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，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴該等內容引致之任何損失 承擔任何責任。 UNITED ENERGY GROUP LIMITED 聯合能源集團有限公司* (於開曼群島註冊成立及於百慕達存續之有限公司) (股份代號：467) 截至二零二三年六月三十日止六個月之中期業績公佈 財務摘要 截至六月三十日止六個月止 二零二三年 二零二二年 變動 千港元 千港元 % 業績 營業額 6,226,137 6,020,796 +3.4 毛利 2,549,269 3,212,342 -20.6 未計利息、稅項、折舊及攤銷前之利潤 (附註1) 4,410,292 4,829,722 -8.7 本期間溢利 1,663,117 1,510,239 +10.1 本公司擁有人應佔溢利 1,663,123 1,510,248 +10.1 每股基本盈利(港仙) 6.36 5.77 +10.2 二零二三年 二零二二年 六月三十日 十二月三十一日 變動 千港元 千港元 % 綜合財務狀況表主要數據 本公司擁有人應佔權益 ...

Financial Performance - Revenue increased by 44.6% to HKD 10,753,743 thousand in 2022 compared to HKD 7,436,936 thousand in 2021[6] - Gross profit rose by 64.2% to HKD 5,512,983 thousand in 2022 from HKD 3,357,435 thousand in 2021[6] - EBITDA grew by 58.6% to HKD 9,266,023 thousand in 2022 compared to HKD 5,843,458 thousand in 2021[6] - Net profit attributable to the company's owners increased by 30.0% to HKD 2,601,162 thousand in 2022 from HKD 2,000,597 thousand in 2021[6] - Revenue increased by 44.6% year-on-year to HKD 10,753,743,000 in 2022, primarily due to higher realized crude oil prices[28] - Gross profit surged 64.2% year-on-year to HKD 5,512,983,000 in 2022, with a gross margin of 51.3%, up from 45.1% in 2021[34] - Net profit attributable to equity holders rose 30.0% year-on-year to HKD 2,601,162,000 in 2022, driven by high international oil prices and production from Iraqi assets[27] - Revenue for 2022 increased to 10,753,743 thousand HKD, up from 7,436,936 thousand HKD in 2021, representing a significant growth[147] - Gross profit for 2022 rose to 5,512,983 thousand HKD compared to 3,357,435 thousand HKD in 2021[147] - Net profit for 2022 reached 2,601,146 thousand HKD, up from 2,000,577 thousand HKD in 2021[147] - Basic earnings per share increased to 9.94 HK cents in 2022 from 7.63 HK cents in 2021[147] - Total comprehensive income for 2022 was 2,611,238 thousand HKD, compared to 1,986,002 thousand HKD in 2021[148] - Total comprehensive income for the year 2022 was 2,611,254 thousand HKD, compared to 1,986,022 thousand HKD in 2021, a 31.5% increase[153] Production and Reserves - Average daily production in the Middle East and North Africa assets increased by 18.8% to 53,216 barrels of oil equivalent per day in 2022[8] - Proved reserves at the end of 2022 decreased by 2.2% to 57.6 million barrels of oil equivalent in Pakistan assets[7] - Proved and probable reserves in the Middle East and North Africa assets slightly increased by 0.2% to 767.6 million barrels of oil equivalent at the end of 2022[8] - The company completed 29 development wells in the Middle East and North Africa assets in 2022, up from 12 in 2021[8] - Average daily production in 2022 was 165,883 barrels of oil equivalent (BOE), with average equity daily production at 100,245 BOE[11] - The company achieved 12 commercial discoveries, with 9 in Pakistan and 3 in Egypt, and its 2P reserves reached approximately 867.1 million BOE with a reserve-to-production ratio of 23.7[11] - In Iraq's B9 block, daily production exceeded 60,000 barrels in 2022, with a target to reach 100,000 barrels per day in the coming year[11] - The company achieved an average daily production of 165,883 barrels of oil equivalent (BOE) in 2022, a 7.0% increase from 154,984 BOE in 2021[21] - Total cumulative production reached 60.55 million BOE in 2022, up 7.0% from 56.57 million BOE in 2021[21] - The company made 12 commercial discoveries in 2022, with 9 in Pakistan and 3 in Egypt[19] - In Iraq, the B9 block's production increased to 60,000 BOE per day, aiming for 100,000 BOE per day in the coming year[20] - Pakistan's average equity daily production was 47,029 BOE in 2022, a 2.6% decrease from the previous year[22] - Iraq's B9 block achieved an average daily production of 57,845 BOE and an average equity daily production of 34,707 BOE in 2022[23] - Egypt's average daily production was 18,386 BOE, with an average equity daily production of 12,435 BOE in 2022[24] - The company's average daily production in 2022 was 47,029 barrels of oil equivalent (BOE) in Pakistan and 53,216 BOE in the Middle East and North Africa[55] Capital Expenditure and Investments - The company invested approximately HK$5,313,965,000 in capital expenditures for oil exploration, development, and production activities in 2022, completing 61 wells, including 28 in Pakistan and 33 in the Middle East and North Africa[14] - The company plans to achieve an average daily production range of 165,000 to 179,000 BOE and equity daily production of 94,700 to 102,400 BOE in 2023, with a capital expenditure of $990 million to $1.05 billion[12] - The company targets an average working interest production of 94,700 to 102,400 barrels of oil equivalent per day in 2023, with capital expenditures expected to be between USD 990 million and USD 1.05 billion[43] - In Pakistan, the company's exploration area increased by approximately 51% to 22,433 square kilometers in 2022, and it plans to achieve an average working interest production of 40,500 to 44,500 barrels of oil equivalent per day in 2023[44] - The Middle East and North Africa assets have proven and probable reserves of 767.6 million barrels of oil equivalent, with 97.5% located in Iraq, and the company aims for average working interest production of 42,700 to 44,900 barrels of oil equivalent per day in Iraq and 11,500 to 13,000 barrels of oil equivalent per day in Egypt in 2023[45] - Total exploration costs for 2022 were HKD 562,497,000, with HKD 509,303,000 spent in Pakistan and HKD 53,194,000 in the Middle East and North Africa[56] - Total development costs for 2022 were HKD 4,309,041,000, with HKD 402,180,000 spent in Pakistan and HKD 3,906,861,000 in the Middle East and North Africa[56] Financial Position and Cash Flow - The company's total assets grew by 9.5% to HKD 27,419,844 thousand in 2022 from HKD 25,032,350 thousand in 2021[6] - The company's net assets increased by 11.0% to HKD 15,807,820 thousand in 2022 compared to HKD 14,240,280 thousand in 2021[6] - The company's cash and bank balances stood at HKD 3,255,124,000 as of December 31, 2022, reflecting a strong financial position[47] - Total outstanding loans as of December 31, 2022, amounted to approximately HKD 4,022,756,000, with a weighted average interest rate of 7.43%[48][49] - The company's debt-to-asset ratio decreased to 15.3% in 2022 from 19.7% in 2021, with total assets valued at HKD 27,419,844,000[48] - Net cash inflow from operating activities rose by 82.8% to HKD 7,824,906,000 in 2022, primarily due to increased cash flow from oil and gas sales[40] - Net cash outflow for investing activities surged by 128.8% to HKD 5,706,750,000 in 2022, with capital expenditures increasing by 97.6% to HKD 5,392,499,000[41] - Net cash outflow for financing activities was HKD 2,069,864,000 in 2022, mainly due to special dividends of HKD 1,051,597,000 and bank loan repayments of HKD 1,980,101,000[42] - Operating cash flow increased to 7,824,906 thousand HKD in 2022 from 4,280,826 thousand HKD in 2021, reflecting strong cash generation from operations[154] - Net cash used in investing activities was 5,706,750 thousand HKD in 2022, primarily due to the acquisition of property, plant, and equipment amounting to 5,392,499 thousand HKD[155] - Net cash used in financing activities was 2,069,864 thousand HKD in 2022, driven by loan repayments of 1,980,101 thousand HKD and dividend payments of 1,051,597 thousand HKD[155] - Cash and cash equivalents increased by 48,292 thousand HKD in 2022, reaching 3,169,455 thousand HKD at the end of the year[155] Corporate Governance and Compliance - The company has maintained good corporate governance standards and procedures to ensure integrity, transparency, openness, and accountability to shareholders[57] - The company has complied with the corporate governance code provisions in Appendix 14 of the Listing Rules, except for the CEO position being vacant and the absence of specific terms for independent non-executive directors[58] - The Board of Directors consists of five members, including two executive directors and three independent non-executive directors, with one having appropriate professional accounting experience[61] - The Board of Directors held 11 meetings in 2022, with all members attending all meetings[65] - All directors attended the 2022 Annual General Meeting[66] - The company provides induction training for newly appointed directors and encourages continuous professional development for all directors[67] - The company has adopted the standard code regarding directors' securities transactions as per Appendix 10 of the Listing Rules, and all directors confirmed compliance with the code in 2022[59] - The company has appropriate insurance coverage for directors and senior officers to protect against risks arising from the company's business[60] - The Board of Directors is responsible for approving the group's development and business strategies, financial control procedures, major acquisitions and disposals, and other significant transactions[64] - The company ensures that at least one-third of the Board consists of independent non-executive directors, with at least one having relevant professional qualifications and accounting expertise[62] - The company's audit committee held two meetings in 2022, with all members attending both sessions[72] - The company paid HKD 3,640,000 for audit services and HKD 380,000 for interim financial review to its external auditor, RSM Hong Kong[77] - The company's nomination committee held two meetings in 2022, focusing on board member re-election and diversity policy review[75] - The company's remuneration committee held two meetings in 2022 to review and approve the remuneration packages for directors and senior management[73] - The company's financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, which are consistent with International Financial Reporting Standards[69] - The company's board has delegated specific responsibilities to various committees, including audit, remuneration, and nomination committees[70] - The company's audit committee reviewed the external auditor's annual audit plan, audit report, and related matters in 2022[72] - The company's nomination committee assessed the board's diversity in terms of skills, experience, and perspectives to enhance governance standards[75] - The company's remuneration committee considered comparable salary levels and the time commitment of directors and senior management when determining compensation[73] - The company's audit committee evaluated the performance and independence of the external auditor in 2022[72] - The company has established a Risk Management and Internal Control Department to conduct annual reviews of its risk management and internal control systems, ensuring their effectiveness and protecting shareholder interests[78] - The company's Board of Directors is responsible for maintaining an effective risk management and internal control system, which is reviewed annually to ensure operational efficiency and compliance[78] - The company's corporate governance framework includes provisions for shareholders to request extraordinary general meetings and submit written inquiries to the Board of Directors[80] - The company confirmed compliance with the standard code of conduct under the listing rules, with no reported breaches[115] - No reportable connected transactions or continuing connected transactions were conducted during the year[117] - The company's corporate governance practices were in line with the Listing Rules, except for a minor deviation under Code Provision A.4.1[118] Risk Management - The company's financial performance is significantly impacted by oil and gas price fluctuations, which are influenced by supply-demand dynamics, macroeconomic conditions, and geopolitical instability[83] - Operations in Pakistan, Egypt, and Iraq expose the company to risks related to changes in tax and fiscal policies, as well as economic, political, and environmental conditions in these regions[84] - Exploration and development activities carry inherent risks of failing to discover commercially viable oil and gas reserves, which could lead to write-offs or impairment charges[85] - The company faces operational risks in health, safety, security, and environmental compliance, which could result in economic losses, operational disruptions, and legal disputes[86] - Mergers and acquisitions are part of the company's expansion strategy, but they carry risks related to external financing, key assumptions, and parameter discrepancies[87] - The company's operations could be adversely affected by natural disasters, pandemics, or other public health crises, potentially disrupting supply chains, delaying deliveries, and reducing demand[89] Shareholder and Stakeholder Engagement - The company maintains robust communication with shareholders through annual general meetings, reports, notices, and electronic channels to ensure transparency and protect shareholder rights[80] - The company's largest customer accounted for 46.8% of total sales, while the top five customers accounted for 93.8% of total sales[94] - The largest supplier accounted for 23.7% of total procurement, while the top five suppliers accounted for 45.1% of total procurement[94] - The company's social investment projects during the reporting period focused on healthcare, education, and capacity building, benefiting local communities[92] - The company's main operations are located in Pakistan, Egypt, and Iraq, with compliance ensured across multiple jurisdictions including China, Dubai, and Hong Kong[91] Shareholding and Ownership - The company's shareholding structure includes significant stakes held by subsidiaries and affiliated entities, with detailed ownership percentages disclosed[109][110] - Director Zhang Hongwei holds approximately 66.44% of the company's shares through controlled entities, with 30.54% held by He Fu International Limited[105] - Director Zhang Meiying holds approximately 4.90% of the company's shares through controlled entities[105] - He Fu International Limited, controlled by Zhang Hongwei, holds 8,029,971,845 shares, representing 30.54% of the company's total shares[105] - Wan Fu Enterprises Limited, controlled by Zhang Hongwei, holds 9,436,628,385 shares, representing 35.89% of the company's total shares[108] - United Oil & Gas Holdings Limited holds 5,787,539,821 shares, representing 22.01% of the company's total shares[108] - United Energy Holdings Limited holds 3,649,088,564 shares, representing 13.88% of the company's total shares[108] - Haitong Securities Co., Ltd. holds 3,496,809,090 shares, representing 13.30% of the company's total shares[108] - Haitong International Securities Group (Singapore) Pte. Ltd holds 2,087,700,000 shares, representing 7.94% of the company's total shares[108] - The company's Chairman, Mr. Zhang Hongwei, holds a beneficial interest in 17,466,600,230 shares, representing approximately 66.44% of the issued share capital[125] - Ms. Zhang Meiying, an Executive Director, holds a beneficial interest in 1,287,700,000 shares, representing approximately 4.9% of the issued share capital[125] Dividends and Reserves - The company's distributable reserves as of December 31, 2022, amounted to approximately HKD 8,488,029,000, compared to HKD 9,539,626,000 in the previous year[119] - The Board of Directors did not recommend the payment of a final dividend for the year 2022, consistent with the previous year's decision[120] - The company's dividend policy considers factors such as financial performance, shareholder interests, retained earnings, debt-equity ratio, and future expansion plans[120] - Dividends paid in 2022 amounted to 1,051,597 thousand HKD, up from 620,299 thousand HKD in 2021, a 69.5% rise[153] Audit and Financial Reporting - The company's independent auditor, RSM, was reappointed at the AGM held on June 6, 2022, and will be proposed for reappointment at the upcoming AGM[124] - The auditor's report confirmed that the consolidated financial statements for 2022 were prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS)[128] - Key audit matters identified include impairment of property, plant, and equipment, and intangible assets, as well as estimation of oil and gas reserves[130] - The company's operations in Pakistan, the Middle East, and North Africa were subject to specific audit procedures related to asset impairment[131] - The company's property, plant, and equipment (PP&E) and intangible assets related to exploration and production were valued at approximately HKD 11,576,820,000 and HKD 4,306,573,000 respectively as of December 31, 2022[134] - Impairment provisions and write-offs for exploration and production assets amounted to approximately HKD 928,746,000 and HKD 609,132,000 respectively during the year[138] - The impairment assessment was influenced by factors such as increased discount rates, declining oil and gas prices, and reduced production and reserves[136] - Management identified certain oil and gas fields as having no commercial value, leading to impairment provisions or full write-offs[137] - The company's oil and gas reserves estimation involves significant technical uncertainty and subjective assumptions, making it a critical audit matter[141] - The audit process included evaluating the accuracy of write-off calculations and reviewing supporting evidence such as reserve estimates and

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，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴該等內容引致之任何損失 承擔任何責任。 UNITED ENERGY GROUP LIMITED 聯合能源集團有限公司 * (於開曼群島註冊成立及於百慕達存續之有限公司) (股份代號：467) 截至二零二二年十二月三十一日止年度之全年業績公佈 財務摘要 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 變動 千港元 千港元 % 業績 營業額 10,753,743 7,436,936 +44.6 毛利 5,512,983 3,357,435 +64.2 未計利息、稅項、折舊及攤銷前之利潤 (附註1) 9,266,023 5,843,458 +58.6 本年溢利 2,601,146 2,000,577 +30.0 本公司擁有人應佔溢利 2,601,162 2,000,597 +30.0 每股基本盈利(港仙) 9.94 7.63 +30.3 綜合財務狀況表主要數據 本公司擁有人應佔權益 15,802,040 14,234,374 +11.0 總資 ...

Financial Performance - For the six months ended June 30, 2022, the company reported revenue of HKD 5,502,952,000, an increase from HKD 3,456,367,000 in the same period of 2021, representing a growth of approximately 59%[14] - The gross profit for the same period was HKD 3,212,250,000, compared to HKD 1,504,883,000 in 2021, indicating a significant increase of about 113%[14] - The net profit for the period was HKD 1,510,239,000, up from HKD 958,735,000 in the previous year, reflecting a growth of approximately 57.6%[15] - Basic earnings per share increased to HKD 5.77 from HKD 3.66, marking a rise of about 57.6%[14] - Total comprehensive income for the period was HKD 1,530,136,000, compared to HKD 955,313,000 in 2021, showing an increase of approximately 60%[15] Assets and Liabilities - Non-current assets as of June 30, 2022, amounted to HKD 16,993,840,000, a decrease from HKD 17,363,762,000 at the end of 2021[16] - Current liabilities increased to HKD 8,379,088,000 from HKD 7,668,588,000, indicating a rise of about 9.2%[16] - The company's total assets less current liabilities stood at HKD 19,508,333,000, down from HKD 19,938,998,000 at the end of 2021[16] - The company's net asset value increased to HKD 14,720,399,000 from HKD 14,240,280,000, reflecting a growth of approximately 3.4%[17] - The company reported a decrease in borrowings to HKD 2,392,919,000 from HKD 2,833,466,000, indicating a reduction of about 15.5%[17] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 3,182,024, compared to HKD 1,228,692 for the same period in 2021, representing a significant increase[19] - The net cash used in investing activities was HKD (2,593,123) for the six months ended June 30, 2022, compared to HKD (908,942) in 2021, indicating increased investment outflows[19] - The net cash used in financing activities was HKD (1,326,353) for the six months ended June 30, 2022, slightly higher than HKD (1,292,811) in the previous year[19] - The total cash and cash equivalents at the end of the period were HKD 2,388,456, up from HKD 1,783,226 at the end of June 2021[19] - The company reported a decrease in cash and cash equivalents of HKD (737,452) for the six months ended June 30, 2022, compared to a decrease of HKD (973,061) in the same period of 2021[19] Dividends - The company declared dividends amounting to HKD (1,051,597) for the six months ended June 30, 2022, compared to HKD (603,829) in the previous year, reflecting a higher payout[19] - A special dividend of HKD 0.04 per share was paid, totaling HKD 1,051,597,000, while no interim dividend was declared for the current period[32] Operational Highlights - The company operates primarily in oil and gas exploration and production in Pakistan, the Middle East, and North Africa, indicating a focused operational strategy[23] - Average daily production reached approximately 165,338 barrels of oil equivalent, an 8.4% increase from 152,577 barrels of oil equivalent in the same period last year[62] - The company achieved 7 commercial discoveries, with 6 in Pakistan and 1 in Egypt, contributing to future production growth[62] - Average daily production from Pakistan assets was approximately 71,659 barrels of oil equivalent, a 4.9% increase year-on-year[63] - Average daily production from Iraq's B9 block increased by 33.1% to approximately 54,070 barrels of oil equivalent[64] Exploration and Development - Capital expenditure of approximately HKD 1,858,048,000 was allocated to oil exploration, development, and production activities during the reporting period[61] - Total exploration costs amounted to HKD 244,463,000, while total development costs reached HKD 1,500,968,000 during the reporting period[60] - The company completed drilling 28 wells, including 13 in Pakistan and 15 in the Middle East and North Africa[61] Market Performance - The average Brent crude oil price during the reporting period was USD 107.2 per barrel, up 65.05% from USD 64.95 per barrel in the same period last year[61] - The average realized price for oil and gas was approximately USD 71.93 per barrel of oil equivalent, a 64.6% increase from USD 43.70 in the previous year[70] - Oil and condensate sales volume reached 10.2 million barrels, a 20.3% increase year-on-year, with an average selling price of USD 104.18 per barrel, up 65.2% from the previous year[66] - Natural gas sales volume decreased by 3.1% to 7.7 million barrels of oil equivalent, but the average selling price increased by 27.1% to USD 29.40 per barrel of oil equivalent[67] Corporate Governance - The company has established a nomination committee responsible for board member nominations and diversity policies[105] - The audit committee, composed of three independent non-executive directors, reviewed the unaudited financial statements for the six months ending June 30, 2022[107] - The company has complied with the corporate governance code as per the listing rules, except for the CEO position being vacant[104] - The company has adopted a standard code of conduct for directors' securities transactions, confirming compliance for the reporting period[106] Shareholder Information - As of June 30, 2022, the total number of shares held by major shareholders includes 17,466,600,230 shares (66.44%) held by Zhang Hongwei[97] - Major shareholders include He Fu International Limited, which holds 8,029,971,845 shares (30.55%)[98] - The company has a significant portion of its shares controlled by related entities, indicating concentrated ownership[99] Future Outlook - The average daily production target for 2022 is set between 160,000 to 173,000 barrels of oil equivalent, with capital expenditures expected to reach USD 720 million to USD 780 million[83] - The average daily production target for the Pakistan assets is projected to be between 45,000 to 48,000 barrels of oil equivalent in 2022[84] - The Middle East and North Africa assets have proven and probable reserves of 765.8 million barrels of oil equivalent, with 97.2% located in Iraq[85]

Financial Performance - Revenue for 2021 reached HKD 7,436,936, an increase of 19.9% from HKD 6,204,227 in 2020[8] - Gross profit for 2021 was HKD 3,357,435, reflecting a significant increase of 65.2% compared to HKD 2,032,749 in 2020[8] - Profit attributable to owners for the year was HKD 2,000,597, marking a substantial increase of 131.5% from the previous year[8] - Basic earnings per share for 2021 were HKD 7.63, up 131.2% from HKD 3.30 in 2020[8] - The total assets for 2021 were HKD 25,032,350, a slight increase of 0.4% from HKD 24,941,385 in 2020[8] - The company recorded a significant profit attributable to shareholders of approximately HKD 2,000,597,000, a 131.5% increase compared to HKD 864,176,000 in 2020[20] - The total comprehensive income for the year was HKD 1,986,002,000, compared to HKD 854,645,000 in 2020, representing a growth of 132.5%[163] - The company reported a significant reduction in financing costs, which decreased to HKD 266,913,000 in 2021 from HKD 312,592,000 in 2020, a decline of 14.6%[162] - Operating profit increased to HKD 2,758,691,000 in 2021, compared to HKD 1,308,622,000 in the previous year, marking a growth of 110.0%[162] Production and Reserves - Average daily production in Pakistan decreased to 48,287 BOE/day, down 13.7% from 55,929 BOE/day in 2020[9] - Average daily production in the Middle East and North Africa increased to 44,810 BOE/day, up 21.6% from 36,857 BOE/day in 2020[10] - The year-end net proven reserves in Pakistan were 58.9 million BOE, a decrease of 15.1% from 69.4 million BOE in 2020[9] - The company’s 2P reserves reached approximately 872.9 million barrels of oil equivalent, with a reserve-to-production ratio of about 25.7[15] - The average daily production of the company was approximately 93,097 barrels of oil equivalent, a slight increase of 0.3% from 92,786 barrels of oil equivalent in the previous year[38] - Cumulative production reached approximately 56.57 million barrels of oil equivalent, up 2.1% from last year's 55.39 million barrels[29] Exploration and Development - The company successfully completed drilling 38 wells in 2021, including 24 in Pakistan and 14 in the Middle East and North Africa[20] - The company made 13 commercial discoveries in 2021, with 9 in Pakistan and 4 in Egypt[15] - The company is expanding its business in Pakistan and Egypt, with significant progress in acquiring new exploration blocks[15] - The company plans to achieve an average daily production target of 160,000 to 173,000 barrels of oil equivalent for 2022, with capital expenditures expected to reach USD 720 million to USD 780 million[17] - The average daily production target for the Pakistan assets in 2022 is set between 45,000 to 48,000 barrels of oil equivalent[62] Financial Management - The company maintains a prudent financial management policy, focusing on cost savings and investment control to enhance competitiveness[16] - The group plans to explore opportunities in the international debt capital markets, including the issuance of corporate bonds, to optimize its capital structure[67] - Cash outflow for investment activities increased by 14.4% to approximately HKD 2,494,002,000, with capital expenditures reaching approximately HKD 2,729,241,000, a 44.7% increase from the previous year[57] - The company has established a dividend policy that considers various factors, including financial performance and shareholder interests, before declaring dividends[142] Governance and Compliance - The company has established a governance structure with a board of five members, including an independent non-executive director with relevant professional qualifications and accounting expertise[83] - The board held a total of six meetings during the year, with all directors attending all meetings, indicating strong engagement and oversight[87] - The company has adopted a standard code regarding securities transactions by directors, ensuring compliance with regulations throughout the year[81] - Independent non-executive directors are required to be re-elected at least every three years, promoting accountability and governance quality[85] - The company provides training and support for directors to ensure they are well-informed about their responsibilities and regulatory requirements[89] Risks and Challenges - The company reported significant risks related to international oil price fluctuations, which can greatly impact cash flow and profitability[107] - Exploration and development activities carry inherent risks of not discovering commercial oil and gas reserves, which could lead to write-offs or impairments[109] - The financial performance is influenced by tax and fiscal regimes in Pakistan, Egypt, and Iraq, with potential changes increasing tax burdens[108] Social Responsibility - The company focuses on sustainable social investment projects in healthcare, education, and capacity building to benefit local communities[116] - The company actively explores new reserves to help alleviate energy supply shortages in Pakistan[116] - The company maintains strong relationships with stakeholders, including shareholders, employees, government, local communities, customers, and suppliers[116] Shareholder Information - The company has a total of 17,466,600,230 shares, with 66.44% held by controlling shareholders[127] - The top five customers accounted for 96.8% of the group's revenue in 2021, compared to 96.2% in 2020, while the top five suppliers represented 14.7% of total sales and service costs[72] - The company has a stock option plan to incentivize eligible employees[135] Audit and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2021[150] - Key audit matters identified include the impairment of property, plant, and equipment, and the estimation of oil and gas reserves[152] - The audit process involves identifying and assessing risks of material misstatement and designing audit procedures to address those risks[158]

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 3,456,367, an increase of 20.5% compared to HKD 2,865,634 for the same period in 2020[13] - Gross profit for the same period was HKD 1,504,883, representing a gross margin of approximately 43.5%, up from HKD 889,872 in 2020[13] - Profit before tax increased to HKD 1,165,634, a 99.9% increase from HKD 582,653 in the previous year[13] - Net profit attributable to shareholders for the period was HKD 958,735, compared to HKD 423,264 in the same period last year, marking a 126.7% increase[14] - Basic earnings per share for the period was HKD 3.66, up from HKD 1.61 in 2020[13] - The company reported a total comprehensive income of HKD 955,313 for the period, compared to HKD 426,073 in 2020[14] Assets and Liabilities - Total assets as of June 30, 2021, were HKD 19,181,013, slightly down from HKD 19,600,084 at the end of 2020[15] - Current liabilities decreased to HKD 4,980,438 from HKD 5,341,301 at the end of 2020[15] - Non-current liabilities decreased to HKD 5,930,207 from HKD 6,684,292 at the end of 2020[16] - As of June 30, 2021, the total liabilities amounted to HKD 2,884,104,000, a decrease of 9.2% from HKD 3,177,545,000 as of December 31, 2020[48] - The group’s non-current liabilities stood at HKD 3,107,546,000, compared to HKD 3,866,279,000, marking a decrease of 19.6%[50] Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 1,228,692, compared to HKD 420,876 for the same period in 2020, representing a significant increase of 192%[19] - The cash used in investing activities for the six months ended June 30, 2021, was HKD (908,942), an improvement from HKD (1,098,655) in the same period of 2020[19] - The financing costs totaled HKD 139,419 for the six months ended June 30, 2021, compared to HKD 162,417 in 2020, indicating a decrease of 14%[31] - The cash flow from financing activities for the six months ended June 30, 2021, was HKD (1,292,811), compared to HKD (595,227) in the same period of 2020, indicating a significant increase in cash outflow[19] Market Performance - Revenue from the Pakistan market was HKD 1,164,069 for the six months ended June 30, 2021, down from HKD 1,653,835 in 2020, a decline of 30%[28] - The average daily production from Pakistan assets was 47,729 barrels of oil equivalent, while from Middle East and North Africa assets it was 43,706 barrels of oil equivalent during the reporting period[73] - Average daily production reached approximately 152,577 barrels of oil equivalent, a slight decrease of 0.3% from 153,106 barrels of oil equivalent in the same period last year[77] Shareholder Information - The group did not recommend any interim dividend for the six months ended June 30, 2021, compared to a dividend of HKD 0.0236 per share for the previous year[37] - Major shareholder Zhang Hongwei holds 66.45% of the company's shares, amounting to 17,466,600,230 shares[120] - Zhang Meiying, another major shareholder, holds 4.90% of the company's shares, totaling 1,287,700,000 shares[120] Corporate Governance - The company has adhered to corporate governance practices as per the listing rules, although the CEO position remains vacant, which is noted as a deviation from best practices[127] - The audit committee, composed of three independent non-executive directors, reviewed the unaudited financial statements for the six months ending June 30, 2021, and found them satisfactory[131] - The company has established a nomination committee to oversee the selection of board members, focusing on diversity and qualifications[129] Tax and Legal Matters - The company is involved in a dispute with the Pakistani government regarding a windfall tax, with a potential additional provision of approximately HKD 191,969,000 required if the tax is applied retroactively[62] - The cumulative potential tax liabilities from various tax directives received from the Pakistani tax authorities amount to approximately HKD 969,040,000 as of June 30, 2021, up from HKD 623,548,000 as of December 31, 2020[62] Future Outlook - Global oil demand is projected to increase by 6 million barrels per day in 2021, reaching 96.6 million barrels per day[100] - The company aims for an average daily production of 150,000 to 165,000 barrels of oil equivalent in 2021, with capital expenditures expected to reach $390 to $450 million[100] - The company plans to achieve an average daily production of 46,000 to 50,000 barrels of oil equivalent from its Pakistan assets in 2021[102]

Financial Performance - Revenue for 2020 was HKD 6,204,227 thousand, a decrease of 12.7% from HKD 7,103,644 thousand in 2019[6] - Gross profit fell to HKD 2,032,749 thousand, down 41.6% from HKD 3,477,805 thousand in the previous year[6] - Profit attributable to owners of the company decreased by 54.7% to HKD 864,176 thousand from HKD 1,905,957 thousand in 2019[6] - The company reported a basic earnings per share of HKD 3.30, down 54.5% from HKD 7.26[6] - The company's EBITDA for the reporting period was approximately HKD 4,453,219,000, a decrease of 18.7% from HKD 5,477,288,000 last year, mainly due to a decline in average realized sales prices[48] - Total comprehensive income for 2020 was HKD 854,645, a decrease of 55.7% from HKD 1,925,938 in 2019[165] - The net profit for 2020 was HKD 864,175, down 54.5% from HKD 1,905,947 in 2019[164] - The operating profit for 2020 was HKD 1,308,622, a decline of 52.1% from HKD 2,733,167 in 2019[164] Production and Reserves - Average daily production of oil equivalent decreased by 16.0% to 55,929 barrels from 66,560 barrels[7] - Year-end net proven reserves were 69.4 million barrels of oil equivalent, down 17.0% from 83.6 million barrels[7] - Average daily production reached 151,330 barrels of oil equivalent, with equity daily production at 92,786 barrels of oil equivalent in 2020[13] - The company's 2P reserves increased to approximately 1.0739 billion barrels of oil equivalent, up from 0.9313 billion barrels of oil equivalent in 2019, representing a growth of 15.5%[13] - The equity 2P reserves in the Iraq B9 block grew by 21.6% to approximately 914 million barrels of oil equivalent as of December 31, 2020[13] Capital Expenditure and Investment - Capital expenditure for 2020 was approximately HKD 1.8 billion, focused on oil exploration, development, and production activities[18] - Capital expenditure for 2021 is projected to be between USD 390 million and USD 420 million, primarily for exploration, development, and engineering projects[15] - The company has been actively investing in Pakistan's oil and gas upstream sector for ten years, enhancing operational performance[12] Financial Position and Management - The company maintained a healthy balance sheet with total assets of HKD 24,941,385 thousand, a decrease of 3.1% from HKD 25,743,105 thousand[6] - The group has maintained a strong financial position, with cash and bank balances of approximately HKD 3,093,281,000 as of December 31, 2020[58] - The group plans to explore opportunities to optimize its capital structure, including potential issuance of corporate bonds in the international debt capital market within the next 12 months[60] - The company emphasizes prudent financial management and aims to maintain a healthy financial condition while managing cash flow and debt[14] Operational Efficiency and Cost Management - The company initiated cost reduction activities in April 2020, including negotiating lower service contract prices and optimizing production activities[39] - Administrative expenses were approximately HKD 439,643,000, down from HKD 505,215,000 in the previous year, maintaining a ratio of 7.1% of revenue[45] - The exploration and production costs increased by 4.3% to approximately HKD 1,152,442,000, with the cost per barrel of oil equivalent at approximately USD 4.35, a slight decrease of 0.9% from the previous year[39] Exploration and Discoveries - The company made 8 commercial discoveries in 2020, with 5 in Pakistan and 3 in Egypt, enhancing exploration efficiency[23] - The exploration area in Pakistan was 16,972 km², including 24,541 km² of non-operational area, supporting sustainable growth[23] - The company conducted 8 exploration and evaluation wells in Pakistan and 3 in the Middle East and North Africa during the reporting period[70] Governance and Compliance - The company maintained a commitment to good corporate governance standards, ensuring transparency and accountability to shareholders[72] - The board of directors consisted of five members, including an independent non-executive director with relevant professional qualifications and financial management expertise[78] - The company has adopted the corporate governance code as per the Listing Rules and has confirmed compliance for the fiscal year ending December 31, 2020[131] Risks and Challenges - The company acknowledges various risks and uncertainties it faces, although not all factors are detailed in the report[98] - The company faces inherent risks in exploration and development activities, including the potential failure to discover commercial oil and gas reserves, which could lead to write-offs or impairment provisions[101] - The company’s operations may be adversely affected by natural disasters or pandemics, which could disrupt procurement and manufacturing processes, impacting overall business performance[105] Shareholder Information - The company maintained sufficient public float as of December 31, 2020, with no share buybacks or purchases by subsidiaries during the year[139] - The company proposed a final dividend of HKD 0.236 per share for the year ended December 31, 2020, subject to shareholder approval at the annual general meeting on June 2, 2021[135] - The company's major shareholder, Zhang Hongwei, holds 66.45% of the company’s shares, amounting to 17,466,600,230 shares[119]

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 2,865,634, a decrease of 17.7% compared to HKD 3,481,918 for the same period in 2019[4] - Gross profit for the period was HKD 889,872, down 52.0% from HKD 1,854,939 in the previous year[4] - Operating profit decreased to HKD 766,020, representing a decline of 53.3% from HKD 1,641,562 in the prior period[4] - Profit before tax was HKD 582,653, a decrease of 56.7% compared to HKD 1,342,969 in 2019[4] - Net profit for the period was HKD 423,264, down 56.3% from HKD 968,891 in the same period last year[5] - Basic and diluted earnings per share were both HKD 1.61, compared to HKD 3.69 in the previous year[4] - The company reported a total comprehensive income of HKD 426,073 for the period, down from HKD 973,339 in the previous year[5] - The company reported a net loss of HKD 28,115,000 for the six months ended June 30, 2020, compared to a net profit of HKD 973,839,000 in the same period of 2019[8] - The company’s profit attributable to owners for the six months ended June 30, 2020, was HKD 423,264,000, a significant decline of 56.3% from HKD 968,891,000 in 2019[36] - The basic earnings per share for the period was HKD 0.016, down from HKD 0.037 in the same period of 2019[36] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 19,049,440, slightly down from HKD 19,113,260 at the end of 2019[6] - Non-current liabilities decreased to HKD 6,569,278 from HKD 7,059,171 at the end of 2019[7] - Cash and cash equivalents were HKD 2,463,285, down from HKD 3,358,627 at the end of 2019[6] - The company’s total assets as of June 30, 2020, were HKD 12,462,580,000, compared to HKD 12,202,118,000 as of June 30, 2019[8] - Trade and other receivables totaled HKD 3,957,557,000 as of June 30, 2020, an increase of 17.5% from HKD 3,368,908,000 as of December 31, 2019[40] - Trade receivables as of June 30, 2020, totaled HKD 3,152,833,000, an increase of 27.1% from HKD 2,481,644,000 as of December 31, 2019[42] - Other receivables, after provisions, amounted to HKD 1,093,454,000 as of June 30, 2020, down from HKD 1,158,243,000 as of December 31, 2019, a decrease of 5.6%[43] - Total trade and other payables decreased to HKD 4,414,626,000 as of June 30, 2020, from HKD 6,024,212,000 as of December 31, 2019, a decline of 26.8%[44] - Bank loans secured as of June 30, 2020, amounted to HKD 4,842,013,000, an increase of 3.1% from HKD 4,695,786,000 as of December 31, 2019[48] - The total amount of undrawn bank financing as of June 30, 2020, was approximately HKD 154,440,000[49] Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2020, was HKD 420,876,000, a significant decrease from HKD 2,513,616,000 in the same period of 2019[9] - The total cash and cash equivalents at the end of the period were HKD 1,881,925,000, down from HKD 2,293,530,000 in the previous year[9] - The company reported a decrease in cash used in investing activities, amounting to HKD 1,051,115,000 in 2020 compared to HKD 5,296,275,000 in 2019[9] - The company acquired property, plant, and equipment amounting to HKD 736,001,000 during the six months ended June 30, 2020, compared to HKD 1,224,414,000 in 2019, indicating a decrease of 39.9%[38] - Capital expenditure of approximately HKD 721,218,000 was invested in oil exploration, development, and production activities[88] Acquisitions and Subsidiaries - The company acquired a subsidiary during the period, which resulted in a cash outflow of HKD 4,080,085,000 in 2019, with no similar acquisition in 2020[9] - The company acquired Kuwait Energy Public Limited Company (KEC) and its subsidiaries for a total consideration of approximately 4,403,101,000 HKD, expanding its upstream oil and gas exploration and production business[62] - KEC contributed approximately HKD 635,964,000 in revenue and HKD 53,938,000 in net profit during the reporting period[65] - The fair value of identifiable assets and liabilities acquired is a provisional amount, pending final valuation[65] - The sale of the subsidiary, Xinian Investment Limited, generated approximately HKD 37,216,000 in revenue[66] Production and Sales - Average daily production from Pakistan assets was 59,707 barrels of oil equivalent, while from Middle East and North Africa assets it was 35,213 barrels of oil equivalent[74] - Average daily production reached approximately 153,106 barrels of oil equivalent, an increase of 4.2% from approximately 146,884 barrels in the same period last year[79] - Cumulative production amounted to approximately 27.87 million barrels of oil equivalent, a growth of 21.1% compared to approximately 23.02 million barrels in the same period last year[79] - The average realized price for crude oil sales was USD 34.57 per barrel, a decrease of 46.8% compared to the same period last year[85] - The average realized price for natural gas sales was USD 25.45 per barrel of oil equivalent, down 8.7% from the same period last year[87] - Oil and gas sales for the first half of 2020 were approximately $500.3 million, a decrease of 16.4% compared to $598.6 million in the same period of 2019[91] Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations for the six months ending June 30, 2020[127] - The Nomination Committee is responsible for the nomination of directors and reviews the company's board diversity policy[129] - The Audit Committee consists of three independent non-executive directors and has reviewed the unaudited financial statements for the six months ending June 30, 2020[131] - The company has adopted a code of conduct for securities transactions by directors, confirming compliance for the six months ending June 30, 2020[130] Future Outlook - The COVID-19 pandemic is expected to negatively impact revenue and operating performance for the fiscal year ending December 31, 2020[71] - The average daily production target for the year remains between 140,000 to 160,000 barrels of oil equivalent, with an average equity daily production target of 86,000 to 95,000 barrels of oil equivalent[104] - The company plans to achieve an average equity daily production of 52,000 to 55,000 barrels of oil equivalent from its Pakistan assets in 2020[106] - For 2020, the average daily production from Iraqi assets is planned to be between 21,000 and 25,000 barrels of oil equivalent, and from Egyptian assets, it is expected to be between 13,000 and 15,000 barrels of oil equivalent[107] Employee and Shareholder Information - The group employed a total of 2,141 full-time employees across various regions including Hong Kong, China, Pakistan, Dubai, and other parts of the Middle East and North Africa as of June 30, 2020[113] - As of June 30, 2020, Zhang Hongwei holds 17,466,600,230 shares, representing 66.47% ownership in the company[121] - Zhang Meiying owns 1,287,700,000 shares, accounting for 4.90% of the total shares[121] - He Fu International Limited holds 8,029,971,845 shares, which is 30.56% of the total shares, and is ultimately owned by Zhang Hongwei[122] - United Petroleum and Natural Gas Holdings Limited owns 5,787,539,821 shares, representing 22.02% of the total shares[125] - United Energy Holdings owns 3,649,088,564 shares, which is 13.89% of the total shares[125] Miscellaneous - The company did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year[38] - The company did not grant any shares to eligible employees under the Performance Share Unit (PSU) plan for the six months ending June 30, 2020, with the trustee holding 54,538,000 shares as of that date[55] - The group provided personal guarantees for bank loans totaling approximately HKD 4,213,481,000 as of June 30, 2020[70] - The group incurred exploration costs of HKD 168,405,000 and development costs of HKD 552,032,000 during the reporting period[75] - The company did not engage in any share buybacks during the reporting period[133] - The report does not provide specific financial performance metrics or future outlook[133] - There is no mention of new product development or market expansion strategies in the document[133] - The document lacks detailed user data or performance guidance for future periods[133] - No mergers or acquisitions were reported during the period[133] - The company remains focused on its current operational strategies without any disclosed changes[133] - The communication emphasizes the absence of share transactions rather than financial performance[133]

Financial Performance - Revenue for 2019 reached HKD 7,103,644,000, a 34.6% increase from HKD 5,279,204,000 in 2018[11] - Gross profit for 2019 was HKD 3,477,805,000, up 17.6% from HKD 2,957,209,000 in 2018[11] - Profit attributable to owners for the year was HKD 1,905,957,000, reflecting a 16.4% increase from HKD 1,637,991,000 in 2018[11] - The company reported a total comprehensive income of HKD 1,925,938 thousand for 2019, compared to HKD 1,643,870 thousand in 2018, reflecting a growth of 17.1%[188] - The operating profit for 2019 was HKD 2,337,526 thousand, compared to HKD 2,733,167 thousand in 2018, indicating a decrease of 14.5%[187] - Basic earnings per share for 2019 was HKD 7.26, up from HKD 6.23 in 2018, representing a growth of 16.6%[187] - The company reported a net profit of approximately HKD 1,905,957,000 for the year ended December 31, 2019, representing a 16.4% increase from HKD 1,637,991,000 in 2018[46] - The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the reporting period was approximately HKD 5,477,288,000, an increase of 34.8% from HKD 4,063,743,000 in the previous year, primarily due to increased sales in oil and gas commodities[63] Production and Reserves - Average daily production in Pakistan was 66,560 barrels of oil equivalent, a slight increase of 0.2% from 66,453 barrels in 2018[12] - In 2019, the average daily production reached approximately 146,329 barrels of oil equivalent, with an average equity daily production of about 94,342 barrels of oil equivalent, representing a 42% increase from the previous year's average equity daily production of approximately 66,453 barrels of oil equivalent[19] - The group achieved 10 commercial discoveries in 2019, with 8 in Pakistan and 2 in Egypt, and the 2P reserves reached 931.3 million barrels of oil equivalent, with a reserve-to-production ratio of approximately 27.1[19] - Net proven reserves in Pakistan decreased by 12.3% to 83.6 million barrels of oil equivalent from 95.3 million barrels in 2018[12] - The acquisition of KEC assets provided access to a significant oil field in Iraq, with 2P reserves of 751.8 million barrels of oil equivalent, and the group holds a 60% interest in the B9 block[19] Acquisitions and Growth - The acquisition of Kuwait Energy Public Limited Company was completed in March 2019, enhancing the company's growth potential[18] - The company achieved commercial production at the Siba gas field and operational success at the Faihaa oil field post-acquisition[18] - The company plans to enhance reserves and production through internal growth and value-driven acquisitions, focusing on Iraq, Pakistan, and Egypt[27] - The acquisition of KEC in March 2019 added significant high-quality assets, with proven and probable reserves of 800 million barrels of oil equivalent, 96.7% of which are located in Iraq[74] Financial Position and Capital Expenditure - Total assets increased by 59.4% to HKD 25,743,105,000 from HKD 16,147,438,000 in 2018[11] - Capital expenditure is projected to reach between 290 million to 330 million USD, primarily for exploration, development, and engineering projects[22] - Cash used in investing activities increased by 97.4% to approximately HKD 6,979,316,000, including a net payment of approximately HKD 4,080,085,000 for the acquisition of KEC and capital expenditures of approximately HKD 2,657,186,000, which is a 40.5% increase from the previous year[68] - The company reported cash and cash equivalents of approximately HKD 3,358,627,000 as of December 31, 2019, compared to HKD 2,516,532,000 as of December 31, 2018, indicating a strong financial position[77] Dividend Policy - The group plans to maintain a flexible dividend policy, having paid a special dividend of 0.04 HKD per share to shareholders in January 2020[22] - A special dividend of approximately HKD 1,051,115,000 was declared, equating to HKD 0.04 per ordinary share, distributed on January 3, 2020[70] - The board of directors does not recommend the payment of a final dividend for the year 2019[160] - The company has a dividend policy that considers various factors, including financial performance, shareholder interests, and future expansion plans[160] Corporate Governance - The company has maintained compliance with corporate governance standards as per the listing rules, ensuring transparency and accountability to shareholders[93] - The board of directors held 14 meetings during the year, ensuring regular oversight and strategic decision-making[101] - The audit committee, composed entirely of independent non-executive directors, held two meetings during the year ended December 31, 2019, with a 100% attendance rate[110] - The company confirmed no significant uncertainties that could affect its ability to continue as a going concern[107] - The company has established a nomination committee since March 30, 2012, responsible for the nomination of directors and reviewing the board's composition and diversity policy[113] Risks and Challenges - The company faces risks related to international oil price fluctuations and uncertainties in oil and gas markets in Pakistan, Egypt, and Iraq[126] - The company’s exploration and development activities are capital-intensive, with inherent risks of not discovering commercial oil and gas reserves[127] - Environmental compliance costs may increase if there are changes in environmental laws and regulations in the countries where the company operates[128] - The company’s operations may be adversely affected by natural disasters or pandemics, impacting procurement and sales[132] Employee and Stakeholder Relations - The group employed a total of 1,903 full-time employees across various regions including Hong Kong, China, Pakistan, Dubai, and other Middle Eastern and North African locations as of December 31, 2019[83] - The company has a strong focus on maintaining good relationships with stakeholders, including shareholders, employees, and local communities[135] Audit and Financial Reporting - The audit procedures included evaluating the appropriateness of the valuation methods and related assumptions used in determining the fair value allocation [177] - The company must ensure that the consolidated financial statements are free from material misstatement due to fraud or error, maintaining internal controls as necessary [182] - The company engaged independent valuation experts to assist in the fair value assessment of the KEC acquisition [177]

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 3,481,918,000, an increase of 45.8% compared to HKD 2,388,531,000 for the same period in 2018[18]. - Gross profit for the same period was HKD 1,854,939,000, representing a gross margin of 53.3%, up from HKD 1,547,453,000 in 2018[18]. - Operating profit increased to HKD 1,641,562,000, a rise of 40.9% from HKD 1,164,500,000 in the previous year[18]. - Profit before tax was HKD 1,342,969,000, compared to HKD 1,152,481,000 in 2018, reflecting a growth of 16.5%[18]. - Net profit attributable to owners of the company was HKD 968,891,000, up from HKD 901,299,000, marking a 7.5% increase[20]. - Basic earnings per share from continuing and discontinued operations was HKD 3.69, compared to HKD 3.43 in the previous year[20]. - Total comprehensive income for the period was HKD 973,339,000, an increase from HKD 890,819,000 in 2018[22]. - The group reported a profit attributable to owners of approximately HKD 968,891,000 for the six months ended June 30, 2019, compared to HKD 901,958,000 for the same period in 2018, reflecting an increase of about 7.4%[70]. Assets and Liabilities - As of June 30, 2019, total assets amounted to HKD 18,338,679,000, compared to HKD 10,830,048,000 at the end of 2018[24]. - Current liabilities reached HKD 9,425,385,000, significantly higher than HKD 2,890,561,000 in the previous year, resulting in a net current liability of HKD (2,066,227,000)[24]. - The company reported a significant increase in non-current assets, totaling HKD 18,338,679,000, driven by investments in property, plant, and equipment[24]. - Non-current liabilities increased significantly to HKD 4,070,334,000 as of June 30, 2019, compared to HKD 1,993,733,000 as of December 31, 2018, representing a growth of approximately 104.5%[26]. - The total equity as of June 30, 2019, was HKD 12,202,118,000, up from HKD 11,263,144,000 as of December 31, 2018, reflecting a growth of approximately 8.3%[26]. - Total trade and other payables reached HKD 5,550,348,000 as of June 30, 2019, up from HKD 2,647,003,000 as of December 31, 2018, reflecting a growth of approximately 109.5%[85]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 2,513,616,000, a substantial increase of 106.5% from HKD 1,214,915,000 in the same period of 2018[30]. - The company reported a net cash outflow from investing activities of HKD 5,296,275,000 for the six months ended June 30, 2019, compared to HKD 2,206,456,000 in the previous year, indicating a significant increase in investment expenditures[30]. - The company secured bank financing totaling approximately HKD 6,786,000,000 (around USD 870,000,000) as of June 30, 2019, with HKD 3,229,200,000 (around USD 414,000,000) remaining undrawn[93]. - The company reported a total of HKD 5,233,993,000 in borrowings as of June 30, 2019, compared to HKD 641,736,000 as of December 31, 2018, indicating a substantial increase[90]. - The company has entered into a financing agreement for prepayment of crude oil amounting to approximately HKD 1,950,000,000 (around USD 250,000,000) with an interest rate ranging from LIBOR + 5% to LIBOR + 7%[89]. Investments and Acquisitions - The acquisition of Kuwait Energy Public Limited Company (KEC) was completed for approximately HKD 4,403,101,000 (about USD 564,500,000) on March 21, 2019[111]. - KEC contributed approximately HKD 635,964,000 in revenue and HKD 53,938,000 in net profit during the reporting period[114]. - The acquisition of Asia Resources Oil Limited (AROL) involved a total consideration of approximately HKD 457,130,000 (about USD 58,606,000) in loans and HKD 59,575,000 (about USD 7,638,000) in cash[115]. - The identifiable assets and liabilities from the acquisition of AROL, OMEL, and OPAK had a fair value of approximately HKD 478,387,000 in trade and other receivables[118]. Operational Highlights - Average daily production from Pakistan assets was approximately 68,634 barrels of oil equivalent, a 10.3% increase compared to the same period last year[132]. - The average sales price for Pakistan assets was USD 33.6 per barrel of oil equivalent, an increase of 8.0% compared to the previous year[133]. - The company has engaged in significant exploration and production activities, including 12 exploration and evaluation wells in Pakistan and 4 development wells in the Middle East and North Africa[129]. - The Siba gas field project is expected to significantly increase production, with natural gas output projected to reach 60 million cubic feet per day and condensate production at 16,000 barrels of oil equivalent per day[152]. Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations[172]. - The audit committee consists of three independent non-executive directors who reviewed the financial statements for the six months ending June 30, 2019[175]. - The company has established a nomination committee to oversee the nomination of directors and ensure diversity in the board composition[172]. Shareholder Information - As of June 30, 2019, the company’s major shareholder, Zhang Hongwei, holds approximately 71.39% of the equity interest, amounting to 18,754,300,230 shares[167]. - The company's issued share capital decreased from 26,294,155,209 shares on January 1, 2019, to 26,270,661,209 shares on June 30, 2019, following the repurchase and cancellation of 23,494,000 shares[162].