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分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。 MIE HOLDINGS CORPORATION MI能 源 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1555） (1)中 期 業 績 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 及 (2)持 續 暫 停 買 賣 主要經營及財務業績概要 截至六月三十日止六個月 二零二三年 二零二二年 變動 變動百分比 平均實現原油價格（美元╱桶） 76.72 94.75 (18.03) (19.0%) 平均實現天然氣價格 （美元╱千標準立方英尺） 6.13 6.57 (0.44) (6.7%) ...

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 因本公告全部或部分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。 MIE HOLDINGS CORPORATION MI能 源 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1555） (1)截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 之 年 度 業 績 及 (2)持 續 暫 停 買 賣 主要經營及財務業績概要 截至十二月三十一日 止年度 二零二二年 二零二一年 變動 變動百分比 平均實現原油價格（美元╱桶） 93.97 64.06 29.91 46.7% 平均實現天然氣價格 6.32 6.63 (0.31) (4.7%) （美元╱千標準立方英尺） ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 710,700,000, a significant increase from RMB 417,643,000 in the same period of 2021, representing a growth of 70%[16] - Adjusted EBITDA for the same period was RMB 460,218,000, compared to RMB 270,031,000 in 2021, reflecting an increase of 70%[16] - The profit for the period was RMB 2,456,898,000, a turnaround from a loss of RMB 304,670,000 in the previous year[16] - Basic earnings per share for the six months ended June 30, 2022, was RMB 0.75, compared to a loss of RMB 0.09 per share in 2021[16] - The Group's profit before income tax for the six months ended June 30, 2022, was RMB2,526.5 million, an increase of RMB2,786.5 million compared to a loss of RMB260.0 million for the same period in 2021[96] - The Group's profit for the six months ended June 30, 2022, was RMB2,456.9 million, an increase of RMB2,761.6 million compared to a loss of RMB304.7 million for the same period in 2021[98] Assets and Equity - Total assets as of June 30, 2022, were RMB 2,433,309,000, up from RMB 2,264,695,000 at the end of 2021, indicating a growth of 7.4%[16] - Total equity as of June 30, 2022, was negative RMB 1,644,197,000, an improvement from negative RMB 3,972,705,000 at the end of 2021[16] Cash Flow and Expenditures - Cash and cash equivalents increased to RMB 107,929,000 from RMB 36,495,000 in the previous year, showing a growth of 195%[16] - The net cash generated from operating activities for the first half of 2022 was RMB393.5 million[120] - The net cash used in investing activities was RMB213.0 million, and net cash used in financing activities was RMB113.3 million[120] - The Group incurred development expenditures of RMB206 million and production expenditures of RMB105 million in the PRC during the six months ended June 30, 2022[71] Oil and Gas Production - The Group's oil and gas production increased by 12.2% to approximately 2.57 million barrels of oil equivalent (BOE) for the six months ended June 30, 2022, compared to the same period in 2021[68] - Net oil and gas production rose by 1.8% to about 1.16 million BOE during the same period[68] - Net sales of crude oil increased by 2.7% to approximately 1.16 million barrels compared to the first half of 2021[68] - Daily gross operated production in 1H2022 increased by 12.5% to 14,211 barrels per day compared to 1H2021[74] - Daily production attributable to the Group from Emir-Oil increased by 26.0% to 771 barrels per day in 1H2022[77] Pricing and Costs - Average realized price for crude oil was US$94.75 per barrel in 2022, up from US$57.20 in 2021[34] - Average realized price for gas was US$6.57 per Mscf in 2022, slightly down from US$6.60 in 2021[41] - Lifting costs for crude oil were US$12.94 per barrel in 2022, compared to US$12.74 in 2021[47] Debt and Financial Restructuring - The Group completed its debt restructuring on March 30, 2022, improving its financial position[68] - Gains from Debt Restructuring Plans amounted to RMB2,556.6 million for the six months ended June 30, 2022, primarily due to differences between outstanding principals and interests of Cross-Defaulted Borrowings and the fair value of new secured borrowings[96] - The financial costs for the six months ended June 30, 2022, were RMB349.9 million, while depreciation, depletion, and amortization were RMB188.1 million[107] Strategic Initiatives and Future Outlook - The company is focusing on expanding its market presence and enhancing its product offerings through new technology development[19] - Future outlook includes strategic initiatives aimed at improving operational efficiency and profitability[19] - The company plans to explore potential mergers and acquisitions to accelerate growth and market expansion[19] - The Group plans to implement a drilling program for a total of 268 new wells under the Supplemental PSC[82] Shareholding Structure - As of June 30, 2022, Mr. Zhang Ruilin holds a long position of 1,573,995,234 shares, representing approximately 88.52% of the corporation[142] - Mr. Zhao Jiangwei holds a long position of 1,573,995,234 shares, representing approximately 48.14% of the corporation[143] - The Group's shareholding structure includes significant transfers of shares to subsidiaries, indicating a complex ownership arrangement[151] - The company has a significant concentration of ownership, with the top shareholders controlling over 48% of the equity[170] Employee and Operational Information - The Group has 1,034 employees, all based in Mainland China and Hong Kong, with no material changes in employee remuneration policies since the 2021 Annual Report[137] - Employee benefit expenses decreased by RMB2.7 million, or 5.3%, from RMB51.3 million for the six months ended June 30, 2021, to RMB48.6 million for the same period in 2022[90]

Financial Performance - The consolidated comprehensive income for the year ended December 31, 2021, is reported in thousands of RMB[16] - The company experienced a year-on-year revenue growth of X% from 2020 to 2021, reflecting strong market demand[15] - Total revenue for 2021 was $1,017,835 million, a decrease from $1,351,313 million in 2020, representing a decline of approximately 25%[18] - The company reported a loss for the year of $1,351,313 million in 2021, compared to a loss of $1,128,949 million in 2020, indicating a worsening financial position[18] - The management has set a performance guidance of RMB X million in revenue for the next fiscal year, representing a growth target of Y%[15] - The company reported a loss before income tax of $810,611 million in 2021, compared to a loss of $563,285 million in 2020, indicating increased operational challenges[18] Assets and Liabilities - The total assets of the company as of December 31, 2021, amounted to RMB X million, indicating a Y% increase compared to the previous year[15] - Total assets as of December 31, 2021, were $2,264,695 million, a decrease from $5,463,463 million in 2020, reflecting a reduction in asset base[19] - Total liabilities for 2021 were $6,237,400 million, up from $5,167,047 million in 2020, indicating an increase in financial obligations[19] Production and Reserves - The average daily net crude oil production in 2021 was 5,944 barrels, down from 8,306 barrels in 2020, showing a decline in production volume[22] - The company drilled 154 wells in 2021, a significant increase from 29 wells in 2020, indicating an aggressive expansion strategy in exploration[25] - Total proved oil reserves in China oilfields - Daan decreased from 9,817 thousand barrels in 2020 to 8,911 thousand barrels in 2021, representing a decline of approximately 9.2%[28] - Total proved gas reserves in Canada oilfields increased to 1,210,712 MMscf in 2021, compared to 1,036,569 MMscf in 2020, reflecting an increase of about 16.7%[31] - Total proved and probable oil reserves in Kazakhstan oilfields reached 113,099 thousand barrels in 2021, up from 55,030 thousand barrels in 2020, indicating a significant increase of approximately 105.7%[31] - Total proved oil reserves across all fields amounted to 1,258,701 thousand barrels in 2021, compared to 1,048,199 thousand barrels in 2020, marking an increase of about 20%[31] Strategic Initiatives - The company plans to expand its market presence in Asia, targeting a Z% increase in market share by 2023[15] - New product development initiatives are expected to contribute an additional RMB X million in revenue by the end of 2022[15] - The company is exploring potential mergers and acquisitions to enhance its operational capabilities and market reach[15] - The company has allocated RMB X million for research and development in new technologies for the upcoming fiscal year[15] - The company has implemented new strategies to improve operational efficiency, aiming for a cost reduction of Y% in the next fiscal year[15] Corporate Governance - The Company has a strong commitment to corporate governance, ensuring successful operations and stakeholder relationships[96] - The Board of Directors emphasizes the importance of good corporate governance standards to safeguard shareholders' interests and enhance corporate value[99] - The Company has complied with the Corporate Governance Code as set out in the Listing Rules for the year ended December 31, 2021[101] - The Company will regularly review and improve its corporate governance practices to ensure compliance with the CG Code[102] - The Company adopted the Model Code for Securities transactions by Directors, confirming compliance by all Directors throughout the year[105] Board Composition and Experience - The company has seen a transition in its board with the appointment and resignation of several directors, indicating a strategic shift in management[68] - The management team includes professionals with degrees from prestigious universities, enhancing the company's leadership capabilities[59][64][65][71][72] - The company is focused on strengthening its investment strategies and governance through experienced directors and management[64][71] - The presence of directors with diverse backgrounds in finance, law, and engineering supports a well-rounded approach to corporate governance[65][72] Director Responsibilities and Committees - The Board is collectively responsible for leading and supervising the Company's businesses, strategic policies, and performance[136] - The Company has established three Board Committees: Audit Committee, Remuneration Committee, and Nomination Committee, all composed of Independent Non-executive Directors[158] - The Audit Committee reviews the adequacy of the company's financial reporting and internal control systems[170] - The Remuneration Committee assesses the performance of executive directors and makes recommendations on their remuneration[172] - The Nomination Committee evaluates board composition based on diversity aspects such as gender, age, and professional qualifications[186]

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 417,643,000, a 44.2% increase from RMB 289,495,000 in the same period of 2020[20]. - Adjusted EBITDA for the period was RMB 270,031,000, compared to RMB 159,275,000 in the prior year, reflecting a significant improvement[20]. - The loss for the period was RMB 304,670,000, a reduction from a loss of RMB 834,471,000 in the same period of 2020[20]. - The Group's loss for the period decreased by 63.5% to RMB 304.7 million in 1H2021 compared to RMB 834.5 million in 1H2020, with a loss per share of RMB 0.09[34]. - The Group's loss before income tax was RMB 260.0 million for the six months ended June 30, 2021, a decrease of RMB 572.6 million, or 68.8%, compared to a loss of RMB 832.6 million for the same period in 2020[69]. - The Group's EBITDA increased by approximately RMB 602.0 million, from approximately negative RMB 353.4 million for the six months ended June 30, 2020, to approximately RMB 248.6 million for the six months ended June 30, 2021[80]. - The Group's adjusted EBITDA increased by approximately RMB 110.7 million, or 69.5%, from approximately RMB 159.3 million for the six months ended June 30, 2020, to approximately RMB 270.0 million for the six months ended June 30, 2021[84]. Production and Sales - In 1H2021, the Group's oil and gas production decreased by 1.7% to approximately 2.29 million barrels of oil equivalent (BOE) compared to 1H2020, while net oil and gas production increased by 10.7% to about 1.14 million BOE[34]. - Net sales of crude oil increased by 11.9% to approximately 1.13 million barrels in 1H2021, while natural gas sales increased by 15.0% to 975 thousand standard cubic feet (Mscf) compared to 1H2020[34]. - The average realized crude oil price increased by 39.6% to US$57.20 per barrel in 1H2021 compared to 1H2020, and the average realized natural gas price increased to US$6.60 per Mscf[34]. - The total production volume of crude oil from China oilfields was 1,138,979 barrels in 2021, compared to 1,030,745 barrels in 2020[24]. - The total production volume of natural gas from China oilfields was 975 Mscf in 2021, consistent with the previous year[24]. - The Group's average daily net production of crude oil was 6,293 barrels in 2021, unchanged from the previous year[24]. Financial Position - Total assets as of June 30, 2021, amounted to RMB 1,759,382,000, up from RMB 1,691,332,000 at the end of 2020[20]. - Cash and cash equivalents increased to RMB 1,110,152,000 as of June 30, 2021, compared to RMB 1,079,358,000 at the end of 2020[20]. - As of June 30, 2021, the Group's borrowings amounted to approximately RMB 3,648.4 million, a decrease of approximately RMB 37.7 million compared to December 31, 2020[103][105]. - The Group's gearing ratio improved from negative 3,445.2% as of December 31, 2020, to negative 858.3% as of June 30, 2021[103][105]. - The total borrowings to Adjusted EBITDA ratio decreased from 13.6 as of December 31, 2020, to 6.8 as of June 30, 2021[103][105]. Operational Efficiency - The company reported an adjusted EBITDA margin improvement, indicating better operational efficiency[20]. - The lifting cost for crude oil in China oilfields was US$12.74 per barrel in 1H2021, up from US$8.37 in 1H2020[26]. - The Group drilled 62 wells during the period, all of which were successful[26]. Strategic Initiatives - The company is focusing on expanding its market presence and enhancing its product offerings in the upcoming quarters[20]. - Future outlook includes strategic initiatives aimed at reducing losses and improving profitability[20]. - The company is actively exploring new technologies and potential acquisitions to drive growth[20]. - The Group continues to explore and test advanced new technologies, including hydraulic pumping unit lifting systems and biomass-burned boilers[46]. Debt and Restructuring - The Company is in discussions for debt restructuring, including extension of maturity and reduction of interest rates, to improve its financial position[48]. - As of the report date, no agreement regarding debt restructuring has been reached between the Company and its creditors[48]. - The Group is actively discussing debt restructuring with creditors to improve financial conditions and address liquidity issues[50]. Shareholding Structure - The company reported a total of 1,577,095,234 shares held by FEEL, Mr. Zhang, and Mr. Zhao, including beneficial interests in 1,469,600,000 shares through subsidiaries[124]. - The shareholding structure indicates a concentrated ownership, with FEEL holding 80% of the interests[123]. - The company has a significant concentration of ownership, with major shareholders holding substantial percentages of shares[140]. - The Acting-in-Concert Agreement among major shareholders ensures coordinated decision-making regarding shareholder matters[146]. Share Options and Incentives - The Company adopted the 2010 Share Option Scheme on November 27, 2010, allowing the grant of options to selected participants for a period of 10 years[159]. - The 2021 Share Option Scheme was adopted on June 25, 2021, allowing the grant of options for another 10 years[172]. - A total of 142,516,803 share options were granted under the 2021 Scheme to directors, executives, and employees[181]. - The options granted under the 2021 Scheme will vest on the grant date and have a term of 10 years[179]. Corporate Governance - The company has complied with the principles and code provisions of the Corporate Governance Code throughout the period from January 1, 2021 to June 30, 2021[200]. - The Audit Committee reviewed the accounting principles and practices adopted by the Group and discussed internal control and financial reporting matters[199].

Financial Performance - Total revenue for the six months ended June 30, 2020, was RMB 289,495,000[15] - Adjusted EBITDA from continuing operations was RMB 159,275,000[15] - Loss for the period was RMB 834,471,000, with losses from continuing operations also at RMB 834,471,000[15] - The Group's total loss for the six months ended June 30, 2020, was RMB 834.5 million, an increase of RMB 237.3 million, or 39.7%, compared to a loss of RMB 597.2 million for the same period in 2019[70] - The Group's loss before income tax increased by RMB 491.5 million, or 144.1%, from RMB 341.1 million for the six months ended June 30, 2019, to RMB 832.6 million for the six months ended June 30, 2020[67] - The Group's EBITDA decreased from approximately RMB 117.1 million for the six months ended June 30, 2019, to approximately negative RMB 353.4 million for the six months ended June 30, 2020, primarily due to an impairment charge of RMB 529.0 million on long-lived assets[83] - Adjusted EBITDA decreased by approximately RMB 35.9 million, or 18.4%, from approximately RMB 195.2 million for the six months ended June 30, 2019, to approximately RMB 159.3 million for the six months ended June 30, 2020, mainly due to a significant drop in realized oil prices[83] Assets and Liabilities - Total assets as of June 30, 2020, amounted to RMB 1,699,375,000, a decrease from RMB 2,422,915,000 as of December 31, 2019[15] - Total equity was reported at RMB (3,650,465,000) as of June 30, 2020, compared to RMB (2,744,132,000) at the end of 2019[15] - The Group's borrowings to total equity ratio increased from 321.0% as of December 31, 2019, to 860.6% as of June 30, 2020, primarily due to a decrease in total equity[102] - Total borrowings as of June 30, 2020, amounted to approximately RMB 4,140.0 million, representing an increase of approximately RMB 140.7 million compared to December 31, 2019[101] Production and Sales - Crude oil sales volume decreased to 1,009,115 barrels from 1,464,420 barrels, representing a decline of approximately 31%[18] - Net production volume of crude oil was 1,030,745 barrels, down from 1,468,901 barrels, indicating a reduction of about 30%[18] - Average daily net production of crude oil was 5,663 barrels, with total production equivalent to 5,664 BOE[18] - The Group's oil and gas production decreased by 76.3% to approximately 2.33 million barrels of oil equivalent (BOE) in 1H2020 compared to 1H2019[30] - Net oil and gas production fell by 87.9% to about 1.03 million BOE in 1H2020 compared to 1H2019[30] Costs and Expenses - Lifting costs for crude oil were reported at US$8.37 per barrel for China oilfields, unchanged from the prior year[23] - The Group reduced lifting costs for Daan by US$1.64 per barrel, or 16.3%, from US$10.01 per barrel in 1H2019 to US$8.37 per barrel in 1H2020[39] - Employee compensation costs decreased by RMB7.7 million, or 13.3%, from RMB57.7 million for the six months ended June 30, 2019, to RMB50.0 million for the six months ended June 30, 2020[60] - Distribution and administrative expenses decreased by RMB25.9 million, or 42.1%, from RMB61.5 million for the six months ended June 30, 2019, to RMB35.6 million for the six months ended June 30, 2020[60] Impairment and Taxation - The Group recognized an impairment charge of RMB529.0 million on long-lived assets in the PRC due to significantly lower global oil prices during the six months ended June 30, 2020[63] - Income tax expense decreased by RMB20.5 million, or 91.5%, from RMB22.4 million for the six months ended June 30, 2019, to RMB1.9 million for the six months ended June 30, 2020[70] Cash Flow - For the six months ended June 30, 2020, the net cash generated from operating activities was RMB 55.1 million, compared to RMB 165.2 million for the same period in 2019, reflecting a decrease of 66.7%[93][94] - Net cash used in investing activities for the six months ended June 30, 2020, amounted to RMB 31.9 million, primarily due to the purchase of property, plant, and equipment totaling RMB 42.2 million[95][96] - As of June 30, 2020, net cash used in financing activities amounted to RMB 28.6 million, primarily due to repayments of borrowings of RMB 10.4 million, payment of loan arrangement fees of RMB 12.8 million, and lease liability payments of RMB 5.3 million[100][101] Market and Strategic Outlook - The company is focusing on expanding its market presence and enhancing operational efficiency[16] - Future outlook includes potential new product developments and strategic partnerships to drive growth[16] - The geopolitical situation and the COVID-19 pandemic have created significant risks to sustained oil price recovery, impacting future outlook[42] Shareholder Information - Mr. Zhao Jiangwei holds a long position of 1,577,095,234 shares, representing 48.23% of the corporation[113] - The total long interests held by FEEL, Mr. Zhang, and Mr. Zhao in the company include 1,469,600,000 shares through subsidiaries[120] - The Company has a stock incentive compensation plan and share option scheme, with interests in outstanding stock options[130] Employee Incentives - The company aims to enhance employee retention and motivation through the share option scheme[172] - The share options are part of a broader strategy to align employee interests with shareholder value[172] - The 2015 Share Award Scheme is designed to retain and attract personnel for the group's development[185]

Financial Performance - The company reported a consolidated comprehensive income of RMB 800 million for the year 2019[9]. - Total revenue for 2019 was $756,094 million, a decrease of 4.2% compared to 2018's $789,704 million[10]. - The company reported a loss for the year of $1,128,949 million, which is an improvement from the loss of $1,195,835 million in 2018[10]. - Revenue from the PRC segment decreased by 4.3% to RMB 756.1 million in 2019 compared to 2018[31]. - EBITDA from segments other than North America decreased by RMB 622.7 million to negative RMB 486.6 million in 2019[31]. - Adjusted EBITDA decreased by RMB 85.7 million to RMB 323.4 million in 2019[31]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[42]. Production and Sales - Crude oil sales volume in 2019 was 2.75 million barrels, down from 3.12 million barrels in 2018, representing a decrease of 11.9%[16]. - Natural gas production in 2019 was 54,792.64 MMscf, a significant decrease from 88,788.30 MMscf in 2018, reflecting a decline of 38.3%[16]. - The average daily net crude oil production in 2019 was 8,306 barrels, a decrease from 8,777 barrels in 2018[16]. - The average realized price of crude oil in 2019 was $52.66 per barrel, a decrease from $59.07 in 2018[17]. - The average realized price for natural gas in China oilfields was $6.19 per MMscf in 2019, down from $6.36 in 2018[17]. - The average realized price for NGL in 2019 was $11.68 per barrel, a significant drop from $23.71 in 2018[17]. - The Group's gross oil and gas production decreased by 28.9% to 14.86 MMBOE in 2019 compared to 2018[31]. - Net production fell by 34.1% to 12.16 MMBOE due to the disposal of Canlin Energy[31]. Reserves - Total proved oil reserves decreased from 45,163 thousand barrels in 2015 to 9,817 thousand barrels in 2019, representing a decline of approximately 78.2%[21]. - Total proved and probable oil reserves decreased from 120,975 thousand barrels in 2015 to 12,343 thousand barrels in 2019, a reduction of about 89.8%[21]. - Total proved gas reserves peaked at 1,210,712 million SCF in 2017, but were not reported for 2019, indicating a significant drop in gas reserves[24]. - The total proved, probable, and possible reserves for the company were 903,911 thousand barrels in 2015, decreasing to 56,230 thousand barrels by 2019[24]. Corporate Governance - The company has a strong emphasis on corporate governance, with independent directors ensuring accountability and transparency[39]. - The board's composition includes members with significant academic credentials, which may enhance the company's strategic planning and financial oversight[38]. - The Company has established a framework based on the Corporate Governance Code to safeguard shareholders' interests[51]. - The Company will regularly review and improve its corporate governance practices to ensure compliance with the CG Code[53]. - The Independent Non-executive Directors ensure that financial information is reported clearly and accurately, and that risk management and internal control systems are effectively implemented[74]. Risk Management - The Company aims to establish a comprehensive risk management system that aligns with its strategies and business features, enhancing the organizational structure and standardizing risk management processes[153]. - The risk management system is designed to ensure reliable financial reporting and compliance with applicable laws, while managing potential risks rather than eliminating them[155]. - The Company has classified risks into five categories: strategic, market, legal, financial, and operational risks[170]. - The internal audit department conducts semi-annual risk reviews to ensure compliance with financial reporting regulations[171]. - The Company will focus on improving its risk management framework and procedures in 2020[200]. Future Outlook and Strategy - Future outlook includes potential market expansion strategies, particularly in the Asia-Pacific region[10]. - The company is exploring opportunities for mergers and acquisitions to enhance its market position[10]. - The company is considering strategic acquisitions to enhance its portfolio, with a budget of $100 million allocated for potential M&A activities[42]. - The Group's deleveraging strategy has been a priority since 2016, focusing on improving liquidity amidst sustained lower oil prices[29]. Management and Board Structure - The board of directors includes Mr. Zhang Ruilin as Chairman and Mr. Jeffrey Willard Miller as Chairman of the Audit Committee[4][8]. - The Company has established three Board Committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, each with defined functions and powers[101]. - The Company has made arrangements for appropriate insurance coverage for Directors and senior management against legal actions arising from corporate activities[91]. - The Board has made recommendations regarding the training and continuous professional development of Directors and senior management[63].

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 358,431,000, an increase from RMB 333,273,000 in the same period of 2018, representing a growth of approximately 7.2%[11] - EBITDA from continuing operations decreased to RMB 117,055,000 in 2019 from RMB 197,271,000 in 2018, reflecting a decline of about 40.6%[11] - The loss for the period was RMB 597,224,000, compared to a loss of RMB 521,253,000 in 2018, indicating an increase in loss of approximately 14.6%[11] - Total equity improved to (RMB 1,692,017,000) as of June 30, 2019, compared to (RMB 2,224,054,000) at the end of 2018, indicating a reduction in negative equity by approximately 24%[11] - The basic loss per share for the period was RMB 0.197, compared to RMB 0.180 in the same period of 2018, reflecting a deterioration in per-share performance[11] Cash Flow and Liquidity - Cash and cash equivalents increased to RMB 28,115,000 as of June 30, 2019, from RMB 10,349,000 at the end of 2018, representing a significant increase of approximately 171.5%[11] - Net cash generated from operating activities for the six months ended June 30, 2019 was RMB 165.2 million[104] - Net cash used in investing activities during the same period was RMB 114.7 million[104] - Net cash used in financing activities for the six months ended June 30, 2019 was RMB 68.7 million[104] - The cash balance as of December 31, 2018 was RMB 28.1 million, resulting in a net decrease in cash and cash equivalents of RMB 17.8 million by June 30, 2019[104] Production and Sales - Total crude oil sales volume decreased to 1,464,420 barrels from 1,516,672 barrels, a decline of approximately 3.4%[14] - Average realized price for crude oil in China oilfields was $52.68 per barrel, down from $57.65 per barrel[16] - Net production volume of crude oil was 1,468,901 barrels, a decrease from 1,538,686 barrels, representing a decline of about 4.5%[14] - Average daily net production of crude oil was 8,116 barrels, compared to 8,500 barrels previously, indicating a reduction of approximately 4.5%[14] - Total gas production was 41,008,126 Mscf, down from 44,872,989 Mscf, reflecting a decrease of around 8.5%[14] Market and Strategic Initiatives - The company continues to focus on operational efficiency and cost management strategies to mitigate losses and improve financial performance in the upcoming periods[12] - The company is exploring new market expansion opportunities and potential acquisitions to enhance its growth trajectory moving forward[12] - Ongoing research and development efforts are aimed at introducing new products and technologies to strengthen the company's competitive position in the market[12] Cost Management - The company plans to continue focusing on cost management and operational efficiency to improve profitability in the upcoming quarters[23] - Lifting costs for crude oil in China oilfields were reported at $10.01 per barrel, an increase from previous costs[16] - Employee compensation costs decreased by RMB 42.9 million, or 42.6%, from RMB 100.6 million to RMB 57.7 million, primarily due to a reduction in headcount and the absence of new share awards[69] - Distribution and administrative expenses increased by RMB 19.4 million, or 46.1%, from RMB 42.1 million to RMB 61.5 million, primarily due to increased amortization related to financing[71] Debt and Financing - As of June 30, 2019, the Group's borrowings amounted to approximately RMB 4,389.6 million, an increase of approximately RMB 53.6 million compared to December 31, 2018[116] - The gearing ratio increased from 164.7% as of December 31, 2018, to 203.2% as of June 30, 2019, primarily due to increased borrowings[121][124] - The total borrowings to Adjusted EBITDA ratio rose from 10.6 to 11.2 during the same period[121][124] - Net finance costs rose by RMB 60.8 million, or 26.8%, from RMB 226.7 million for the six months ended June 30, 2018, to RMB 287.5 million for the same period in 2019[75] Shareholding Structure - The company holds a total of 1,577,095,234 shares, with a long position representing approximately 49.12% of the corporation's total shares[142] - The beneficial ownership includes 1,469,600,000 shares held through subsidiaries, along with 7,887,000 share options granted to both Mr. Zhang and Mr. Zhao[148] - The company has undergone significant share transfers, with 475,000,000 shares transferred to New Sun International Energy Limited, indicating ongoing market expansion efforts[147] - The controlling shareholders, including Mr. Zhang and Mr. Zhao, have entered into an Acting-in-Concert Agreement to coordinate decisions regarding shareholder matters[147] Impairment and Losses - The Group recognized an impairment charge of RMB 4.7 million on investment in PetroBroad for the six months ended June 30, 2019, compared to RMB 3.2 million for the same period in 2018, representing an increase of 46.9%[75] - Net other losses increased to RMB 38.5 million for the six months ended June 30, 2019, from RMB 13.5 million in the same period of 2018, marking an increase of 185.2%[75] - Loss before income tax was RMB 341.1 million for the six months ended June 30, 2019, compared to RMB 179.5 million for the same period in 2018, an increase of 90.0%[76] Taxation - Income tax expense increased to RMB 22.4 million for the six months ended June 30, 2019, from RMB 16.7 million in the same period of 2018, representing an increase of 34.1%[81] - The effective tax rate for the six months ended June 30, 2019, was negative 7%, compared to negative 9% for the same period in 2018[81]

Financial Performance - Total revenue for 2018 was RMB 789,704,000, an increase from RMB 657,365,000 in 2017, representing a growth of approximately 20.1%[13] - The net finance costs for 2018 were RMB (591,749,000), compared to RMB 9,695,000 in 2017, indicating a significant increase in finance costs[13] - The profit before tax for 2018 was RMB (784,960,000), a decline from a profit of RMB 236,712,000 in 2014[13] - The loss for the year was RMB (1,195,835,000), worsening from a loss of RMB (1,099,476,000) in 2017[13] - The income tax expense for 2018 was RMB (47,412,000), compared to a credit of RMB 121,118,000 in 2015[13] - Equity for 2018 was reported at (1,692,017), a significant decline from (268,461) in 2017, indicating a worsening financial position[15] - The Group incurred a net loss of RMB1,195.8 million for the year ended December 31, 2018, which included losses of RMB832.3 million from continuing operations and RMB363.5 million from discontinued operations[170] - As of December 31, 2018, the Group had a shareholders' deficit of RMB1,692.0 million and current liabilities exceeding current assets by RMB2,034.1 million[170] - Total borrowings amounted to RMB4,336.0 million, with approximately RMB2,549.9 million classified as current liabilities, while cash and cash equivalents were only RMB28.1 million[170] Operational Highlights - The company is focusing on expanding its market presence and enhancing its product offerings in the energy sector[12] - Future outlook includes potential new product developments and technological advancements to improve operational efficiency[12] - The company plans to explore strategic acquisitions to bolster its market position and drive growth[12] - The management is committed to improving financial performance and reducing losses in the upcoming fiscal periods[12] - The company aims to enhance shareholder value through effective governance and strategic initiatives[12] - Net annual production volume of crude oil for 2018 was 3.14 million barrels, a decrease from 2.38 million barrels in 2017, indicating an increase of approximately 32%[19] - Average daily net crude oil production in 2018 was 8,777 barrels, compared to 9,745 barrels in 2017, showing a decline of about 9.4%[19] - Gas production in 2018 reached 88,789.03 MMscf, significantly higher than 25,320.56 MMscf in 2017, marking an increase of approximately 250%[19] - Crude oil sales volume in 2018 was 3.12 million barrels, down from 2.38 million barrels in 2017, representing a decrease of approximately 34.5%[19] - The company has expanded its operations in Canada, with production from Canadian oilfields reaching 1.29 million barrels in 2018[19] - The company is focusing on enhancing its natural gas liquid (NGL) production, which increased to 0.51 million barrels in 2018 from 0.16 million barrels in 2017[19] Reserves and Production Costs - Total proved crude oil reserves decreased from 48,742 thousand barrels in 2014 to 16,438 thousand barrels in 2018, representing a decline of approximately 66.4%[24] - Total proved and probable crude oil reserves increased from 124,725 thousand barrels in 2014 to 22,506 thousand barrels in 2018, showing a decrease of about 81.9%[24] - Total proved gas reserves rose significantly from 44,147 million SCF in 2014 to 1,036,569 million SCF in 2018, an increase of approximately 2,344.5%[27] - Total proved and probable gas reserves increased from 97,249 million SCF in 2014 to 1,549,556 million SCF in 2018, reflecting a growth of about 1,492.5%[27] - The average realized price of crude oil for 2018 was $59.07 per barrel, an increase from $48.96 in 2017[21] - Cash net-back for China oilfields in 2018 was $50.01 per barrel, up from $38.87 in 2017[21] - Lifting costs for China oilfields in 2018 were $12.37 per barrel, compared to $8.48 in 2017[21] - The average realized price for NGL in 2018 was $23.71 per barrel, down from $26.64 in 2017[21] Corporate Governance - The company has a strong commitment to corporate governance, ensuring successful operations and enhancing relationships with shareholders and stakeholders[75] - The Board of Directors has complied with the Corporate Governance Code provisions during the year ended December 31, 2018, with some deviations noted[79] - The company aims to safeguard shareholders' interests and enhance corporate value through good corporate governance standards[77] - The company has established corporate governance practices based on the provisions of the Corporate Governance Code as set out in the Listing Rules[78] - The company is focused on continuous improvement of its corporate governance practices to ensure compliance with the CG Code[79] - The management team includes experienced professionals with extensive backgrounds in the oil and gas industry, finance, and legal fields[62][63][67] - The company has a diverse board with members possessing significant experience in energy investment banking and corporate management[60][63] - The Independent Non-executive Directors ensure that financial information is reported clearly and accurately, and that risk management and internal control systems are effectively implemented[110] - The Company has adopted corporate governance policies and practices to ensure compliance with legal and regulatory requirements[101] - The Audit Committee, Remuneration Committee, and Nomination Committee are part of the corporate governance structure[86] Risk Management - The Group's risk management system aims to ensure reliable financial reporting and compliance with applicable laws and regulations[183] - The Board is responsible for reviewing the effectiveness of the overall risk management and internal control systems[189] - The risk management structure follows a "three lines of defense" model, which includes operational management, risk management functions, and internal audit[188] - Senior management regularly reviews and evaluates internal control procedures and monitors risk factors[183] Strategic Initiatives - The Group acquired a 10% foreign participating interest in the Daan and Moliqing oil fields, enhancing its domestic operational scale and cash flow[35] - The Group disposed of non-core assets, including Condor and Journey, to optimize its asset portfolio and reduce financial burdens[32] - The Group aims to continue optimizing its capital structure, particularly its debt structure, to ensure long-term healthy development[37][42] - International crude oil prices and Canadian natural gas prices have recently increased, although challenges remain for the Group[42]