,897,000, reflecting a growth of 24.5%[6] Cash Flow and Financing - The company's cash flow from operating activities generated HKD 89,337,000, slightly up from HKD 89,325,000 in the previous year[10] - The company recorded a net cash inflow from financing activities of HKD 15,701,000, compared to HKD 3,340,000 in the previous year[10] - The company expects to generate operating cash flows in the next twelve months and believes it can obtain financing from various sources[12] - The company must maintain a minimum operating cash ratio of 1:1, with the ratio as of June 30, 2019, being 1.52:1[80] Corporate Governance - The company has adhered to the Corporate Governance Code, with the exception of one independent non-executive director's absence at the annual general meeting due to other commitments[152] - The company has appointed KPMG as the new auditor following the resignation of Guo Wei Accounting Firm, indicating good corporate governance practices[154] - The audit committee, consisting of three independent non-executive directors, has reviewed the interim financial statements for the six months ending June 30, 2019[153] - The company confirmed compliance with the standards of the Model Code for Securities Transactions by Directors of Listed Issuers during the six months ending June 30, 2019[157] - The chairman of the board is Mr. Li Yi, who is responsible for overseeing corporate governance and shareholder interests[158] - The company has committed to continuously reviewing and improving its corporate governance practices to enhance shareholder returns[152] Market and Operational Outlook - The company plans to continue exploring new markets and enhancing its operational efficiency to improve future performance[4] - The company plans to enhance the performance of its Canadian upstream projects by optimizing drilling and fracturing processes, aiming to increase production and reserves[102] - The management team will focus on timely market research and marketing plans to achieve operational goals for Henan Yanchang in the second half of 2019[103] - The company maintains a cautious outlook on crude oil demand for the second half of 2019 due to ongoing trade tensions and will implement cost reduction measures[104] Accounting Standards and Changes - The company adopted the revised Hong Kong Financial Reporting Standard 16 on January 1, 2019, which did not restate comparative information[9] - The application of HKFRS 16 has not had a significant impact on the financial statements of the group[25] - The transition to HKFRS 16 resulted in the recognition of right-of-use assets amounting to HKD 708,000, impacting the total non-current assets from HKD 2,096,430,000 to HKD 2,097,138,000[35] - The adoption of HKFRS 16 positively affected the operating profit reported in the consolidated income statement compared to the previous accounting standard[36] Employee and Shareholder Information - The total employee count as of June 30, 2019, was 168, up from 158 as of December 31, 2018, with total employee costs for the six months amounting to HKD 36,142,000, compared to HKD 34,132,000 for the same period in 2018[140] - The issued share capital remained unchanged at HKD 242,911,000 with 12,145,573,000 shares as of both June 30, 2019, and December 31, 2018[72] - Major shareholder, 延長石油集團, holds 12,686,203,231 shares, representing approximately 104.45% of the issued ordinary shares[146]

Financial Performance - The company recorded cumulative oil sales of approximately 3.2 million tons in Henan, generating revenue of around RMB 5 billion and a total profit of RMB 21.9 million[8]. - The company's revenue for the year ended December 31, 2018, was HKD 5,933,388,000, representing a 45% increase from HKD 4,092,177,000 in 2017[14]. - Novus produced 844,000 equivalent barrels of oil and contributed revenue of HKD 272,895,000, down from 1,055,000 equivalent barrels and HKD 316,011,000 in the previous year[17]. - The trading revenue from refined oil in Henan increased by 50% to HKD 5,660,493,000, compared to HKD 3,776,166,000 in the previous year[17]. - The company achieved a profit of HKD 6,268,000 for the year, a turnaround from a loss of HKD 58,625,000 in the previous year[30]. - The profit before tax for the same period was HKD 40,479,000, a significant recovery from a loss of HKD 49,651,000 in 2017[105]. Production and Operations - In 2018, Novus Energy Inc. achieved an average daily production of 2,313 equivalent barrels, with a drilling success rate of over 95% for new wells[7]. - The company successfully implemented a new storage and distribution model, resulting in a warehouse throughput exceeding 100,000 tons per month and daily oil dispatches reaching over 3,000 tons[9]. - The average daily production in Canada was 1,973 bbl of oil and 2,038 mcf of gas during the reporting period[79]. - The company drilled 18 wells in Canada during the reporting period[79]. Financial Position - The company's cash and bank balances increased by 52% to HKD 316,768,000 from HKD 207,998,000 in the previous year[32]. - Trade receivables rose by 87% to HKD 239,188,000 from HKD 127,657,000, mainly due to receivables from Henan that were fully collected in January 2019[32]. - Current assets rose to HKD 893,252,000 from HKD 743,728,000, while total assets increased to HKD 2,989,682,000 from HKD 2,863,908,000[49]. - The total liabilities increased from HKD 1,269,262,000 to HKD 1,518,745,000, with a capital-to-debt ratio rising to 103.3% from 79.6%[49]. - The company's equity total as of December 31, 2018, was HKD 1,470,937,000, down from HKD 1,594,646,000 in 2017[106]. Financing Activities - A special shareholders' meeting approved the issuance of USD 60 million convertible bonds at an interest rate of 6%, significantly reducing financial costs by 4% compared to previous bonds[11]. - The group issued USD 60,000,000 in convertible bonds with a 6% coupon rate, with HKD 383,897,000 used to repay previous bonds[52]. - The funds raised from the 2018 convertible bonds were partially used to repay the 2015 convertible bonds, with the remainder allocated for general working capital[138]. Governance and Compliance - The company has confirmed compliance with the corporate governance code as of December 31, 2018, ensuring high standards of governance practices[154]. - The board consists of five executive directors and four independent non-executive directors, with independent directors accounting for over one-third of the board[157]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience in director appointments[162]. - All independent non-executive directors have confirmed their independence according to the listing rules[158]. Risk Management - The company has adopted a risk management system to identify, assess, and manage risks associated with its business operations[188]. - The board is responsible for reviewing the effectiveness of the risk management and internal control systems at least annually[187]. - The company has implemented the COSO framework for risk management and internal control, focusing on operational effectiveness and compliance[189]. Shareholder Relations - The company has established a communication channel for shareholders to exchange views with the board during annual general meetings[193]. - Shareholders holding at least 10% of the company's paid-up capital can request a special general meeting within three months of submission[181]. - The company adopted a shareholder communication policy in March 2012 to enhance communication between shareholders, the board, and senior management[195].