香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不會就因本公告全部或任何部份內容而產生或 因依賴該等內容而引致的任何損失承擔任何責任。 CHINA HUARONG ENERGY COMPANY LIMITED (cid:1117)(cid:1117)(cid:3387)(cid:3387)(cid:14879)(cid:14879)(cid:8158)(cid:8158)(cid:14125)(cid:14125)(cid:9408)(cid:9408)(cid:14033)(cid:14033)(cid:1325)(cid:1325)(cid:7481)(cid:7481)(cid:19584)(cid:19584)(cid:1948)(cid:1948)(cid:2600)(cid:2600) (於開曼群島註冊成立之有限公司) (股份代號 ：01101) 截至二零二二年十二月三十一日止年度之年度業績公告 中國華榮能源股份有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及 其附屬公司（統稱「本集團」）截至二零二二年十二月三十一 ...

Financial Performance - For the six months ended June 30, 2022, the Group recorded revenue of RMB50.9 million, a decrease of 62.4% compared to RMB135.4 million for the same period in 2021[7]. - The Group generated a gross profit of RMB25.2 million from oil exploration, oil storage, and trading businesses, compared to RMB22.9 million in the comparative period, reflecting a gross profit increase of 10.0%[7]. - Loss attributable to equity holders of the Company was RMB381.0 million for the period, significantly higher than the loss of RMB82.8 million in the comparative period, primarily due to foreign exchange fluctuations[7]. - The Group recorded a total comprehensive loss of RMB355.8 million for the period, compared to RMB87.0 million in the comparative period, with a significant increase attributed to currency exchange fluctuations[62]. - The Group recorded a net loss of RMB374,145,000 for the six months ended 30 June 2022, compared to a net loss of RMB80,256,000 in the same period of 2021[170]. Foreign Exchange and Financial Guarantees - The Group recorded a net foreign exchange loss of RMB189.8 million during the period, contrasting with a foreign exchange gain of RMB27.2 million in the comparative period[7]. - As of June 30, 2022, the Relevant Guarantees provided by the Company amounted to RMB5,730.1 million, an increase from RMB5,634.0 million as of December 31, 2021[23]. - The Group recognized financial guarantee contracts of RMB4,790.3 million as of June 30, 2022, up from RMB4,709.0 million as of December 31, 2021[23]. - The Group is actively negotiating with banks and lenders to release or discharge relevant guarantees[178]. - Guarantees of RMB2,210,636,000 had been discharged from the date of Disposal until June 30, 2022, with RMB4,790,334,000 expected to be released in 2022[178]. Debt and Borrowings - As of June 30, 2022, total borrowings amounted to RMB3,749.5 million, an increase from RMB3,580.1 million as of December 31, 2021[64]. - The Group's short-term borrowings rose by RMB112.9 million from RMB1,417.4 million as of December 31, 2021 to RMB1,530.3 million as of June 30, 2022[62]. - The total liabilities increased to RMB9,654,470,000 from RMB9,274,823,000, marking an increase of 4.1%[130]. - The Group had outstanding promissory notes totaling RMB2,310,304,000, with RMB1,093,292,000 overdue since 2020 and 2021[175]. - The Group is negotiating with lenders regarding the renewal or extension of overdue borrowings totaling RMB368,994,000[193]. Operational Challenges and Strategies - The trading sector faced challenges due to COVID-19 lockdowns in major cities, particularly Shanghai, leading to a temporary halt in trading activities[70]. - The Group has implemented cost-saving measures and postponed capital expenditures to maintain financial stability in a volatile market environment[54]. - The management is taking a prudent approach to capital expenditure in the Energy Business, with expenditures expected to resume by 2024 at the earliest due to market conditions[40]. - The Group is focusing on cost-saving measures and conservative operational management to ensure sufficient liquidity in the oil exploration sector amid a volatile market environment due to geopolitical tensions and COVID-19 disruptions[69]. - The Group aims to develop new oil well exploration methods to improve production efficiency in drilling operations[69]. Shareholder Information - As of June 30, 2022, Mr. Chen Qiang holds 27,200,000 shares, representing 0.57% of the issued share capital of the Company[89]. - Substantial shareholders include China Minsheng Banking Corp. Ltd. with 7,006,000,000 shares (146.86%), Ms. Zhao Xuejun with 1,420,120,000 shares (29.77%), and Action Phoenix Limited with 1,150,000,000 shares (24.11%) as of June 30, 2022[100]. - The total number of issued shares of the Company as of June 30, 2022, is 4,770,491,507[89]. Future Outlook - The Group is actively seeking new business models to enhance profit margins through synergies from Nantong Zhuosheng[70]. - The Group plans to implement a business plan for its energy exploration and production segment to generate cash inflows[193]. - Management expects to gradually increase oil output through further development in Kyrgyzstan, generating steady operating cash flow[183]. - The Group's cash flow projections indicate sufficient working capital to meet financial obligations for the next twelve months[188].

Financial Performance - The Group recorded a revenue of approximately RMB316.8 million for the year ended 31 December 2021, compared to RMB34.8 million for the year ended 31 December 2020, representing an increase of approximately 809%[23]. - The Group generated a gross profit of RMB53.1 million, a significant improvement from a gross loss of RMB6.4 million in the Comparative Year[23]. - Loss attributable to equity holders of the Company was approximately RMB185.1 million for the Year, a decrease from a profit of RMB782.6 million in the Comparative Year[23]. - The Group's total comprehensive loss for the Year was approximately RMB194.0 million, a decline from a total comprehensive income of RMB664.4 million in the Comparative Year[88]. - The Group's revenue growth in 2021 was primarily driven by increases in both selling price and sales volume despite ongoing challenges from COVID-19 and the global economic recovery[62]. Operational Developments - The Group achieved significant milestones in 2021, including substantial debt extensions and the acquisition of 50.46% equity interest in Nantong Zhuosheng, positively impacting future development[8][16]. - The demand for oil storage in China remains strong, with expectations for consistent income and profit from the oil storage business following the acquisition of Nantong Zhuosheng[16][19]. - The trading division has expanded significantly in China, with increased transaction volume since the beginning of the year, enhancing both revenue and profit margins[17][19]. - The Group is conducting feasibility studies to analyze potential economic benefits from capacity expansion in the oil storage business[16][19]. - The Group's diversified revenue streams aim to reduce reliance on oil exploration operations, enhancing overall business resilience[16][19]. Financial Management and Debt - The Group is exploring various financing options to increase liquidity amid economic uncertainties[9]. - Cost control measures have been implemented to maintain a strong financial position, including negotiations with lenders for debt extensions[9]. - The Group's debt restructuring actions aim to optimize its debt structure and ease financial burdens[43]. - The Company intends to repay a secured loan using a USD250 million interest-free facility from a shareholder, with repayments expected to be completed by the end of 2022[47]. - The Group maintained cash and cash equivalents of RMB23.9 million, up from RMB16.1 million in the previous year[91]. Challenges and Market Conditions - The oil exploration sector faced challenges due to COVID-19 and the Russia-Ukraine conflict, leading to cost-saving measures and a conservative operational management approach, including postponed capital expenditures and reduced production[10][12]. - The ongoing COVID-19 pandemic has caused delays in the discharge of Relevant Guarantees, which were not fully discharged in 2020 and 2021[33]. - The management anticipates that expenditures in the Energy Business will only resume by 2024 at the earliest due to the prolonged impact of COVID-19 and geopolitical uncertainties[56]. - The overall global economy is slowly recovering, supported by vaccination programs and sustainable recovery policies, despite ongoing uncertainties from the pandemic[9]. Leadership and Governance - Mr. Chen Qiang has been the Chairman and CEO since November 2012, overseeing overall operations since joining the Group in 2004[109]. - The Board consists of seven members, including four executive directors and three independent non-executive directors, ensuring comprehensive oversight of company operations[110]. - The company has a strong governance structure with independent directors overseeing key committees such as audit, finance, and remuneration[129]. - The management team includes professionals with extensive industry experience, enhancing the company's strategic decision-making capabilities[130]. - The leadership team is committed to maintaining high standards of corporate governance and transparency in operations[130]. Shareholder Information - The Company has outstanding share options totaling 24,761,000 shares, representing approximately 0.52% of the total issued share capital of 4,770,491,507 shares as of December 31, 2021[145]. - Substantial shareholders include China Minsheng Banking Corp. Ltd. with 7,006,000,000 shares, representing 146.86% of the issued share capital[193]. - The interests of substantial shareholders are recorded under section 336 of the SFO, ensuring compliance with regulatory requirements[192]. - The total number of shares and derivatives held by substantial shareholders indicates a significant concentration of ownership within the company[192]. - The Company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2021[145].

Financial Performance - The Group recorded a revenue of RMB 135.4 million for the six months ended 30 June 2021, a significant increase from RMB 14.3 million in the Comparative Period[8] - Gross profit for the Group was RMB 22.9 million, compared to RMB 3.8 million in the Comparative Period, driven by oil exploration and the newly acquired oil storage business[8] - Loss attributable to equity holders of the Company was RMB 82.8 million for the Period, a decrease from a profit of RMB 465.0 million in the Comparative Period, primarily due to the discharge of Relevant Guarantees[8] - The Group's operational performance improved significantly due to the acquisition and growth in trading business[8] - Revenue from the energy business for the period was approximately RMB 13.8 million, a decrease of about 3.5% from RMB 14.3 million in the comparative period[47] - The Kyrgyzstan Project recorded sales of 64,769 barrels of light crude oil, down from 73,293 barrels in the comparative period[47] - The Group reported a total comprehensive loss of RMB 87.0 million for the period, a decline from a total comprehensive income of RMB 478.6 million in the comparative period[63] - The Group recorded a net loss of RMB 80,256,000 for the six months ended 30 June 2021, compared to a net profit of RMB 454,537,000 in the same period of 2020[162] - For the six months ended June 30, 2021, the company reported a total comprehensive loss of RMB 89,866,000, compared to a profit of RMB 489,283,000 for the same period in 2020[150] Financial Position - The net deficit position of the Group improved, decreasing by RMB 123.3 million compared to 31 December 2020, largely due to the acquisition of Nantong Zhuosheng[8] - As of June 30, 2021, the Group had a total deficit of RMB 7,775.7 million, with current liabilities exceeding current assets by RMB 7,821.5 million[64] - The Group's gearing ratio increased to approximately 89.8% from 75.3% as of December 31, 2020, influenced by accumulated losses of RMB 21,548.7 million[73] - The Group's cash and cash equivalents decreased to RMB 10.6 million as of June 30, 2021, from RMB 16.1 million as of December 31, 2020, with approximately 49.0% in RMB and 51.0% in other currencies[76] - The total liabilities increased to RMB 9,225,287,000 as of June 30, 2021, from RMB 8,904,999,000 at the end of 2020, reflecting a rise of approximately 3.6%[133] - The company reported accumulated losses of RMB 21,548,655,000 as of June 30, 2021, reflecting ongoing financial challenges[150] - The total deficit at the end of the reporting period was RMB 7,775,744,000, indicating a significant financial burden[150] Debt and Guarantees - The Company has been actively negotiating with banks and lenders to release or discharge Relevant Guarantees, maintaining relationships to prevent immediate repayment demands[16] - As of June 30, 2021, the Relevant Guarantees amounted to RMB5,938.6 million, including principals and interests[27] - Financial guarantee contracts recognized by the Group were RMB4,626.6 million as of June 30, 2021, up from RMB4,545.1 million on December 31, 2020[27] - The Group has executed a series of debt restructuring arrangements to ease financial burdens, with overall support from lenders[29] - The Group's overdue other borrowings and bank borrowings are under negotiation for repayment extensions[171] - The Group's total borrowings as of June 30, 2021, amounted to RMB 3,678,932,000, with RMB 593,967,000 overdue and RMB 341,071,000 in overdue interest payables[166] Operational Strategy - The Company continues to focus on enhancing its operational efficiency and exploring new business opportunities in the energy sector[8] - The Group is exploring different financing options to increase liquidity amid the challenging economic environment caused by the COVID-19 pandemic[79] - The Group aims to gradually increase oil production in Kyrgyzstan, which is expected to generate stable operating cash flow[176] - The Group's strategy includes obtaining additional financing sources to support its energy exploration and production segment[183] - The Group is focused on developing its energy exploration and production segment, with ongoing production from several wells in Kyrgyzstan, expecting to increase oil output gradually[174] Acquisitions and Growth - Nantong Zhuosheng, acquired on January 22, 2021, generated revenue of RMB26.2 million and gross profit of RMB17.5 million since the acquisition[59] - The acquisition of Nantong Zhuosheng reflects the Group's strategy to invest in oil-and-gas-related storage and logistics projects to expand its energy business[56] - The Group completed the acquisition of 50.46% equity interest in Nantong Zhuosheng in January 2021, which has had a significant positive impact on revenue and profit[82] - The demand for oil storage in China remains strong, and the oil storage business is expected to generate consistent income and profit throughout the remainder of 2021[82] Cost Management - General and administrative expenses decreased by approximately 17.4% to RMB19.0 million, down from RMB23.0 million in the comparative period, due to cost control measures[60] - The Group has implemented cost-saving measures and postponed capital expenditures to maintain financial stability amid low commodity prices[53] - The Group has postponed capital expenditures and temporarily reduced production to protect value in a low commodity price environment[79] Shareholder Information - As of June 30, 2021, Mr. Chen Qiang holds a total of 41,200,000 shares, representing 0.86% of the issued share capital[99] - The total number of issued shares of the Company as of June 30, 2021, is 4,770,491,507[100] - The total number of outstanding share options under the Share Option Scheme was 24,761,000 shares, representing approximately 0.52% of the total issued share capital of 4,770,491,507 shares[120] Risk Management - The Group's risk management program focuses on minimizing potential adverse effects on financial performance due to market unpredictability[190] - There have been no changes in the risk management department or policies since year-end[195]

Financial Performance - The Group recorded a revenue of approximately RMB34.8 million for the year ended 31 December 2020, a decrease from RMB47.7 million in the comparative year[20]. - Profit attributable to equity holders of the Company was approximately RMB782.6 million for the year, compared to RMB137.3 million in the comparative year, indicating a significant increase[20]. - The Group recorded gross losses of approximately RMB6.4 million for the Year, compared to gross profit of approximately RMB13.1 million in the Comparative Year, significantly impacted by decreased oil prices and lower demand[67]. - Total comprehensive income for the Year was approximately RMB664.4 million, a significant increase from RMB134.9 million in the Comparative Year[78]. - The Group recorded a net profit of RMB765.0 million for the year ended 31 December 2020, compared to a net profit of RMB112.1 million in 2019, representing a significant increase[81]. - Operating cash inflow for the Group was RMB15.8 million in 2020, a turnaround from an outflow of RMB43.0 million in 2019[81]. Capital Expenditure and Investment - The Group has postponed capital expenditure plans and temporarily reduced production in response to the collapse in selling prices and demand for refined products[9]. - Capital expenditure for the year was approximately RMB13.7 million, a decrease from RMB39.7 million in the comparative year, primarily used in the energy exploration and production segment[83]. - The Group has decided to postpone capital expenditures and temporarily reduce production in response to falling prices and demand for refined products[48]. - The Group acquired a 60% interest in a project involving five oilfields in Kyrgyzstan, marking a significant breakthrough in energy exploration and production[44]. - The acquisition of 50.46% equity interest in Nantong Zhuosheng was completed on January 22, 2021, which is expected to positively impact the Group's 2021 results due to strong oil storage demand[14]. Debt Management and Financial Obligations - The Group is negotiating with lenders to extend existing financial obligations and exploring various financing options to increase liquidity[15]. - The Company has been actively negotiating with banks and lenders to release or discharge the Relevant Guarantees, which has been complicated by COVID-19 and procedural delays[27]. - The Group is committed to maintaining strong financial positions through prudent management of debt levels and liquidity[9]. - The outstanding secured bank loan was reduced to approximately RMB314.8 million from RMB461.2 million in 2019, after repaying RMB146.4 million during the year[39]. - The Group's long-term borrowings increased by RMB512.2 million from RMB937.1 million in 2019 to RMB1,449.3 million in 2020[81]. Operational Challenges and Market Conditions - The COVID-19 pandemic has significantly disrupted the Group's performance, with ongoing impacts on crude oil demand and price fluctuations due to logistics and mobility issues[8]. - The Group anticipates that both selling prices and sales volumes will not return to pre-COVID-19 levels within the next 12 to 18 months[48]. - Due to COVID-19, operations in Kyrgyzstan are temporarily restricted, and capital expenditures in the Energy Business are expected to resume by 2024 at the earliest[43]. - The forecast oil price has decreased significantly from USD48–65 per barrel to USD32–45 per barrel, prompting a reassessment of the Group's development plans[72]. Strategic Initiatives and Future Outlook - The Group established several trading companies in China to diversify revenue sources and improve profit margins, which has positively impacted revenue since July 2020[13]. - The management remains positive about the long-term business model despite current market pressures[9]. - The Group is implementing a new oil well development method that has proven to improve production efficiency[9]. - The management is taking a prudent approach to capital expenditure decisions, continuously monitoring the oil market[43]. - The Group's total estimated oil reserves as of 31 December 2020 were 23.56 million tonnes, with proved plus probable reserves at 31.27 million tonnes[59]. Governance and Compliance - The Company complied with the applicable code provisions set out in the Corporate Governance Code during the year ended 31 December 2020, with some deviations noted[199]. - The auditors' disclaimer of opinion was primarily due to uncertainties related to going concern and legacy issues from prior years[90]. - The Company did not recommend the payment of a final dividend for the year ended 31 December 2020, consistent with 2019[124]. Shareholder and Management Information - The Company had no reserves available for distribution to shareholders, the same as in 2019[126]. - The total number of issued shares of the Company as of December 31, 2020, is 4,770,491,507[182]. - The Company aims to retain participants whose contributions are important to its long-term growth and profitability through the Pre-IPO Share Option Scheme[131]. - The remuneration policy includes basic salary, pension contributions, discretionary bonuses, and share options as incentives for directors and employees[155].

Financial Performance - The Group recorded a revenue of RMB14.3 million for the six months ended 30 June 2020, a decrease of 48.6% compared to RMB27.8 million for the same period in 2019[7]. - Profit attributable to equity holders of the Company was RMB465.0 million for the Period, significantly up from RMB88.5 million in the Comparative Period, marking a growth of 425%[7]. - The Group recorded revenue of RMB14.3 million and gross profit of RMB3.8 million for the period, representing a decrease of approximately 48.6% and 63.8% respectively compared to the comparative period[66]. - Revenue from crude oil sales for the six months ended June 30, 2020, was RMB 14,258,000, down 48.8% from RMB 27,829,000 in the same period of 2019[177]. - Gross profit for the period was RMB 3,820,000, a decrease of 63.5% compared to RMB 10,458,000 in the prior year[177]. - Total comprehensive income for the six months ended June 30, 2020, was RMB 478,555,000, a significant increase from RMB 87,878,000 in the same period of 2019, representing a growth of 444%[182]. - The profit attributable to equity holders from continuing operations was RMB 489,283,000, compared to a loss of RMB 164,498,000 in the previous year[185]. - Earnings per share for continuing operations was RMB 0.04, up from a loss of RMB 0.01 per share in the same period of 2019[186]. Financial Position - The net deficit position improved by RMB478.6 million compared to 31 December 2019, primarily due to the discharge of Relevant Guarantees[9]. - As of 30 June 2020, the total Relevant Guarantees provided by the Company amounted to RMB5,200.5 million, down from RMB6,545.1 million as of 31 December 2019[27]. - The Group's gearing ratio increased from approximately 72.3% as at 31 December 2019 to approximately 82.4% as at 30 June 2020, influenced by accumulated losses of RMB21,788.9 million[84]. - As of June 30, 2020, the Group had a total deficit of RMB8,085.0 million, with current liabilities exceeding current assets by RMB8,922.8 million[77]. - The total equity attributable to equity holders of the company as of June 30, 2020, was RMB 8,057,240,000, reflecting a decrease from RMB 8,546,523,000 at the beginning of the year[192]. - The accumulated losses as of June 30, 2020, were RMB 21,788,851,000, indicating a continued financial challenge for the company[192]. Guarantees and Liabilities - The Company successfully discharged Relevant Guarantees amounting to approximately RMB1,468.8 million during the Period[17]. - A portion of Relevant Guarantees A has been discharged, with the remaining amount pending final approval from the relevant bank, expected to be completed by 30 September 2020[24]. - The discharging proposal for Relevant Guarantees B is currently under internal review, with an expected completion by the fourth quarter of 2020[24]. - Relevant Guarantee C was fully discharged on 30 June 2020 following an auction conducted by the relevant bank[24]. - The Group had contingent liabilities of RMB883.8 million as at 30 June 2020, up from RMB853.7 million as at 31 December 2019, due to financial guarantees provided[84]. Operational Challenges - The Group's performance has been significantly disrupted by the COVID-19 outbreak, with expectations of prolonged impacts on crude oil demand and price fluctuations[88]. - The management anticipates that expenditures in the Energy Business will only resume around the fourth quarter of 2020 due to COVID-19 restrictions and low oil prices[41]. - The Group's management has decided to postpone capital expenditures and implement cost-saving measures in response to the collapse in crude prices and demand[56]. - The management foresees that oil prices and sales volume will not return to pre-COVID-19 levels within the next 6 to 12 months[55]. Asset Management - The impairment provision for property, plant, and equipment, and intangible assets negatively impacted the financial results during the Period[8]. - An impairment assessment has been conducted due to indications of asset impairment in non-current assets associated with operations in Kyrgyzstan[58]. - The Group recognized an impairment loss on property, plant, and equipment of RMB13.8 million, compared to nil in the comparative period[69]. - An impairment loss on Co-operation Rights was recorded at RMB670 million, with the external valuation expected to be completed by the end of 2020[70]. Financing and Cash Flow - The Group repaid approximately RMB126.8 million of principal and interest on secured bank loans during the reporting period, leaving an outstanding amount of approximately RMB340.8 million[35]. - The Company intends to utilize a USD250 million interest-free facility from a shareholder to repay overdue secured bank loans by the third quarter of 2020[30]. - The Group has utilized approximately USD105.4 million of a USD250 million interest-free and unsecured financing facility for oilfield development, debt repayment, and general working capital[40]. - The net finance cost increased by approximately 11.3% to RMB176.5 million, compared to RMB154.7 million in the comparative period[74]. - The Group incurred net foreign exchange losses of approximately RMB6.2 million due to fluctuations in currency exchange rates[79]. Shareholder and Corporate Governance - The Company did not declare an interim dividend for the six months ended June 30, 2020, consistent with the previous year[106]. - The Audit Committee reviewed the unaudited interim results of the Group for the Period[105]. - The Company confirmed compliance with the Model Code for Securities Transactions by Directors during the Period[101]. - The Company believes that having the same person serve as both Chairman and CEO can lead to more effective long-term strategy development[102]. - The Audit Committee comprises three independent non-executive Directors, ensuring oversight of financial reporting and internal controls[105]. Employee and Operational Changes - The number of employees decreased from 93 as at 31 December 2019 to 81 as at 30 June 2020, primarily due to the Disposal[86]. - The Company is actively negotiating with noteholders to extend the maturity dates of outstanding promissory notes, with some noteholders already agreeing to the extension[35]. - The Company is developing a plan to settle outstanding promissory notes, contingent on financial performance and refinancing discussions[38].

Financial Performance - The Group recorded a revenue of RMB27.8 million for the six months ended 30 June 2019, an increase from RMB21.8 million in the same period of 2018, primarily driven by crude oil sales[6]. - Profit attributable to equity holders was RMB91.6 million for the Period, a significant recovery from a loss of RMB1,137.6 million in the Comparative Period[6]. - The Group's total comprehensive income for the Period was RMB91.0 million, a significant improvement from a total comprehensive loss of RMB1,164.4 million in the Comparative Period[49]. - The Group recorded a profit of RMB91.8 million during the period, with a net operating cash outflow of approximately RMB16.0 million[51]. - The Group's comprehensive income for the period was RMB91.0 million, a significant improvement from a comprehensive loss of RMB1,164.4 million in the comparative period[53]. - The profit for the period ended June 30, 2019, was RMB91,630,000, marking a significant improvement from the loss of RMB1,137,604,000 reported for the same period in 2018[162]. - The Group recorded a net profit of RMB91,808,000 for the six months ended 30 June 2019, compared to a net loss of RMB1,181,098,000 in the same period of 2018[174]. Discontinued Operations - A net disposal gain of RMB399.2 million was recognized due to the disposal of loss-making discontinued operations, with a total disposal gain of RMB7,026.6 million offset by provisions for financial guarantees of RMB6,627.4 million[17]. - The Disposal Group contributed a loss of RMB142.5 million during the Period, a decrease of approximately 87.4% from the Comparative Period loss of RMB1,131.8 million[50]. - Loss from discontinued operations amounted to RMB (142,474,000), while the gain on disposal of discontinued operations was RMB 399,193,000[138]. - The company reported a significant gain on the disposal of discontinued operations, contributing positively to the overall profit[138]. Financial Position and Liabilities - The Group's net deficit position improved by RMB993.4 million compared to 31 December 2018, largely due to the disposal of discontinued operations[7]. - The total deficit of the Group as of June 30, 2019, was RMB8,636.7 million, with current liabilities exceeding current assets by RMB10,239.3 million[55]. - The Group's total current borrowings amounted to RMB2,613.4 million, of which RMB2,549.5 million were overdue or due for repayment within 12 months[55]. - The gearing ratio decreased from approximately 198.8% as of December 31, 2018, to approximately 66.9% as of June 30, 2019[58]. - Contingent liabilities decreased to RMB853.7 million as of June 30, 2019, down from RMB7,329.8 million as of December 31, 2018[58]. - The Group's financial position is under significant pressure, leading to measures aimed at refinancing operations and restructuring debts[181]. - The Group's ability to continue as a going concern is under significant doubt due to material uncertainties[181]. Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2019, was RMB15,977,000, compared to RMB170,552,000 in 2018[168]. - Cash and cash equivalents at the end of the period on June 30, 2019, were RMB8,717,000, down from RMB39,551,000 at the end of June 30, 2018[168]. - The Group maintained cash and cash equivalents of RMB8,717,000 as of 30 June 2019[174]. - The Group is negotiating with banks and lenders regarding a borrowing of RMB2,618,331,000 to improve its financial position[181]. - The Group is actively negotiating with relevant banks to release or discharge guarantees related to its borrowings[181]. - The Group is seeking additional financing sources beyond those mentioned, including financing for its Energy Business[194]. Operational Efficiency and Cost Control - Selling and marketing expenses decreased by approximately 13.3% to RMB1.3 million, compared to RMB1.5 million in the Comparative Period[47]. - General and administrative expenses decreased by approximately 15.2% to RMB23.9 million, down from RMB28.2 million in the Comparative Period[47]. - The Group has been focusing on improving production capabilities and cost control measures in the oil production cycle and drilling development[64]. - The Group has enhanced cost control measures and improved operational efficiency in oil production cycles and drilling development, aiming to reduce development costs through a review of capital expenditure bidding processes[67]. Shareholder Information - As of June 30, 2019, Mr. Chen Qiang holds a corporate interest of 27,200,000 shares and has options for an additional 14,000,000 shares, representing a total of 41,200,000 shares, which is 0.86% of the issued share capital of 4,770,491,507 shares[87][88]. - Substantial shareholders include China Minsheng Banking Corp. Ltd. with 7,006,000,000 shares, representing 146.86% of the issued share capital[99]. - The Company had not been notified of any persons, other than Directors or chief executives, with interests in the shares as of June 30, 2019[102]. Future Outlook and Strategy - The Group is actively pursuing related opportunities within the energy industry to broaden revenue sources, including trading of energy-related products, storage, and logistics projects[70]. - The Group expects to increase oil output through further development in Kyrgyzstan, generating steady operating cash flows[186]. - The Group plans to implement a business plan for its energy and exploration and production segment to generate cash inflows[194]. - The directors believe the Group will have sufficient working capital to finance operations and meet financial obligations within the next twelve months[191].

Financial Performance - For the year ended December 31, 2018, the Company recorded a revenue of approximately RMB49.0 million, an increase from RMB45.2 million in the previous year, representing a growth of 4.2%[36] - Profit attributable to equity holders from continuing operations was approximately RMB2,213.3 million, a significant turnaround from a loss of RMB920.6 million in the comparative period[36] - The discontinued operations recorded a revenue of RMB65.3 million, down from RMB87.6 million in the previous year, indicating a decline of 25.5%[37] - Loss attributable to equity holders from discontinued operations was RMB2,351.7 million, compared to a loss of RMB964.2 million in the comparative period, reflecting a worsening situation[37] - Overall loss attributable to equity holders for the period was approximately RMB138.4 million, an improvement from a loss of RMB1,884.8 million in the previous year[38] - Revenue from the energy exploration and production segment increased by approximately 8.4% to RMB49.0 million, driven by rising crude oil prices despite a decrease in sales volume[57] - The Group recorded a revenue of approximately RMB49.0 million for the Period, representing a year-on-year increase of approximately 8.4% compared to RMB45.2 million in the Comparative Period[70] - Gross profit for the Period was approximately RMB14.9 million, compared to RMB10.7 million in the Comparative Period, mainly due to increased oil prices and cost savings from production efficiency[70] - The Continuing Group incurred a net foreign exchange gain of approximately RMB407.1 million during the Period, compared to a loss of RMB618.0 million in the Comparative Period[90] - The Group recorded a total comprehensive loss of approximately RMB195.7 million for the Period, a significant reduction from RMB2,028.2 million in the Comparative Period[75] Strategic Focus and Operations - The Group plans to focus on crude oil production and sales following the disposal of its shipbuilding and engineering segments, aiming for a more streamlined operation[22] - The Group is optimistic about crude oil prices stabilizing at a higher range due to increasing global demand, which is expected to enhance oil trading revenues in the coming years[23] - The Group is actively pursuing energy trading, storage, and logistics projects in the Asia Pacific region to leverage existing industry knowledge and networks[24] - The strategic decision to dispose of the shipbuilding and engineering businesses was made due to declining revenues and limited growth prospects in those sectors[39] - The completion of the Disposal is expected to enhance managerial focus and improve the Group's financial situation, allowing for greater investment in the promising energy sector[45] Debt and Financial Management - The Group is negotiating with creditors for debt restructuring arrangements, receiving positive feedback and support for its proposed measures[24] - The Group recognized a gain of approximately RMB2,067.3 million from the extinguishment of financial liabilities following the issuance of convertible preference shares to settle a bank debt of RMB3,100.0 million[45] - The Group repaid approximately RMB159.2 million of a secured bank loan during the period, reducing the outstanding balance to approximately RMB594.1 million[48] - The Group is negotiating the extension of maturity terms for promissory notes with an aggregate principal amount of approximately HK$1,782.7 million as part of its debt restructuring efforts[49] - The Group entered into a financing arrangement with a substantial shareholder for USD250.0 million, of which approximately USD50.4 million has been utilized for oilfield development and debt repayment[55] - The Group is in the process of negotiating to terminate a previously undrawn USD600.0 million loan agreement, considering alternative financing options instead[56] Cash Flow and Liquidity - As of December 31, 2018, the group incurred a net loss of RMB259.5 million and had an operating cash outflow of RMB201.0 million, compared to an inflow of RMB20.1 million in 2017[84] - The group maintained cash and cash equivalents of RMB9.3 million as of December 31, 2018, down from RMB69.9 million in the previous year[84] - The group has taken measures to mitigate liquidity pressure and improve financial position, including reducing borrowings by issuing shares to satisfy outstanding debts[84] - The group plans to enhance liquidity and financial position following the completion of the disposal of the shipbuilding and engineering business[84] - Short-term borrowings and finance lease liabilities decreased from RMB23,322.7 million as at 31 December 2017 to RMB2,885.8 million as at 31 December 2018, a reduction of RMB20,436.9 million[87] - Long-term borrowings increased from RMB208.4 million as at 31 December 2017 to RMB754.6 million as at 31 December 2018, an increase of RMB546.2 million[87] Management and Governance - The company has a strong governance structure with a finance and investment committee and a corporate governance committee[110] - The company emphasizes strategic investment and financing management as key responsibilities of its executives[108] - The company has a diverse management team with expertise in finance, law, and strategic investment[110] - Mr. Hong Liang has 20 years of experience in corporate finance and strategic investment, having held various senior positions in investment banks[108] - Mr. Wang Tao is responsible for legal affairs and has held multiple roles in Shanghai Sun Glow Investment Group Co., Ltd. from 1999 to 2008[110] Share Options and Dividends - The Group did not recommend a final dividend for the year ended December 31, 2018, consistent with the previous year (2017: nil)[130] - As of December 31, 2018, the Company had no reserves available for distribution to shareholders, compared to RMB 8,253.8 million in 2017[134] - The company has a share option scheme allowing for the issuance of up to 140,000,000 shares, equivalent to 10% of the total issued share capital on the listing date[172] - The exercise price for the share options granted under the scheme is HKD 9.70 per share[172] - No share options were granted during the reporting period[172] Legal and Regulatory Compliance - The auditors issued a disclaimer of opinion on the consolidated financial statements for the year ended December 31, 2018, due to uncertainties related to going concern and asset impairment[95] - The Group's business, financial condition, and results of operations may be materially and adversely affected by potential changes in PRC laws regarding the Structure Agreements[194] - The legal department collaborates with external PRC counsel to monitor the regulatory environment and reduce risks associated with the Structure Agreements[197] - The Group does not have a controlling equity interest in Rongsheng Shipbuilding, relying on contractual arrangements under the Structure Agreements for its shipbuilding operations[192]