China Oil and Gas AR2020 COV 12.3mm output.pdf 1 8/4/2021 上午11:27 CHINA OIL AND GAS GROUP LIMITED 中油燃氣集團有限公司 ANNUAL REPORT 2020 年報 (Incorporated in Bermuda with Limited Liability) Stock Code: 603 2020年報 ANNUAL REPORT | --- | --- | --- | --- | --- | |----------------------------------------------------------------------------|---------------------------------|--------|-------|-------| | | | | | | | | Contents | | | | | | | | | | | | | 目錄 | | | | FINANCIAL HIGHLIGHTS | 財務摘要 | 2 | | | | ENTERPRISE CULTURE | 企業 ...

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$4,653,901, a decrease of 9.6% from HK$5,147,124 in the same period of 2019[30]. - Gross profit for the period was HK$748,774, down 4.8% from HK$786,356 in 2019[30]. - Profit for the period was HK$425,773, representing a decline of 11.5% compared to HK$481,240 in the previous year[30]. - Total comprehensive income for the period was HK$94,066, significantly lower than HK$483,285 in 2019[33]. - Profit for the period was HK$189,741,000, representing a decrease compared to HK$236,032,000 in the previous period[42]. - Total comprehensive income for the period was HK$94,066,000, down from HK$157,028,000 in the previous period[42]. - The group reported a profit for the period of HK$425,773,000, down from HK$481,240,000 in the same period of 2019, representing a decline of approximately 11.5%[66]. - The Group's profit attributable to owners for the six months ended June 30, 2020, was approximately HK$189,741,000, a decrease from HK$202,967,000 for the same period in 2019, representing a decline of about 6.1%[91]. - Profit attributable to the owners of the Company was HK$190 million, representing a decrease of 6.5% from the previous year[109]. Assets and Liabilities - Total assets as of June 30, 2020, amounted to HK$17,189,294, an increase from HK$16,832,484 at the end of 2019[39]. - Current liabilities totaled HK$4,817,032, compared to HK$4,518,477 at the end of 2019, reflecting an increase of 6.6%[39]. - Total liabilities were HK$10,686,359, up from HK$10,389,469 at the end of 2019[39]. - Equity attributable to owners of the Company was HK$3,337,967, a decrease from HK$3,400,614 at the end of 2019[39]. - The Group's total liabilities decreased slightly from HK$1,289,056,000 at December 31, 2019, to HK$1,266,444,000 as of June 30, 2020[104]. - The Group's total indebtedness was HK$7,189 million, an increase from HK$6,846 million as of December 31, 2019[1]. Cash Flow - Net cash generated from operating activities increased to HK$548,232,000, up from HK$453,146,000 in the same period last year, representing a growth of 20.97%[51]. - Net cash used in investing activities rose significantly to HK$627,185,000, compared to HK$304,585,000 in the prior year, indicating an increase of 105.73%[51]. - Cash and cash equivalents at the end of the period reached HK$2,657,793,000, an increase from HK$2,341,816,000 year-over-year, reflecting a growth of 13.47%[51]. - The Group's cash and cash equivalents amounted to HK$2,658 million as of June 30, 2020, compared to HK$2,521 million as of December 31, 2019[1]. - The Group's net debt-to-assets ratio was 23.5% as of June 30, 2020, slightly down from 24.0% as of December 31, 2019[1]. Operational Highlights - The company reported a natural gas sales volume exceeding 500 million cubic meters in provinces during the first half of 2020[18]. - The company is preparing to expand its business into provinces with natural gas sales volumes below 100 million cubic meters in the near term[18]. - The Group connected 65,475 new residential users, a 33% increase from 49,346 in 2019, bringing total residential connections to 1,531,891[111]. - Total connections for industrial and commercial users increased by 57% to 874, compared to 557 in the previous year[111]. - The Group successfully obtained two concession rights projects during the first half of 2020, expanding its project portfolio[111]. - The Group's production in the first half of 2020 was 5,305 barrels of oil equivalent per day, a decrease of 5% from 5,577 boe/d in the comparable period of 2019[113]. Corporate Governance - The company has a strong commitment to corporate governance, with various committees overseeing operations and compliance[22]. - The Audit Committee, established in 1998, is responsible for overseeing the financial reporting system and reviewing interim and annual reports[160]. - The Audit Committee consists of three independent non-executive Directors, with Mr. Li Yunlong as chairman, and has reviewed the unaudited interim financial statements for the six months ended June 30, 2020[162]. - The Company has adopted the Model Code for securities transactions by Directors, confirming compliance by all Directors during the reporting period[155]. - The Company has established good corporate governance practices and procedures throughout the reporting period, ensuring proper supervision and management of its businesses[154]. Strategic Initiatives - The company aims to establish itself as an internationally influential clean energy enterprise, focusing on sustainability and innovation[15]. - The company emphasizes creating value for customers, future for employees, and rewards for shareholders as part of its core objectives[15]. - The Company’s board of directors has resolved to focus on strategic investments and acquisitions to enhance growth opportunities[130]. - The Company’s capital structure reflects a significant investment strategy aimed at expanding its market presence in the gas sector[130]. Shareholder Information - The Company did not declare any interim dividend for the six months ended June 30, 2020, consistent with the previous year[93]. - The Company holds a total of 1,494,634,130 ordinary shares, representing approximately 25.92% of the issued share capital[137]. - Sino Advance Holdings Ltd and Sino Vantage Management Limited hold 353,120,130 shares and 1,141,514,000 shares respectively, accounting for 6.13% and 19.79% of the company's issued share capital[137]. - The company has issued US$350,000,000 4.625% senior notes due 2022, with US$2,000,000 held through Moral High Limited and US$1,500,000 held through Sino Advance[143].

Financial Performance - Revenue for FY2019 reached HK$10,261 million, representing a 9% increase from HK$9,410 million in FY2018[8] - Gross profit for FY2019 was HK$1,505 million, up 10% from HK$1,365 million in FY2018[9] - Profit for the year increased by 15% to HK$779 million, compared to HK$678 million in FY2018[10] - Profit attributable to owners of the Company rose by 17% to HK$331 million from HK$282 million in FY2018[12] - Earnings per share for FY2019 was HK$6.642, a 17% increase from HK$5.664 in FY2018[13] - The Group's total revenue increased by 9% to HK$10,261 million in 2019, driven by steady growth in natural gas sales[47] - Gross profit rose by 10% to HK$1,505 million, with profit attributable to owners increasing by 17% to HK$331 million from HK$282 million in 2018[47] - Revenue from the sales and distribution of natural gas constituted 90% of total revenue, amounting to HK$9,255 million, a 9% increase from HK$8,476 million in 2018[86] - Revenue from exploitation and production of crude oil and natural gas grew by 5% to HK$439 million[88] Natural Gas Operations - Natural gas sales and transmission volume reached 6,000 million cubic meters in FY2019, up from 5,124 million cubic meters in FY2018[17] - The Group completed 13,023 km of natural gas pipelines in 16 provinces, facilitating stable revenue and downstream project development[25] - Total gas sales volume increased by 10% to 4,079 million cubic meters, with industrial and commercial users' gas sales up by 12% and residential users by 11%[55] - Gas transmission volume rose by 11% to 1,045 million cubic meters from 943 million cubic meters in 2018[55] - The Group connected 122,572 new residential users and 912 new industrial and commercial users in 2019, resulting in a total of 1,466,416 residential users (up 9% from 2018) and 12,724 industrial and commercial users (up 8% from 2018)[61] Strategic Initiatives - The Group aims to expand its market presence and enhance its clean energy offerings in response to government support and market demand[24] - The Group's strategic focus on high-quality development and market expansion contributed to achieving business targets despite external challenges[46] - The Group's management emphasized resource development and market stabilization to mitigate operating risks and enhance management practices[46] - The Group's efforts in staff training and management improvement were highlighted as key strategies for future growth[46] Financial Position - Total assets increased by 5% to HK$16,832 million, while total liabilities were HK$10,389 million[100] - The Group's debt-to-asset ratio remained stable at 41%[100] - Cash and cash equivalents, along with time deposits maturing in over three months, amounted to approximately HK$2.817 billion, an increase from HK$2.667 billion in 2018[102] - The current ratio improved to 1.08 times, up from 1.02 times in 2018, indicating stable financial health[102] Risks and Compliance - The Group faces various risks and uncertainties that may impact its financial conditions and business prospects[129] - The Group faces natural gas price control risks, as residential and fertilizer user prices are fixed, while industrial and commercial user prices may vary, potentially impacting profitability[143] - The Group is subject to various compliance regulations, including the Bermuda Companies Act and the Companies Ordinance in Hong Kong, with no material breaches reported during the year[153] Shareholder Information - The board did not recommend the payment of a final dividend for the year ended December 31, 2019[111] - The issued share capital was approximately HK$57.67 million, divided into 5,767,043,834 shares[114] - The company declared a final dividend of HK$0.40 per share for the year ended 31 December 2019, totaling HK$23,356,000[1] Employee and Management - The Group employed 3,693 full-time employees at the end of 2019, with total staff costs amounting to HK$389 million[101] - The Group's management team includes experienced professionals with extensive backgrounds in finance and energy sectors[122][123] - The Group aims to attract suitable personnel for further development through the Restricted Share Award Scheme[200]

Financial Performance - The unaudited consolidated revenue for the six months ended June 30, 2019, was reported at over 500 million RMB, reflecting a significant increase compared to the previous period[34]. - Revenue for the six months ended June 30, 2019, was HK$5,147,124, an increase of 3.6% from HK$4,968,927 in 2018[38]. - Gross profit for the same period was HK$786,356, down 7.2% from HK$847,116 in 2018[38]. - Operating profit decreased to HK$607,699, a decline of 10.7% compared to HK$680,537 in the previous year[38]. - Profit for the period was HK$481,240, representing a decrease of 4.6% from HK$504,330 in 2018[38]. - Total comprehensive income for the period was HK$483,285, down 20.2% from HK$605,896 in 2018[42]. - Basic earnings per share decreased to 4.060 HK cents, compared to 4.339 HK cents in the previous year[42]. - The profit attributable to owners of the Company for the six months ended June 30, 2019, was approximately HK$202,967,000, a decrease of 6.0% compared to HK$216,160,000 for the same period in 2018[117]. - Basic earnings per share for the period was approximately HK$0.0405, compared to HK$0.0434 for the same period in 2018, reflecting a decrease of 6.7%[117]. Revenue Sources - For the six months ended June 30, 2019, the total revenue was HK$5,147,124,000, with sales and distribution of natural gas contributing HK$4,626,383,000[89]. - The total revenue from three segments was HK$4,626 million from sales and distribution of natural gas, HK$302 million from gas pipeline construction, and HK$219 million from crude oil and natural gas production[162]. - The Group's natural gas sales and transmission volume reached 2,552 million cubic meters, representing a 16% increase compared to 2,203 million cubic meters in the same period last year[143]. - Income from sales and distribution of natural gas and other related products was HK$4,626 million, an increase of 9% compared to HK$4,260 million for the same period last year[140]. - The exploitation and production of crude oil and natural gas generated revenue of HK$218,873,000[89]. Assets and Liabilities - Total assets as of June 30, 2019, were HK$15,947,382, a slight decrease from HK$16,027,643 at the end of 2018[45]. - Total liabilities decreased to HK$9,666,300 from HK$10,115,583 at the end of 2018[48]. - Non-current assets increased to HK$11,371,778 from HK$11,320,824 at the end of 2018[45]. - Total trade receivables as of June 30, 2019, were HK$393,736,000, a decrease of 37.0% from HK$625,352,000 at the end of 2018[126]. - The group's total liabilities stood at HK$9,666 billion, down from HK$10.116 billion, with current liabilities increasing to HK$6.489 billion from HK$4.611 billion[174]. Cash Flow and Investments - Net cash generated from operating activities increased to HK$453,146,000, up from HK$403,692,000, representing a growth of 12.5%[59]. - Net cash used in investing activities decreased to HK$(304,585,000) from HK$(473,811,000), showing a reduction of 35.7%[59]. - Cash and cash equivalents were HK$2,341,816, down from HK$2,508,223 at the end of 2018[45]. - The Group acquired property, plant, and equipment amounting to HK$427,230,000 during the six months ended June 30, 2019, down from HK$504,009,000 in the same period of 2018, representing a decrease of 15.2%[120]. Corporate Governance - The audit committee has reviewed the financial information for the period, ensuring compliance and accuracy in reporting[36]. - The corporate governance structure includes a dedicated audit committee to oversee financial integrity and compliance[30]. - The Group's financial statements are prepared in accordance with Hong Kong Accounting Standards and should be read in conjunction with the audited financial statements for the year ended December 31, 2018[62]. Strategic Initiatives - The company aims to establish itself as an internationally influential clean energy enterprise, focusing on sustainable development and innovation[20]. - The company is actively pursuing new strategies for market expansion and technological innovation in the clean energy sector[20]. - The Company plans to continue expanding its market presence and investing in new technologies to drive future growth[51]. - The Group is engaged in energy-related businesses, including piped city gas, CNG, LNG, and oil and gas development in China and Canada[61]. - The Group is actively promoting distributed energy projects and gas storage projects, aiming for implementation in the second half of the year[152]. Market Conditions - The Chinese government has introduced favorable policies for urban gas suppliers, including allowing wholly foreign-owned enterprises to operate in oil and gas exploration[160]. - The China-Russia Eastern Natural Gas Pipeline is expected to supply 38 billion cubic meters of natural gas to China annually, enhancing the domestic natural gas industry[160].

Financial Performance - Revenue for FY2018 reached HK$9,410 million, representing a 23% increase from HK$7,651 million in FY2017[10] - Gross profit for FY2018 was HK$1,365 million, up 12% from HK$1,216 million in FY2017[10] - Profit before taxation increased by 15% to HK$929 million in FY2018, compared to HK$811 million in FY2017[10] - Earnings per share rose to 5.665 HK cents, a 16% increase from 4.865 HK cents in FY2017[10] - The Group recorded sales and distribution of natural gas income of HK$8,476 million, a 25% increase from HK$6,774 million in 2017, accounting for 90% of total revenue[47] - Total gas sales and transmission volume grew by 15% to 4,695 million cubic meters, up from 4,076 million cubic meters in 2017[47] - The Group's profit for the year was HK$678 million, reflecting a 9% increase from HK$623 million in 2017[81] - Profit attributable to the owners of the Company grew by 13% to HK$282 million in 2018[81] - Revenue from the sales and distribution of natural gas segment increased by 25% to HK$8,476 million, constituting 90% of total revenue[81] - Revenue related to gas pipeline construction and connection business amounted to HK$517 million, accounting for approximately 5% of total revenue[81] Natural Gas Operations - The average daily production of crude oil equivalent in Alberta, Canada, was 5,383 barrels in 2018, with proved reserves of approximately 24.8 million barrels[19] - The natural gas sales volume for FY2018 was 4,000 million cubic meters, reflecting the Group's strong market presence[9] - Domestic consumption of natural gas in China reached 280.3 billion cubic meters in 2018, marking an 18% year-on-year growth[37] - The Group's proven oil and gas reserves amounted to approximately 24.8 million barrels of oil equivalent, with controlled reserves at about 39 million barrels of oil equivalent as of December 31, 2018[28] - The Group is actively promoting the construction of key branch pipelines to enhance market presence and optimize asset structure[37] - The Group's natural gas sales volume in provinces with sales exceeding 1 billion cubic meters reached 1 billion cubic meters in FY2018[25] - The Group has established 39 CNG stations, 10 LNG stations, and 6 L/CNG stations across China to enhance natural gas supply for transportation[16] - The total length of branch pipelines completed by the Group reached 1,087 km across several provinces in China, facilitating stable natural gas transmission revenue[17] - The Group operates two LNG plants in Qinghai Province, ensuring a smooth supply of natural gas year-round[15] Asset and Financial Position - Total assets increased by 3% to HK$16,028 million in 2018, while total liabilities rose to HK$10,116 million, resulting in a debt-to-asset ratio of 41%, up from 37% in 2017[87] - Total indebtedness as of December 31, 2018, was HK$6,549 million, up from HK$5,719 million in 2017, with total available credit facilities amounting to HK$4,563 million and a utilization rate of 33%[86] - Cash and cash equivalents, along with time deposits with maturities over three months, totaled approximately HK$2,667 million as of December 31, 2018, compared to HK$2,339 million in 2017[87] - The Group employed 3,595 full-time employees at the end of 2018, with total staff costs amounting to HK$384 million, an increase from HK$333 million in 2017[94] Shareholder Information - The proposed distribution to shareholders is HK cent 0.40 per share, amounting to approximately HK$23,356,000, an increase from HK$20,390,000 in 2017[96] - The proposed final dividend for 2019 is HK$0.40 per share, an increase from HK$0.35 in 2017, amounting to approximately HK$23,356,000 compared to HK$20,390,000 in the previous year[140] - As of December 31, 2018, the issued share capital of the Company was approximately HK$58,391,238, divided into 5,839,123,834 shares with a nominal value of HK$0.01 each[96] - The register of members will be closed from May 23 to May 29, 2019, for determining shareholder eligibility to attend and vote at the AGM[141] Risk Management - The Group faces natural gas price control risk, as city-gate prices are determined by local pricing bureaus, which may affect profitability[117] - Foreign exchange risk exists due to the Group's major transactions being conducted in Renminbi, with most assets and liabilities denominated in Renminbi and Canadian dollars[118] - Liquidity risk is monitored by maintaining an adequate level of cash and cash equivalents to finance operations[120] - Operational risk management is guided by standard operating procedures and regular assessments of key operational exposures[122] Corporate Governance - The Company adopted the code provisions set out in the CG Code as its own code of corporate governance[196] - The Company was in compliance with relevant code provisions of the CG Code except for certain deviations explained in the report[196] - The Audit Committee comprises three independent non-executive Directors and has reviewed the unaudited interim financial statements for the year ended 31 December 2018[189] - A resolution will be submitted to the 2019 AGM to re-appoint PricewaterhouseCoopers as auditor of the Company[190] - Independent non-executive Directors are subject to retirement by rotation at least once every three years[198] Environmental and Social Responsibility - The Group is subject to stricter environmental regulations and is planning to implement environmentally friendly measures[128] - The environmental, social, and governance report for the year ended 31 December 2018 will be published within three months after the annual report[129] - The Company has complied with relevant laws and regulations, with no material breaches reported during the year[132]