Financial Performance - The Group's revenue decreased to RMB 82.6 million for the year ended December 31, 2023, down from approximately RMB 102.8 million for the year ended December 31, 2022, representing a decline of about 19.5%[20] - Gross profit from the oil exploration and storage business was RMB 31.5 million, compared to RMB 45.8 million in the previous year, indicating a decrease of approximately 31.5%[20] - Loss attributable to equity holders of the Company was approximately RMB 526.4 million for the year, an improvement from a loss of RMB 682.7 million in the comparative year, reflecting a reduction of about 22.9%[21] - The Group recorded a net foreign exchange loss of RMB 125.5 million during the year, significantly lower than the foreign exchange loss of RMB 332.4 million in the previous year, marking a decrease of approximately 62.3%[22] - The Group's total revenue for the year was approximately RMB 82.6 million, compared to RMB 102.8 million in the previous year, reflecting a decrease attributed to lower crude oil prices and a slight decline in oil storage revenue[78] - The cost of sales decreased by approximately 10.4% to RMB 51.1 million, aligning with the revenue decline[78] - The Group's net finance costs decreased by approximately 33.3% to RMB 347.8 million, down from RMB 521.6 million in the Comparative Year[81] - The total comprehensive loss for the Year was approximately RMB 510.4 million, a reduction from RMB 617.2 million in the Comparative Year, primarily due to a decrease in foreign exchange loss[88] Operational Challenges - The oil extraction segment faced challenges due to the recurrence of the COVID-19 pandemic and geopolitical tensions, impacting operations and investment[8] - The geopolitical conflicts and high inflation may pose uncertainties for the energy market in Kyrgyzstan, necessitating close monitoring of market dynamics[10] - The overall decline in local oil prices in Kyrgyzstan was greater than the decline in international oil prices, influenced by the Russia-Ukraine war and restricted Russian oil exports[63][66] - The geopolitical turmoil and concerns about oil output levels have contributed to a decline in crude oil futures by over 10% in 2023, affecting the company's outlook[52] Future Prospects - Future prospects for oilfield development in Kyrgyzstan are positive, driven by increasing global demand for fossil fuels, particularly in Central Asia[10] - The management believes that China's economy will continue to rebound, supporting steady growth in oil demand[11] - The Group aims to enhance its core competitiveness in oil storage services to capitalize on market opportunities[11] - The Group's strategic focus will be on formulating reasonable strategies to address future challenges and opportunities in the energy sector[10] Financial Guarantees and Liabilities - As of December 31, 2023, the Relevant Guarantees provided by the Company amounted to RMB6,021.8 million, an increase from RMB5,827.9 million as of December 31, 2022[38] - The Company recognized financial guarantee contracts of RMB5,036.9 million, which will be released upon the discharge of the Relevant Guarantees[38] - The discharging proposal for Relevant Guarantee B was approved by the relevant division by the end of 2020, and it is currently in the finalization stage, expected to be discharged by the end of 2024[38] - The Purchaser is negotiating a debt restructuring deal for Relevant Guarantee D, which is also expected to be discharged by the end of 2024[38] - The Company and the Purchaser are committed to fully discharging the Relevant Guarantees by 2024[33] - The Company has been actively negotiating with banks and lenders to facilitate the release of the Relevant Guarantees since 2018[32] - The inability to fully discharge the Relevant Guarantees from 2020 to 2023 was attributed to COVID-19 disruptions and the complexity of the discharging process[32] - The Company maintains relationships with banks to prevent immediate repayment demands on outstanding borrowings under the Relevant Guarantees[31] Capital Expenditures and Debt Management - The company anticipates that capital expenditures in the Energy Business will only resume by 2026 at the earliest due to current economic uncertainties[52] - The company aims to optimize its debt structure through various measures, including the disposal of certain assets and restructuring of loans[41] - The company has a plan to settle outstanding promissory notes, contingent on financial performance and refinancing discussions[46] - The company expects to repay the outstanding secured loan using the USD250 million facility, with all repayments to be completed by the end of 2024[42] - The company has drilled a total of 81 wells across five oilfield zones, with 76 wells currently in production as of December 31, 2023, compared to 73 wells in 2022[56] Liquidity and Cash Management - Operating cash inflow for the Year was RMB7.0 million, down from RMB21.9 million in the Comparative Year[89] - The Group maintained cash and cash equivalents of RMB2.1 million as of December 31, 2023, a decrease from RMB14.6 million in the previous year[89] - The Group's current liabilities exceeded its current assets by RMB8,108.9 million as of December 31, 2023, compared to RMB7,532.7 million in the previous year[89] - Cash and cash equivalents decreased to approximately RMB2.1 million as of December 31, 2023, from RMB14.6 million in the previous year, with 55.1% denominated in RMB[112][116] Corporate Governance and Management - The board consists of six directors, including three executive directors and three independent non-executive directors[132] - The auditors issued a disclaimer of opinion on the consolidated financial statements for the year ended December 31, 2023, primarily due to uncertainties regarding going concern[119][120] - The Board and audit committee agreed with the auditors regarding the uncertainties related to going concern, with ongoing negotiations for debt restructuring arrangements[125][126] Shareholder Information - The Group did not recommend the payment of a final dividend for the year ended 31 December 2023, consistent with the previous year where no dividend was paid[161] - As of 31 December 2023, there were no reserves available for distribution to shareholders, unchanged from 2022[165] - The Company’s ability to pay dividends is contingent on its current and future operations, liquidity position, and capital requirements[162]

Financial Performance - The company's revenue for the year ended December 31, 2023, decreased to RMB 826 million, compared to RMB 1,028 million for the comparable year[3]. - Gross profit from oil exploration and storage operations was RMB 315 million, down from RMB 458 million in the comparable year[3]. - Loss attributable to equity holders for the year was approximately RMB 5,264 million, an improvement from a loss of RMB 6,827 million in the comparable year[3]. - The company recorded a total comprehensive loss of approximately RMB 5,104 million, down from RMB 6,172 million in the previous year, mainly due to a reduction in foreign exchange losses[36]. - The company reported a total loss of RMB 9,020,675,000 as of December 31, 2023, with current liabilities exceeding current assets by RMB 8,108,929,000[66]. - The group reported a total loss of RMB 9,020,675,000 and current liabilities exceeded current assets by RMB 8,108,929,000[86]. - The company reported a net loss before tax of RMB (523,512,000) for the year, compared to a loss of RMB (667,327,000) in 2022[106]. - The net loss for the year was RMB 525,120,000, an improvement from a net loss of RMB 670,884,000 in 2022[80]. - The company recorded a depreciation of RMB 1,278,000 for intangible assets in 2023, compared to RMB 1,259,000 in 2022, indicating a slight increase in depreciation expenses[122]. Debt and Financial Guarantees - As of December 31, 2023, the company provided guarantees amounting to RMB 6,021.8 million related to the sale group, an increase from RMB 5,827.9 million as of December 31, 2022[13]. - The financial guarantee contracts recognized by the group amounted to RMB 5,036.9 million, up from RMB 4,873.0 million in the previous year[13]. - The company aims to fully release related guarantees by the end of 2024[9]. - The company has been actively negotiating with banks and lenders to facilitate the release of guarantees[10]. - The overall situation regarding the company's debt structure has improved in recent years, with lenders expressing support[14]. - The company is actively negotiating with bondholders to extend the maturity of remaining debts, with discussions ongoing as of December 31, 2023[17]. - The group has overdue borrowings amounting to RMB 342,399,000 as of December 31, 2023, and is negotiating with financial institutions for repayment extensions[96]. - The total outstanding borrowings amounted to RMB 3,934,716,000, with RMB 1,569,065,000 overdue as of December 31, 2023[88]. - The group has outstanding promissory notes totaling RMB 2,447,565,000, with RMB 1,179,111,000 overdue since 2020, 2021, and 2022[89]. - The group has engaged in negotiations to extend the maturity of RMB 1,144,342,000 of promissory notes to December 2025[90]. Revenue and Sales - The energy business generated revenue of approximately RMB 37.9 million, a decrease of about 28.2% compared to RMB 52.7 million in the previous year[22]. - The company recorded revenue of approximately RMB 826 million, a decrease of about 19.5% compared to the previous year’s RMB 1,028 million, primarily due to a 28.2% drop in revenue from energy exploration and production[31]. - The company sold 124,200 barrels of light crude oil in the Kyrgyz project, slightly down from 124,790 barrels in the previous year[22]. - Revenue from oil sales in Kyrgyzstan was RMB 37,874,000, down 28.2% from RMB 52,735,000 in 2022[106]. - Revenue from oil storage services was RMB 44,748,000, a slight decrease of 4.4% from RMB 46,827,000 in 2022[106]. - The group’s largest customer contributed RMB 16,855,000, accounting for 20.4% of total revenue, down from 34.5% in 2022[108]. Assets and Liabilities - The company reported total assets of RMB 1,405,130,000 as of December 31, 2023, a decrease from RMB 1,421,562,000 in 2022[75]. - Total liabilities increased to RMB 10,425,805,000 in 2023, compared to RMB 9,931,873,000 in 2022, indicating a rise of 5%[76]. - The company’s total borrowings amounted to RMB 3,934.7 million as of December 31, 2023, an increase from RMB 3,829.8 million the previous year[40]. - The company’s cash and cash equivalents decreased significantly to RMB 2,143,000 in 2023 from RMB 14,583,000 in 2022, a decline of 85.3%[75]. - The group maintained cash and cash equivalents of RMB 2,143,000 as of December 31, 2023[67]. - The total accounts payable and other payables increased to RMB 1,398,604,000 in 2023 from RMB 1,171,323,000 in 2022[135]. Operational Developments - The company has drilled a total of 81 wells in the Kyrgyz project, with 76 currently in production[22]. - The company has utilized approximately USD 120 million of the USD 250 million financing for oilfield development, debt repayment, and general working capital[19]. - The company plans to use financing to repay debts and for capital expenditures in its energy business, with a cautious approach due to geopolitical uncertainties[21]. - The company aims to improve its overall financial condition through debt restructuring measures aligned with asset sales[18]. - The company is actively seeking additional financing sources to support its energy business and debt restructuring efforts[69]. - The company has pledged its coastal rights and leased land as collateral for loans owed to financial institutions, indicating a strategic financial management approach[118]. Market Outlook - The outlook for the oilfield development in Kyrgyzstan remains positive due to increasing demand for fossil fuels in developing countries, despite geopolitical and economic uncertainties[51]. - The management believes that China's economic recovery will support the growth of oil demand, with expectations for steady increases in demand[51]. - The company anticipates that capital expenditures in the energy business will not resume until at least 2026 due to current economic uncertainties and geopolitical factors affecting oil prices[125]. - The forecasted oil prices for 2024 are projected at $45.80 per barrel, a decrease from the previous year's forecast of $54.80 per barrel[126]. Accounting and Compliance - The audit committee has reviewed and approved the consolidated financial statements for the year ending December 31, 2023, ensuring compliance with applicable accounting standards[55]. - The adoption of new and revised standards, effective from January 1, 2023, is not expected to have a significant impact on the group's financial statements[94]. - The group has reviewed its accounting policy disclosures and believes they are consistent with the revised standards, eliminating non-significant policies[97]. - The revised International Accounting Standard 12 narrows the scope of initial recognition exemptions for deferred tax liabilities and assets, but is not expected to have a significant impact on the group's financial position[98]. - The group is assessing the impact of newly issued but not yet effective International Financial Reporting Standards on its operations, expecting no significant effects[103].

Financial Performance - For the six months ended June 30, 2023, the Group recorded revenue of RMB 49.1 million, a decrease of 3.5% compared to RMB 50.9 million for the same period in 2022[7]. - The Group generated a gross profit of RMB 20.3 million from oil exploration and storage, down from RMB 25.2 million in the comparative period, reflecting a decline of 19.4%[7]. - Loss attributable to equity holders of the Company was RMB 444.8 million, compared to RMB 381.0 million in the comparative period, indicating an increase in loss of 16.7%[8]. - The Group recorded a total comprehensive loss of RMB 396.8 million for the Period, compared to RMB 355.8 million in the Comparative Period, primarily due to currency exchange fluctuations[73][78]. - The Group recorded a net loss of RMB 441,580,000 for the six months ended June 30, 2023, compared to a net loss of RMB 374,145,000 in the same period of 2022[163]. Financial Position - As of June 30, 2023, total assets amounted to RMB 1,463,271,000, an increase from RMB 1,421,562,000 as of December 31, 2022, reflecting a growth of approximately 2.93%[132]. - Non-current liabilities increased to RMB 2,497,755,000 as of June 30, 2023, from RMB 2,353,292,000 at the end of 2022, marking a rise of approximately 6.14%[133]. - Current liabilities totaled RMB 7,872,609,000, up from RMB 7,578,581,000, reflecting an increase of about 3.87%[133]. - The Group's total current borrowings amounted to RMB 1,598.6 million, which were either overdue or due for repayment within 12 months[74][79]. - As of June 30, 2023, total borrowings increased to RMB 4,045.5 million from RMB 3,829.8 million as of December 31, 2022, with RMB120.1 million (approximately 3.0%) in RMB and RMB3,925.4 million (approximately 97.0%) in other currencies[81][85]. Cash Flow and Liquidity - Cash and cash equivalents decreased to RMB 5.4 million as of June 30, 2023, from RMB 14.6 million as of December 31, 2022, with RMB2.6 million (approximately 48.7%) in RMB and RMB2.8 million (approximately 51.3%) in other currencies[91][95]. - Net cash used in operating activities for the six months ended June 30, 2023, was RMB (3,735,000), a decrease from RMB 18,190,000 generated in the same period of 2022[148]. - The Group's cash flow projections indicate sufficient working capital to meet financial obligations for the next twelve months, although uncertainties remain regarding the achievement of these plans[188][189]. Debt and Financing - The Group has outstanding promissory notes totaling RMB 2,485,170,000, which require negotiation for further arrangements, including maturity extensions[190]. - The Group is negotiating with lenders regarding overdue borrowings of RMB1,997,029,000, including RMB48,584,000 and RMB349,803,000 that are overdue[181]. - The Group has drawn down USD120,006,000 (approximately RMB870,197,000) from a loan facility for oilfield operations, with a total facility of up to USD250,000,000 (approximately RMB1,812,825,000)[183]. Operational Highlights - The Kyrgyzstan Project recorded sales of 65,933 barrels of light crude oil, a 13.4% increase from 57,996 barrels in the comparative period[51]. - The Group's production increased by approximately 13.7% to 65,933 barrels, compared to 57,996 barrels in the Comparative Period[65][69]. - The Group aims to increase oil extraction efficiency and maintain sustainable oil storage business while seeking new synergistic business opportunities in response to the volatile global economic environment[97][98]. Corporate Governance - The Company has complied with the corporate governance code as per the listing rules[109]. - The Audit Committee has reviewed the accounting principles and practices adopted by the Company and discussed internal control and financial reporting matters[107]. Shareholder Information - As of June 30, 2023, substantial shareholders include China Minsheng Banking Corp. Ltd. with 7,006,000,000 shares (146.86% of issued share capital) and Ms. Yu Gelin with 1,420,120,000 shares (29.77%)[118]. - The interests of Mr. Zhang Zhi Rong and Fine Profit Enterprises Limited are recorded at 388,301,031 shares (8.14% of issued share capital)[120].

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，概不對因本公告全部或任何部份內容而產生或 因倚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) 截至二零二三年六月三十日止六個月之 中期業績公告 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」）截至二零二三年六月三十日止 ...

Financial Performance - The Group's revenue decreased to RMB102.8 million for the year, down from approximately RMB316.8 million for the previous year, representing a decline of about 67.6%[21]. - The loss attributable to equity holders of the Company was approximately RMB682.7 million, compared to a loss of RMB185.1 million for the previous year, indicating a significant increase in losses[22]. - The Group recorded a net foreign exchange loss of RMB332.4 million, primarily due to the appreciation of borrowings in USD and Hong Kong dollars, contrasting with a foreign exchange gain of RMB101.0 million in the previous year[23]. - The Group generated a gross profit of RMB45.8 million from its oil exploration, storage, and trading businesses, down from RMB53.1 million in the previous year[21]. - Total comprehensive loss for the Year was approximately RMB617.2 million, compared to RMB194.0 million in the Comparative Year, primarily due to currency exchange fluctuations[88]. - The Group recorded a net loss of RMB670.9 million for the Year, an increase from RMB177.2 million in the Comparative Year[89]. - Estimated interest income from interest-free loans was RMB27.0 million, down from RMB74.0 million in the comparable year[26]. - The Group's cost of sales decreased by approximately 78.3% to RMB57.1 million, aligning with the decrease in trading revenue[79]. Business Strategy and Outlook - The management remains optimistic about the prospects of the oil storage business, which primarily serves domestic customers, despite external economic challenges[14]. - The Group is focusing on business diversification to sustain long-term development and minimize overall business risk, particularly through synergies from Nantong Zhuosheng[10]. - The management anticipates a systematic restoration of the economy in the coming year, which is expected to positively impact the Group's primary business operations[15]. - The Group's strategy includes expanding its core businesses and reinforcing its market position in the oil storage industry[8]. - The management remains positive about the long-term business model despite current market challenges[66]. - The Group plans to postpone capital expenditures and implement cost-saving measures to maintain financial stability in a volatile market[66]. Debt and Financial Management - The Group has engaged in active discussions with lenders regarding debt restructuring to improve its liability structure and maintain a healthy financial position[8]. - The overall financial situation of the Group has improved over the years due to supportive lenders and debt restructuring measures[43]. - The Company plans to utilize a USD250 million interest-free facility from a shareholder to repay outstanding secured loans by the end of 2023[44]. - The Company is actively negotiating with remaining noteholders to extend the maturity dates of outstanding promissory notes[48]. - The Group has implemented plans to mitigate liquidity pressure, including restructuring operations and refinancing debts[91]. - The Group incurred a net foreign exchange loss of approximately RMB332.4 million for the year, compared to a gain of RMB101.0 million in the previous year, due to fluctuations in RMB against USD and HKD[103][108]. Operational Highlights - The Kyrgyzstan Project recorded sales of 124,790 barrels of light crude oil in 2022, a decrease from 134,210 barrels in 2021[64]. - Revenue from the Energy Business was approximately RMB52.7 million for the year, representing an increase of about 53.2% from RMB34.4 million in the previous year[64]. - The increase in revenue was primarily driven by rising oil prices, influenced by the Russia-Ukraine conflict and strained Sino-US relations[65]. - As of December 31, 2022, the Group had drilled a total of 81 wells across five oilfields, with 73 wells in production, up from 69 wells in 2021[59]. - The Group acquired approximately 50.46% of Nantong Zhuosheng Petrochemical Co., Ltd., which generated revenue of RMB46.8 million and a net profit of RMB5.1 million for the year[72]. - The Group's oil storage facility has a total volume of 242,000 cubic meters across 37 storage tanks[68]. Corporate Governance and Compliance - The auditors issued a disclaimer of opinion on the consolidated financial statements for the year ended December 31, 2022, primarily due to uncertainties regarding going concern[121][122]. - The board and management are committed to resolving the issues related to the disclaimer of opinion in the coming years[129]. - The company complied with the applicable requirements regarding related party transactions as per Chapter 14A of the Listing Rules[198]. - The financial assistance provided was exempt from reporting, announcement, and independent shareholders' approval requirements[197]. - The Group's management team includes experienced professionals with extensive backgrounds in finance and auditing[145][146][147][148]. Shareholder Information - The Directors did not recommend the payment of a final dividend for the year ended December 31, 2022, consistent with the previous year[160]. - As of December 31, 2022, the Company had no distributable reserves available for distribution to shareholders, consistent with the previous year[171][175]. - The Share Option Scheme allows for the issuance of up to 140,000,000 shares, representing 10% of the total issued share capital on the Listing Date, but there were no outstanding options as of December 31, 2022[180]. - The Company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2022[179][184].

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].