Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 87,447,000, an increase of 11.1% compared to HKD 78,697,000 in the same period of 2019[4] - Gross profit for the period was HKD 1,825,000, compared to a gross loss of HKD 397,000 in the previous year, indicating a significant turnaround[4] - The company reported a loss before tax of HKD 13,195,000, an improvement from a loss of HKD 25,318,000 in the prior year, reflecting a reduction in operational losses[4] - The net loss attributable to the company's owners was HKD 13,375,000, compared to HKD 25,009,000 in the same period last year, showing a 46.4% decrease in losses[4] - The overall comprehensive loss for the period was HKD 13,829,000, compared to HKD 24,966,000 in the same period last year, marking a 44.7% reduction in comprehensive losses[4] - The company reported a pre-tax loss of HKD 13,195,000 for the six months ended June 30, 2020, compared to a pre-tax loss of HKD 25,318,000 for the same period in 2019, indicating a reduction in losses[34][43] - The company reported a net loss of HKD 13,375,000 for the six months ended June 30, 2020, compared to a net loss of HKD 24,966,000 for the same period in 2019, indicating improved financial performance[36][43] - The loss attributable to the company's owners was approximately HKD 13,375,000, a decrease from HKD 25,009,000 in 2019, indicating an improvement of 46%[74] - Gross profit for the period was approximately HKD 1,825,000, a significant recovery from a gross loss of HKD 397,000 in 2019[74] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 273,385,000, a slight decrease from HKD 276,254,000 at the end of 2019[6] - Total assets as of June 30, 2020, amounted to HKD 314,566,000, with total liabilities of HKD 66,936,000[40] - The company’s equity attributable to owners decreased to HKD 246,615,000 from HKD 260,444,000, reflecting a decline in net assets[6] - The company’s total liabilities included deferred tax liabilities of HKD 29,020,000 as of June 30, 2020[40] - Other payables and accrued expenses totaled HKD 11,010,000 as of June 30, 2020, a decrease from HKD 12,592,000 at the end of 2019, indicating improved cash management[67] Cash Flow - Cash and cash equivalents decreased to HKD 14,042,000 from HKD 53,889,000 at the beginning of the period, reflecting a net decrease of HKD 39,394,000[14] - The company’s net cash used in operating activities was HKD 26,304,000, compared to HKD 15,247,000 in the previous year, indicating increased cash outflow[11] - The group’s cash and bank balances decreased from HKD 53,889,000 as of December 31, 2019, to approximately HKD 14,042,000 as of June 30, 2020, primarily due to loan repayments and other payables[85] Revenue Breakdown - Revenue from oil and gas sales for the six months ended June 30, 2020, was HKD 104,000, while revenue from oil-related product trading was HKD 87,447,000, totaling HKD 87,447,000[30] - Revenue from external customers for the six months ended June 30, 2020, was HKD 87,447,000, compared to HKD 78,697,000 for the same period in 2019, reflecting a year-over-year increase of approximately 9.0%[46] - The company’s total revenue from oil-related products increased from HKD 78,593,000 in 2019 to HKD 87,447,000 in 2020, representing a growth of approximately 11.0%[30][32] - The company recorded an operating loss of HKD 1,279,000 from oil and gas sales and a profit of HKD 2,303,000 from oil-related product trading, resulting in a total operating profit of HKD 1,024,000[39] Financing and Costs - The company incurred financing costs of HKD 2,211,000, significantly lower than HKD 7,615,000 in the previous year, indicating improved cost management[4] - The company incurred financing costs of HKD 2,177,000 for the six months ended June 30, 2020, down from HKD 7,615,000 in the same period of 2019, showing a significant reduction in financing expenses[34][43] - The total amount of income tax expense for the period was HKD (180,000), compared to a tax credit of HKD 352,000 in the previous year, reflecting changes in taxable profits[50] Corporate Governance - The company has not adopted new or revised Hong Kong Financial Reporting Standards that have not yet come into effect, and is currently assessing their potential impact[24] - The company’s board is committed to high standards of corporate governance and has complied with the corporate governance code as of June 30, 2020[107] - The audit committee, consisting of three independent non-executive directors, reviewed and confirmed the accounting principles and practices adopted by the group[111] Future Plans and Market Conditions - The company plans to start trading diluted asphalt in the second half of the year, primarily targeting the Chinese market[80] - The group will continue to expand its trading business into other sectors, including electronic products, as business activities in China cautiously resume[81] - The company is considering further debt and equity fundraising possibilities in the second half of the year to support operations[85] - The oil and gas business faces ongoing uncertainty and challenges due to the global pandemic, impacting exploration and operational costs[84] Employee and Management Information - The company utilized HKD 7,200,000 for employee and director remuneration as well as office rent during the period[3] - As of June 30, 2020, the company had 23 employees and directors, maintaining a competitive compensation package including monthly salary, mandatory provident fund, medical insurance, and stock option plans[92] - The total remuneration for the executive director Yu Zhibo was adjusted from HKD 700,000 to HKD 800,000 per year effective June 29, 2020[109] Shareholder Information - The company had 612,275,987 shares issued as of June 30, 2020, with major shareholder New Hua Petroleum (Hong Kong) Limited holding 365,625,096 shares, representing approximately 59.72% of the issued share capital[98] - The weighted average number of ordinary shares in issue increased significantly to 612,276,000 shares from 162,270,000 shares in the previous year, affecting per-share calculations[52] Name Change - The company changed its English name from "Pearl Oriental Oil Limited" to "CHK Oil Limited" effective February 5, 2020[116] - The new Chinese name adopted is "中港石油有限公司" to replace the previous name[116]

Financial Performance - Revenue for the year ended December 31, 2019, was HKD 175,467,000, a significant increase from HKD 74,036,000 in 2018, representing a growth of 137.5%[9] - The company reported a loss of HKD 268,969,000 for the year, compared to a loss of HKD 58,702,000 in the previous year, indicating a deterioration in performance[9] - Basic loss per share increased to 70.66 cents from 36.00 cents in 2018, reflecting the increased losses[9] - Total liabilities decreased to HKD 39,578,000 from HKD 102,585,000, showing a reduction in financial obligations[9] - Shareholders' equity rose to HKD 260,444,000 from HKD 137,134,000, indicating improved financial stability[9] - The average return on equity was reported at (135.2%) compared to (35.1%) in 2018, highlighting a significant decline in profitability[9] Market Conditions - The company anticipates a market recovery and rebound in oil and gas prices once the COVID-19 pandemic is effectively controlled[12] - The company noted that natural gas prices dropped significantly from USD 3.48 in January 2019 to USD 1.73 in March 2020, influenced by the pandemic[12] - Oil prices (WTI) fluctuated, starting at USD 45 and reaching USD 60, before falling to USD 41 by the end of the year due to pandemic-related disruptions[12] - The company faces significant price risks due to fluctuations in natural gas and oil prices, which have been affected by the COVID-19 pandemic and geopolitical factors, leading to a drop in Brent crude oil prices to USD 21.65 per barrel[34] Operational Strategies - The company is closely monitoring various conditions to consider introducing new investors for expanding its natural gas and oil business or developing new projects[13] - Regular inspections of oil and gas fields in Utah, USA, are being conducted to ensure smooth operations of existing businesses[13] - The company has initiated well repair operations to increase production and is actively assessing the condition of remaining wells for appropriate maintenance decisions[13] - A strict operational cost control strategy implemented in 2019 has proven effective, and the company will continue to implement budget control strategies in 2020 to ensure financial sustainability[13] - The company plans to significantly increase trade volume in 2020 by exploring new trading channels and opportunities in East Asia and Southeast Asia[31] - The company is exploring the possibility of drilling new wells in Utah, contingent on a cost-benefit analysis that could lead to substantial returns[44] Environmental Impact - Total energy consumption was 212 gigajoules, with electricity consumption at 80 gigajoules (22,228 kWh) and gasoline consumption at 132 gigajoules (3,829 liters)[77] - Total greenhouse gas emissions were estimated at 50.7 tons of CO2 equivalent, with direct emissions (Scope 1) at 11.9 tons and indirect emissions (Scope 2) at 14 tons[71] - Nitrogen oxides (NOx) emissions totaled 7.3 kg, sulfur oxides (SOx) emissions were 0.06 kg, and particulate matter emissions were 0.57 kg during the reporting period[71] - The company achieved full compliance with environmental regulations during the reporting period, with no violations reported[66] - The company is committed to reducing emissions and conserving resources as part of its operational practices[65] Corporate Governance - The board of directors underwent significant changes, with multiple resignations and appointments throughout 2019[120] - The company has adhered to the corporate governance code as per the listing rules, with exceptions noted during specific periods in 2019[176] - The board consists of six executive directors and four independent non-executive directors, ensuring a balanced distribution of skills and experience[184] - The company has established a set of guidelines for directors' securities trading, confirming adherence throughout the year[183] - The company’s audit, remuneration, and nomination committees are tasked with executing various responsibilities as delegated by the board[187] Employee and Community Engagement - The company employed a total of 31 employees as of December 31, 2019, with a gender distribution of 65% male and 35% female[88] - The company emphasizes employee health and safety, conducting annual reviews of its health and safety management system[82] - The company encourages employees to participate in training and education courses related to their work fields for personal and professional development[94] - The company actively participates in community activities, including environmental protection initiatives and charitable donations[103] Shareholder Information - The group did not recommend the distribution of a final dividend for the year, consistent with the previous year[111] - As of December 31, 2019, the company had no distributable reserves available for distribution to equity holders[117] - The company had 612,275,987 shares issued as of December 31, 2019, with a significant ownership concentration by Chen Junyan, holding 365,625,096 shares, representing approximately 59.71% of the issued share capital[128] - Major shareholder New China Petroleum (Hong Kong) Limited holds 365,625,096 shares, representing approximately 59.71% of the company's issued share capital as of December 31, 2019[131] Financial Management - The company plans to use approximately HKD 28 million to repay loans to Northern Petroleum Limited, with no repayments made as of the report date[149] - Approximately HKD 57 million is allocated to restart and expand oil and gas operations in Utah, with HKD 16 million for expanding trade into electronics and HKD 22 million injected into subsidiaries for oil-related product trading[149] - The total amount of loans to be repaid is approximately HKD 111 million, reflecting ongoing financial difficulties since 2017[149]

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 78,697,000, a significant increase of 108.8% compared to HKD 37,650,000 in 2018[8] - The cost of sales for the same period was HKD (79,094,000), resulting in a gross loss of HKD (397,000), improved from a gross loss of HKD (1,478,000) in 2018[8] - The loss before tax was HKD (25,318,000), with a tax credit of HKD 352, leading to a total comprehensive loss of HKD (24,966,000) for the period[8] - Basic and diluted loss per share was HKD (15.4), compared to HKD (13.3) in the same period of 2018[8] - The company reported a loss before tax of HKD 25,318,000 for the six months ended June 30, 2019, compared to a loss of HKD 21,863,000 for the same period in 2018, indicating a deterioration in performance[62] - The company recorded a total loss of HKD 24,966,000 for the six months ended June 30, 2019, compared to a loss of HKD 21,625,000 for the same period in 2018, reflecting a 15% increase in losses[76] - The basic loss per share for the six months ended June 30, 2019, was HKD 15.4 cents, compared to HKD 13.3 cents for the same period in 2018, indicating a worsening in per-share performance[77] Assets and Liabilities - Non-current assets amounted to HKD 302,064,000 as of June 30, 2019, slightly up from HKD 298,678,000 at the end of 2018[12] - Current liabilities increased to HKD 171,428,000 from HKD 141,803,000 at the end of 2018, resulting in a net current liability of HKD (148,896,000)[12] - Total assets as of June 30, 2019, amounted to HKD 324,596,000, an increase from HKD 319,015,000 as of December 31, 2018[62] - The total liabilities as of June 30, 2019, were HKD 211,285,000, an increase from HKD 180,738,000 as of December 31, 2018[62] Cash Flow and Financing - Cash and cash equivalents decreased to HKD 260,000 at the end of the period from HKD 993,000 at the beginning of the period[18] - The net cash used in operating activities was HKD (15,247,000), compared to HKD (6,088,000) in the previous year[18] - The company raised a total of HKD 180,000,000 through the issuance of new shares at HKD 0.02 per share, with HKD 80,000,000 offset against outstanding unsecured loan principal[22] - The company obtained additional unsecured loans totaling HKD 16,890,000 during the period, with interest rates ranging from 8% to 12%[92] Lease Accounting - The company adopted Hong Kong Financial Reporting Standard 16, which introduces a single accounting model for lessees, requiring recognition of right-of-use assets and lease liabilities for all leases, except for short-term leases and low-value asset leases[30] - The company recognized lease liabilities of HKD 6,599 thousand on January 1, 2019, with current liabilities amounting to HKD 3,207 thousand and non-current liabilities of HKD 3,392 thousand[44] - The total non-current assets increased to HKD 304,785 thousand after the adoption of HKFRS 16, reflecting the recognition of right-of-use assets[50] - The company recognized right-of-use assets and lease liabilities of approximately HKD 4,514,000 and HKD 4,610,000, respectively, as of June 30, 2019, following the adoption of new accounting standards[82] Corporate Governance - The company has faced governance issues due to a lack of independent non-executive directors following the annual general meeting on June 28, 2019[135] - The company has appointed three new independent non-executive directors as of August 14, 2019, to comply with listing rules[143] - The company is committed to high standards of corporate governance and has been actively addressing compliance issues[135] - The board of directors includes eight executive directors and three independent non-executive directors as of August 30, 2019[151] Business Outlook and Strategy - The management remains optimistic about strengthening the trading business, particularly focusing on high-margin products[104] - The group plans to explore new business opportunities and partnerships to expand its oil and gas operations, aiming to maximize shareholder value[112] - The international oil price has stabilized around USD 55 per barrel since 2019, despite ongoing trade tensions, with expectations for continued demand growth in China[111] Employee and Shareholder Information - As of June 30, 2019, the company had approximately 12 employees, with a competitive compensation package including monthly salary, mandatory provident fund, medical insurance, and stock option plans[118] - Major shareholders include Noble, holding 1,700,000,000 shares, representing 52.38%[124] - The company has adopted a share option scheme since July 15, 2009, allowing directors to grant options to eligible employees, with a maximum of 10% of the issued shares available for issuance under the scheme[128]

Financial Performance - Revenue for the year ended December 31, 2018, was HKD 74,036,000, a significant increase from HKD 35,594,000 in 2017, representing a growth of 108%[7] - The net loss attributable to owners for the year was HKD 58,702,000, compared to a loss of HKD 351,669,000 in 2017, indicating a reduction in losses by approximately 83%[7] - Basic and diluted loss per share for the year was HKD 1.80, improved from HKD 10.83 in the previous year[7] - The gross loss for the year was HKD 1,745,000, an increase from HKD 1,160,000 in 2017, primarily due to low oil and gas prices[33] - The company reported a loss attributable to owners of the company of HKD 58,415,000, which included significant financing costs and legal and professional fees totaling approximately HKD 27,400,000[33] - The company reported a loss before tax of HKD 59,562,000 for 2018, a significant improvement from a loss of HKD 447,259,000 in 2017[158] - The total comprehensive loss for the year was HKD 58,702,000, compared to HKD 351,669,000 in the previous year, reflecting a reduction of approximately 83%[158] Assets and Liabilities - Total liabilities increased to HKD 102,585,000 from HKD 58,300,000, reflecting a rise of 76%[7] - Shareholders' equity decreased to HKD 137,134,000 from HKD 195,549,000, a decline of 30%[7] - The company's total assets less current liabilities decreased to HKD 177,212,000 in 2018 from HKD 236,402,000 in 2017[160] - The company's net asset value decreased to HKD 138,277,000 in 2018 from HKD 196,979,000 in 2017[163] - The company had a net current liability of approximately HKD 121 million and cash and cash equivalents of about HKD 1 million as of December 31, 2018[137] - The company’s total liabilities included overdue unsecured loans of approximately HKD 25 million and HKD 2 million as of December 31, 2018[177] Operational Plans and Strategies - The company plans to drill four new wells in the U.S. oil fields and enhance existing wells to capitalize on favorable market conditions[10] - The company aims to attract new investors to expand its natural gas and oil business and explore new business development projects[10] - The company aims to maximize shareholder returns by extending its business into the downstream product chain since 2017[34] - The company aims to enhance the development of oil fields in Utah, focusing on oil and gas exploration and production[39] - The company plans to leverage the decline in drilling costs to expand operations in Utah when market conditions improve[42] - The company plans to raise funds through a share subscription, pending regulatory approval[179] Corporate Governance - The company is committed to maintaining high standards of corporate governance[98] - The company has not complied with the corporate governance code regarding the separation of roles between the Chairman and the CEO, as the CEO position has been vacant since June 30, 2015, until the appointment of Ms. Xiao Li on November 28, 2018[99] - The number of independent non-executive directors fell below three, resulting in non-compliance with listing rules, specifically sections 3.10(1) and 3.10(A)[100] - The company failed to meet the requirement of having at least three members in the audit committee, leading to non-compliance with listing rule 3.21[101] - The majority of the members in the remuneration committee and nomination committee were not independent non-executive directors, resulting in non-compliance with listing rules 3.25 and A.5.1[101] - Three independent non-executive directors were appointed on October 3, 2018, and November 28, 2018, to ensure compliance with relevant listing rules[101] Employee and Social Responsibility - The company expressed gratitude to customers, suppliers, and employees for their support and contributions during the year[10] - The group emphasizes employee health and safety, adhering to occupational safety regulations without any major accidents during the year[54] - The group has implemented training programs for new employees in garment supply management and computer programming, enhancing their skills and knowledge[55] - The group is committed to environmental protection and encourages employees to participate in charitable activities, promoting a culture of social responsibility[61] - The company is focused on sustainable development, emphasizing social and environmental responsibilities alongside economic goals[53] Financial Reporting and Compliance - The audit identified significant uncertainties regarding the company's ability to continue as a going concern due to financial losses and liabilities[137] - The company must ensure that the financial statements are prepared on a going concern basis unless liquidation or cessation of operations is intended[146] - The company is responsible for ensuring the financial statements are free from material misstatement due to fraud or error[148] - The audit report does not cover other information outside the financial statements and does not provide any assurance on them[143] - The company has adopted a share option scheme as a reward for directors and eligible employees, with details provided in the financial statements[79] Financial Standards and Regulations - The application of HKFRS 9 and HKFRS 15 has not had a significant impact on the group's financial performance and position for the current and prior years[183] - The financial position and performance of the group have not been significantly affected by the initial application of HKFRS 15, which establishes a comprehensive framework for revenue recognition[190] - The group is currently evaluating the impact of the new and revised Hong Kong Financial Reporting Standards, particularly HKFRS 16 "Leases," and anticipates no significant changes to existing accounting policies and consolidated financial statements[195] - Upon adoption of HKFRS 16, lessees will no longer differentiate between finance leases and operating leases, recognizing all leases on the balance sheet as lease liabilities and corresponding "right-of-use" assets[195]