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]