Financial Performance - The company's revenue for the fiscal year 2024 was approximately HKD 292.4 million, a decrease of 7.1% from HKD 314.8 million in 2023[5] - Operating profit for 2024 was HKD 5.2 million, a significant recovery from a loss of HKD 68.5 million in 2023[5] - The net loss from continuing operations decreased by 80.4% to HKD 14.7 million in 2024, compared to HKD 74.7 million in 2023[5] - The basic loss per share for 2024 was HKD 1.0, a reduction of 76.7% from HKD 4.3 in 2023[5] - Total revenue decreased by approximately HKD 22.4 million (or 7.1%) to approximately HKD 292.4 million in 2024 compared to HKD 314.8 million in 2023[23] Assets and Liabilities - Total assets as of December 31, 2024, were HKD 642.9 million, down 9.7% from HKD 712.0 million in 2023[6] - The company's total liabilities decreased by 11.2% to HKD 462.7 million in 2024, compared to HKD 520.9 million in 2023[6] - The current ratio for 2024 was 1.0, slightly down from 1.05 in 2023, indicating stable liquidity[7] Revenue Breakdown - Revenue from the China market increased by approximately HKD 1.9 million (or 0.7%) to approximately HKD 268.2 million in 2024, driven by increased sales of completion products and drilling services[22] - Revenue from the overseas market decreased by approximately HKD 24.3 million (or 50.1%) to approximately HKD 24.2 million in 2024, primarily due to the completion of several service contracts without renewal[23] - Revenue from the North China region decreased by approximately HKD 17.9 million (or 26.4%) to approximately HKD 49.8 million in 2024, mainly due to reduced production and drilling services[24] - Revenue from the Southwest China region increased by approximately HKD 12.8 million (or 7.4%) to approximately HKD 185.2 million in 2024, driven by increased production services[25] - Revenue from the Middle East decreased by approximately HKD 29.4 million (or 61.5%) to approximately HKD 18.4 million in 2024, mainly due to reduced consulting services[26] Cost Management - Material costs for the year were approximately HKD 41.4 million, a decrease of about HKD 6.7 million (or 13.9%) from HKD 48.1 million in 2023, representing 14.2% of revenue in 2024, down from 15.3% in 2023[36] - Employee benefits expenses were approximately HKD 44.0 million, a decrease of about HKD 4.6 million (or 9.5%) from HKD 48.6 million in 2023, due to the completion of several supervisory service contracts[38] Employee and Workforce - The group had a total of 195 employees as of December 31, 2024, a decrease of approximately 23.8% from 256 employees as of December 31, 2023, primarily due to the completion of several consulting service contracts in the Middle East[60] - The gender distribution of employees is 15% male and 85% female, with 88% of employees in frontline and other roles[132] - The total employee turnover rate for the reporting period was 46.03%, with 87 employees leaving the company[141] Environmental, Social, and Governance (ESG) - The group integrates ESG considerations into daily operations, reflecting its commitment to environmental protection, employee welfare, and community engagement[73] - The group aims to monitor the progress of ESG-related goals through various methods, including meetings and regular inspections of production facilities[74] - The group emphasizes the importance of compliance with increasingly stringent ESG regulations to ensure long-term viability[68] - The group has established an ESG task force composed of senior management to drive the integration and management of ESG concerns in business activities[73] Energy and Resource Management - Total energy consumption for the reporting period was 41,020.21 MWh, with an overall energy consumption density of 0.15 MWh per thousand HKD revenue, a decrease of 14.0% compared to the previous reporting period[111] - Diesel consumption decreased to 40,611.70 MWh in 2024 from 49,781.11 MWh in 2023, representing a reduction of approximately 18.0%[112] - Water consumption in 2024 was 177 cubic meters, a decrease of over 15% compared to 210 cubic meters in 2023, exceeding the set target of a 1% reduction[116] Corporate Governance - The board of directors consists of 3 executive directors, 1 non-executive director, and 3 independent non-executive directors, ensuring compliance with corporate governance codes[173] - The company has maintained a high level of corporate governance, adhering to the corporate governance code as per the Hong Kong Stock Exchange[173] - The company has established a risk management system and identified no significant risks during the risk assessment conducted in 2024[197] Innovation and R&D - The group has 33 utility model patents and 10 invention patents as of December 31, 2024, and is in the process of applying for 33 utility model patents and 8 invention patents[61] - The company is investing resources in the research and development of new energy service technologies[128] - The company has established technical cooperation teams with renowned research institutions to advance research in energy-efficient low-carbon utilization and new carbon storage technologies[127]

Financial Performance - The company's total revenue for the fiscal year ending December 31, 2024, was approximately HKD 292.4 million, a decrease of about 7.1% from HKD 314.8 million in 2023[3]. - The loss attributable to shareholders for the fiscal year was approximately HKD 14.7 million, compared to a loss of HKD 74.7 million in 2023, resulting in a basic loss per share of approximately HKD 0.01[3]. - Total comprehensive income for the year was HKD (11,776,000) in 2024, compared to HKD (72,693,000) in 2023, reflecting a reduction in losses[22]. - The company reported a net loss of approximately HKD 14,662,000 for the year ended December 31, 2024, compared to a loss of HKD 74,737,000 in 2023, indicating a significant improvement[29]. - The company reported a loss before tax of HKD 13,299,000 for the year ended December 31, 2024, significantly improved from a loss of HKD 71,407,000 in 2023[41]. - The company recorded a net loss of approximately HKD 14.7 million for the year, a decrease of about HKD 60.0 million (or approximately 80.3%) compared to a loss of HKD 74.7 million in 2023[61]. Revenue Breakdown - Revenue from the Chinese market increased by approximately 0.7% to HKD 268.2 million, accounting for 91.7% of total revenue, driven by increased sales of completion products and drilling services[4]. - Revenue from overseas markets decreased by approximately 50.1% to HKD 24.2 million, accounting for 8.3% of total revenue, primarily due to the completion of several service contracts without renewal[5]. - Revenue from oilfield project tools and services was approximately HKD 267.5 million, an increase of about 1.7% from HKD 262.9 million in 2023[10]. - Revenue from consulting services decreased by approximately 52.0% to HKD 24.9 million, primarily due to the completion of service contracts in the first quarter of 2024[11]. - Revenue from production services in 2024 is approximately HKD 235.4 million, a decrease of about HKD 7.0 million (or approximately 2.9%) compared to 2023[13]. - Revenue from drilling services in 2024 is approximately HKD 26.5 million, an increase of about HKD 6.1 million (or approximately 29.9%) compared to 2023[14]. - Revenue from completion services in 2024 is approximately HKD 5.6 million, an increase of about HKD 5.5 million (or approximately 5,500.0%) compared to 2023[15]. Market and Operational Insights - The company continues to engage in oil and gas field technical services covering various stages of the oil and gas field lifecycle, including drilling, completion, and production enhancement[3]. - The company expects stable market demand for production services and other oilfield services in 2025 due to stable international oil prices and supportive national policies in China[20]. - Brent crude oil prices remained strong, fluctuating between approximately USD 68-92 per barrel throughout the year[20]. Financial Position and Assets - Non-current assets decreased from HKD 256,384,000 in 2023 to HKD 226,208,000 in 2024, primarily due to a decline in property, plant, and equipment[23]. - The company’s cash and cash equivalents decreased from HKD 26,294,000 in 2023 to HKD 15,607,000 in 2024, indicating a tighter liquidity position[23]. - The company’s net assets decreased from HKD 191,155,000 in 2023 to HKD 180,263,000 in 2024, reflecting ongoing financial challenges[24]. - The company’s property, plant, and equipment decreased to approximately HKD 108.2 million in 2024, a reduction of about HKD 19.1 million (or approximately 15.0%) from HKD 127.3 million in 2023, primarily due to depreciation[63]. - The company’s trade receivables decreased to approximately HKD 206.6 million in 2024 from HKD 222.1 million in 2023, with net trade receivables amounting to HKD 201.6 million[47]. Employee and Operational Changes - The number of employees decreased by approximately 23.8% to 195 as of December 31, 2024, compared to 256 in 2023[18]. - Employee benefits expenses decreased to approximately HKD 44.0 million in 2024, down by about HKD 4.6 million (or approximately 9.5%) from HKD 48.6 million in 2023, due to the completion of several supervisory service contracts[54]. Debt and Financing - The company has secured additional loan financing of RMB 49,500,000 from a bank in China to support its operational funding needs for oil and gas projects[30]. - The unused loan financing amount as of December 31, 2024, was RMB 30,000,000, which has not yet been drawn down[30]. - The company is actively negotiating for new loan financing to meet operational funding requirements for its projects in China[31]. Governance and Compliance - The audit committee has been established in accordance with regulatory requirements, consisting of three independent non-executive directors[81]. - The chairman of the board is Wang Jinlong, with executive directors Zhao Jindong, Lin Jingyu, and Zhou Sisi[82]. - The independent non-executive directors include Liang Nianchang, Xin Junhe, and Zhang Dawei[82].

[Corporate Information](index=2&type=section&id=Corporate%20Information) [Corporate Profile](index=2&type=section&id=Corporate%20Profile) This section provides key information on Petro-king Oilfield Services Limited, including its board, committees, and key advisors - The company's Executive Directors are Mr. Zhao Jindong, Mr. Lin Jingyu, and Ms. Zhou Sisi[11](index=11&type=chunk) - The company's principal place of business in Hong Kong is at Room 1603A, 16/F, Tower 1, Silvercord, 30 Canton Road, Kowloon[11](index=11&type=chunk) - The company's auditor is **BDO Limited**[12](index=12&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Financial Summary](index=5&type=section&id=Business%20Review) Group revenue surged 60.8% YoY to HKD 166 million in H1 2024, driven by strong demand for production enhancement services Financial Highlights | Metric | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | HKD 165.9 million | HKD 103.2 million | +60.8% | | **Loss for the period** | HKD 0.4 million | HKD 18.0 million | -97.8% | | **Loss attributable to owners** | HKD 0.4 million | HKD 17.1 million | -97.7% | | **Basic loss per share** | HKD 0.02 cents | HKD 1.0 cent | -98.0% | | **Interim dividend** | Nil | Nil | - | - The significant revenue growth was primarily driven by strong demand for production enhancement services in China, supported by firm international oil prices and shale gas consumption policies[14](index=14&type=chunk) - The narrowed loss was mainly due to increased revenue and a net reversal of impairment losses on financial assets[14](index=14&type=chunk) [Geographical Market Analysis](index=5&type=section&id=Geographical%20Market%20Analysis) The China market was the main growth driver, contributing 89.2% of total revenue with an 80.4% YoY increase Revenue by Market | Market | H1 2024 Revenue (HKD million) | H1 2023 Revenue (HKD million) | YoY Change | Revenue Contribution (H1 2024) | | :--- | :--- | :--- | :--- | :--- | | **China Market** | 147.9 | 82.0 | +80.4% | 89.2% | | **Overseas Market** | 18.0 | 21.2 | -15.1% | 10.8% | | **Total** | **165.9** | **103.2** | **+60.8%** | **100%** | [China Market Revenue](index=6&type=section&id=China%20Market%20Revenue) Growth in the China market was primarily driven by a 193% surge in the Southwest region due to increased production enhancement services Revenue by Region in China | China Region | H1 2024 Revenue (HKD million) | H1 2023 Revenue (HKD million) | YoY Change | | :--- | :--- | :--- | :--- | | **Southwest** | 113.7 | 38.8 | +193.0% | | **North** | 21.9 | 37.8 | -42.1% | | **Northwest** | 9.4 | 4.4 | +113.6% | | **Other Regions** | 2.9 | 1.0 | +190.0% | [Overseas Market Revenue](index=8&type=section&id=Overseas%20Market%20Revenue) The decline in overseas revenue was mainly caused by the expiration of a supervision service contract in the Middle East Revenue by Overseas Region | Overseas Region | H1 2024 Revenue (HKD million) | H1 2023 Revenue (HKD million) | YoY Change | | :--- | :--- | :--- | :--- | | **Middle East** | 14.2 | 21.1 | -32.7% | | **Others** | 3.8 | 0.1 | +3700.0% | [Business Segment Analysis](index=9&type=section&id=Business%20Segment%20Analysis) Oilfield project tools and services remained the core business, accounting for 89.0% of total revenue with an 81.9% YoY growth Revenue by Business Segment | Business Segment | H1 2024 Revenue (HKD million) | H1 2023 Revenue (HKD million) | YoY Change | Revenue Contribution (H1 2024) | | :--- | :--- | :--- | :--- | :--- | | **Oilfield project tools and services** | 147.7 | 81.2 | +81.9% | 89.0% | | **Consultancy services** | 18.2 | 22.0 | -17.3% | 11.0% | [Oilfield Project Tools and Services](index=10&type=section&id=Oilfield%20Project%20Tools%20and%20Services) Production enhancement was the dominant business line, with revenue growing 90.3% YoY to HKD 137 million, driven by services in Southwest China Revenue Breakdown for Oilfield Project Tools and Services | Business Type | H1 2024 Revenue (HKD million) | H1 2023 Revenue (HKD million) | YoY Change | | :--- | :--- | :--- | :--- | | **Production enhancement** | 136.6 | 71.8 | +90.3% | | **Drilling** | 8.1 | 7.4 | +9.5% | | **Completion** | 3.0 | 2.0 | +50.0% | [Customer Analysis](index=11&type=section&id=Customer%20Analysis) The Group exhibits very high customer concentration, with the top three customers contributing 96.1% of total revenue - Revenue from the largest customer (Customer 1) **grew 153.9% YoY to HKD 115 million**, accounting for 69.3% of total revenue[25](index=25&type=chunk) - The top three customers (Customers 1, 2, and 3) collectively contributed **96.1% of total revenue**, indicating high customer concentration risk[25](index=25&type=chunk) [Human Resources and R&D](index=12&type=section&id=Human%20Resources%20and%20R&D) The Group streamlined its organization, reducing its workforce by 23.0%, and holds 38 patents, reflecting a focus on technology - As of June 30, 2024, the Group had **197 employees**, a 23.0% decrease from 256 at the end of 2023[26](index=26&type=chunk) - The Group holds **28 utility model patents and 10 invention patents**, with 5 additional invention patents pending, demonstrating its emphasis on intellectual property[27](index=27&type=chunk) [Outlook](index=13&type=section&id=Outlook) Management remains cautiously optimistic, expecting strong market demand to continue and plans to explore diversified investment opportunities - Market demand for production enhancement and other oilfield services is **expected to remain strong** for the rest of 2024[28](index=28&type=chunk) - The Group plans to explore other profitable investment opportunities, such as **surface geothermal projects**, to diversify its business[28](index=28&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) The Group's financial performance improved with a 60.8% revenue increase and a turnaround to operating profit, while operational efficiency also improved [Key P&L Items](index=13&type=section&id=Key%20P&L%20Items) The Group achieved an operating profit of HKD 7.6 million, a significant turnaround from a loss of HKD 10.7 million in the prior year Key Profit & Loss Figures | Item | H1 2024 (HKD million) | H1 2023 (HKD million) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 165.9 | 103.2 | +60.8% | | **Technical service fees** | 70.5 | 32.6 | +116.3% | | **Net reversal of impairment on financial assets** | 3.7 | 0.2 | +1750% | | **Operating profit/(loss)** | 7.6 | (10.7) | Turnaround | | **Loss for the period** | (0.4) | (18.0) | -97.8% | [Key Balance Sheet Items](index=16&type=section&id=Key%20Balance%20Sheet%20Items) Working capital management improved significantly, with inventory and trade receivables turnover days both decreasing, and the gearing ratio slightly improved - Average inventory turnover days **decreased from 184 to 131 days**[45](index=45&type=chunk) - Average trade receivables turnover days **decreased significantly from 365 to 206 days**[46](index=46&type=chunk) - Contract assets **increased by 31.5%** from the beginning of the year to HKD 158 million[47](index=47&type=chunk) - The gearing ratio **decreased from 45.3% to 42.2%**[51](index=51&type=chunk) [Other Information](index=21&type=section&id=Other%20Information) [Corporate Governance and Compliance](index=21&type=section&id=Corporate%20Governance%20and%20Compliance) The company complied with all applicable Corporate Governance Code provisions and did not declare an interim dividend for H1 2024 - The company has **complied with all applicable Corporate Governance Code provisions** during the reporting period[58](index=58&type=chunk) - The Board resolved **not to declare an interim dividend** for the first half of 2024[61](index=61&type=chunk) - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[60](index=60&type=chunk) [Directors, Chief Executive and Substantial Shareholders' Interests](index=22&type=section&id=Directors%2C%20Chief%20Executive%20and%20Substantial%20Shareholders'%20Interests) Non-executive Director Mr. Wang Jinlong is the largest shareholder with a 28.32% interest through his controlled corporation - Mr. Wang Jinlong (Non-executive Director) holds **488,920,138 shares (28.32%)** in the company through a controlled corporation[63](index=63&type=chunk)[64](index=64&type=chunk) - Substantial shareholder Lee & Leung (B.V.I.) Limited and its affiliates hold a combined interest of **approximately 19.53%** in the company[66](index=66&type=chunk)[70](index=70&type=chunk) [Share Option Scheme](index=27&type=section&id=Share%20Option%20Scheme) The 2013 share option scheme expired in February 2023, and consequently, no new options were granted in H1 2024 - The share option scheme **expired on February 18, 2023**, and no new options were granted in H1 2024[73](index=73&type=chunk) - 500,000 share options held by the former company secretary, Mr. Tong Tat Chiu, **lapsed in June** following his resignation on March 20, 2024[73](index=73&type=chunk)[75](index=75&type=chunk) [Interim Condensed Consolidated Financial Statements](index=30&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Comprehensive Income](index=30&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's loss for the period narrowed significantly to HKD 0.4 million on revenue of HKD 165.9 million, with a turnaround to operating profit Statement of Comprehensive Income Summary (HKD thousand) | Item (HKD thousand) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Revenue** | 165,908 | 103,215 | | **Operating profit/(loss)** | 7,636 | (10,747) | | **Profit/(loss) before tax** | 594 | (18,444) | | **Loss for the period** | (412) | (17,973) | | **Loss attributable to owners of the Company** | (395) | (17,113) | | **Basic loss per share (HKD cents)** | (0.02) | (1.0) | [Interim Condensed Consolidated Statement of Financial Position](index=32&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group had total assets of HKD 694 million and net assets of HKD 193 million, with a current ratio of approximately 1.03 Statement of Financial Position Summary (HKD thousand) | Item (HKD thousand) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | 694,056 | 712,011 | | **Total Liabilities** | 500,948 | 520,856 | | **Net Assets** | 193,108 | 191,155 | | **Net Current Assets** | 14,543 | 22,504 | | **Cash and cash equivalents** | 29,787 | 26,294 | | **Bank and other borrowings (Total)** | 179,248 | 187,061 | [Interim Condensed Consolidated Statement of Changes in Equity](index=34&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Equity attributable to owners increased by approximately HKD 2.0 million to HKD 188.8 million, mainly driven by other comprehensive income - Equity attributable to owners of the Company **increased from HKD 186,829 thousand to HKD 188,802 thousand**[82](index=82&type=chunk) - The change in equity was primarily driven by the combined effect of **other comprehensive income (+HKD 1,907 thousand)**, share-based payments (+HKD 461 thousand), and loss for the period (-HKD 395 thousand)[82](index=82&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=36&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Cash and cash equivalents increased by HKD 3.5 million to HKD 29.8 million, primarily due to cash inflows from investing activities Statement of Cash Flows Summary (HKD thousand) | Item (HKD thousand) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | (1,521) | (9,044) | | **Net cash from investing activities** | 13,259 | 8,868 | | **Net cash used in financing activities** | (7,390) | (17,055) | | **Net increase/(decrease) in cash** | 4,348 | (17,231) | | **Cash and cash equivalents at end of period** | 29,787 | 22,228 | [Notes to the Interim Condensed Consolidated Financial Information](index=37&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [Basis of Preparation and Going Concern](index=37&type=section&id=Basis%20of%20Preparation%20and%20Going%20Concern) A material uncertainty exists regarding the Group's ability to continue as a going concern due to its net current liability position and liquidity pressure - As of June 30, 2024, the Group's **current bank and other borrowings of HKD 115 million** significantly exceeded its cash and cash equivalents of approximately HKD 29.8 million, indicating liquidity pressure[90](index=90&type=chunk) - Management states that the Group's ability to continue as a going concern depends on successfully obtaining new bank loans, drawing down shareholder loan facilities, and timely repayments from an associate[93](index=93&type=chunk) - The report explicitly states the existence of a **material uncertainty** that may cast significant doubt on the Group's ability to continue as a going concern[93](index=93&type=chunk) [Revenue and Segment Information](index=41&type=section&id=Revenue%20and%20Segment%20Information) The oilfield project tools and services segment generated HKD 148 million in revenue but incurred a loss of HKD 4.2 million Revenue by Source (HKD thousand) | Revenue Source (HKD thousand) | H1 2024 | | :--- | :--- | | **Oilfield project tools and services** | **147,716** | | Of which: Production enhancement | 136,623 | | **Consultancy services** | **18,192** | | **Total Revenue** | **165,908** | Segment Results (HKD thousand) | Segment Results (HKD thousand) | H1 2024 | | :--- | :--- | | **Oilfield project tools and services** | (4,219) | | **Consultancy services** | 8,717 | | **Total segment results** | **4,498** | [Related Party Transactions](index=58&type=section&id=Related%20Party%20Transactions) The Group has a loan receivable of HKD 6.5 million from an associate, Star Petrotech, due by the end of 2024 - The loan receivable from associate Star Petrotech has a balance of **HKD 6.53 million**, carries an annual interest rate of 7%, and is repayable on or before December 31, 2024[136](index=136&type=chunk)[137](index=137&type=chunk) - Amounts due to an associate company are **HKD 12.33 million** and are trade in nature[136](index=136&type=chunk)[137](index=137&type=chunk) - Total remuneration for key management personnel during the period was **HKD 2.41 million**, a decrease year-over-year[135](index=135&type=chunk) [Events After the Reporting Period](index=61&type=section&id=Events%20After%20the%20Reporting%20Period) A subsidiary is involved in a major lawsuit over technical service fees, resulting in the freezing of approximately RMB 14.9 million in bank deposits - A subsidiary of the Group is involved in a major lawsuit, with the plaintiff claiming **technical service fees of approximately RMB 28.9 million**[139](index=139&type=chunk) - The first-instance judgment ordered a payment of approximately RMB 12.6 million, but the plaintiff has appealed, and the outcome is pending[139](index=139&type=chunk) - As of the report date, **approximately RMB 14.9 million** of the subsidiary's bank deposits have been frozen[139](index=139&type=chunk)

[Performance Summary](index=1&type=section&id=Performance%20Summary) [Overall Performance Overview](index=1&type=section&id=Overall%20Performance%20Overview) In H1 2024, the Group's performance significantly improved, with total revenue surging by 60.8% year-on-year to HKD 166 million, and loss attributable to owners of the Company narrowing by 97.7% to approximately HKD 0.4 million, nearing breakeven Performance Metrics | Metric | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 165.9 million HKD | 103.2 million HKD | +60.8% | | Net Loss | 0.4 million HKD | 18.0 million HKD | -97.8% | | Loss Attributable to Owners of the Company | 0.4 million HKD | 17.1 million HKD | -97.7% | | Basic Loss Per Share | 0.02 HK cents | 1.0 HK cents | -98.0% | | Interim Dividend | None | None | - | - Performance improvement primarily attributed to two factors: (1) increased revenue from production enhancement services in the Chinese market; and (2) increased net reversal of impairment losses on financial assets[2](index=2&type=chunk) [Business Review and Outlook](index=2&type=section&id=Business%20Review%20and%20Outlook) [Geographical Market Analysis](index=2&type=section&id=Geographical%20Market%20Analysis) The Group's growth was entirely driven by the Chinese market, where revenue increased by 80.4% year-on-year, while overseas market revenue declined by 15.1% due to the expiration of a Middle East contract Geographical Market Revenue | Geographical Market | H1 2024 Revenue (million HKD) | H1 2023 Revenue (million HKD) | YoY Change (%) | % of Total Revenue (H1 2024) | | :--- | :--- | :--- | :--- | :--- | | China Market | 147.9 | 82.0 | +80.4% | 89.2% | | Overseas Market | 18.0 | 21.2 | -15.1% | 10.8% | | **Total** | **165.9** | **103.2** | **+60.8%** | **100%** | [China Market](index=3&type=section&id=China%20Market) Strong growth in the Chinese market was primarily contributed by the Southwest region, where revenue surged by 193.0% year-on-year to HKD 114 million, mainly due to increased production enhancement services China Regional Revenue | China Region | H1 2024 Revenue (million HKD) | H1 2023 Revenue (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Southwest | 113.7 | 38.8 | +193.0% | | North | 21.9 | 37.8 | -42.1% | | Northwest | 9.4 | 4.4 | +113.6% | | Other Regions | 2.9 | 1.0 | +190.0% | - Growth in the Southwest region was mainly due to increased production enhancement services; the decline in the Northern region was due to reduced production enhancement and drilling services[5](index=5&type=chunk)[6](index=6&type=chunk) [Overseas Market](index=4&type=section&id=Overseas%20Market) The decline in overseas market revenue was primarily affected by the Middle East region, where a supervision service contract expired in Q1 2024, leading to a 32.7% year-on-year decrease in revenue - Middle East market revenue decreased from **HKD 21.1 million** to **HKD 14.2 million**, a **32.7%** year-on-year reduction, mainly due to the expiration of a supervision service contract[7](index=7&type=chunk) - Other overseas regions' revenue increased from **HKD 0.1 million** to **HKD 3.8 million**, a **3700.0%** year-on-year growth, mainly due to increased supervision and drilling services[8](index=8&type=chunk) [Business Segment Analysis](index=5&type=section&id=Business%20Segment%20Analysis) From a business segment perspective, 'Oilfield Project Tools and Services' is the Group's core and growth engine, with revenue increasing by 81.9% year-on-year, accounting for 89% of total revenue Business Segment Revenue | Business Segment | H1 2024 Revenue (million HKD) | H1 2023 Revenue (million HKD) | YoY Change (%) | % of Total Revenue (H1 2024) | | :--- | :--- | :--- | :--- | :--- | | Oilfield Project Tools and Services | 147.7 | 81.2 | +81.9% | 89.0% | | Consulting Services | 18.2 | 22.0 | -17.3% | 11.0% | | **Total** | **165.9** | **103.2** | **+60.8%** | **100%** | [Oilfield Project Tools and Services](index=6&type=section&id=Oilfield%20Project%20Tools%20and%20Services) Within the 'Oilfield Project Tools and Services' segment, production enhancement services were the absolute dominant force, contributing HKD 137 million in revenue, a 90.3% year-on-year increase, accounting for 92.5% of the segment's revenue Service Type Revenue | Service Type | H1 2024 Revenue (million HKD) | H1 2023 Revenue (million HKD) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Production Enhancement | 136.6 | 71.8 | +90.3% | | Drilling | 8.1 | 7.4 | +9.5% | | Completion | 3.0 | 2.0 | +50.0% | - Growth in production enhancement services primarily came from the Southwest region of China, partially offset by reductions in Northern China[12](index=12&type=chunk) [Consulting Services](index=5&type=section&id=Consulting%20Services) Consulting services revenue decreased by 17.3% year-on-year to HKD 18.2 million, primarily due to the expiration of a supervision service contract in the Middle East market in Q1 2024 - The decrease in consulting services revenue was mainly due to the expiration of a supervision service contract in the Middle East market, partially offset by increased integrated project management services in the Middle East and supervision services in other overseas markets[10](index=10&type=chunk) [Client Analysis](index=7&type=section&id=Client%20Analysis) The Group's client concentration is very high, with the top three clients contributing 96.1% of revenue, and the largest client (Client 1) showing particularly strong growth - The top five clients accounted for **98.7%** of total revenue[15](index=15&type=chunk) Top Clients Revenue | Client | H1 2024 Revenue (million HKD) | % of Total Revenue (%) | | :--- | :--- | :--- | | Client 1 | 115.0 | 69.3% | | Client 2 | 30.3 | 18.3% | | Client 3 | 14.1 | 8.5% | [Human Resources and R&D](index=8&type=section&id=Human%20Resources%20and%20R%26D) To adapt to industry trends, the Group streamlined its organizational structure, reducing total employees by 23.0%, while continuing to invest in R&D to maintain technological leadership - As of June 30, 2024, the Group had **197** employees, a **23.0%** decrease from the end of 2023[16](index=16&type=chunk) - The Group emphasizes intellectual property protection, holding **28** utility model patents and **10** invention patents, with another **5** invention patents pending[17](index=17&type=chunk) [Future Outlook](index=9&type=section&id=Future%20Outlook) Management maintains a cautiously optimistic outlook for the Group, expecting strong demand for oilfield services in H2 2024, and plans to expand existing businesses while exploring diversified investment opportunities - Market demand for oilfield services is expected to remain strong in H2 2024, primarily benefiting from stable international oil prices and China's shale gas consumption policies[18](index=18&type=chunk) - The Group plans to expand existing businesses and seek diversified development, including exploring profitable investment opportunities such as surface geothermal projects[18](index=18&type=chunk) [Financial Review](index=25&type=section&id=Financial%20Review) [Consolidated Statement of Profit or Loss Analysis](index=25&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20Analysis) In H1 2024, the Group achieved an operating profit of HKD 7.6 million, reversing a prior-period loss, primarily due to significant revenue growth and increased net reversal of impairment losses on financial assets - Material costs as a percentage of revenue increased from **12.6%** to **14.3%**, and technical service fees as a percentage of revenue increased from **31.6%** to **42.5%**, both due to the higher proportion of revenue from high-cost production enhancement services[52](index=52&type=chunk)[55](index=55&type=chunk) - Net reversal of impairment losses on financial assets was approximately **HKD 3.7 million**, compared to only **HKD 0.2 million** in the prior period, mainly due to overall improvement in financial asset quality[56](index=56&type=chunk) - Final net loss significantly narrowed to **HKD 0.4 million**, compared to **HKD 18.0 million** in the prior period[61](index=61&type=chunk) [Statement of Financial Position Analysis](index=27&type=section&id=Statement%20of%20Financial%20Position%20Analysis) As of June 30, 2024, the Group's total assets were approximately HKD 694 million, with trade receivables turnover days significantly shortening, while contract assets increased due to higher unbilled work - Net trade receivables decreased by **17.6%** to **HKD 169 million**, with average turnover days decreasing from **365 days** to **206 days**[66](index=66&type=chunk) - Contract assets increased by **31.5%** to **HKD 158 million**, mainly due to increased unbilled work for production enhancement services[67](index=67&type=chunk) - Trade payables turnover days decreased from **889 days** to **426 days**, due to increased material and technical service fees and faster payments[69](index=69&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The Group's liquidity remains tight, with cash and cash equivalents of approximately HKD 29.8 million against total borrowings of HKD 179 million, though the gearing ratio has improved to 42.2% Liquidity Metrics | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 29.8 million HKD | 26.3 million HKD | | Bank and Other Borrowings | 179.2 million HKD | 187.1 million HKD | | Gearing Ratio | 42.2% | 45.3% | [Financial Statements and Notes](index=10&type=section&id=Financial%20Statements%20and%20Notes) [Interim Condensed Consolidated Statement of Comprehensive Income](index=10&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The financial report shows the Group achieved revenue of HKD 166 million in H1 2024, a 60.8% year-on-year increase, with operating activities turning profitable and total loss for the period significantly narrowing Interim Condensed Consolidated Statement of Comprehensive Income | Item (HKD '000) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Revenue | 165,908 | 103,215 | | Operating Profit / (Loss) | 7,636 | (10,747) | | Profit / (Loss) Before Income Tax | 594 | (18,444) | | Loss for the Period | (412) | (17,973) | | Loss Attributable to Owners of the Company | (395) | (17,113) | [Interim Condensed Consolidated Statement of Financial Position](index=12&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were HKD 694 million, total liabilities HKD 501 million, and net assets HKD 193 million, with a current ratio of approximately 1.03 indicating tight liquidity Interim Condensed Consolidated Statement of Financial Position | Item (HKD '000) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | **Total Assets** | **694,056** | **712,011** | | Non-current Assets | 244,989 | 256,384 | | Current Assets | 449,067 | 455,627 | | **Total Liabilities** | **500,948** | **520,856** | | Current Liabilities | 434,524 | 433,123 | | Non-current Liabilities | 66,424 | 87,733 | | **Net Assets** | **193,108** | **191,155** | [Notes to the Financial Statements](index=14&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes disclose key accounting information, including significant uncertainties regarding going concern, detailed segment information, and a significant post-balance sheet litigation matter [Basis of Preparation and Going Concern](index=14&type=section&id=Basis%20of%20Preparation%20and%20Going%20Concern) Although the financial statements are prepared on a going concern basis, the notes explicitly state significant uncertainties due to liquidity risk, with management's plan relying on securing new loans and collecting receivables - As of June 30, 2024, the Group's total current bank and other borrowings were approximately **HKD 115 million**, while cash and cash equivalents were only approximately **HKD 29.79 million**[26](index=26&type=chunk) - Management's response plan includes: (a) securing a **RMB 19.75 million** loan in July 2024; (b) having an unutilized shareholder loan facility of **RMB 30 million**; and (c) associate Star Petrotech repaying approximately **HKD 6.5 million** in loans[27](index=27&type=chunk) - The notes explicitly state that the above circumstances indicate a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern[27](index=27&type=chunk) [Events After the Reporting Period](index=24&type=section&id=Events%20After%20the%20Reporting%20Period) Subsequent to the reporting period, a Group subsidiary was involved in a technical service fee lawsuit, with a first-instance judgment ordering payment of approximately RMB 12.6 million, and the plaintiff has appealed - A subsidiary was sued by a service provider for approximately **RMB 28.9 million** in technical service fees[50](index=50&type=chunk) - The first-instance judgment ordered the defendant to pay approximately **RMB 12.6 million**, but the plaintiff has appealed[50](index=50&type=chunk) - As of the announcement date, approximately **RMB 14.9 million** (approximately **HKD 16.3 million**) across three bank accounts of the defendant has been frozen by the court[50](index=50&type=chunk) [Corporate Governance and Other Matters](index=30&type=section&id=Corporate%20Governance%20and%20Other%20Matters) [Dividends and Audit](index=31&type=section&id=Dividends%20and%20Audit) The Board resolved not to declare an interim dividend for H1 2024, and the unaudited interim condensed consolidated financial information has been reviewed by the Company's Audit Committee - The Board resolved not to declare an interim dividend for H1 2024 (H1 2023: None)[78](index=78&type=chunk) - The unaudited interim financial information for the period has been reviewed by the Audit Committee, comprising three independent non-executive directors[78](index=78&type=chunk)

[Supplemental Announcement Regarding the 2023 Annual Report](index=1&type=section&id=%E6%9C%89%E9%97%9C%E6%88%AA%E8%87%B3%E4%BA%8C%E9%9B%B6%E4%BA%8C%E4%B8%89%E5%B9%B4%E5%8D%81%E4%BA%8C%E6%9C%88%E4%B8%89%E5%8D%81%E4%B8%80%E6%97%A5%E6%AD%A2%E5%B9%B4%E5%BA%A6%E4%B9%8B%E5%B9%B4%E5%A0%B1%E7%9A%84%E8%A3%9C%E5%85%85%E5%85%AC%E5%91%8A) This announcement provides supplementary details on the company's share option scheme for the 2023 annual report [Supplemental Information on Share Option Scheme](index=1&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) This section clarifies details regarding share options granted, their expiration, and the total potential shares issuable under the scheme - The company clarified that **500,000** share options granted on January 10, 2023, were to the then-former company secretary and fully expired in June 2024[2](index=2&type=chunk) Changes in Number of Shares Available for Grant Under Share Option Scheme | Time Point | Number of Share Options Available for Grant | | :--- | :--- | | Beginning of 2023 | 75,073,129 | | End of 2023 | 0 | - The share option scheme expired on February 18, 2023, resulting in **zero** share options available for grant at year-end[2](index=2&type=chunk) - For the fiscal year ended December 31, 2023, the number of shares potentially issuable under all company schemes (share options and awards) represented approximately **4.34%** of the weighted average number of shares outstanding for the year[3](index=3&type=chunk)

Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately HKD 314.8 million, a slight increase of 0.3% compared to HKD 313.8 million in 2022[3]. - The operating loss for the year was HKD 68.5 million, representing a significant increase of 181.8% from a loss of HKD 24.3 million in the previous year[3]. - The net loss attributable to the company's owners was HKD 74.7 million, compared to a loss of HKD 27.5 million in 2022, marking a 171.4% increase[3]. - Basic loss per share for the year was HKD 4.3 cents, up 152.9% from HKD 1.7 cents in 2022[3]. - The total loss for the year was approximately HKD 74.7 million, an increase of about HKD 47.2 million (or approximately 171.6%) from HKD 27.5 million in 2022[52]. - The loss attributable to the company's owners for 2023 was approximately HKD 73.5 million, an increase of about HKD 44.9 million (or approximately 157.0%) from HKD 28.6 million in 2022[53]. Revenue Breakdown - Revenue from the Chinese market decreased by approximately 4.4% to about HKD 266.3 million in 2023, down from HKD 278.6 million in 2022[21]. - Revenue from the overseas market increased by approximately 37.8% to about HKD 48.5 million in 2023, up from HKD 35.2 million in 2022[22]. - Revenue from the Middle East increased by approximately 56.2% to about HKD 47.8 million in 2023, compared to HKD 30.6 million in 2022[27]. - Revenue from consulting services increased by approximately 44.2% to about HKD 51.9 million in 2023, up from HKD 36.0 million in 2022[30]. - Revenue from oilfield project tools and services decreased by approximately 5.4% to about HKD 262.9 million in 2023 from HKD 277.8 million in 2022[29]. - Revenue from drilling services decreased by approximately 18.7% to about HKD 20.4 million in 2023, down from HKD 25.1 million in 2022[32]. - Revenue from completion services plummeted by approximately 98.9% to about HKD 0.1 million in 2023, down from HKD 9.3 million in 2022[34]. Assets and Liabilities - Total assets decreased by 13.5% to HKD 712.0 million from HKD 823.4 million in 2022[4]. - Total liabilities decreased by 7.3% to HKD 520.9 million from HKD 561.7 million in 2022[4]. - The group's property, plant, and equipment amounted to approximately HKD 127.3 million, a decrease of about HKD 36.4 million (or approximately 22.2%) from HKD 163.7 million in 2022[54]. - The group's intangible assets decreased from approximately HKD 85.7 million in 2022 to approximately HKD 26.8 million in 2023, primarily due to a goodwill impairment loss of approximately HKD 58.9 million recognized in 2023[55]. - The group's cash and cash equivalents were approximately HKD 26.3 million, a decrease of about HKD 13.7 million from HKD 40.0 million in 2022[62]. Operational Strategy and Market Outlook - The company anticipates stable market demand for its production enhancement services in China due to consistent international oil prices and supportive national policies[15]. - The company plans to continue marketing and promoting its oilfield services and technologies to enhance market penetration in 2024[16]. - The company expects a significant decline in consulting service scale in the Middle East due to the expiration of a supervisory service contract in Q1 2024, which will not be renewed by the client[16]. Employee and Training - The group employed 256 staff as of December 31, 2023, an increase of approximately 3.2% from 248 employees a year earlier[68]. - A total of 142 training sessions were conducted in 2023, totaling over 9,791 hours, with 224 employees participating[68]. - 88% of employees received training, totaling 9,555 hours, with an average of 37.3 hours per employee, reflecting a 13% increase in training coverage compared to the previous reporting period[167]. - 100% of senior management received training, with an average of 37.6 hours per employee, while 75% of middle management and 87% of frontline employees received training[169]. Environmental, Social, and Governance (ESG) Initiatives - The group emphasizes compliance with ESG regulations, recognizing their impact on long-term sustainability and operational risks[77]. - The company has established ESG-related goals to ensure sustainable operations and long-term business growth, focusing on emissions reduction and energy conservation[82]. - The total greenhouse gas emissions for the reporting period amounted to 12,466.90 tons of CO2 equivalent, a decrease from 13,922.14 tons in 2022, representing a reduction of approximately 10.4%[105][108]. - The company achieved a 16.3% reduction in greenhouse gas emissions intensity per thousand Hong Kong dollars of revenue compared to the 2022 baseline, successfully progressing towards its 10% reduction target by 2032[110]. - The company has implemented measures to prioritize the use of electric pumps over diesel pumps in fracturing operations, enhancing energy efficiency and reducing emissions[112]. - The company has obtained ISO 14001 certification for its environmental management system, demonstrating its commitment to environmental protection[99]. Corporate Governance - The board of directors consists of three executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2023[196]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules and has complied with it during the year[196]. - Continuous professional development for directors is ensured, with all directors participating in training and seminars[198].

Financial Performance - The company's total revenue for the year ended December 31, 2023, was approximately HKD 314.8 million, a slight increase of about 0.3% from HKD 313.8 million in 2022[3] - The net loss attributable to shareholders for the year was approximately HKD 74.7 million, compared to a loss of HKD 27.5 million in 2022, resulting in a basic loss per share of HKD 0.043[3] - The total comprehensive loss for the year ended December 31, 2023, was HKD 72,693,000, compared to a loss of HKD 29,187,000 in 2022, representing an increase in loss of approximately 148.5%[31] - The loss attributable to owners of the company for the year was HKD 73,510,000, compared to a loss of HKD 28,588,000 in the previous year, indicating a significant increase in loss of approximately 157.5%[31] - Basic and diluted loss per share for the year was HKD 8.0 cents, compared to HKD 4.3 cents in 2022, reflecting a 86.0% increase in loss per share[31] - The group reported a loss of approximately HKD 74.7 million for the year, an increase of about HKD 47.2 million (or approximately 171.6%) compared to a loss of HKD 27.5 million in 2022[90] - The loss attributable to the company's owners for 2023 was approximately HKD 73.5 million, up by about HKD 44.9 million (or approximately 157.0%) from HKD 28.6 million in 2022[91] Revenue Breakdown - Revenue from the China market decreased by approximately HKD 12.3 million (or about 4.4%) to HKD 266.3 million, accounting for 84.6% of total revenue[5] - Revenue from the overseas market increased by approximately HKD 13.3 million (or about 37.8%) to HKD 48.5 million, representing 15.4% of total revenue[6] - Revenue from consulting services rose to approximately HKD 51.9 million, an increase of about HKD 15.9 million (or about 44.2%) compared to HKD 36.0 million in 2022[15] - Revenue from oilfield project tools and services decreased by approximately HKD 14.9 million (or about 5.4%) to HKD 262.9 million, primarily due to reduced sales of completion tools in the China market[14] - Revenue from the Middle East increased by approximately HKD 17.2 million (or about 56.2%) to HKD 47.8 million, driven by increased supervisory services[11] - Revenue from the North China region increased by approximately HKD 5.6 million (or about 9.0%) to HKD 67.7 million, mainly due to increased production services[8] - Revenue from the North West China region decreased by approximately HKD 10.8 million (or about 29.6%) to HKD 25.7 million, primarily due to reduced production and drilling services[9] - Revenue from Customer 1 was approximately HKD 166.9 million, down by about HKD 50.4 million (or approximately 23.2%) from HKD 217.3 million in 2022, mainly due to reduced services in Southwestern and Northwestern China[24] - Revenue from Customer 2 increased by approximately HKD 18.7 million (or approximately 38.9%) to HKD 66.8 million in 2023, driven by increased production services in Northern China[24] Operational Highlights - The group completed drilling services for 15 wells in 2023, compared to 14 wells in 2022[18] - The group expects stable market demand for its production enhancement services in China in 2024, despite a significant decline in consulting service scale in the Middle East[28] - Employee count increased by approximately 3.2% to 256 as of December 31, 2023, from 248 in the previous year[25] - Research and development expenses increased to HKD 23.7 million in 2023, up from HKD 15.6 million in 2022[30] Asset and Liability Management - Non-current assets decreased from HKD 370,423,000 in 2022 to HKD 256,384,000 in 2023, a decline of approximately 30.8%[33] - Current assets slightly increased from HKD 452,989,000 in 2022 to HKD 455,627,000 in 2023, showing a marginal growth of about 0.6%[33] - Current liabilities decreased from HKD 427,278,000 in 2022 to HKD 433,123,000 in 2023, an increase of approximately 1.4%[33] - The company's net assets decreased from HKD 261,735,000 in 2022 to HKD 191,155,000 in 2023, a decline of approximately 27.0%[34] - The company reported a significant decrease in intangible assets from HKD 85,656,000 in 2022 to HKD 26,756,000 in 2023, a reduction of approximately 68.8%[33] - The group secured additional loan financing of RMB 46,390,000 from a bank in China to support operational funding for oil and gas projects[50] - The group also obtained a loan of RMB 30,000,000 from a lending company in China, which has not yet been drawn down[50] - The group's total borrowings were approximately HKD 187.1 million, down from HKD 227.4 million in 2022, with 54.5% due within one year[101] - The asset-liability ratio as of December 31, 2023, was approximately 45.3%, compared to 42.2% in 2022[103] Financial Reporting and Compliance - The company has not adopted any new or revised international financial reporting standards that would have a significant impact on the financial statements for the current year[38] - The company is currently evaluating the impact of new international accounting standards that have been issued but are not yet effective, expecting no significant impact on its financial position[43] - The audit committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements for the year[112] - The financial data for the group as of December 31, 2023, has been verified by the auditor, but no audit opinion has been issued[111] Other Financial Metrics - The group recorded a net profit from associates of approximately HKD 8.7 million, compared to HKD 3.6 million in 2022[89] - The group recognized an impairment loss of HKD 58.9 million related to goodwill due to expected non-renewal of certain contracts in 2024[84] - Other income increased to approximately HKD 28.3 million from HKD 2.5 million in 2022, primarily due to gains from the sale of interests in associates and government subsidies[85] - The company reported a net financing cost of HKD 11,545,000 for 2023, up from HKD 6,035,000 in 2022, indicating increased financial burdens[62] - The company reported a net financing income of HKD 3,458,000 for 2023, down from HKD 4,773,000 in 2022, reflecting reduced income from financing activities[62] - The group experienced a significant increase in other income and losses, reporting HKD 28,324,000 for 2023 compared to HKD 2,546,000 in 2022, indicating improved performance in this area[60]

Financial Performance - For the first half of 2023, the company reported revenue of approximately HKD 103.2 million, a 53.8% increase from HKD 67.1 million in the first half of 2022[5] - The loss attributable to the company's owners decreased by approximately 54.6% to about HKD 17.1 million, compared to HKD 37.7 million in the first half of 2022[6] - Revenue for the six months ended June 30, 2023, was HKD 103,215,000, an increase of 54% compared to HKD 67,068,000 in the same period of 2022[97] - The company reported a net loss of approximately HKD 18.0 million, compared to a loss of HKD 37.4 million in the same period of 2022[44] - The company recorded a net loss of approximately HKD 17,973,000 for the six months ended June 30, 2023[110] - The total comprehensive loss for the period was HKD 21,174,000, compared to HKD 40,778,000 in the same period of 2022[99] - Basic and diluted loss per share was HKD 1.0, an improvement from HKD 2.2 in the previous year[99] Revenue Breakdown - Revenue from the Chinese market increased by approximately 61.1% to HKD 82.0 million, up from HKD 50.9 million in the first half of 2022[10] - Revenue from the overseas market rose by approximately 30.9% to HKD 21.2 million, compared to HKD 16.2 million in the first half of 2022[10] - Revenue from enhanced oil recovery services increased by approximately 72.2% to HKD 71.8 million, driven by increased services in Northern China and Southwest China[30] - The revenue from oilfield project tools and services in the first half of 2023 was approximately HKD 81.2 million, an increase of about HKD 30.1 million or approximately 58.9% compared to HKD 51.1 million in the same period of 2022[17] - The revenue from consulting services in the first half of 2023 was approximately HKD 22.0 million, an increase of about HKD 6.0 million or approximately 37.5% compared to HKD 16.0 million in the same period of 2022[18] - The revenue from production enhancement services was approximately HKD 71.8 million in the first half of 2023, an increase of about HKD 30.1 million or approximately 72.2% compared to HKD 41.7 million in the same period of 2022[21] Operational Highlights - The increase in revenue was driven by strong demand for enhanced oil recovery services in shale gas projects in China due to favorable national policies[5] - The company primarily engaged in enhanced oil recovery services, drilling services, consulting services, and related product trading activities during the first half of 2023[5] - The company recorded an operating loss of approximately HKD 10.7 million, a significant improvement from a loss of HKD 29.1 million in the first half of 2022[40] - R&D expenses increased by approximately 102.0% to HKD 10.1 million, reflecting greater investment in gas hydrate technology[35] Market and Regional Performance - In the Chinese Southwest region, revenue increased by approximately 74.0% to HKD 38.8 million, up from HKD 22.3 million in the first half of 2022[11] - Revenue from the Chinese Northern region doubled to HKD 37.8 million, a 100.0% increase from HKD 18.9 million in the first half of 2022[12] - Revenue from the Middle East increased by approximately 44.5% to HKD 21.1 million, up from HKD 14.6 million in the first half of 2022[14] Financial Position - The company's property, plant, and equipment decreased by approximately 14.2% to HKD 140.5 million, mainly due to depreciation and currency depreciation[46] - The equity in joint ventures was approximately HKD 68.1 million, down from HKD 73.7 million, primarily due to losses from a joint venture and currency depreciation[47] - As of June 30, 2023, the group's inventory was approximately HKD 13.5 million, an increase of about HKD 0.6 million (or approximately 4.7%) compared to HKD 12.9 million on December 31, 2022[52] - Trade receivables as of June 30, 2023, were approximately HKD 195.9 million, a decrease of about HKD 24.8 million (or approximately 11.2%) from HKD 220.7 million on December 31, 2022[53] - Cash and cash equivalents were approximately HKD 22.2 million as of June 30, 2023, a decrease of about HKD 17.8 million from HKD 40.0 million on December 31, 2022[57] Shareholder Information - As of June 30, 2023, Mr. Wang Jinlong holds 488,920,138 shares, representing approximately 28.32% of the company's equity[81] - Major shareholders include Junze, which holds 488,920,138 shares, representing approximately 28.32% of the issued share capital[84] - The company has a total of 826,189,898 shares held in trust by HSBC International Trustee, representing approximately 47.85%[84] - The company reported a significant shareholder concentration, with Mr. Li holding 826,189,898 shares, representing 47.85% of the issued share capital[86] Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to review the unaudited interim financial information[79] - The company has complied with the corporate governance code in all applicable aspects during the first half of 2023[79] - The company is actively managing its shareholder base and ensuring compliance with securities regulations[87] Future Outlook - The company remains cautiously optimistic about future market demand for its oilfield services and plans to explore profitable investment opportunities[29] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[96] - The company’s ability to continue as a going concern is subject to significant uncertainties, including the ability to generate sufficient financing and operational cash flow[115]

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。 PETRO-KING OILFIELD SERVICES LIMITED 百勤油田服務有限公司 （於英屬維爾京群島註冊成立的有限公司） 2178 （股份代號： ） 截至二零二三年六月三十日止 六個月的中期業績公告 百勤油田服務有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此呈列本公司及 其附屬公司（統稱「本集團」、「我們」或「我們的」）截至二零二三年六月三十日止六 個月（「二零二三年上半年」）的未經審核綜合業績，連同截至二零二二年六月三十 日止六個月（「二零二二年上半年」）的比較數字。 業務回顧 二零二三年上半年的本集團收益及虧損分別為約103.2百萬港元（二零二二年上半 年：67.1百萬港元）及約18.0百萬港元（二零二二年上半年：約37.4百萬港元）。二零 二三年上半年的本公司擁有人應佔每股基本虧損為約1.0港仙（二零二二年上半 年：約2.2港仙）。董事會議決不派付二零二三年上半年中期股息 ...

Financial Performance - The company's revenue for the year ended December 31, 2022, was approximately HKD 313.8 million, representing a 91.4% increase compared to HKD 163.9 million in 2021[5] - The operating loss decreased by 69.8% to HKD 24.3 million in 2022 from HKD 80.5 million in 2021[5] - The company reported a basic loss per share of HKD 1.7, a 63.8% improvement from HKD 4.7 in 2021[5] - The group reported a loss of approximately HKD 27.5 million for the year, a reduction of about HKD 67.1 million (or approximately 70.9%) from a loss of HKD 94.6 million in 2021[57] - The loss attributable to the company's owners for 2022 was approximately HKD 28.6 million, down by about HKD 65.9 million (or approximately 69.7%) from HKD 94.5 million in 2021[58] Revenue Breakdown - Revenue from the China market rose by approximately 108.1% from about HKD 133.9 million in 2021 to approximately HKD 278.6 million in 2022, primarily due to increased production services[25] - Revenue from the overseas market increased by approximately 16.9% from about HKD 30.1 million in 2021 to approximately HKD 35.2 million in 2022, driven by increased supervisory and production services in the Middle East[26] - Revenue from oilfield project tools and services was approximately HKD 277.8 million in 2022, a 104.4% increase from about HKD 135.9 million in 2021[34] - Revenue from consulting services increased by approximately 28.1% from about HKD 28.1 million in 2021 to approximately HKD 36.0 million in 2022[35] - In 2022, the company's revenue from production enhancement services was approximately HKD 243.4 million, an increase of about HKD 147.1 million (or approximately 152.8%) compared to HKD 96.3 million in 2021[36] Assets and Liabilities - The total assets increased by 14.9% to HKD 823.4 million in 2022 from HKD 716.5 million in 2021[6] - The total liabilities rose by 31.9% to HKD 561.7 million in 2022 from HKD 425.8 million in 2021[6] - The current ratio for 2022 was 1.06, slightly down from 1.11 in 2021[7] - The debt-to-equity ratio increased to 42.2% in 2022 from 35.5% in 2021[7] Market Demand and Strategy - The company experienced strong market demand for shale gas field production enhancement services in China due to robust international oil prices and supportive national policies[16] - The group plans to continue marketing and promoting its oilfield services and technologies to enhance market penetration in 2023[19] - The group aims to explore other profitable investment opportunities to diversify its business, including underground thermal energy projects[19] - The group maintains a cautiously optimistic outlook for its future performance, supported by stable international oil prices and strong demand for its services[19] Employee and Training - The employee count increased to 248 as of December 31, 2022, representing a growth of approximately 16.4% compared to 213 employees in the previous year[73] - The company conducted 108 training sessions totaling over 8,328 hours, with 186 employees participating in these courses in 2022[72] - 75% of employees received training during the reporting period, totaling 8,328 hours, with an average of 44.8 hours per employee[154] - 42% of senior management received training, averaging 105.6 hours per employee, while 38% of middle management received an average of 93.2 hours[155] Environmental and Sustainability Efforts - The company has set several sustainability-related goals, including emission reduction and energy conservation targets, to ensure sustainable operations and long-term business growth[85] - The company generated a total greenhouse gas emission of 13,922.14 tons of CO2 equivalent during the reporting period, a significant increase from 1,864.70 tons in the previous year[102] - The company has implemented various environmental management systems, including ISO 14001 certification, to mitigate potential environmental impacts[98] - The company is committed to supporting China's goal of achieving carbon neutrality by 2060 and has not received complaints regarding environmental pollution during the reporting period[121] Corporate Governance - The group has a significant shareholder, Junze Group Limited, which holds approximately 28.32% of the issued share capital, equating to 488,920,138 shares[178] - The board consists of 2 executive directors, 2 non-executive directors, and 3 independent non-executive directors, ensuring a diverse governance structure[175] - The company emphasizes the importance of board diversity as a key element in achieving strategic goals and sustainable development[188] - The group has implemented a whistleblowing policy to allow employees to report unethical behavior confidentially[171] Health and Safety - The company has a commitment to employee health and safety, achieving ISO 45001 certification for occupational health and safety management[143] - There were no reported fatalities due to work-related incidents in the last three reporting years, and only one work-related injury occurred during the reporting period[150][149] - All employees are required to undergo health checks before employment and receive mandatory annual health checks[145]