Group 1 - The core viewpoint of the news highlights MI Energy's significant stock performance, with a recent increase of 35.14% and a cumulative rise of 68.18% over the past month, outperforming the Hang Seng Index by 20.34% [1] - MI Energy reported total revenue of 898 million yuan for the year ending December 31, 2024, a decrease of 13.36% year-on-year, and a net profit attributable to shareholders of -329 million yuan, reflecting a decline of 108.82% [1] - The company's gross profit margin stands at 76.21%, while its debt-to-asset ratio is notably high at 264.22% [1] Group 2 - MI Energy Holdings Limited is one of China's major independent upstream oil companies, focusing on the exploration and development of oil and gas [2] - The company was listed on the Hong Kong Stock Exchange in December 2010, with the stock code 1555.HK, and is headquartered in Hong Kong [2] - MI Energy primarily engages in the exploration, development, production, and sale of oil, gas, and other petroleum products, with full participation rights in the Da'an oilfield in Jilin Province, China [2]

Company Overview - MI Energy Holdings Limited (MIE) is one of China's major independent upstream oil companies, focusing on the exploration and development of oil and gas [3] - The company was listed on the Hong Kong Stock Exchange in December 2010, with stock code 1555.HK, and is headquartered in Hong Kong [3] - MIE primarily engages in the exploration, development, production, and sale of oil, gas, and other petroleum products [3] Financial Performance - As of December 31, 2024, MI Energy reported total revenue of 898 million yuan, a year-on-year decrease of 13.36% [2] - The company recorded a net loss attributable to shareholders of 329 million yuan, representing a year-on-year decrease of 108.82% [2] - The gross profit margin stood at 76.21%, while the debt-to-asset ratio was 264.22% [2] Stock Performance - As of June 16, the stock price of MI Energy was 0.032 HKD per share, reflecting a 14.29% increase with a trading volume of 106 million shares and a turnover of 3.665 million HKD [1] - Over the past month, MI Energy has seen a cumulative increase of 33.33%, and a year-to-date increase of 21.74%, outperforming the Hang Seng Index's increase of 19.11% [2] Industry Valuation - The average price-to-earnings (P/E) ratio for the oil and gas industry (TTM) is -3.17 times, with a median of 4.1 times [3] - MI Energy's P/E ratio is -0.27 times, ranking 45th in the industry [3] - Comparatively, other companies in the sector have P/E ratios such as Zhujiang Steel Pipe at 0.83 times, CGII Holdings at 4.1 times, and others ranging from 5.56 to 5.76 times [3]

Core Viewpoint - MI Energy reported a significant decline in revenue and increased losses for the fiscal year 2024, indicating ongoing financial challenges in its operations [2]. Financial Performance - The company achieved total revenue of 930 million yuan, a year-on-year decrease of 10.34% [2]. - The net profit attributable to shareholders was a loss of 329 million yuan, compared to a loss of 158 million yuan in the previous year [2]. - The net cash flow from operating activities was 494 million yuan, down 4.13% year-on-year [2]. - Basic earnings per share were reported at -0.1 yuan [2]. Valuation Metrics - As of April 21, the price-to-book ratio (TTM) for MI Energy was approximately -0.03 times, and the price-to-sales ratio (TTM) was about 0.07 times [2]. Revenue Composition - The revenue composition for 2024 included minimal contributions from service provision, with the majority stemming from the sale of crude oil and natural gas [12][13]. Asset and Liability Changes - As of the end of 2024, fixed assets decreased by 28.9%, while cash and cash equivalents increased by 13.51% [26]. - Long-term borrowings increased by 9.25%, while short-term borrowings decreased by 37.1% [29]. - The company's current ratio was reported at 0.49, and the quick ratio was 0.43 [33].

Financial Performance - Total revenue for 2023 was RMB 1,035,983, a decrease of 27.7% compared to RMB 1,431,294 in 2022[18]. - The net finance costs for 2023 were RMB (383,500), down from RMB (596,488) in 2022, indicating improved financial management[18]. - The company reported a loss before tax of RMB (73,708) for 2023, a significant recovery from a profit of RMB 2,506,503 in 2022[18]. - The loss for the year was RMB (157,530) in 2023, compared to a profit of RMB 2,378,790 in 2022, reflecting challenging market conditions[18]. - The company expects revenue for 2024 to be approximately RMB 897,537, indicating a continued decline in performance[18]. - Total assets decreased from $2,432,164 million in 2022 to $1,726,326 million in 2023, a decline of approximately 29%[20]. - Total liabilities decreased from $4,152,388 million in 2022 to $3,628,825 million in 2023, a decline of approximately 13%[20]. - Current liabilities significantly reduced from $1,230,233 million in 2022 to $631,220 million in 2023, a decrease of about 49%[20]. Oil Production and Sales - Crude oil sales volume in 2023 was 1.86 million barrels, down from 2.27 million barrels in 2022, representing a decrease of about 18%[21]. - Average realized price for crude oil in 2023 was $78.89 per barrel, compared to $93.97 per barrel in 2022, a decrease of approximately 16%[21]. - Total proved crude oil reserves decreased from 6,297 thousand barrels in 2022 to 5,033 thousand barrels in 2023, a decline of about 20%[23]. - Lifting costs for crude oil increased from $13.16 per barrel in 2022 to $13.28 per barrel in 2023, an increase of approximately 1%[21]. - Cash net-back for crude oil in 2023 was $60.70 per barrel, down from $70.40 per barrel in 2022, a decrease of about 14%[21]. - The average daily net crude oil production in 2023 was 5,259 barrels, down from 6,279 barrels in 2022, a decrease of approximately 16%[21]. - Total proved and probable crude oil reserves decreased from 11,005 thousand barrels in 2022 to 9,024 thousand barrels in 2023, a decline of about 18%[23]. Strategic Initiatives - The company is focusing on expanding its market presence and developing new technologies to drive future growth[18]. - The management is exploring potential mergers and acquisitions to enhance competitive positioning in the market[18]. - The company plans to invest in new product development to meet evolving customer demands and market trends[18]. - The company is committed to improving oil and gas field exploration efficiency and reducing production costs through process optimization and cost management[77]. Leadership and Governance - The board of directors has undergone changes, with new appointments aimed at strengthening governance and strategic direction[5]. - The company has undergone significant leadership changes, with several directors transitioning between executive and non-executive roles in recent years[43][44][46]. - The management team is composed of individuals with diverse backgrounds in finance, corporate governance, and operational oversight, enhancing the company's strategic capabilities[40][41][43]. - The company is positioned to leverage its experienced leadership to navigate market challenges and pursue growth opportunities in the oil and gas sector[39][43]. Corporate Governance - The company has complied with the applicable Code Provisions of the Corporate Governance Code during the year ended December 31, 2024[70]. - The company will regularly review and improve its corporate governance practices to ensure compliance with the CG Code[71]. - The board has made recommendations regarding the training and continuous professional development of Directors and senior management[76]. - The company emphasizes the principle of "innovative development and value creation" to adapt to changing market conditions[80]. - The Company has established corporate governance practices based on the Code Provisions set out in the Listing Rules[70]. Risk Management - The Group's major market risks include oil price risk, which significantly impacts revenue and profit due to fluctuations in international oil prices, and currency risk, as most sales in China are in US dollars while expenses are incurred in RMB[149]. - The internal audit function assesses the effectiveness of the Group's risk management and internal control systems, reporting directly to the Chief Executive Officer and having unrestricted access to company records[143]. - The Board is responsible for evaluating risks associated with achieving the Group's strategic objectives and maintaining effective risk management systems[141]. Shareholder Communication - Effective communication with shareholders is deemed essential for strengthening investor relationships and enhancing understanding of the Company's performance and strategy[164]. - The Company aims to maintain transparency and timely disclosure of information to assist shareholders in making informed investment decisions[168]. - The Company allows extraordinary general meetings to be convened upon written requisition by shareholders holding at least one-tenth of the paid-up capital with voting rights[155]. - All resolutions presented at general meetings will be voted on according to the listing rules, and results will be published on the Company's and the Stock Exchange's websites[156].

Company Overview - MI Energy Holdings Limited (MIE) is one of China's major independent upstream oil companies, focusing on the exploration and development of oil and natural gas [2] - The company was listed on the Hong Kong Stock Exchange in December 2010, with the stock code 1555.HK [2] - MIE is headquartered in Hong Kong and primarily engages in the exploration, development, production, and sale of oil, natural gas, and other petroleum products [2] - MIE holds a 100% participating interest and responsibility under the product sharing contract for the Da'an oilfield, which is located in Jilin Province, China, and is MIE's highest-producing oilfield in the country [2] Financial Performance - As of December 31, 2024, MI Energy reported total operating revenue of 898 million yuan, a year-on-year decrease of 13.36% [1] - The company recorded a net profit attributable to shareholders of -329 million yuan, representing a year-on-year decrease of 108.82% [1] - The gross profit margin stood at 65.8%, while the debt-to-asset ratio was 264.22% [1] Market Performance - As of March 31, the Hang Seng Index fell by 1.31%, closing at 23,119.58 points [1] - MI Energy's stock closed at 0.026 HKD per share, with an increase of 8.33% and a trading volume of 4.256 million shares, resulting in a turnover of 102,200 HKD [1] - Over the past month, MI Energy has experienced a cumulative decline of 4%, while year-to-date, it has seen a cumulative increase of 4.35%, underperforming the Hang Seng Index's increase of 16.78% [1] Industry Valuation - The average price-to-earnings (P/E) ratio for the oil and gas industry (TTM) is 34.14 times, with a median of 5.08 times [1] - MI Energy's P/E ratio is -0.23 times, ranking 47th in the industry [1] - Comparatively, other companies in the sector have the following P/E ratios: Zhujiang Steel Pipe (0.88), Hailong Holdings (2.72), CGII HLDGS (4.1), CITIC Resources (5.08), and Jiaoyun Gas (5.09) [1]

Company Overview - MI Energy Holdings Limited (MIE) is one of China's major independent upstream oil companies, focusing on the exploration and development of oil and gas [3] - The company was listed on the Hong Kong Stock Exchange in December 2010, with stock code 1555.HK, and is headquartered in Hong Kong [3] - MIE is primarily engaged in the exploration, development, production, and sale of oil, gas, and other petroleum products [3] Financial Performance - As of December 31, 2024, MI Energy reported total revenue of 898 million RMB, a year-on-year decrease of 13.36% [2] - The net profit attributable to shareholders was -329 million RMB, representing a year-on-year decline of 108.82% [2][4] - The company's gross profit margin stood at 65.8%, while the debt-to-asset ratio was 264.22% [2] Market Position - MI Energy's price-to-earnings (P/E) ratio is -0.21, ranking 47th in the industry, significantly lower than the average P/E ratio of 35.09 for the oil and gas sector [2] - Other companies in the industry have P/E ratios such as Zhujiang Steel Pipe at 1.1, Yanchang Petroleum International at 1.91, and others ranging up to 4.23 [2] Recent Stock Performance - Over the past month, MI Energy has experienced a cumulative decline of 12%, and a year-to-date decline of 4.35%, underperforming the Hang Seng Index, which has risen by 17.07% [2] - As of March 27, the stock closed at 0.024 HKD per share, with a daily increase of 9.09% and a trading volume of 2.448 million shares [1]

Financial Performance - Total revenue for the year was RMB 897,537,000, down 13.4% from RMB 1,035,983,000 in 2023[2] - The company reported a net loss of RMB 328,960,000, an increase of 108.8% from a loss of RMB 157,530,000 in 2023[2] - Basic loss per share was RMB (0.10), doubling from RMB (0.05) in the previous year[2] - The total comprehensive loss for the year was CNY 367,326,000, compared to CNY 182,275,000 for the previous year, reflecting an increase of approximately 101.5%[8] - The group reported a loss attributable to owners of the company of RMB 328,960,000 for the year ended December 31, 2024, compared to a loss of RMB 157,530,000 in 2023[35] - The net loss for FY2024 was RMB 329.0 million, compared to a net loss of RMB 157.5 million in FY2023[71] - The group recorded a loss before tax of RMB 270.8 million in FY2024, compared to a loss of RMB 73.7 million in FY2023, an increase of RMB 197.1 million[69] Production and Operations - Total crude oil production decreased by 36.2% to 3,344,308 barrels from 5,241,517 barrels in the previous year[2] - Net crude oil production fell by 17.6% to 1,582,079 barrels compared to 1,919,409 barrels in 2023[2] - Daan oilfield's total crude oil production decreased by 10.5% to approximately 3.34 million barrels in 2024 compared to the same period in 2023[50] - Net production from the Daan oilfield fell by 13.7% to approximately 1.58 million barrels in 2024 compared to the same period in 2023[50] - Average daily crude oil production is forecasted to decline by 10.6% from 10,224 barrels per day in 2023 to 9,137 barrels per day in 2024[55] - Average daily net crude oil production is expected to decrease by 14.0% from 5,027 barrels per day in 2023 to 4,323 barrels per day in 2024[55] Financial Position - Total assets decreased from 1,726,326 thousand RMB in 2023 to 1,382,193 thousand RMB in 2024, representing a decline of approximately 20%[10] - Non-current liabilities increased from 2,997,605 thousand RMB in 2023 to 3,216,406 thousand RMB in 2024, reflecting an increase of about 7.3%[11] - Current liabilities decreased from 631,220 thousand RMB in 2023 to 435,612 thousand RMB in 2024, indicating a reduction of approximately 30.9%[11] - The company's total equity decreased from 1,095,106 thousand RMB in 2023 to 946,581 thousand RMB in 2024, indicating a decrease of approximately 13.6%[11] - As of December 31, 2024, the company's current liabilities exceeded current assets by RMB 222.2 million[22] - The total borrowings of the company amounted to RMB 2,920.1 million, with only RMB 71.9 million in cash and cash equivalents[22] Costs and Expenses - Operating profit decreased by 60.0% to RMB 123,954,000 from RMB 309,792,000 in the previous year[2] - The company incurred a financial expense of CNY 394,785,000 for the year ended December 31, 2024, compared to CNY 383,667,000 for the year ended December 31, 2023, showing an increase of about 2.9%[8] - The direct oil extraction cost is projected to increase by 24.7% from $13.28 per barrel in 2023 to $16.56 per barrel in 2024[53] - Adjusted EBITDA per barrel is expected to decrease by 4.2% from $57.83 in 2023 to $55.41 in 2024, primarily due to a decline in crude oil sales volume[53] - The group recognized an impairment loss of RMB 91.2 million for oil and gas assets and RMB 2.2 million for mineral rights in FY2024, compared to no impairment losses in FY2023[66] Strategic Developments - The company completed drilling 268 new wells ahead of schedule as per the supplementary agreement with China National Petroleum Corporation[3] - The commercial production period for the Daan oilfield has been extended to February 29, 2028[3] - The company plans to seek alternative financing within the scope allowed by new financing documents to meet existing financial obligations and future operational and capital expenditures[23] - The group plans to maintain production to generate sufficient operating cash flow and improve operational efficiency to enhance liquidity[25] - The company is focusing on new product development and market expansion strategies to improve future performance[79] Governance and Compliance - The financial statements have been prepared in accordance with International Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance[19] - The company has adhered to the corporate governance principles and rules as per the listing rules throughout the fiscal year[102] - The annual performance announcement is available on the company's website and other relevant stock exchange websites[105] - The company's annual general meeting is scheduled for June 13, 2025, in Hong Kong[106]

Financial Performance - Revenue for the six-month period ended June 30, 2024, was RMB 461,288, a decrease of 9.9% compared to RMB 511,829 for the same period in 2023[8]. - EBITDA for the same period was RMB 286,652, down 19.0% from RMB 354,046 in the prior year[8]. - Adjusted EBITDA loss for the period was RMB 281,215, compared to a loss of RMB 340,270 in the previous year[8]. - Basic loss per share for the six months ended June 30, 2024, was RMB (0.03), compared to RMB (0.02) for the same period in 2023[8]. - The net loss for the period was RMB 110.1 million, an increase of RMB 49.6 million compared to a net loss of RMB 60.5 million for the six months ended June 30, 2023[17]. - The Group's loss for the period increased from RMB 60.5 million to RMB 110.1 million, an increase of RMB 49.6 million[45]. - The Group's EBITDA decreased by approximately RMB 67.3 million, from approximately RMB 354.0 million for the six months ended June 30, 2023, to approximately RMB 286.7 million for the six months ended June 30, 2024[53]. - The Group's adjusted EBITDA for the six months ended June 30, 2024, was RMB 281.2 million, compared to RMB 340.3 million for the same period in 2023[54]. Production and Sales - Total gross production of crude oil decreased by 37.2% from 2.71 million barrels in the first half of 2023 to 1.70 million barrels in the first half of 2024[14]. - Total net production of crude oil allocated to the Group decreased by 19.5% from 0.99 million barrels in the first half of 2023 to 0.80 million barrels in the first half of 2024[14]. - Average daily net production of crude oil allocated to the Group decreased by 19.9% to 4,381 barrels per day in the first half of 2024 compared to the same period in 2023[14]. - Revenue from oil product sales decreased by 9.9% to RMB 461.3 million for the six months ended June 30, 2024, compared to RMB 511.2 million for the same period in 2023[17]. - The net crude oil sales volume decreased by 16.8% to 0.80 million barrels for the six months ended June 30, 2024, from 0.96 million barrels for the same period in 2023[24]. - The average realized price of crude oil increased to US$81.31 per barrel in the first half of 2024 from US$76.72 per barrel in the first half of 2023[10]. - The lifting costs increased to US$17.21 per barrel in the first half of 2024 from US$13.65 per barrel in the first half of 2023[10]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 1,617,133, a decrease from RMB 1,726,326 as of December 31, 2023[8]. - Total equity as of June 30, 2024, was RMB (2,027,454), down from RMB (1,902,499) at the end of 2023[8]. - Total liabilities increased to RMB 3,644,587 as of June 30, 2024, compared to RMB 3,628,825 as of December 31, 2023, reflecting a rise of 0.4%[116]. - The Group's total borrowings were approximately RMB 2,839.7 million, an increase of RMB 77.0 million compared to December 31, 2023[65]. - The gearing ratio increased from 338.6% as of December 31, 2023, to 375.4% as of June 30, 2024, indicating a higher level of financial leverage[65]. - The debt-to-equity ratio increased from 338.6% on December 31, 2023, to 375.4% on June 30, 2024[67]. Cash Flow and Financing - For the six months ended June 30, 2024, the net cash generated from operating activities was RMB 255.8 million, compared to RMB 243.1 million for the same period in 2023, reflecting an increase of approximately 5.6%[58][61]. - Net cash used in investing activities for the six months ended June 30, 2024, amounted to RMB 133.3 million, a decrease from RMB 189.7 million in the same period of 2023, indicating a reduction of approximately 29.7%[63]. - Net cash used in financing activities for the six months ended June 30, 2024, was RMB 109.6 million, slightly lower than RMB 120.3 million for the same period in 2023, showing a decrease of approximately 8.8%[64]. - The company incurred net cash used in investing activities of RMB 133,282,000, a decrease from RMB 189,651,000 in the same period last year[127]. Strategic Initiatives and Outlook - The company is focusing on expanding its market presence and enhancing product offerings in response to current market challenges[8]. - Future outlook includes strategic initiatives aimed at improving operational efficiency and financial performance[8]. - The Group plans to continue drilling new wells to maintain production and generate sufficient operating cash flows[154]. - The outlook for the second half of 2024 indicates that crude oil prices are expected to continue fluctuating due to geopolitical risks and OPEC+ production cuts[22]. Governance and Compliance - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed internal control and financial reporting matters[105]. - The company has complied with the Corporate Governance Code throughout the period from January 1, 2024, to June 30, 2024[109]. - The Board of Directors has maintained compliance with the Listing Rules regarding independent non-executive Directors[111]. - The company has adopted the Model Code for Securities Transactions and confirmed compliance by all Directors during the reporting period[110]. Shareholder Information - FEEL holds 1,566,108,234 shares in the Company, including beneficial interests in 1,469,600,000 shares held through subsidiaries[84]. - As of June 30, 2024, Ms. Zhao Jiangbo holds a long position of 1,566,108,234 shares, representing approximately 46.24% of the company's interests[89]. - The company’s major shareholders include controlled corporations with significant stakes, indicating concentrated ownership[89]. - The total number of shares held by major shareholders reflects a high level of interest in the company, with percentages exceeding 40%[91]. Financial Risks and Management - The Group is exposed to various financial risks, including market risk (foreign exchange, interest rate, and crude oil price risks), credit risk, and liquidity risk[167]. - The financial information does not include all required disclosures for financial risk management and should be read in conjunction with the annual financial statements as of December 31, 2023[167]. - The Group's financial risk management policies have not changed since the year-end[169].

Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 461,288 thousand, a decrease of 9.9% from RMB 511,829 thousand[2] - Operating profit dropped by 33.6% to RMB 113,611 thousand from RMB 171,003 thousand[2] - The company reported a net loss of RMB 110,090 thousand, an increase of 81.9% compared to a loss of RMB 60,508 thousand[2] - Basic loss per share increased to RMB (0.03), up 50.0% from RMB (0.02)[3] - EBITDA decreased by 19.0% to RMB 286,652 thousand from RMB 354,046 thousand[2] - The group reported a loss of RMB 110.1 million for the six months ending June 30, 2024, compared to a loss of RMB 60.5 million for the same period in 2023, an increase of RMB 49.6 million[44] - EBITDA decreased by approximately RMB 67.3 million, from RMB 354.0 million for the six months ending June 30, 2023, to RMB 286.7 million for the same period in 2024[46] - The group's revenue for the six months ending June 30, 2024, decreased by approximately RMB 50.5 million compared to the same period in 2023[47] Production and Sales - Total crude oil production decreased by 1,007,297 barrels, a decline of 37.2% from 2,705,390 barrels[1] - Net crude oil production fell by 193,073 barrels, down 19.5% to 797,321 barrels[1] - The company's total crude oil production decreased by 37.2% to 1.70 million barrels compared to the same period in 2023, primarily due to the sale of a 10% foreign contractor interest in the Moriching product sharing contract[32] - Net crude oil sales volume decreased by 160,000 barrels or 16.8%, from 960,000 barrels for the six months ended June 30, 2023, to 800,000 barrels for the six months ended June 30, 2024[35] - Revenue from oil product sales decreased by RMB 51.2 million or 9.8%, from RMB 511.2 million for the six months ended June 30, 2023, to RMB 461.2 million for the six months ended June 30, 2024[35] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 1,617,133 thousand, down from RMB 1,726,326 thousand[4] - As of June 30, 2024, total liabilities amounted to RMB 3,644,587 thousand, a slight increase from RMB 3,628,825 thousand as of December 31, 2023, representing a 0.43% increase[5] - Non-current liabilities totaled RMB 3,102,884 thousand, up from RMB 2,997,605 thousand, indicating a 3.6% increase[5] - Current liabilities decreased to RMB 541,703 thousand from RMB 631,220 thousand, reflecting a 14.2% reduction[5] - The company's net current liabilities stood at RMB 310,634 thousand, down from RMB 421,786 thousand, showing a 26.4% decrease[5] - The total assets minus current liabilities were RMB 1,075,430 thousand, slightly down from RMB 1,095,106 thousand, indicating a 1.7% decline[5] Tax and Expenses - The special oil income tax for the six months ended June 30, 2024, was RMB 23.469 million, an increase from RMB 17.961 million in the same period of 2023[20] - Tax expenses (excluding income tax) increased by RMB 5.2 million or 26.4%, from RMB 19.7 million for the six months ended June 30, 2023, to RMB 24.9 million for the six months ended June 30, 2024[37] - Income tax expenses decreased by RMB 9.3 million or 23.7%, from RMB 39.2 million for the six months ended June 30, 2023, to RMB 29.9 million for the six months ended June 30, 2024[43] Cash Flow and Financing - As of June 30, 2024, the net cash generated from operating activities was RMB 255.8 million, while cash used in investing activities was RMB 133.3 million, and cash used in financing activities was RMB 109.6 million[49] - The total borrowings of the group amounted to RMB 2.8397 billion, an increase of approximately RMB 77 million compared to December 31, 2023[50] - The debt-to-equity ratio increased from 338.6% as of December 31, 2023, to 375.4% as of June 30, 2024[50] - The group has pledged assets amounting to RMB 1.6145 billion as collateral for its borrowings[53] Corporate Governance and Compliance - The company extended the product-sharing contract with China National Petroleum Corporation until February 29, 2028, providing a longer operational horizon[7] - The financial data is prepared in accordance with International Financial Reporting Standards, ensuring compliance and transparency[8] - The company’s financial information has not been audited, which may affect the reliability of the reported figures[7] - The company anticipates that the new and revised accounting standards will not have a significant impact on the financial data presented[9] Market Risks - The group is exposed to market risks primarily related to fluctuations in oil prices and exchange rates, which can significantly impact revenue and profitability[51][52]

Financial Performance - Total revenue for 2023 was RMB 1,035,983, a decrease of 27.6% compared to RMB 1,431,294 in 2022[14] - The company reported a loss for the year of RMB 157,530, compared to a profit of RMB 2,378,790 in 2022[14] - Current assets decreased to RMB 209,434 in 2023 from RMB 296,365 in 2022, a decline of 29.3%[16] - Total assets decreased to RMB 1,726,326 in 2023 from RMB 2,432,164 in 2022, a reduction of 29.0%[16] - Total liabilities decreased to RMB 3,628,825 in 2023 from RMB 4,152,388 in 2022, a decline of 12.6%[16] - Equity decreased to RMB (1,902,499) in 2023 from RMB (1,720,224) in 2022, indicating a further decline in shareholder equity[16] - Revenue from the PRC segment decreased by 27.6% to RMB 1,036.0 million in 2023 compared to 2022[29] - EBITDA from the PRC segment decreased by RMB 623.7 million to RMB 731.6 million in 2023 from RMB 1,355.3 million in 2022[29] Production and Sales - Crude oil sales volume decreased to 1.86 million barrels in 2023 from 2.27 million barrels in 2022, representing a decline of approximately 18.1%[17] - Average realized price for crude oil was $78.89 per barrel in 2023, down from $93.97 per barrel in 2022, a decrease of about 15.9%[19] - Average daily net crude oil production was 5,259 barrels in 2023, down from 6,279 barrels in 2022, reflecting a decrease of about 16.2%[19] - Total proved crude oil reserves decreased to 5,033 thousand barrels in 2023 from 6,297 thousand barrels in 2022, a decline of approximately 20.1%[22] - Total proved and probable reserves decreased to 9,024 thousand barrels in 2023 from 11,005 thousand barrels in 2022, a decline of about 18.0%[22] - The total gross production of oil and gas decreased by 2.6% to approximately 5.27 million barrels of oil equivalent (MMBOE) in 2023 compared to 2022[29] - The net production of oil and gas decreased by 16.2% to 1.92 MMBOE in 2023 compared to 2022[29] - Gas production increased to 6.75 MMscf in 2023 from 3.08 MMscf in 2022, representing a growth of approximately 119.5%[17] Cost and Efficiency - Cash net-back for China oilfields was $60.70 per barrel in 2023, compared to $70.40 per barrel in 2022, a decrease of approximately 13.7%[19] - Lifting costs for crude oil increased slightly to $13.28 per barrel in 2023 from $13.16 per barrel in 2022, an increase of approximately 0.9%[19] - The lifting cost of the Daan project was US$13.28 per barrel in 2023, with an overall production decline rate maintained at 9.3%[28] - The company is committed to improving oil and gas field exploration efficiency and reducing production costs through process optimization and cost management[85] Strategic Focus and Future Outlook - The company plans to focus on market expansion and new product development in the upcoming year[1] - The company is exploring potential mergers and acquisitions to enhance its market position[1] - Future guidance indicates a cautious outlook due to market volatility and economic conditions[1] - The Group aims to focus on its core business, enhance cost control, and improve production efficiency in 2024, supported by a favorable environment of steadily increasing crude oil prices[39][41] Governance and Management - The company has a diverse board with members possessing significant experience in finance, auditing, and asset management, enhancing its strategic oversight capabilities[54] - The management team includes professionals with backgrounds in both academia and practical financial services, contributing to informed decision-making[55] - The company is focused on maintaining strong governance through its independent directors, ensuring accountability and transparency in operations[58] - The board's composition reflects a commitment to leveraging expertise in finance and risk management to navigate market challenges[52] - The Company has established corporate governance practices based on the CG Code as set out in the Listing Rules[76] - The Company has adopted a Board Diversity Policy to enhance competitive advantage through diversity at the Board level[138] Risk Management - The company faces significant risks from volatile international oil and gas prices, which can impact revenue and profit[168] - The majority of the company's sales in China are denominated in US dollars, while production costs are incurred in RMB, exposing the company to currency risk[168] - The company does not currently engage in hedging activities to manage foreign exchange rate risk but will continue to monitor changes to preserve cash value[168] - The Board is responsible for ensuring the effectiveness of risk management and internal control systems, which are designed to manage risks rather than eliminate them[151] Shareholder Relations - Effective communication with shareholders is prioritized to strengthen relationships and enhance understanding of the company's performance[183] - The company emphasizes the importance of timely information disclosure for informed investment decisions[183] - The Company has adopted a sustainable dividend policy, balancing shareholder expectations with prudent capital management[191] - The Company held its annual general meeting on January 12, 2024, where shareholders approved amendments to the Memorandum and Articles of Association, allowing virtual meetings[192]