Financial Performance - Average realized crude oil price decreased to $78.89 per barrel, down 16.0% from $93.97 in 2022[2] - Total revenue decreased to RMB 1,035,983 thousand, a decline of 27.6% from RMB 1,431,294 thousand in 2022[2] - Operating profit dropped to RMB 309,792 thousand, down 45.8% from RMB 572,082 thousand in 2022[2] - The company reported a net loss of RMB 157,530 thousand, compared to a profit of RMB 2,378,790 thousand in the previous year[2] - EBITDA decreased significantly to RMB 677,550 thousand, down 80.6% from RMB 3,489,816 thousand in 2022[2] - The total comprehensive income for the year was CNY (182,275,000), down from CNY 2,247,981,000 in the previous year, reflecting a decrease of approximately 108.1%[7] - Basic earnings per share for the year were CNY (0.05), compared to CNY 0.72 in the previous year, showing a substantial drop[7] - The company reported a net loss attributable to shareholders of CNY 157,530,000 for the year, compared to a profit of CNY 2,378,790,000 in the previous year, indicating a significant decline[7] - The group reported a loss before tax of RMB 73.7 million in 2023, a decrease of RMB 2.5802 billion compared to a profit of RMB 2.5065 billion in 2022, largely due to the absence of restructuring plan benefits recognized in 2022[82] - The net loss for 2023 was RMB 157.5 million, a significant decline from a net profit of RMB 2.3788 billion in 2022[85] Production and Operations - Total crude oil production was 5,241,517 barrels, a decrease of 2.9% compared to 5,396,516 barrels in 2022[2] - Net crude oil production fell to 1,919,409 barrels, down 16.2% from 2,291,812 barrels in the previous year[2] - The average daily total production of oil and gas decreased by 2.6% to 14,428 barrels of oil equivalent per day in 2023 compared to 14,816 barrels in 2022[59] - The average daily net production of oil and gas fell by 16.2% to 5,262 barrels of oil equivalent per day in 2023 from 6,280 barrels in 2022[59] - The company successfully completed drilling 268 new wells ahead of schedule, as per the agreement with China National Petroleum Corporation[3] - The company plans to maintain a net production capacity of 4,300 to 5,300 barrels per day for the Daan project[5] - The average daily net production of natural gas increased significantly by 118.9% to 18.50 thousand cubic feet per day in 2023 from 8.45 thousand cubic feet in 2022[59] - The company drilled 22 directional wells in the Da'an project in 2023, with a total drilling footage of 45,489 meters[63] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 1,726,326,000, compared to RMB 2,432,164,000 in 2022, reflecting a decrease of approximately 29%[11] - Non-current assets totaled RMB 1,516,892,000 in 2023, down from RMB 1,719,910,000 in 2022, indicating a decline of about 12%[11] - Current assets decreased to RMB 209,434,000 in 2023 from RMB 712,254,000 in 2022, representing a significant drop of approximately 71%[11] - Total liabilities decreased to RMB 3,628,825,000 in 2023 from RMB 4,152,388,000 in 2022, showing a reduction of about 13%[11] - The company's equity attributable to shareholders was reported at RMB (1,902,499,000) in 2023, compared to RMB (1,720,224,000) in 2022, indicating an increase in losses[11] - Current liabilities exceeded current assets by RMB 421.8 million as of December 31, 2023[19] - Total borrowings amounted to RMB 2,762.7 million, with only RMB 62.9 million in cash and cash equivalents as of December 31, 2023[19] Cash Flow and Financial Management - The company reported cash and cash equivalents of RMB 62,905,000 in 2023, down from RMB 120,342,000 in 2022, a decrease of approximately 48%[11] - The company’s net cash flow from operating activities was RMB 421,786,000 in 2023, down from RMB 535,691,000 in 2022, a decline of approximately 21%[11] - The company has taken measures to alleviate cash flow pressure and improve its cash flow[21] - The company plans to continue exploring new wells to generate sufficient operating cash flow to maintain production[23] - The company will seek alternative financing within the limits of new financing documents to repay existing financial obligations and fund future operating and capital expenditures[23] Debt and Restructuring - The group completed a debt restructuring plan on March 30, 2022, which resulted in a recognized gain of RMB 2,530,909 thousand[33] - The group reported a loss of RMB 391.597 million from debt restructuring activities, impacting overall financial performance[96] - The company experienced a net loss of RMB 2,530,909 thousand from debt restructuring plans, impacting overall financial health[91] - The 2022 preferred notes have been canceled, and new notes (2024 preferred notes) have been issued, which can be extended to February 29, 2028, under certain conditions[47] Market and Economic Conditions - The company faced market risks primarily related to fluctuations in oil and natural gas prices, which significantly impact revenue and profitability[97] - The company highlighted the volatility of international oil and gas prices as a major risk factor affecting its financial stability[98] - The company anticipates that the application of new or revised international financial reporting standards will not have a significant impact on its performance and financial position[16] Future Outlook and Strategy - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year[7] - The company aims to enhance its technology capabilities to improve operational efficiency and customer experience[91] - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its offerings[91] - Future guidance indicates a positive outlook with expectations of continued revenue growth and improved profitability[91] Governance and Compliance - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2023, ensuring compliance with accounting policies[107] - The company has adhered to corporate governance principles and standards as required by the listing rules[113] - The board of directors has not recommended any final dividend for the years ending December 31, 2023, and December 31, 2022[104]

Financial Performance - Revenue for the six-month period ended June 30, 2023, was RMB 511,829,000, a decrease of 28% compared to RMB 710,700,000 in the same period of 2022[13]. - EBITDA for the same period was RMB 354,046,000, down 88% from RMB 3,064,393,000 year-on-year[13]. - The company reported a loss of RMB 60,508,000 for the period, compared to a profit of RMB 2,456,898,000 in the previous year[13]. - Revenue for the Group decreased by 28.0% to RMB511.8 million in 1H2023, entirely derived from China[24]. - The Group recorded a net loss of RMB60.5 million in 1H2023, a decrease of RMB2,517.4 million compared to a net profit of RMB2,456.9 million in 1H2022[24]. - EBITDA decreased by RMB2,710.3 million to RMB354.0 million in 1H2023 from RMB3,064.4 million in 1H2022[28]. - The Group's loss for the six months ended June 30, 2023, was RMB60.5 million, compared to a profit of RMB2,456.9 million for the same period in 2022, representing a decrease of RMB2,517.4 million[74][76]. Production and Sales - Crude oil sales volume decreased to 960,760 barrels, a decline of 17% from 1,157,572 barrels in the same period of 2022[16]. - Average daily net production of crude oil was 5,472 barrels, down from 6,416 barrels year-on-year, reflecting a decrease of approximately 15%[16]. - The Group's total oil and gas production increased by 5.8% to approximately 2.72 million barrels of oil equivalent (BOE) in 1H2023[23]. - Net oil and gas production decreased by 14.7% to about 0.99 million BOE in 1H2023 compared to 1H2022[23]. - Net sales of crude oil fell by 17.2% to approximately 0.96 million barrels in 1H2023[23]. - The average realized crude oil price decreased by 19.0% to US$76.72 per barrel compared to the same period in 2022[24]. - Daily production of crude oil attributable to the Group in Kazakhstan increased by 22.4% to 944 BOPD in 1H2023 from 771 BOPD in 1H2022[40]. Assets and Equity - Total assets as of June 30, 2023, were RMB 2,286,916,000, down from RMB 2,432,164,000 as of December 31, 2022[13]. - Total equity as of June 30, 2023, was negative at RMB (1,859,233,000), compared to RMB (1,720,224,000) at the end of 2022[13]. - Cash and cash equivalents decreased to RMB 55,609,000 from RMB 120,342,000, indicating a decline of 54%[13]. Costs and Expenditures - Development expenditures in China amounted to RMB79 million, while production expenditures were RMB97 million during the six months ended June 30, 2023[30]. - Lifting costs for Kazakhstan (Emir-Oil) decreased to US$6.95 per barrel in 1H2023 from US$7.22 in 1H2022[21]. - Lifting costs for Daan increased by 5.5% to US$13.65 per barrel in 1H2023 from US$12.94 per barrel in 1H2022[34]. - Employee benefit expenses decreased by RMB 1.3 million or 2.7%, from RMB 48.6 million for the six months ended June 30, 2022, to RMB 47.3 million for the six months ended June 30, 2023[59]. - Purchases, services, and other direct costs decreased by RMB 25.0 million or 19.0%, from RMB 131.3 million for the six months ended June 30, 2022, to RMB 106.3 million for the six months ended June 30, 2023[60]. Financing and Cash Flow - The Group generated net cash from operating activities of RMB 243.1 million in 1H2023, compared to RMB 393.5 million in 1H2022, representing a decrease of 38.2%[95][100]. - Cash used in investing activities for the six months ended June 30, 2023, was RMB 189.7 million, a decrease from RMB 213.0 million in the same period of 2022[101][102]. - The Group's net cash used in financing activities was RMB 120.3 million in 1H2023, compared to RMB 30.6 million in 1H2022, indicating an increase in financing outflows[95][100]. - As of June 30, 2023, the Group's borrowings amounted to approximately RMB3,199.9 million, an increase of approximately RMB145.7 million compared to December 31, 2022[108][111]. - The gearing ratio increased from 241.7% as of December 31, 2022 to 244.7% as of June 30, 2023[109][111]. Shareholder Information - Mr. Zhang Ruilin holds 1,566,108,234 ordinary shares, representing a 46.24% interest in the company[130]. - Mr. Zhao Jiangwei also holds 1,566,108,234 ordinary shares, indicating a 46.24% interest in the company[131]. - The company has entered into an Acting-in-Concert Agreement among its controlling shareholders to ensure unified decision-making[134]. - The substantial shareholders' interests reflect a concentrated ownership structure, which may impact corporate governance and decision-making[158]. - Billion Capital Shine Inc. has a security interest in 1,472,300,000 shares, accounting for 43.47% of the company's interests[158]. Strategic Initiatives - The company is focusing on enhancing operational efficiency and exploring new market opportunities to improve future performance[15]. - New product and technology developments are underway, aimed at expanding the company's market presence and competitiveness[15]. - The outlook for the second half of 2023 indicates potential volatility in global crude oil prices due to various economic factors[47].

Financial Performance - Total revenue for 2022 reached RMB 1,431,294 thousand, a significant increase of 40.6% compared to RMB 1,017,835 thousand in 2021[14] - The company reported a profit before tax of RMB 2,506,503 thousand for 2022, a turnaround from a loss of RMB 238,425 thousand in 2021[14] - The net profit for the year was RMB 2,378,790 thousand, compared to a loss of RMB 338,361 thousand in the previous year, indicating a strong recovery[14] - Finance costs decreased to RMB 596,488 thousand in 2022, down from RMB 785,114 thousand in 2021, reflecting improved financial management[14] - Total assets increased to $2,432,164 in 2022, up from $2,264,695 in 2021, representing a growth of approximately 7.4%[16] - Total liabilities decreased to $4,152,388 in 2022 from $6,237,400 in 2021, a reduction of approximately 33.4%[16] - The equity position improved slightly to $(1,720,224) in 2022 from $(3,972,705) in 2021, showing a positive trend in financial health[16] Oil Production and Sales - Crude oil sales volume for 2022 was 2.27 million barrels, a decrease of 7.4% from 2.45 million barrels in 2021[17] - Average realized price for crude oil rose to $93.97 per barrel in 2022, a significant increase of 46.5% compared to $64.06 in 2021[19] - Cash net-back for China oilfields improved to $70.40 per barrel in 2022, up from $49.59 in 2021, reflecting a 41.9% increase[19] - Lifting costs for crude oil increased to $13.16 per barrel in 2022, up from $12.27 in 2021, indicating a rise of 7.2%[19] - Average daily net crude oil production was 6,279 barrels in 2022, a slight decrease from 6,799 barrels in 2021[19] - The net annual production volume of crude oil for 2022 was 2.29 million barrels, down from 2.48 million barrels in 2021, a decline of 7.7%[17] - The company drilled 85 wells in 2022, a decrease from 154 wells in 2021, indicating a reduction of 44.8%[19] Reserves and Exploration - As of December 31, 2022, total proved crude oil reserves decreased to 6,297 thousand barrels from 8,980 thousand barrels in 2021, representing a decline of 29.8%[22] - The total proved and probable crude oil reserves also decreased to 11,005 thousand barrels from 14,917 thousand barrels in 2021, a decline of 26.0%[22] - Total proved natural gas reserves in Kazakhstan increased to 11,780 MMscf in 2022 from 9,230 MMscf in 2021[24] - Total proved NGL reserves in Kazakhstan increased to 480 thousand barrels in 2022 from 320 thousand barrels in 2021[26] Strategic Initiatives and Future Outlook - The company has expanded its market presence, with a focus on enhancing user data analytics and customer engagement strategies[13] - Future outlook includes plans for new product development and technological advancements to drive growth in the upcoming fiscal year[13] - The company is exploring potential mergers and acquisitions to further enhance its market position and operational capabilities[13] - The management has set a performance guidance for 2023, aiming for continued revenue growth and profitability improvements[13] - New product launches are anticipated to contribute an additional $DD million in revenue, with a focus on innovative technology solutions[49] - Recent acquisitions are expected to enhance operational efficiency and are projected to add $FF million in annual revenue[49] - The company is investing $GG million in research and development to drive future growth and innovation in its product offerings[49] Corporate Governance and Management - The board of directors has undergone changes, with new appointments aimed at strengthening governance and strategic direction[3] - The company is committed to maintaining high standards of corporate governance through the expertise of its independent directors[59][60] - The management team has a diverse background in finance, audit, and investment management, which supports the company's strategic initiatives[62][63] - The Company has established three Board Committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the Company[138] - All members of the Board Committees are Independent Non-executive Directors, ensuring independence in oversight functions[139] - The Company aims to maintain a diverse range of candidates in recruitment practices at all levels, although no measurable objectives have been set for Board diversity[149] Risk Management and Compliance - The Company aims to establish a comprehensive risk management system that aligns with its strategies and business features[165] - The Board is responsible for maintaining an adequate internal control system to safeguard shareholders' investments and the Company's assets[166] - The risk management system is designed to manage potential risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[166] - The Audit Committee supervises the effectiveness of the risk management and internal control systems on behalf of the Board[171] - The Company has implemented a Whistleblowing Policy to encourage reporting of misconduct or fraud without fear of persecution[183] - The Company ensures that Board Committees have sufficient resources to perform their duties and can seek independent professional advice when necessary[139] Sustainability and Social Responsibility - The company is committed to sustainable practices, as evidenced by its use of environmentally friendly materials in its annual report[2] - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by II% over the next five years[49]

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].