Group 1 - The core viewpoint of the article highlights the growth in China's coalbed methane production, with a reported output of 1.56 billion cubic meters in August 2025, reflecting a year-on-year increase of 6.8% [1] - Cumulative coalbed methane production from January to August 2025 reached 12.06 billion cubic meters, also showing a cumulative growth of 6.8% [1] - The article references a report by Zhiyan Consulting, which provides an in-depth analysis of the coalbed methane industry in China from 2026 to 2032, indicating ongoing research and strategic insights into the sector [1] Group 2 - Listed companies in the coalbed methane sector include Blue Flame Holdings (000968), Guo Xin Energy (600617), Tianhao Energy (300332), Xinjin Power (300157), Zhun Oil Co., Ltd. (002207), Shanxi Natural Gas (002267), Shanxi Coking Coal (600740), Huayang Co., Ltd. (600348), and China Petroleum (601857) [1] - The data source for the production statistics is the National Bureau of Statistics, indicating the reliability of the information presented [1] - Zhiyan Consulting is recognized as a leading industry consulting firm in China, specializing in comprehensive industry research reports and tailored consulting services [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國煤層氣集團有限公司 呈交日期: 2025年10月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08270 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,500,000,000 | HKD | | 0.08 | HKD | | 200,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,500,000,000 | HKD | | 0.08 | HKD | | 200,000,000 | 本月底法定/ ...

Core Viewpoint - The report highlights the growth and future prospects of China's coalbed methane industry, with specific data on production increases and market analysis [1] Industry Summary - According to the National Bureau of Statistics, China's coalbed methane production reached 1.53 billion cubic meters in May 2025, marking a year-on-year increase of 4.6% [1] - From January to May 2025, the cumulative production of coalbed methane in China was 7.33 billion cubic meters, reflecting a cumulative growth of 10% [1] - The report is part of a comprehensive analysis provided by Zhiyan Consulting, which specializes in industry research and market insights [1] Company Summary - Listed companies in the coalbed methane sector include Blue Flame Holdings (000968), Guo Xin Energy (600617), Tianhao Energy (300332), Xinjin Power (300157), Zhun Oil Co., Ltd. (002207), Shanxi Natural Gas (002267), Shanxi Coking Coal (600740), Huayang Co., Ltd. (600348), and China Petroleum (601857) [1] - The report indicates a growing interest in investment opportunities within these companies as the coalbed methane market expands [1]

Core Insights - The article discusses the growth and future prospects of China's coalbed methane industry, highlighting a projected production increase and relevant statistics [1] Industry Overview - According to the National Bureau of Statistics, China's coalbed methane production is expected to reach 1.55 billion cubic meters by July 2025, representing a year-on-year growth of 5% [1] - From January to July 2025, the cumulative production of coalbed methane in China is anticipated to be 10.5 billion cubic meters, with a cumulative growth rate of 6.8% [1] Companies Mentioned - The article lists several companies involved in the coalbed methane sector, including Blue Flame Holdings (000968), Guo Xin Energy (600617), Tianhao Energy (300332), Xinjin Power (300157), Zhun Oil Co., Ltd. (002207), Shanxi Natural Gas (002267), Shanxi Coking Coal (600740), Huayang Co., Ltd. (600348), and China Petroleum (601857) [1] Research Report - The insights are derived from a report by Zhiyan Consulting titled "2025-2031 Analysis Report on the Supply and Demand Scale and Future Prospects of China's Coalbed Methane Industry" [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國煤層氣集團有限公司 呈交日期: 2025年9月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08270 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,500,000,000 | HKD | | 0.08 | HKD | | 200,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,500,000,000 | HKD | | 0.08 | HKD | | 200,000,000 | (A). 股份 ...

[GEM Market Characteristics](index=2&type=section&id=GEM%20Market%20Characteristics) The GEM market provides a listing platform for high-investment-risk companies, suitable for professional and sophisticated investors [Characteristics of the Growth Enterprise Market](index=2&type=section&id=Characteristics%20of%20the%20Growth%20Enterprise%20Market) The HKEX GEM market positions itself as a listing platform for high-investment-risk companies, suitable for professional and sophisticated investors, with securities potentially facing higher market volatility and no guarantee of high liquidity - The GEM market is positioned as a listing platform for high-investment-risk companies, suitable for professional and sophisticated investors[2](index=2&type=chunk)[7](index=7&type=chunk) - GEM securities may be subject to significant market volatility and do not guarantee high liquidity[3](index=3&type=chunk)[7](index=7&type=chunk) [CORPORATE INFORMATION](index=3&type=section&id=CORPORATE%20INFORMATION) This section details the company's governance structure, key personnel, and registered offices [BOARD OF DIRECTORS](index=3&type=section&id=BOARD%20OF%20DIRECTORS) The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, with Mr Wang Zhong Sheng serving as Chairman - The Board of Directors includes executive directors Wang Zhong Sheng (Chairman), Chang Jian, Wang Chen, Chen Yikai, Liang Zhihao; non-executive director Li Siliang; and independent non-executive directors Liu Zhenbang, Wang Zhihe, and Xu Yuanjian[10](index=10&type=chunk)[11](index=11&type=chunk) [COMMITTEES](index=3&type=section&id=COMMITTEES) The company has an Audit Committee, Nomination Committee, and Remuneration Committee, each chaired by an independent non-executive director - The Audit Committee is chaired by Mr Liu Zhenbang, with members including Mr Wang Zhihe and Mr Xu Yuanjian[10](index=10&type=chunk)[11](index=11&type=chunk) - The Nomination Committee is chaired by Mr Wang Zhihe, with members including Mr Liu Zhenbang, Mr Xu Yuanjian, and Ms Li Siliang (appointed on July 2, 2025)[10](index=10&type=chunk)[11](index=11&type=chunk) - The Remuneration Committee is chaired by Mr Liu Zhenbang, with members including Mr Wang Zhihe and Mr Xu Yuanjian[12](index=12&type=chunk)[13](index=13&type=chunk) [COMPANY SECRETARY & COMPLIANCE OFFICER](index=4&type=section&id=COMPANY%20SECRETARY%20%26%20COMPLIANCE%20OFFICER) Mr Xie Jinli serves as Company Secretary, and Mr Wang Zhong Sheng serves as Compliance Officer and one of the authorized representatives - The Company Secretary is Mr Xie Jinli[12](index=12&type=chunk)[13](index=13&type=chunk) - The Compliance Officer is Mr Wang Zhong Sheng[12](index=12&type=chunk)[13](index=13&type=chunk) - The Authorized Representatives are Mr Wang Zhong Sheng and Mr Xie Jinli[12](index=12&type=chunk)[13](index=13&type=chunk) [REGISTERED & PRINCIPAL OFFICES](index=4&type=section&id=REGISTERED%20%26%20PRINCIPAL%20OFFICES) The company's registered office is in Bermuda, with its principal place of business and head office located in Tsuen Wan, Hong Kong - Hong Kong Head Office and Principal Place of Business: Unit 20, 19/F, Tsuen Fat Commercial Building, 362 Sha Tsui Road, Tsuen Wan, Hong Kong[12](index=12&type=chunk)[13](index=13&type=chunk) - Registered Office: Clarendon House, 2 Church Street, Hamilton HM11, Bermuda[12](index=12&type=chunk)[13](index=13&type=chunk) [REGISTRARS & AUDITOR](index=5&type=section&id=REGISTRARS%20%26%20AUDITOR) The company's principal share registrar is in Bermuda, its Hong Kong branch is Tricor Tengis Limited, and its auditor is Zhong Rui He Xin Certified Public Accountants Limited - Principal Share Registrar: Codan Services Limited[14](index=14&type=chunk) - Hong Kong Share Registrar: Tricor Tengis Limited[15](index=15&type=chunk) - Auditor: Zhong Rui He Xin Certified Public Accountants Limited[15](index=15&type=chunk) - Principal Banker: Bank of China (Hong Kong) Limited[15](index=15&type=chunk) - Stock Code: 08270[15](index=15&type=chunk) [FINANCIAL HIGHLIGHTS](index=6&type=section&id=FINANCIAL%20HIGHLIGHTS) This section provides an overview of the company's key financial performance indicators [Key Financial Performance](index=6&type=section&id=Key%20Financial%20Performance) For the six months ended June 30, 2025, the company's revenue significantly decreased by **52.1%** to **RMB 57.5 million**, resulting in a loss attributable to shareholders of **RMB 11.1 million** and a loss per share of **RMB 2.85 cents**, with no dividend recommended Key Financial Data for Interim 2025 | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 57,520 | 120,057 | -52.1% | | Loss attributable to shareholders | (11,116) | (4,113) | 170.3% (Loss widened) | | Loss per share | 2.85 cents | 1.05 cents | 171.4% (Loss widened) | | Dividend | Not recommended | Nil | - | [CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the company's condensed consolidated income, comprehensive income, financial position, cash flow, and equity statements [CONDENSED CONSOLIDATED INCOME STATEMENT](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20INCOME%20STATEMENT) For the six months ended June 30, 2025, the company experienced a significant decline in revenue, leading to reduced gross profit, increased administrative expenses, and an expanded loss for the period of **RMB 11.116 million** Condensed Consolidated Income Statement (For the six months ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 57,520 | 120,057 | -52.1% | | Cost of sales | (49,147) | (105,362) | -53.3% | | Gross profit | 8,373 | 14,695 | -43.1% | | Other income and gains or losses | 1,046 | 85 | 1130.6% | | Selling and distribution costs | (2,038) | (1,959) | 4.0% | | Administrative and other expenses | (19,096) | (14,687) | 30.0% | | Finance costs | (511) | (463) | 10.4% | | Loss before taxation | (12,226) | (2,329) | 424.9% (Loss widened) | | Income tax credit/(expense) | 1,110 | (1,784) | - | | Loss for the period | (11,116) | (4,113) | 170.3% (Loss widened) | | Basic loss per share | (2.85) cents | (1.05) cents | 171.4% (Loss widened) | [CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) For the six months ended June 30, 2025, the company's loss for the period was **RMB 11.116 million**, which, combined with exchange differences on foreign currency translation, resulted in an expanded total comprehensive loss of **RMB 12.036 million** Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Loss for the period | (11,116) | (4,113) | 170.3% (Loss widened) | | Exchange differences on translation of financial statements of foreign entities | (920) | (718) | 28.1% (Loss widened) | | Total comprehensive loss for the period | (12,036) | (4,831) | 149.1% (Loss widened) | [CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2025, the company's total assets slightly increased, but net current liabilities expanded, leading to a decrease in net assets and total equity Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 252,629 | 237,193 | 6.59% | | Current assets | 90,323 | 90,556 | -0.26% | | **Total assets** | **342,952** | **327,749** | **4.64%** | | Current liabilities | 229,121 | 201,725 | 13.58% | | Net current liabilities | (138,798) | (111,169) | 24.85% (Liabilities widened) | | Non-current liabilities | 2,815 | 2,972 | -5.28% | | **Net assets** | **111,016** | **123,052** | **-9.78%** | | **Total equity** | **111,016** | **123,052** | **-9.78%** | [CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, the company experienced reduced cash inflow from operating activities and a shift from inflow to outflow in financing activities, resulting in a net decrease in cash and bank balances Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Cash inflow from operating activities | 4,482 | 8,623 | -48.02% | | Cash outflow from investing activities | (178) | (5,567) | -96.80% (Outflow decreased) | | Cash (outflow)/inflow from financing activities | (5,332) | 9,557 | - (Shift from inflow to outflow) | | Net (decrease)/increase in cash and bank balances | (1,028) | 12,613 | - (Shift from increase to decrease) | | Cash and bank balances (end of period) | 47,456 | 58,057 | -18.26% | [CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY](index=13&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) For the six months ended June 30, 2025, the company's equity attributable to equity holders decreased from **RMB 127.269 million** at the beginning of the year to **RMB 115.233 million** due to loss for the period and exchange differences Condensed Consolidated Statement of Changes in Equity (As of June 30) | Metric | Jan 1, 2025 (RMB thousands) | Loss for the period (RMB thousands) | Other comprehensive expense (RMB thousands) | June 30, 2025 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Equity attributable to equity holders of the Company | 127,269 | (11,116) | (920) | 115,233 | | Non-controlling interests | (4,217) | – | – | (4,217) | | **Total equity** | **123,052** | **(11,116)** | **(920)** | **111,016** | [NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=14&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed notes on the basis of financial statement presentation, application of new standards, revenue, taxation, and other financial items [Basis of presentation of financial statements](index=14&type=section&id=Basis%20of%20presentation%20of%20financial%20statements) The unaudited financial statements are prepared in accordance with generally accepted accounting principles in Hong Kong and reviewed by the Audit Committee, with the Group's primary business activities conducted in RMB - The financial statements are prepared in accordance with generally accepted accounting principles in Hong Kong and accounting standards issued by the Hong Kong Institute of Certified Public Accountants, presented under the historical cost convention[25](index=25&type=chunk)[28](index=28&type=chunk) - The unaudited consolidated results for the six months ended June 30, 2025, have been reviewed by the company's Audit Committee[26](index=26&type=chunk)[28](index=28&type=chunk) - The Group primarily operates in China, with business activities mainly conducted in RMB, hence the results are presented in RMB[27](index=27&type=chunk)[28](index=28&type=chunk) [Application of New and Revised Hong Kong Financial Reporting Standards](index=15&type=section&id=Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The application of new and revised Hong Kong Financial Reporting Standards had no significant impact on the Group's financial performance or position this period, but the Group is still assessing the impact of future new standards - The application of new and revised Hong Kong Financial Reporting Standards had no significant impact on the Group's financial performance and position this period[29](index=29&type=chunk)[33](index=33&type=chunk) - The Group is assessing the potential impact of new and revised standards, amendments, or interpretations not yet effective on future operating results and financial position[31](index=31&type=chunk)[33](index=33&type=chunk) [Revenue and segment information](index=15&type=section&id=Revenue%20and%20segment%20information) The company's main businesses are liquefied coalbed methane production and sales, and pipeline natural gas sales; for the six months ended June 30, 2025, liquefied coalbed methane sales significantly decreased, while pipeline natural gas sales increased, but total revenue still fell by **52.1%** year-on-year - The company's main businesses are liquefied coalbed methane production and sales (including providing coalbed methane liquefaction processing services) and pipeline natural gas sales[32](index=32&type=chunk)[34](index=34&type=chunk) Revenue Composition (For the six months ended June 30) | Revenue Category | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Liquefied coalbed methane sales | 37,228 | 108,150 | -65.6% | | Pipeline natural gas sales | 20,292 | 11,907 | 70.4% | | **Total Revenue** | **57,520** | **120,057** | **-52.1%** | | Bank deposit interest income | 31 | 8 | 287.5% | | Other income | 1,015 | 77 | 1218.2% | | **Total other income and gains or losses** | **1,046** | **85** | **1130.6%** | - The Group's revenue and assets primarily derive from and relate to its liquefied coalbed methane business in China, with other segments being immaterial, thus no geographical segment information is presented[35](index=35&type=chunk)[36](index=36&type=chunk) [Loss before taxation](index=17&type=section&id=Loss%20before%20taxation) For the six months ended June 30, 2025, the company's loss before taxation was primarily influenced by increased staff costs and decreased depreciation expenses Loss Before Taxation Composition (For the six months ended June 30) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Staff costs (including directors' emoluments) | 12,981 | 10,819 | 19.99% | | Depreciation of property, plant and equipment | 7,077 | 14,543 | -51.34% | [Income tax](index=18&type=section&id=Income%20tax) The company is not subject to profits tax in Hong Kong, while its Chinese subsidiaries are subject to a **25%** corporate income tax rate, and an income tax credit was recorded for the current period - Hong Kong profits tax is calculated at **16.5%**, but the Group was not subject to Hong Kong profits tax for this interim period[40](index=40&type=chunk)[43](index=43&type=chunk) - Chinese subsidiaries are subject to a corporate income tax rate of **25%**[41](index=41&type=chunk)[44](index=44&type=chunk) - There were no significant unprovided deferred taxes for this interim period[42](index=42&type=chunk)[44](index=44&type=chunk) [Dividends](index=19&type=section&id=Dividends) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any interim dividend for this interim period (2024 corresponding period: nil)[46](index=46&type=chunk)[47](index=47&type=chunk) [Loss per share](index=19&type=section&id=Loss%20per%20share) For the six months ended June 30, 2025, the company's basic loss per share was **RMB 2.85 cents**, an increase from the prior year, with no diluted loss per share presented Loss Per Share Calculation (For the six months ended June 30) | Metric | 2025 (RMB thousands/share) | 2024 (RMB thousands/share) | | :--- | :--- | :--- | | Loss attributable to equity holders of the Company | (11,116) | (4,113) | | Weighted average number of ordinary shares used in calculating basic loss per share (thousands of shares) | 390,451 | 390,451 | | Basic loss per share | (2.85) cents | (1.05) cents | - No diluted loss per share is presented as there were no potential dilutive ordinary shares for the quarters and six-month periods ended June 30, 2025, and June 30, 2024[50](index=50&type=chunk)[52](index=52&type=chunk) [Additions and disposals of property, plant and equipment](index=20&type=section&id=Additions%20and%20disposals%20of%20property%2C%20plant%20and%20equipment) During this interim period, the Group acquired property, plant and equipment totaling approximately **RMB 23.045 million**, a significant increase from the prior year, with no material disposals - During this interim period, the Group acquired property, plant and equipment of approximately **RMB 23,045,000** (2024 corresponding period: approximately **RMB 1,419,000**)[51](index=51&type=chunk)[53](index=53&type=chunk) - There were no major disposals during this interim period (2024 corresponding period: nil)[51](index=51&type=chunk)[53](index=53&type=chunk) [Trade and other receivables](index=20&type=section&id=Trade%20and%20other%20receivables) As of June 30, 2025, the Group's total trade and other receivables increased to **RMB 34.170 million**, with a significant rise in trade receivables and a notable increase in receivables within one month Trade and Other Receivables (As of June 30) | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Trade receivables | 4,180 | 828 | 404.83% | | Prepayments and other receivables | 26,365 | 23,298 | 13.16% | | Other recoverable taxes | 3,625 | 4,464 | -18.79% | | **Total** | **34,170** | **28,590** | **19.52%** | Ageing Analysis of Trade Receivables and Bills Receivable (By invoice date, as of June 30) | Ageing | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 3,639 | 374 | | After 1 month but within 3 months | – | 90 | | After 3 months but within 6 months | 537 | 90 | | After 6 months but within 12 months | – | 270 | | After 12 months | 4 | 4 | | **Total** | **4,180** | **828** | [Trade and other payables](index=22&type=section&id=Trade%20and%20other%20payables) As of June 30, 2025, the Group's total trade and other payables increased to **RMB 197.618 million**, driven by a significant rise in accrued expenses and other payables, with a notable increase in trade payables due after 12 months Trade and Other Payables (As of June 30) | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Trade payables | 40,431 | 35,440 | 14.08% | | Accrued expenses and other payables | 156,616 | 124,328 | 25.97% | | Other taxes payable | 571 | 640 | -10.80% | | **Total** | **197,618** | **160,408** | **23.20%** | Ageing Analysis of Trade Payables (By invoice date, as of June 30) | Ageing | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 month | 1,705 | 7,921 | | After 1 month but within 3 months | 5,781 | 26,041 | | After 3 months but within 6 months | 2,917 | 88 | | After 6 months but within 12 months | 415 | 173 | | After 12 months | 29,613 | 1,217 | | **Total** | **40,431** | **35,440** | [Bank and other borrowings](index=23&type=section&id=Bank%20and%20other%20borrowings) As of June 30, 2025, the Group's total bank and other borrowings amounted to **RMB 20.400 million**, a decrease from the end of 2024, primarily consisting of secured bank loans and unsecured other loans due within one year Bank and Other Borrowings (As of June 30) | Borrowing Type | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Secured bank loans repayable within 1 year or on demand | 10,000 | 13,000 | -23.08% | | Unsecured other loans repayable within 1 year or on demand | 10,400 | 10,400 | 0.00% | | **Total** | **20,400** | **23,400** | **-12.82%** | - Secured bank loans bear interest at annual rates ranging from **3.1%** to **3.45%**[63](index=63&type=chunk) - Unsecured other loans refer to loans payable to non-controlling shareholders of Chinese subsidiaries, bearing interest at a fixed annual rate of **4.35%**[63](index=63&type=chunk) [Share capital](index=24&type=section&id=Share%20capital) As of June 30, 2025, the company's authorized and issued and fully paid share capital remained unchanged at **2,500,000 thousand shares** and **390,451 thousand shares**, respectively Share Capital Composition (As of June 30) | Share Capital Type | June 30, 2025 Number of Shares (thousands) | June 30, 2025 Total Par Value (RMB thousands) | Dec 31, 2024 Number of Shares (thousands) | Dec 31, 2024 Total Par Value (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Authorized share capital | 2,500,000 | 174,064 | 2,500,000 | 174,064 | | Issued and fully paid share capital | 390,451 | 26,305 | 390,451 | 26,305 | [Commitments](index=24&type=section&id=Commitments) As of June 30, 2025, the Group's contracted but unprovided capital expenditure in the financial statements amounted to **RMB 8.806 million**, primarily for the acquisition of property, plant and equipment and construction in progress Capital Commitments (As of June 30) | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Capital expenditure contracted but not provided for in the financial statements | 8,806 | 15,636 | -43.70% | [MANAGEMENT DISCUSSION AND ANALYSIS](index=25&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section discusses the company's financial performance, business operations, liquidity, and future outlook [FINANCIAL REVIEW](index=25&type=section&id=FINANCIAL%20REVIEW) For this interim period, the Group's consolidated turnover decreased by **52.1%** year-on-year to **RMB 57.5 million**, resulting in a loss attributable to shareholders of approximately **RMB 11.1 million**, primarily due to the suspension of liquefied coalbed methane production for upgrades and increased administrative expenses Financial Performance Overview (For the six months ended June 30) | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Consolidated turnover | 57.5 | 120.1 | -52.1% | | Loss attributable to shareholders | 11.1 | 4.1 | 170.7% (Loss widened) | - The decrease in revenue was primarily due to a subsidiary suspending liquefied coalbed methane production in May 2025 for comprehensive renovation and upgrade of its liquefaction machinery and equipment[69](index=69&type=chunk)[71](index=71&type=chunk) - Administrative expenses increased from **RMB 14.6 million** to **RMB 19.1 million**, mainly driven by the expansion of the Board of Directors (an increase of approximately **RMB 2.0 million** in directors' emoluments) and increased R&D costs for newly established wholly-owned subsidiaries[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk)[74](index=74&type=chunk) [BUSINESS REVIEW AND DEVELOPMENT PROSPECTS](index=26&type=section&id=BUSINESS%20REVIEW%20AND%20DEVELOPMENT%20PROSPECTS) The Group continues to develop gas field blocks, increasing coalbed methane well numbers, but liquefied business production is suspended for technical upgrades due to equipment wear; market sales are affected by the economic environment, showing a downward trend in prices, while the Group focuses on upstream coalbed methane exploration and seeks financing for drilling projects - Huiyang New Energy holds interests in coalbed methane assets in Shanxi Province, China, with the Yangcheng area covering approximately **96 square kilometers**, primarily developing coal seams No 3 and No 15[73](index=73&type=chunk)[75](index=75&type=chunk) Coalbed Methane Asset Reserve Changes (As of June 30) | Reserve Type | June 30, 2025 (billion cubic feet) | March 31, 2012 (billion cubic feet) | | :--- | :--- | :--- | | Original gas-in-place for all blocks | 193.6 | 272.4 | | Proved (1P) net reserves | 108.9 | 3.5 | | Proved plus probable (2P) net reserves | 154.7 | 27.7 | | Proved plus probable plus possible (3P) net reserves | 193.6 | 205.0 | - As of June 30, 2025, the Group had completed surface construction and drilling for **235** coalbed methane wells, with **170** wells in production and stable operation[84](index=84&type=chunk)[86](index=86&type=chunk) - Wholly-owned subsidiary Shuntai Company suspended liquefied coalbed methane production on May 18, 2025, for comprehensive renovation and upgrade of its liquefaction machinery and equipment, with an average daily production of approximately **162,000 cubic meters** in Q1 2025[85](index=85&type=chunk)[87](index=87&type=chunk) - Marketing and sales business systems and strategies remained largely consistent, but sales prices showed a downward trend due to the overall economic environment, impacting sales performance[88](index=88&type=chunk)[90](index=90&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=30&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, the Group's net assets were approximately **RMB 111.016 million**, with cash and bank balances of approximately **RMB 47.456 million**, and a capital-to-debt ratio of approximately **17.70%**, with plans to accelerate natural gas drilling projects through financing Liquidity Overview (As of June 30) | Metric | June 30, 2025 (RMB thousands) | | :--- | :--- | | Net assets | 111,016 | | Cash and bank balances | 47,456 | | Capital-to-debt ratio | 17.70% | - The Group adopts a prudent financial and risk management strategy, avoiding high leverage financing arrangements[89](index=89&type=chunk)[91](index=91&type=chunk) - The Group plans to accelerate natural gas drilling projects once sufficient funding is secured in the future (whether through internal cash flow or financing)[92](index=92&type=chunk)[94](index=94&type=chunk) - Apart from planned investments in upstream coalbed methane exploration and extraction, the Group has no other plans for acquisitions, investments, disposals, or scaling down existing businesses[92](index=92&type=chunk)[94](index=94&type=chunk) [Interim dividend](index=31&type=section&id=Interim%20dividend) The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any interim dividend for this interim period (2024 corresponding period: nil)[93](index=93&type=chunk)[95](index=95&type=chunk) [Employees](index=32&type=section&id=Employees) As of June 30, 2025, the Group employed **236** staff, with staff costs of approximately **RMB 12.981 million**, and remuneration policy primarily based on individual performance Employee Composition and Costs (As of June 30) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total employees | 236 persons | - | | R&D personnel | 23 persons | - | | Engineering and customer service personnel | 122 persons | - | | Administrative personnel | 86 persons | - | | Marketing and sales personnel | 5 persons | - | | Staff costs (including directors' emoluments) | RMB 12,981,000 | RMB 10,819,000 | - The Group's remuneration and bonus policy is primarily determined by individual employee performance, with continuous provision of professional development and training opportunities[96](index=96&type=chunk)[99](index=99&type=chunk) [Risk in Foreign Exchange](index=32&type=section&id=Risk%20in%20Foreign%20Exchange) Most of the Group's transactions are denominated in their respective functional currencies, and the directors consider foreign exchange risk to be immaterial - Most of the revenue received and expenses incurred by the Group's entities are denominated in their respective functional currencies[97](index=97&type=chunk)[100](index=100&type=chunk) - The directors consider the foreign exchange risk faced by the Group to be immaterial[97](index=97&type=chunk)[100](index=100&type=chunk) [Significant investment, material acquisitions and disposal of subsidiaries](index=32&type=section&id=Significant%20investment%2C%20material%20acquisitions%20and%20disposal%20of%20subsidiaries) Except as disclosed in this report, the Group had no significant investments, material acquisitions, or disposals of subsidiaries and associates during this interim period - Except as disclosed in this report, the Group had no significant investments, material acquisitions, or disposals of subsidiaries and associates during this interim period[98](index=98&type=chunk)[101](index=101&type=chunk) [Outlook](index=33&type=section&id=Outlook) The Group is committed to R&D of hydrocarbon-to-natural gas technology and has discovered 'thermal recovery technology' to increase upstream wellhead gas output, which are expected to become new profit growth points and ensure stable gas supply for LNG plants, with strong natural gas market demand driven by environmental concerns - Since 2016, the Group has independently researched and developed a hydrocarbon-to-natural gas project (ultra-high temperature steam-induced coal mineral accelerated metamorphism and hydrocarbon generation technology), entering the industrialization scale-up design phase in the second half of 2019[102](index=102&type=chunk)[103](index=103&type=chunk) - R&D progress was slow due to the pandemic, with small-scale pilot equipment completed in June 2024, but domestic heat-resistant steel could not achieve stable long-term operation at **1,100°C**; in January 2025, the Group shifted its R&D focus to lowering reaction temperatures, and has now largely achieved a **1,000°C** reaction environment[102](index=102&type=chunk)[103](index=103&type=chunk) - During R&D, the Group discovered 'thermal recovery technology' for accelerated metamorphism and hydrocarbon generation, reserve increase, and production enhancement of underground coal minerals in coalbed methane fields, which is expected to positively impact upstream wellhead gas output[104](index=104&type=chunk)[106](index=106&type=chunk) - This technology and 'thermal recovery technology' are expected to become new profit growth points for the Group, ensuring stable gas supply for liquefied natural gas plants and reducing external factors and operational risks[105](index=105&type=chunk)[106](index=106&type=chunk) - As environmental concerns increase, highly polluting energy sources will be phased out faster by the market, and natural gas market demand will maintain strong growth momentum[107](index=107&type=chunk)[109](index=109&type=chunk) [DIRECTORS' AND SHAREHOLDERS' INTERESTS](index=35&type=section&id=DIRECTORS'%20AND%20SHAREHOLDERS'%20INTERESTS) This section details the interests and short positions of directors and substantial shareholders in the company's shares and debentures [DIRECTORS' AND CHIEF EXECUTIVE'S INTERESTS OR SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURES](index=35&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INTERESTS%20OR%20SHORT%20POSITIONS%20IN%20SHARES%2C%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of June 30, 2025, several directors held long positions in the company's shares, with Mr Wang Zhong Sheng holding a **73.93%** beneficial interest and a **0.58%** interest through a controlled corporation Directors' Long Positions in the Company's Shares (As of June 30) | Name | Capacity | Nature of Interest | Number of Shares/Underlying Shares | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr Wang Zhong Sheng | Interest in controlled corporation | Corporate interest | 2,264,812 | 0.58% | | Mr Wang Zhong Sheng | Beneficial owner | Personal | 288,661,440 | 73.93% | | Mr Chang Jian | Beneficial owner | Personal | 2,500,000 | 0.64% | | Mr Wang Chen | Beneficial owner | Personal | 250,000 | 0.06% | | Mr Liang Zhihao | Option grantee | Personal | 800,000 | 0.2% | | Ms Li Siliang | Beneficial owner | Personal | 487,500 | 0.12% | - Mr Wang Zhong Sheng holds an interest in **2,264,812** shares through Baolian Investment Limited, which is wholly owned by him[113](index=113&type=chunk)[114](index=114&type=chunk) - Mr Liang Zhihao holds an interest as an option grantee to subscribe for **800,000** shares under the new share option scheme adopted on March 28, 2022[116](index=116&type=chunk) - Save as disclosed above, as at June 30, 2025, none of the directors or chief executive had any other interests or short positions in any shares, underlying shares or debentures of the Company or any of its associated corporations[117](index=117&type=chunk)[118](index=118&type=chunk) [SUBSTANTIAL SHAREHOLDERS AND PERSONS WITH DISCLOSEABLE INTEREST AND SHORT POSITION IN SHARES AND OPTIONS UNDER SFO](index=40&type=section&id=SUBSTANTIAL%20SHAREHOLDERS%20AND%20PERSONS%20WITH%20DISCLOSEABLE%20INTEREST%20AND%20SHORT%20POSITION%20IN%20SHARES%20AND%20OPTIONS%20UNDER%20SFO) As of June 30, 2025, apart from the directors, Ms Zhao Xin, as Mr Wang Zhong Sheng's spouse, is deemed to have an interest in **290,926,252** shares of the Company, representing **74.51%** of the total share capital Substantial Shareholders' Long Positions in Shares (As of June 30) | Name | Number of Shares | Nature of Interest | Approximate % of Shareholding | | :--- | :--- | :--- | :--- | | Ms Zhao Xin | 290,926,252 | Interest of spouse | 74.51% | - Ms Zhao Xin (spouse of Mr Wang Zhong Sheng) is deemed under the Securities and Futures Ordinance to have an interest in the Company by virtue of her spouse's interest[121](index=121&type=chunk) - Save as disclosed above, no other persons had any interests or short positions in the shares and underlying shares of the Company[121](index=121&type=chunk) [DIRECTORS' AND CHIEF EXECUTIVE'S RIGHTS TO ACQUIRE SHARES OR DEBENTURES](index=41&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20RIGHTS%20TO%20ACQUIRE%20SHARES%20OR%20DEBENTURES) Except for the disclosed directors' share interests and share option schemes, no rights to acquire benefits by purchasing the company's shares or debentures were granted to or exercised by any director, their spouse/minor children, or chief executive during this interim period - Save for the disclosed directors' share interests and share option schemes, no rights to acquire benefits by purchasing the Company's shares or debentures were granted to or exercised by any director or their spouse/minor children or chief executive during this interim period[122](index=122&type=chunk)[124](index=124&type=chunk) - Neither the Company nor any of its subsidiaries has entered into any arrangements that would enable directors to acquire such rights in any other body corporate[122](index=122&type=chunk)[124](index=124&type=chunk) [DIRECTORS' AND CONTROLLING SHAREHOLDERS' INTERESTS IN COMPETING BUSINESS](index=41&type=section&id=DIRECTORS'%20AND%20CONTROLLING%20SHAREHOLDERS'%20INTERESTS%20IN%20COMPETING%20BUSINESS) From the listing date to the report date, the directors are unaware of any business or interests held by directors, controlling shareholders, or their close associates that compete or may compete with the Group's business, nor any other conflicts of interest - From the listing date to the date of this report, the directors are unaware of any business or interests held by directors, controlling shareholders, or their close associates that constitute or may constitute competition with the Group's business[123](index=123&type=chunk)[125](index=125&type=chunk) - Nor are they aware of any other conflicts of interest existing or potentially existing between any such persons and the Group[123](index=123&type=chunk)[125](index=125&type=chunk) [SHARE OPTION SCHEME](index=42&type=section&id=SHARE%20OPTION%20SCHEME) This section provides an overview of the company's share option schemes, including their terms, limits, and current status [Overview of Share Option Schemes](index=42&type=section&id=Overview%20of%20Share%20Option%20Schemes) The company's previous share option scheme adopted in 2011 expired in 2021, with all options lapsed; a new scheme adopted in 2022 aims to incentivize eligible participants and is valid until March 27, 2032 - The previous share option scheme expired on May 18, 2021, with all **32,119,074** share options lapsed and no options remaining outstanding[126](index=126&type=chunk)[128](index=128&type=chunk) - The new share option scheme was adopted on March 28, 2022, with a validity period of **10 years**, expiring on March 27, 2032[127](index=127&type=chunk)[128](index=128&type=chunk) - The new share option scheme aims to grant share options to selected eligible participants as a reward or return for their contributions or potential contributions[129](index=129&type=chunk)[131](index=131&type=chunk) - Eligible participants include full-time/part-time employees, consultants/advisors, and directors of any member company of the Group[129](index=129&type=chunk)[131](index=131&type=chunk) [Scheme Limits and Terms](index=43&type=section&id=Scheme%20Limits%20and%20Terms) As of June 30, 2025, the number of options available for grant under the new share option scheme is zero; the maximum quota for each participant cannot exceed **1%** of issued shares, and the subscription price must not be lower than the highest of the closing price on the offer date, the average closing price of the preceding five business days, and the par value of the shares - As of June 30, 2025, the number of share options available for grant under the scheme mandate of the new share option scheme was **zero** shares[130](index=130&type=chunk)[132](index=132&type=chunk) - The maximum quota for each participant under the new share option scheme shall not exceed **1%** of the issued shares[133](index=133&type=chunk)[136](index=136&type=chunk) - Share options may be exercised in full or in part at any time during the period determined by the directors and notified to the grantee, but not exceeding **ten years** from the date of grant[134](index=134&type=chunk)[136](index=136&type=chunk) - Grantees are required to pay a nominal consideration of **HKD 1.00** upon acceptance of the share option[135](index=135&type=chunk)[136](index=136&type=chunk) - The subscription price for shares shall not be less than the highest of the closing price on the offer date, the average closing price for the five (5) consecutive business days immediately preceding the offer date, and the par value of the shares on the offer date[137](index=137&type=chunk)[138](index=138&type=chunk) [Share Option Information](index=46&type=section&id=Share%20Option%20Information) As of June 30, 2025, the company had **10,865,003** outstanding share options with a weighted average exercise price of **HKD 0.455**, all of which are immediately exercisable Share Option Overview (As of June 30) | Category of Participants | Jan 1, 2025 (options) | Granted during the period (options) | Exercised during the period (options) | Cancelled/Lapsed during the period (options) | June 30, 2025 (options) | | :--- | :--- | :--- | :--- | :--- | :--- | | Executive Director (Mr Liang Zhihao) | 800,000 | – | – | – | 800,000 | | Employees | 8,190,003 | – | – | – | 8,190,003 | | Corporate Finance Advisor | 1,875,000 | – | – | – | 1,875,000 | | **Total** | **10,865,003** | **–** | **–** | **–** | **10,865,003** | - All granted share options are immediately vested, with a contractual term of **10 years**[143](index=143&type=chunk) Number of Share Options and Weighted Average Exercise Price (As of June 30) | Status | Weighted Average Exercise Price (HKD) | Number of Share Options (options) | | :--- | :--- | :--- | | Outstanding as of Jan 1, 2025 | 0.455 | 10,865,003 | | Outstanding as of June 30, 2025 | 0.455 | 10,865,003 | | Exercisable as of June 30, 2025 | 0.455 | 10,865,003 | [OTHER INFORMATION](index=48&type=section&id=OTHER%20INFORMATION) This section covers various additional disclosures including contingent liabilities, capitalized interest, future investment plans, asset charges, and post-balance sheet events [CONTINGENT LIABILITIES](index=48&type=section&id=CONTINGENT%20LIABILITIES) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[147](index=147&type=chunk)[151](index=151&type=chunk) [AMOUNT OF CAPITALISED INTEREST](index=48&type=section&id=AMOUNT%20OF%20CAPITALISED%20INTEREST) Except as disclosed in this report, the Group did not capitalize any interest during this interim period - Except as disclosed in this report, the Group did not capitalize any interest during this interim period[148](index=148&type=chunk)[152](index=152&type=chunk) [FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITAL ASSETS](index=48&type=section&id=FUTURE%20PLANS%20FOR%20MATERIAL%20INVESTMENTS%20OR%20CAPITAL%20ASSETS) As of June 30, 2025, and December 31, 2024, the Group had no other plans for material investments or capital assets - As of June 30, 2025, and December 31, 2024, the Group had no other plans for material investments and capital assets[149](index=149&type=chunk)[153](index=153&type=chunk) [CHARGES ON GROUP ASSETS](index=48&type=section&id=CHARGES%20ON%20GROUP%20ASSETS) As of June 30, 2025, the Group's owner-occupied buildings and leasehold land use rights were pledged as collateral for bank borrowings Overview of Pledged Assets (As of June 30) | Asset Type | Carrying Amount (RMB thousands) | | :--- | :--- | | Owner-occupied buildings (before impairment) | 8,847 | | Leasehold land use rights | 7,797 | - The above assets were pledged as security for bank borrowings granted to the Group[150](index=150&type=chunk)[154](index=154&type=chunk) [EVENTS AFTER BALANCE SHEET DATE](index=49&type=section&id=EVENTS%20AFTER%20BALANCE%20SHEET%20DATE) From June 30, 2025, to the date of this report, the Board of Directors is unaware of any significant events requiring disclosure, other than those already disclosed herein - From June 30, 2025, to the date of this report, save as disclosed in this report, the Board of Directors is not aware of any significant events that have occurred and require disclosure[155](index=155&type=chunk)[160](index=160&type=chunk) [CONVERTIBLE SECURITIES, WARRANTS OR SIMILAR RIGHTS](index=49&type=section&id=CONVERTIBLE%20SECURITIES%2C%20WARRANTS%20OR%20SIMILAR%20RIGHTS) As of June 30, 2025, the company had **10,865,003** outstanding share options under the share option scheme adopted on March 28, 2022, entitling holders to subscribe for shares - As of June 30, 2025, the Company had **10,865,003** outstanding share options under the share option scheme adopted on March 28, 2022, entitling holders to subscribe for shares[156](index=156&type=chunk)[160](index=160&type=chunk) [PRE-EMPTIVE RIGHTS](index=49&type=section&id=PRE-EMPTIVE%20RIGHTS) Neither the company's bye-laws nor Bermuda law contains provisions for pre-emptive rights requiring the company to offer new shares proportionally to existing shareholders - Neither the Company's bye-laws nor Bermuda law contains provisions for pre-emptive rights requiring the Company to offer new shares proportionally to existing shareholders[157](index=157&type=chunk)[161](index=161&type=chunk) [PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES](index=49&type=section&id=PURCHASE%2C%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY'S%20LISTED%20SECURITIES) During this interim period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's or its subsidiaries' listed securities - During this interim period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's or its subsidiaries' listed securities[158](index=158&type=chunk)[162](index=162&type=chunk) [COMMITMENTS (Re-reference)](index=49&type=section&id=COMMITMENTS_re_reference) Details of the Group's commitments as of June 30, 2025, are provided in Note 13 to the unaudited condensed consolidated financial statements - Details of the Group's commitments as of June 30, 2025, are set out in Note 13 to the unaudited condensed consolidated financial statements[159](index=159&type=chunk)[163](index=163&type=chunk) [CORPORATE GOVERNANCE](index=50&type=section&id=CORPORATE%20GOVERNANCE) This section outlines the company's corporate governance practices, including board changes, audit committee functions, and compliance with governance codes [DISCLOSURE ON CHANGES OF INFORMATION OF DIRECTORS](index=50&type=section&id=DISCLOSURE%20ON%20CHANGES%20OF%20INFORMATION%20OF%20DIRECTORS) Since the release of the company's 2024 annual report, there have been no changes or updates to director positions during this interim period - Since the release of the Company's 2024 annual report, there have been no changes or updates to director positions during this interim period[164](index=164&type=chunk)[168](index=168&type=chunk) [AUDIT COMMITTEE](index=50&type=section&id=AUDIT%20COMMITTEE) The company's Audit Committee, composed of three independent non-executive directors, is responsible for reviewing and monitoring financial reporting and internal controls, and has reviewed the unaudited consolidated results for this interim period - The Audit Committee comprises three independent non-executive directors: Mr Wang Zhihe, Mr Xu Yuanjian, and Mr Liu Zhenbang (Chairman)[166](index=166&type=chunk)[169](index=169&type=chunk) - Its primary responsibilities include reviewing and monitoring the Group's financial reporting principles, practices, internal control procedures, and related matters[165](index=165&type=chunk)[169](index=169&type=chunk) - During this interim period, the Audit Committee held two meetings and reviewed the Group's unaudited consolidated results[166](index=166&type=chunk)[169](index=169&type=chunk) - The Audit Committee believes that the Group has employed sufficient staff to handle accounting, finance, and internal control functions[167](index=167&type=chunk)[169](index=169&type=chunk) [CORPORATE GOVERNANCE COMPLIANCE](index=51&type=section&id=CORPORATE%20GOVERNANCE_Compliance) The Group complied with the Corporate Governance Code during this interim period, with two deviations: independent non-executive directors lack fixed terms, and the roles of Chairman and Chief Executive are combined in Mr Wang Zhong Sheng; the company has adopted a code of conduct for directors' securities transactions and confirmed the independence of all independent non-executive directors - The Group complied with the code provisions of the Corporate Governance Code and Corporate Governance Report set out in Appendix 15 of the GEM Listing Rules during this interim period, with two deviations[170](index=170&type=chunk)[173](index=173&type=chunk) - Deviation from Code Provision A.4.1: Independent non-executive directors do not have fixed terms but are subject to retirement by rotation at annual general meetings[171](index=171&type=chunk)[173](index=173&type=chunk) - Deviation from Code Provision A.2.1: The roles of Chairman (Mr Wang Zhong Sheng) and Chief Executive are combined in the same person, and the company has no independent Chief Executive[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[177](index=177&type=chunk) - The company will continue to consider the feasibility of appointing a separate Chief Executive[175](index=175&type=chunk)[178](index=178&type=chunk) - The company has adopted a code of conduct regarding directors' securities transactions, and no non-compliance was found during this interim period[176](index=176&type=chunk)[178](index=178&type=chunk) - The company has received confirmation of independence from each independent non-executive director and considers all its independent non-executive directors to be independent[179](index=179&type=chunk)[180](index=180&type=chunk)

Core Viewpoint - The company reported a significant decline in revenue and an increase in losses for the six months ending June 30, 2025, primarily due to the suspension of liquefied coalbed methane production for upgrades [1] Financial Performance - Revenue for the period was 57.52 million RMB, representing a year-on-year decrease of 52.1% [1] - The loss attributable to equity shareholders was 11.116 million RMB, which is an increase of 170.3% compared to the previous year [1] - Basic loss per share was 2.85 cents [1] Operational Changes - The decline in revenue was mainly due to a subsidiary halting its liquefied coalbed methane production in May 2025 for comprehensive upgrades and renovations of its liquefaction machinery and equipment [1]

Core Viewpoint - China Coalbed Methane (08270) reported a significant decline in revenue and an increase in losses for the six months ending June 30, 2025, primarily due to the suspension of liquefied coalbed methane production for upgrades [1] Financial Performance - Revenue for the period was 57.52 million RMB, representing a year-on-year decrease of 52.1% [1] - The loss attributable to equity shareholders was 11.116 million RMB, which is a year-on-year increase of 170.3% [1] - Basic loss per share was 2.85 cents [1] Operational Changes - The decline in revenue was mainly due to a subsidiary's suspension of liquefied coalbed methane production in May 2025 for comprehensive upgrades of its liquefaction machinery and equipment [1]

Group 1 - The company reported a revenue of approximately RMB 57.52 million for the six months ending June 30, 2025, representing a decrease of about 52.1% compared to the same period in the previous fiscal year [1] - The company recorded a loss attributable to equity shareholders of approximately RMB 11.116 million [1] - The loss per share for the period was approximately RMB 0.0285 [1] - The company does not recommend the distribution of any dividends for this interim period [1]

Report Cover and Basic Information This section provides the company's basic information, report type, and disclaimers regarding the GEM market's characteristics and associated risks [Company Overview and Report Statement](index=1&type=section&id=Company%20Overview%20and%20Report%20Statement) China CBM Group Company Limited (Stock Code: 8270) released its unaudited interim results for the six months ended June 30, 2025, with the Board confirming the report's accuracy and completeness - Company Name: **China CBM Group Company Limited** (Stock Code: **8270**)[2](index=2&type=chunk) - Report Type: Unaudited interim results announcement for the six months ended June 30, 2025[2](index=2&type=chunk)[3](index=3&type=chunk) - Board Statement: Directors jointly and individually accept full responsibility for this announcement, confirming the information is accurate, complete, and not misleading[5](index=5&type=chunk) [GEM Market Characteristics and Disclaimer](index=2&type=section&id=GEM%20Market%20Characteristics%20and%20Disclaimer) The report highlights the HKEX GEM market's high investment risk and volatility, suitable for professional investors, and reiterates the HKEX's non-responsibility for report content - GEM Market Positioning: Provides a listing market for companies with **higher investment risks**, suitable for professional and sophisticated investors[6](index=6&type=chunk)[11](index=11&type=chunk) - GEM Market Risks: Securities may be subject to **significant market volatility** and high liquidity cannot be guaranteed[7](index=7&type=chunk)[11](index=11&type=chunk) - HKEX Disclaimer: Hong Kong Exchanges and Clearing Limited and the Stock Exchange take **no responsibility** for the contents of this report, make no representation as to its accuracy or completeness, and expressly disclaim any liability for any loss whatsoever[8](index=8&type=chunk)[11](index=11&type=chunk) Corporate Information This section details the company's governance structure, including board and committee members, key personnel, office locations, and share registration details [Board and Committee Members](index=3&type=section&id=Board%20and%20Committee%20Members) Disclosure of the company's Board members, including executive, non-executive, and independent non-executive directors, and the composition of its Audit, Nomination, and Remuneration Committees - Executive Directors: **Wang Zhong Sheng** (Chairman), **Chang Jian**, **Wang Chen**, **Chen Yi Kai**, and **Liang Zhi Hao**[14](index=14&type=chunk)[15](index=15&type=chunk) - Non-executive Director: **Li Si Liang**[14](index=14&type=chunk)[15](index=15&type=chunk) - Independent Non-executive Directors: **Liu Zhen Bang**, **Wang Zhi He**, and **Xu Yuan Jian**[14](index=14&type=chunk)[15](index=15&type=chunk) - Committee Chairmen: Audit Committee Chairman is **Liu Zhen Bang**, Nomination Committee Chairman is **Wang Zhi He**, and Remuneration Committee Chairman is **Liu Zhen Bang**[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) [Company Secretary and Authorized Representatives](index=4&type=section&id=Company%20Secretary%20and%20Authorized%20Representatives) Names of the company's Company Secretary, Compliance Officer, and Authorized Representatives are listed - Company Secretary: **Mr. Tse Chun Lai**[16](index=16&type=chunk)[17](index=17&type=chunk) - Compliance Officer: **Mr. Wang Zhong Sheng**[16](index=16&type=chunk)[17](index=17&type=chunk) - Authorized Representatives: **Mr. Wang Zhong Sheng** and **Mr. Tse Chun Lai**[16](index=16&type=chunk)[17](index=17&type=chunk) [Offices and Registration Information](index=4&type=section&id=Offices%20and%20Registration%20Information) Provides the addresses for the company's Hong Kong head office, principal place of business, and registered office - Hong Kong Head Office and Principal Place of Business: **Unit 20, 19/F, Tsuen Fat Commercial Building, 362 Sha Tsui Road, Tsuen Wan, Hong Kong**[16](index=16&type=chunk)[17](index=17&type=chunk) - Registered Office: **Clarendon House, 2 Church Street, Hamilton HM11, Bermuda**[16](index=16&type=chunk)[17](index=17&type=chunk) [Share Registration and Other Information](index=5&type=section&id=Share%20Registration%20and%20Other%20Information) Discloses the company's principal share registrar, Hong Kong branch share registrar, auditor, principal banker, and stock code - Principal Share Registrar: **Codan Services Limited**[18](index=18&type=chunk) - Hong Kong Branch Share Registrar: **Tricor Tengis Limited**[19](index=19&type=chunk) - Auditor: **ZHONG RUI HE XIN CPA Limited**[19](index=19&type=chunk) - Principal Banker: **Bank of China (Hong Kong) Limited**[19](index=19&type=chunk) - Stock Code: **08270**[19](index=19&type=chunk) Financial Highlights For the six months ended June 30, 2025, group revenue significantly decreased by **52.1%** to **RMB 57.5 million**, with a loss attributable to equity holders of **RMB 11.1 million** and a loss per share of **RMB 2.85 cents**, and no dividend recommended 2025年上半年财务摘要 | Indicator | 2025年上半年 (RMB'000) | 2024年上半年 (RMB'000) | 同比变化 | | :--- | :--- | :--- | :--- | | Revenue | 57,520 | 120,057 | -52.1% | | Loss attributable to equity holders of the Company | (11,116) | (4,113) | 170.3% (Loss widened) | | Loss per share | (2.85) cents | (1.05) cents | 171.4% (Loss widened) | - The Board does not recommend the payment of any interim dividend for the period[20](index=20&type=chunk) Condensed Consolidated Financial Statements This section presents the group's unaudited interim financial statements, including the income statement, comprehensive income, financial position, cash flows, and changes in equity [Condensed Consolidated Income Statement](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20INCOME%20STATEMENT) For the six months ended June 30, 2025, group revenue was **RMB 57.520 million**, gross profit was **RMB 8.373 million**, and loss for the period was **RMB 11.116 million**, significantly widening from the prior year 简明综合收益表关键数据 (截至6月30日止半年) | Indicator | 2025年 (RMB'000) | 2024年 (RMB'000) | | :--- | :--- | :--- | | Revenue | 57,520 | 120,057 | | Cost of sales | (49,147) | (105,362) | | Gross profit | 8,373 | 14,695 | | Other income and gains or losses | 1,046 | 85 | | Selling and distribution costs | (2,038) | (1,959) | | Administrative and other expenses | (19,096) | (14,687) | | Finance costs | (511) | (463) | | Loss before taxation | (12,226) | (2,329) | | Income tax credit/(expense) | 1,110 | (1,784) | | Loss for the period | (11,116) | (4,113) | | Basic loss per share | (2.85) cents | (1.05) cents | [Condensed Consolidated Statement of Comprehensive Income](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) For the six months ended June 30, 2025, the group recorded a total comprehensive loss of **RMB 12.036 million**, primarily due to loss for the period and exchange differences on foreign currency financial statements, with the loss widening year-on-year 简明综合全面收益表关键数据 (截至6月30日止半年) | Indicator | 2025年 (RMB'000) | 2024年 (RMB'000) | | :--- | :--- | :--- | | Loss for the period | (11,116) | (4,113) | | Exchange differences on translation of financial statements of foreign entities | (920) | (718) | | Total comprehensive loss for the period | (12,036) | (4,831) | [Condensed Consolidated Statement of Financial Position](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) As of June 30, 2025, group total assets were **RMB 342.952 million**, a slight increase from year-end 2024; net current liabilities expanded to **RMB (138.798) million**, and total equity decreased to **RMB 111.016 million** 简明综合财务状况表关键数据 | Indicator | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | | :--- | :--- | :--- | | Non-current assets | 237,193 | 252,629 | | Current assets | 90,556 | 90,323 | | Total assets | 342,952 | 327,749 | | Current liabilities | 229,121 | 201,725 | | Non-current liabilities | 2,815 | 2,972 | | Net assets | 111,016 | 123,052 | | Share capital | 26,305 | 26,305 | | Reserves | 88,928 | 100,964 | | Total equity | 111,016 | 123,052 | - Net current liabilities expanded from **RMB (111.169) million** as of December 31, 2024, to **RMB (138.798) million** as of June 30, 2025[26](index=26&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, the group's net cash inflow from operating activities was **RMB 4.482 million**, net cash outflow from investing activities was **RMB (0.178) million**, and net cash outflow from financing activities was **RMB (5.332) million**, resulting in a net decrease in cash and bank balances of **RMB (1.028) million** 简明综合现金流量表关键数据 (截至6月30日止六个月) | Indicator | 2025年 (RMB'000) | 2024年 (RMB'000) | | :--- | :--- | :--- | | Net cash inflow from operating activities | 4,482 | 8,623 | | Net cash outflow from investing activities | (178) | (5,567) | | Net cash (outflow)/inflow from financing activities | (5,332) | 9,557 | | Net (decrease)/increase in cash and bank balances | (1,028) | 12,613 | | Cash and bank balances at end of period | 47,456 | 58,057 | [Condensed Consolidated Statement of Changes in Equity](index=13&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) For the six months ended June 30, 2025, the group's total equity decreased from **RMB 123.052 million** at the beginning of the year to **RMB 111.016 million**, primarily due to loss for the period and a reduction in translation reserve 简明综合权益变动表关键数据 | Equity Item | 2025年1月1日 (RMB'000) | Loss for the period (RMB'000) | Other comprehensive expense (RMB'000) | 2025年6月30日 (RMB'000) | | :--- | :--- | :--- | :--- | :--- | | Share capital | 26,305 | – | – | 26,305 | | Share premium | 33,998 | – | – | 33,998 | | General reserve | 1,892 | – | – | 1,892 | | Translation reserve | (5,399) | – | (920) | (6,319) | | Share option reserve | 2,814 | – | – | 2,814 | | Convertible bond reserve | 9,820 | – | – | 9,820 | | Other reserve | (31,012) | – | – | (31,012) | | Accumulated losses | 88,851 | (11,116) | – | 77,735 | | Total equity attributable to equity holders of the Company | 127,269 | (11,116) | (920) | 115,233 | | Non-controlling interests | (4,217) | – | – | (4,217) | | **Total Equity** | **123,052** | **(11,116)** | **(920)** | **111,016** | Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations and breakdowns for various financial statement items, including accounting policies, revenue, expenses, and balance sheet components [5.1 Basis of presentation of financial statements](index=14&type=section&id=1.%20Basis%20of%20presentation%20of%20financial%20statements) Financial statements are prepared under Hong Kong GAAP and HKICPA standards, presented on a historical cost basis, reviewed by the Audit Committee, with the group primarily operating in China and business activities denominated in RMB - Preparation Basis: Hong Kong Generally Accepted Accounting Principles and accounting standards issued by the Hong Kong Institute of Certified Public Accountants[29](index=29&type=chunk)[32](index=32&type=chunk) - Review Status: Unaudited by the Company's auditor, but reviewed by the Company's Audit Committee[30](index=30&type=chunk)[32](index=32&type=chunk) - Operating Region and Currency: Primarily operates in China, with business activities mainly conducted in RMB, and results prepared in RMB[31](index=31&type=chunk)[32](index=32&type=chunk) [5.2 Application of New and Revised Hong Kong Financial Reporting Standards ("HKFRSs")](index=15&type=section&id=2.%20Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards%20(%22HKFRSs%22)) The group has applied new and revised HKFRSs effective this period, with no material impact on current or prior financial performance, and is assessing the impact of standards issued but not yet effective - Standards Applied: New and revised HKFRSs effective for the current period have been applied[33](index=33&type=chunk)[37](index=37&type=chunk) - Impact: No **material impact** on the Group's current or prior period financial performance and position[33](index=33&type=chunk)[37](index=37&type=chunk) - Future Standards: The HKICPA has issued several amendments, new standards, and interpretations not yet effective, and the Group is assessing their impact[34](index=34&type=chunk)[35](index=35&type=chunk)[37](index=37&type=chunk) [5.3 Revenue and segment information](index=15&type=section&id=3.%20Revenue%20and%20segment%20information) The company is an investment holding company, with subsidiaries primarily engaged in liquefied CBM production and sales (including processing services) and pipeline natural gas sales; total revenue decreased by **52.1%** year-on-year in H1 2025 due to a significant drop in liquefied CBM sales, despite growth in pipeline natural gas sales - Principal Business: Production and sales of liquefied coalbed methane (including CBM liquefaction processing services) and sales of pipeline natural gas[36](index=36&type=chunk)[38](index=38&type=chunk) 收益构成 (截至6月30日止半年) | Revenue Category | 2025年 (RMB'000) | 2024年 (RMB'000) | | :--- | :--- | :--- | | Liquefied CBM sales (including processing services) | 37,228 | 108,150 | | Pipeline natural gas sales | 20,292 | 11,907 | | **Total Revenue** | **57,520** | **120,057** | 其他收入及收益或亏损 (截至6月30日止半年) | Category | 2025年 (RMB'000) | 2024年 (RMB'000) | | :--- | :--- | :--- | | Interest income from bank deposits | 31 | 8 | | Others | 1,015 | 77 | | **Total** | **1,046** | **85** | - The Group's revenue and assets primarily derive from and relate to the liquefied CBM business in China, with other segments being **immaterial**, thus no geographical segment information is presented[40](index=40&type=chunk) [5.4 Loss before taxation](index=17&type=section&id=4.%20Loss%20before%20taxation) For the six months ended June 30, 2025, the group's loss before taxation was **RMB 12.226 million**, significantly widening from **RMB 2.329 million** in the prior year, primarily due to increased staff costs and reduced depreciation 除税前亏损构成 (截至6月30日止半年) | Item | 2025年 (RMB'000) | 2024年 (RMB'000) | | :--- | :--- | :--- | | Staff costs (including directors' emoluments) | 12,981 | 10,819 | | Depreciation of property, plant and equipment | 7,077 | 14,543 | [5.5 Income tax](index=18&type=section&id=5.%20Income%20tax) The group incurred no assessable income in Hong Kong, thus no Hong Kong profits tax provision was made; PRC subsidiaries are subject to a **25%** corporate income tax rate, and there are no significant unprovided deferred taxes for the period - Hong Kong Profits Tax: No provision was made as the Group earned no assessable income subject to Hong Kong profits tax during the interim period[44](index=44&type=chunk)[47](index=47&type=chunk) - Overseas Income Tax: PRC subsidiaries are subject to a tax rate of **25%** since January 1, 2008[45](index=45&type=chunk)[48](index=48&type=chunk) - Deferred Tax: There were **no significant unprovided deferred taxes** during the interim period[46](index=46&type=chunk)[48](index=48&type=chunk) [5.6 Dividends](index=19&type=section&id=6.%20Dividends) The Board does not recommend paying any interim dividend for the six months ended June 30, 2025, consistent with the prior year - Interim Dividend: The Board does not recommend the payment of any interim dividend (2024 corresponding period: nil)[50](index=50&type=chunk)[51](index=51&type=chunk) [5.7 Loss per share](index=19&type=section&id=7.%20Loss%20per%20share) For the six months ended June 30, 2025, basic loss per share was **RMB 2.85 cents**, widening from **RMB 1.05 cents** in the prior year, with no diluted loss per share presented due to the absence of potential dilutive ordinary shares 每股亏损计算 (截至6月30日止半年) | Indicator | 2025年 | 2024年 | | :--- | :--- | :--- | | Loss attributable to equity holders of the Company (RMB'000) | (11,116) | (4,113) | | Weighted average number of ordinary shares for basic loss per share calculation ('000 shares) | 390,451 | 390,451 | | Basic loss per share (RMB cents) | (2.85) | (1.05) | - No diluted loss per share is presented as there were **no potential dilutive ordinary shares** for the quarters and six-month periods ended June 30, 2025, and June 30, 2024[54](index=54&type=chunk) [5.8 Additions and disposals of property, plant and equipment](index=20&type=section&id=8.%20Additions%20and%20disposals%20of%20property,%20plant%20and%20equipment) For the six months ended June 30, 2025, the group added approximately **RMB 23.045 million** in property, plant, and equipment, a significant increase from the prior year, with no material disposals during the period - Additions: Property, plant and equipment acquired during the interim period amounted to approximately **RMB 23.045 million** (2024 corresponding period: approximately **RMB 1.419 million**)[55](index=55&type=chunk)[57](index=57&type=chunk) - Disposals: There were **no major disposals** during the interim period (2024 corresponding period: nil)[55](index=55&type=chunk)[57](index=57&type=chunk) [5.9 Trade and other receivables](index=20&type=section&id=9.%20Trade%20and%20other%20receivables) As of June 30, 2025, the group's total trade and other receivables were **RMB 34.170 million**, an increase from **RMB 28.590 million** at year-end 2024, with a significant rise in trade receivables within one month 贸易及其他应收款项构成 | Item | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | | :--- | :--- | :--- | | Trade receivables | 4,180 | 828 | | Prepayments and other receivables | 26,365 | 23,298 | | Other recoverable taxes | 3,625 | 4,464 | | **Total** | **34,170** | **28,590** | 应收账款账龄分析 (按发票日期) | Ageing | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | | :--- | :--- | :--- | | Within 1 month | 3,639 | 374 | | After 1 month but within 3 months | – | 90 | | After 3 months but within 6 months | 537 | 90 | | After 6 months but within 12 months | – | 270 | | After 12 months | 4 | 4 | | **Total** | **4,180** | **828** | - The Group does not require collateral for trade receivables and continuously performs customer credit assessments[58](index=58&type=chunk) [5.10 Trade and other payables](index=22&type=section&id=10.%20Trade%20and%20other%20payables) As of June 30, 2025, the group's total trade and other payables were **RMB 197.618 million**, an increase from **RMB 160.408 million** at year-end 2024, with a significant rise in trade payables due after 12 months 贸易及其他应付款项构成 | Item | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | | :--- | :--- | :--- | | Trade payables | 40,431 | 35,440 | | Accruals and other payables | 156,616 | 124,328 | | Other taxes payable | 571 | 640 | | **Total** | **197,618** | **160,408** | 应付账款账龄分析 (按发票日期) | Ageing | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | | :--- | :--- | :--- | | Within 1 month | 1,705 | 7,921 | | After 1 month but within 3 months | 5,781 | 26,041 | | After 3 months but within 6 months | 2,917 | 88 | | After 6 months but within 12 months | 415 | 173 | | After 12 months | 29,613 | 1,217 | | **Total** | **40,431** | **35,440** | [5.11 Bank and other borrowings](index=23&type=section&id=11.%20Bank%20and%20other%20borrowings) As of June 30, 2025, the group's total bank and other borrowings were **RMB 20.400 million**, a decrease from **RMB 23.400 million** at year-end 2024, with all borrowings repayable within one year or on demand, including secured bank loans and unsecured other loans 银行及其他借贷构成 | Type of Borrowing | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | | :--- | :--- | :--- | | Secured bank loans repayable within 1 year or on demand | 10,000 | 13,000 | | Unsecured other loans repayable within 1 year or on demand | 10,400 | 10,400 | | **Total** | **20,400** | **23,400** | - Secured bank loans bear interest at annual rates ranging from **3.1% to 3.45%**[67](index=67&type=chunk) - Unsecured other loans refer to loans payable to non-controlling shareholders of PRC subsidiaries, bearing a **fixed interest rate of 4.35% per annum**[67](index=67&type=chunk) [5.12 Share capital](index=24&type=section&id=12.%20%E8%82%A1%E6%9C%AC) As of June 30, 2025, the company's authorized share capital was **2,500,000 thousand shares** with a total par value of **RMB 174.064 million**; issued and fully paid share capital was **390,451 thousand shares** with a total par value of **RMB 26.305 million**, consistent with year-end 2024 股本信息 | Type of Share Capital | 2025年6月30日 股份数目 ('000) | 2025年6月30日 总面值 (RMB'000) | 2024年12月31日 股份数目 ('000) | 2024年12月31日 总面值 (RMB'000) | | :--- | :--- | :--- | :--- | :--- | | Authorized share capital | 2,500,000 | 174,064 | 2,500,000 | 174,064 | | Issued and fully paid share capital | 390,451 | 26,305 | 390,451 | 26,305 | [5.13 Commitments](index=24&type=section&id=13.%20Commitments) As of June 30, 2025, the group's capital commitments contracted but not provided for in the financial statements amounted to **RMB 8.806 million**, primarily for property, plant, and equipment acquisitions and construction in progress, a decrease from year-end 2024 资本承擔 | Item | 2025年6月30日 (RMB'000) | 2024年12月31日 (RMB'000) | | :--- | :--- | :--- | | Capital commitments contracted but not provided for in the financial statements | 8,806 | 15,636 | Management Discussion and Analysis This section offers a comprehensive review of the group's financial performance, business operations, development prospects, and key operational aspects for the interim period [6.1 Financial Review](index=25&type=section&id=FINANCIAL%20REVIEW) For the six months ended June 30, 2025, consolidated turnover decreased by **52.1%** to **RMB 57.5 million**, and loss attributable to shareholders expanded to **RMB 11.1 million**, primarily due to suspended liquefied CBM production for equipment upgrades and increased administrative expenses from Board expansion and new subsidiary R&D costs 财务业绩概览 (截至6月30日止半年) | Indicator | 2025年 (RMB'000) | 2024年 (RMB'000) | 同比变化 | | :--- | :--- | :--- | :--- | | Consolidated turnover | 57,500 | 120,100 | -52.1% | | Loss attributable to shareholders | (11,100) | (4,100) | 170.7% (Loss widened) | - The decrease in revenue was primarily due to a subsidiary suspending liquefied CBM production in May 2025 for a comprehensive technical modification and upgrade of its liquefaction machinery and equipment[73](index=73&type=chunk) - Administrative expenses increased from **RMB 14.6 million** to **RMB 19.1 million**, mainly driven by the expansion of the Board (adding three new directors, increasing directors' emoluments by approximately **RMB 2.0 million**) and R&D costs of a newly established wholly-owned subsidiary[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk)[78](index=78&type=chunk) [6.2 Business Review and Development Prospects](index=26&type=section&id=BUSINESS%20REVIEW%20AND%20DEVELOPMENT%20PROSPECTS) The group primarily engages in CBM business, including exploration, extraction, liquefaction, and sales; CBM reserve assessments were updated, and gas wellheads increased, but liquefaction operations paused for equipment upgrades, while market sales faced downward price trends due to the overall economic environment, and the group is actively developing new hydrocarbon-to-natural gas and thermal recovery technologies to boost production and profit growth - Core Business: CBM exploration, extraction, liquefaction, and sales[77](index=77&type=chunk)[79](index=79&type=chunk) - R&D Investment: The Group is independently developing "Ultra-High Temperature Steam Catalyzed Coal Mineral Accelerated Metamorphic Hydrocarbon Generation Technology" (hydrocarbon-to-natural gas project) and "Thermal Recovery Technology" to increase production and create new profit growth points[106](index=106&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) [6.2.1 Resources and reserves](index=26&type=section&id=Resources%20and%20reserves) Updated CBM reserve assessments show an Original Gas-in-Place of **193.6 BCF** across all blocks, with Proved Net Reserves significantly increasing to **108.9 BCF**, reflecting continuous field development and data accumulation - CBM Asset Location: Yangcheng area, Shanxi Province, China, covering approximately **96 square kilometers**[77](index=77&type=chunk)[79](index=79&type=chunk) 煤层气资产储量评估 (十亿立方英呎 BCF) | Reserve Type | 2025年6月30日 | 2012年3月31日 | | :--- | :--- | :--- | | Original Gas-in-Place (OGIP) for all blocks | 193.6 | 272.4 | | Proved (1P) Net Reserves | 108.9 | 3.5 | | Proved plus Probable (2P) Net Reserves | 154.7 | 27.7 | | Proved plus Probable plus Possible (3P) Net Reserves | 193.6 | 205.0 | - The improvement in reserve assessment is attributed to the Company's continuous development of gas field blocks, increasing the number and scope of producing wellheads, thereby collecting more data for more accurate evaluations[84](index=84&type=chunk)[86](index=86&type=chunk) [6.2.2 Natural gas exploration and extraction](index=29&type=section&id=Natural%20gas%20exploration%20and%20extraction) The group has completed surface construction and drilling for **235 CBM wells**, with **170** of them in stable production since commissioning - Number of CBM Wells: **235 CBM wells** have completed surface construction and drilling[88](index=88&type=chunk)[90](index=90&type=chunk) - Number of Producing Wells: **170 wells** have commenced production and maintained stable output since commissioning[88](index=88&type=chunk)[90](index=90&type=chunk) [6.2.3 Liquefaction operation](index=29&type=section&id=Liquefaction%20operation) Shuntai Company suspended liquefied CBM production on May 18, 2025, for comprehensive technical modification and upgrade, with average daily production previously around **162,000 cubic meters** - Production Suspension: Shuntai Company suspended liquefied CBM production on **May 18, 2025**[89](index=89&type=chunk)[91](index=91&type=chunk) - Reason: Severe wear and tear of liquefaction machinery and equipment made maintenance uneconomical, leading to a decision for comprehensive technical modification and upgrade[89](index=89&type=chunk)[91](index=91&type=chunk) - Production Before Modification: Average daily production in Q1 2025 was approximately **162,000 cubic meters**[89](index=89&type=chunk)[91](index=91&type=chunk) [6.2.4 Marketing and sales](index=30&type=section&id=Marketing%20and%20sales) The group's sales system and strategy remain largely consistent, but sales performance was impacted by a **downward trend in prices** due to the overall economic environment - Sales System and Strategy: Largely consistent, with **no significant changes**[92](index=92&type=chunk)[94](index=94&type=chunk) - Market Impact: Sales prices showed a **downward trend** due to the overall economic environment, affecting sales performance[92](index=92&type=chunk)[94](index=94&type=chunk) [6.2.5 Liquidity, Financial Resources and Capital Structure](index=30&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2025, the group's net assets were **RMB 111.016 million**, cash and bank balances were **RMB 47.456 million**, and the capital to debt ratio was **17.70%**, with plans to seek financing to accelerate natural gas drilling projects 流动资金及资本结构 (截至6月30日) | Indicator | 2025年 (RMB'000) | | :--- | :--- | | Net assets | 111,016 | | Cash and bank balances | 47,456 | | Capital to debt ratio | 17.70% | - The Group adopts a **prudent financial and risk management strategy**, avoiding financing arrangements with high leverage ratios[93](index=93&type=chunk)[95](index=95&type=chunk) - The Group will seek financing to further improve its cash position and accelerate natural gas drilling projects[96](index=96&type=chunk)[98](index=98&type=chunk) - Apart from planned investments in upstream CBM exploration and extraction, the Group has **no other plans** for acquisitions, investments, disposals, or scaling down any current business operations[96](index=96&type=chunk)[98](index=98&type=chunk) [6.2.6 Employees](index=32&type=section&id=Employees) The group has **236 employees**, comprising R&D, engineering, customer service, administrative, and marketing personnel, with staff costs of **RMB 12.981 million**, and remuneration policies based on individual performance and professional training - Total Employees: **236**[100](index=100&type=chunk)[103](index=103&type=chunk) - Employee Composition: **23 R&D personnel**, **122 engineering and customer service personnel**, **86 administrative personnel**, and **5 marketing and sales personnel**[100](index=100&type=chunk)[103](index=103&type=chunk) 员工成本 (截至6月30日止半年) | Indicator | 2025年 (RMB'000) | 2024年 (RMB'000) | | :--- | :--- | :--- | | Staff costs (including directors' emoluments) | 12,981 | 10,819 | - Remuneration and bonus policies are primarily determined by individual employee performance, with continuous professional development and training opportunities provided[100](index=100&type=chunk)[103](index=103&type=chunk) [6.2.7 Risk in Foreign Exchange](index=32&type=section&id=Risk%20in%20Foreign%20Exchange) The Board considers the group's foreign exchange risk **not significant**, as most transactions are denominated in the respective functional currencies of individual group entities - Foreign Exchange Risk Assessment: The Directors believe the Group's foreign exchange risk is **not significant**[101](index=101&type=chunk)[104](index=104&type=chunk) - Reason: Most transactions are denominated in the respective functional currencies of individual group entities[101](index=101&type=chunk)[104](index=104&type=chunk) [6.2.8 Significant investment, material acquisitions and disposal of subsidiaries](index=32&type=section&id=Significant%20investment,%20material%20acquisitions%20and%20disposal%20of%20subsidiaries) During the interim period, the group made **no significant investments**, material acquisitions, or disposals of subsidiaries and associates - No Significant Investments/Acquisitions/Disposals: There were **no significant investments**, material acquisitions, or disposals of subsidiaries and associates during the interim period[102](index=102&type=chunk)[105](index=105&type=chunk) [6.2.9 Outlook](index=33&type=section&id=Outlook) The group is actively developing hydrocarbon-to-natural gas and thermal recovery technologies to boost production, create new profit growth points, and ensure stable gas supply for LNG plants, anticipating continued strong growth in clean energy market demand - Hydrocarbon-to-Natural Gas Technology ("the Technology") R&D Progress: R&D began in **2016**, entering the industrial scale-up design phase in H2 **2019**. Progress was slow due to the pandemic, with the first trial run in **June 2021** and improved design proposed in **November 2021**. A small-scale pilot plant was completed in **June 2024**, but domestic heat-resistant steel could not sustain stable operation at **1,100°C** for extended periods. In **January 2025**, R&D shifted to lowering reaction temperatures, now largely achieving a **1,000°C** reaction environment, with a small-scale pilot plant still under construction. Future Plans: Upon completion, advanced demonstrations will be conducted overseas with international expert review; once mature, it will supply feedstock gas to LNG projects, charging technology usage fees and selling related raw materials[106](index=106&type=chunk)[107](index=107&type=chunk) - Thermal Recovery Technology Discovery and Outlook: Discovered during the R&D of "the Technology," aiming to accelerate metamorphic hydrocarbon generation, increase reserves, and boost production from underground coal minerals in CBM fields. Currently in the preparatory stage, upon maturity, it will be applied to increase upstream wellhead production and provide thermal recovery technical services and related equipment sales[108](index=108&type=chunk)[110](index=110&type=chunk) - Strategic Significance: Both technologies are expected to become **new profit growth points** for the Group, ensuring a **stable gas source supply** for LNG plants, reducing external influences and operational risks, and achieving full production commercial value[109](index=109&type=chunk)[110](index=110&type=chunk) - Market Outlook: With increasing environmental concerns, highly polluting energy sources will be phased out faster, clean energy will become widespread, and natural gas market demand is expected to maintain **strong growth momentum**[111](index=111&type=chunk)[113](index=113&type=chunk) Disclosure of Shareholders' and Directors' Interests This section details the interests and short positions of the company's directors, chief executive, and substantial shareholders in the company's shares and underlying shares [7.1 Directors' and Chief Executive's Interests or Short Positions in Shares, Underlying Shares and Debentures](index=35&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INTERESTS%20OR%20SHORT%20POSITIONS%20IN%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURES) As of June 30, 2025, several directors held long positions in the company's shares, with Chairman **Mr. Wang Zhong Sheng** holding **74.51%** through controlled corporations and as a beneficial owner 董事及最高行政人员于本公司股份之好仓 (截至2025年6月30日) | Name | Capacity | Nature of Interest | Number of Shares/Underlying Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Wang Zhong Sheng | Interest in controlled corporation | Corporate interest | 2,264,812 | 0.58% | | | Beneficial owner | Personal | 288,661,440 | 73.93% | | Mr. Chang Jian | Beneficial owner | Personal | 2,500,000 | 0.64% | | Mr. Wang Chen | Beneficial owner | Personal | 250,000 | 0.06% | | Mr. Liang Zhi Hao | Share option grantee | Personal | 800,000 | 0.2% | | Ms. Li Si Liang | Beneficial owner | Personal | 487,500 | 0.12% | - Save as disclosed above, as at June 30, 2025, no Director or chief executive had any other disclosable interests or short positions in the shares, underlying shares or debentures of the Company or any of its associated corporations[121](index=121&type=chunk)[122](index=122&type=chunk) - The Group did not issue any debentures during the interim period[121](index=121&type=chunk)[122](index=122&type=chunk) [7.2 Substantial Shareholders and Persons with Disclosable Interest and Short Position in Shares and Options under SFO](index=40&type=section&id=SUBSTANTIAL%20SHAREHOLDERS%20AND%20PERSONS%20WITH%20DISCLOSEABLE%20INTEREST%20AND%20SHORT%20POSITION%20IN%20SHARES%20AND%20OPTIONS%20UNDER%20SFO) As of June 30, 2025, apart from directors, **Ms. Zhao Xin** (spouse of Mr. Wang Zhong Sheng) was deemed to have an interest in her spouse's shares, representing approximately **74.51%** of the company's shareholding 主要股东于本公司股份之好仓 (截至2025年6月30日) | Name | Number of Shares | Nature of Interest | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Ms. Zhao Xin | 290,926,252 | Interest of spouse | 74.51% | - **Ms. Zhao Xin** (spouse of Mr. Wang Zhong Sheng) is deemed under the Securities and Futures Ordinance to have an interest in the Company by virtue of her spouse's interests[125](index=125&type=chunk) - Save as disclosed above, no other person had any disclosable interests or short positions in the shares and underlying shares of the Company[125](index=125&type=chunk) [7.3 Directors' and Chief Executive's Rights to Acquire Shares or Debentures](index=41&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20RIGHTS%20TO%20ACQUIRE%20SHARES%20OR%20DEBENTURES) Apart from disclosed directors' share interests and share option schemes, no rights to acquire company shares or debentures were granted or exercised by any director, their spouse/minor children, or chief executive during the interim period, nor did the company or its subsidiaries enter into any arrangements for directors to acquire such rights in other corporations - No Additional Acquisition Rights: During the interim period, no rights to acquire shares or debentures of the Company were granted to or exercised by any Director, their spouse/minor children, or chief executive[126](index=126&type=chunk)[128](index=128&type=chunk) - No Related Arrangements: Neither the Company nor any of its subsidiaries entered into any arrangements enabling Directors to acquire such rights in any other body corporate[126](index=126&type=chunk)[128](index=128&type=chunk) [7.4 Directors' and Controlling Shareholders' Interests in Competing Business](index=41&type=section&id=DIRECTORS'%20AND%20CONTROLLING%20SHAREHOLDERS'%20INTERESTS%20IN%20COMPETING%20BUSINESS) As of the report date, the Directors are unaware of any business or interests held by directors, controlling shareholders, or their close associates that compete or may compete with the group's business, nor any other conflicts of interest - No Competing Business: The Directors are unaware of any business or interests held by directors, controlling shareholders, or their close associates that compete or may compete with the Group's business[127](index=127&type=chunk)[129](index=129&type=chunk) - No Conflicts of Interest: Nor are they aware of any other conflicts of interest existing or potentially existing between any such persons and the Group[127](index=127&type=chunk)[129](index=129&type=chunk) Share Option Scheme This section outlines the company's previous and new share option schemes, including their terms, eligible participants, and the status of granted and outstanding options [8.1 Previous Share Option Scheme](index=42&type=section&id=%E5%85%88%E5%89%8D%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The company's previous share option scheme, adopted on May 18, 2011, expired on May 18, 2021; all **32,119,074** options granted under it were unexercised and lapsed, with no outstanding options currently - Scheme Term: The previous share option scheme expired on **May 18, 2021**[130](index=130&type=chunk)[132](index=132&type=chunk) - Share Option Status: All **32,119,074** share options granted were unexercised and lapsed, with **no outstanding share options**[130](index=130&type=chunk)[132](index=132&type=chunk) [8.2 New Share Option Scheme](index=42&type=section&id=%E6%96%B0%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The company adopted a new share option scheme on March 28, 2022, valid for **10 years**, to incentivize eligible participants; as of June 30, 2025, **zero** options are available for grant, and **10,865,003** options remain outstanding at an exercise price of **HK$0.455** - Adoption Date and Validity: Adopted on **March 28, 2022**, valid for **10 years**, expiring on **March 27, 2032**[131](index=131&type=chunk)[132](index=132&type=chunk)[134](index=134&type=chunk)[136](index=136&type=chunk) - Purpose: To grant share options to selected eligible participants as an incentive or reward for their contributions or potential contributions[133](index=133&type=chunk)[135](index=135&type=chunk) - Eligible Participants: Include full-time/part-time employees, consultants/advisers, and directors of any group member company[133](index=133&type=chunk)[135](index=135&type=chunk) - Scheme Limit: As of June 30, 2025, the number of share options authorized for grant under the scheme was **zero shares**[134](index=134&type=chunk)[136](index=136&type=chunk) 新购股权计划下已授出购股权信息 (截至2025年6月30日) | Category of Participants | Outstanding at January 1, 2025 | Granted during the period | Exercised during the period | Lapsed during the period | Outstanding at June 30, 2025 | Date of Grant | Exercise Period | Exercise Price per Share at Date of Grant (HK$) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Executive Director (Mr. Liang Zhi Hao) | 800,000 | – | – | – | 800,000 | 2022/10/13 | 2022/10/13–2032/10/12 | 0.456 | | Employees | 8,190,003 | – | – | – | 8,190,003 | 2022/10/13 | 2022/10/13–2032/10/12 | 0.456 | | Corporate Finance Adviser | 1,875,000 | – | – | – | 1,875,000 | 2022/4/7 | 2022/4/7–2032/4/6 | 0.448 | | **Total** | **10,865,003** | **–** | **–** | **–** | **10,865,003** | | | | - Share options may be exercised in full or in part at any time during the period determined by the Directors and notified to the grantee, but not exceeding **ten years** from the date of grant[138](index=138&type=chunk)[140](index=140&type=chunk) - The subscription price shall not be less than the highest of the closing price on the Stock Exchange on the offer date, the average closing price for the five consecutive business days immediately preceding the offer date, and the nominal value of the share[141](index=141&type=chunk)[142](index=142&type=chunk) Other Financial and Operating Information This section covers additional financial and operational details such as contingent liabilities, capital commitments, asset charges, and events after the balance sheet date [9.1 Contingent Liabilities](index=48&type=section&id=CONTINGENT%20LIABILITIES) As of June 30, 2025, the group had **no significant contingent liabilities** - No Significant Contingent Liabilities: As of June 30, 2025, the Group had **no significant contingent liabilities**[151](index=151&type=chunk)[155](index=155&type=chunk) [9.2 Amount of Capitalised Interest](index=48&type=section&id=AMOUNT%20OF%20CAPITALISED%20INTEREST) Save as disclosed in this report, the group did **not capitalize any interest** during the interim period - No Capitalized Interest: Save as disclosed in this report, the Group did **not capitalize any interest** during the interim period[152](index=152&type=chunk)[156](index=156&type=chunk) [9.3 Future Plans for Material Investments or Capital Assets](index=48&type=section&id=FUTURE%20PLANS%20FOR%20MATERIAL%20INVESTMENTS%20OR%20CAPITAL%20ASSETS) As of June 30, 2025, and December 31, 2024, the group had **no other plans** regarding material investments and capital assets - No Other Material Plans: As of June 30, 2025, and December 31, 2024, the Group had **no other plans** regarding material investments and capital assets[153](index=153&type=chunk)[157](index=157&type=chunk) [9.4 Charges on Group Assets](index=48&type=section&id=CHARGES%20ON%20GROUP%20ASSETS) As of June 30, 2025, the group's self-occupied buildings with a carrying value of approximately **RMB 8.847 million** and leasehold land use rights of **RMB 7.797 million** were pledged as security for bank borrowings - Charged Assets: Self-occupied buildings with a carrying value of approximately **RMB 8.847 million** (before impairment) and leasehold land use rights of **RMB 7.797 million**[154](index=154&type=chunk)[158](index=158&type=chunk) - Purpose: Pledged as security for bank borrowings granted to the Group[154](index=154&type=chunk)[158](index=158&type=chunk) [9.5 Events After Balance Sheet Date](index=49&type=section&id=EVENTS%20AFTER%20BALANCE%20SHEET%20DATE) As of the report date, the Board is unaware of any **significant disclosable events** after the balance sheet date - No Significant Events After Balance Sheet Date: As of the report date, the Board is unaware of any **significant events** that have occurred and require disclosure[159](index=159&type=chunk)[164](index=164&type=chunk) [9.6 Convertible Securities, Warrants or Similar Rights](index=49&type=section&id=CONVERTIBLE%20SECURITIES,%20WARRANTS%20OR%20SIMILAR%20RIGHTS) As of June 30, 2025, there were **10,865,003 outstanding share options** under the company's share option scheme adopted on March 28, 2022, entitling holders to subscribe for shares - Outstanding Share Options: As of June 30, 2025, there were **10,865,003 outstanding share options** entitling holders to subscribe for shares[160](index=160&type=chunk)[164](index=164&type=chunk) - Source: Under the share option scheme adopted on **March 28, 2022**[160](index=160&type=chunk)[164](index=164&type=chunk) [9.7 Pre-emptive Rights](index=49&type=section&id=PRE-EMPTIVE%20RIGHTS) Neither the company's bye-laws nor Bermuda law contains provisions for pre-emptive rights requiring the company to offer new shares proportionally to existing shareholders - No Pre-emptive Rights: Neither the company's bye-laws nor Bermuda law contains provisions for pre-emptive rights[161](index=161&type=chunk)[165](index=165&type=chunk) [9.8 Purchase, Sale or Redemption of the Company's Listed Securities](index=49&type=section&id=PURCHASE,%20SALE%20OR%20REDEMPTION%20OF%20THE%20COMPANY'S%20LISTED%20SECURITIES) During the interim period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any listed securities - No Securities Transactions: During the interim period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's or its subsidiaries' listed securities[162](index=162&type=chunk)[166](index=166&type=chunk) Corporate Governance This section describes the company's corporate governance practices, including compliance with the GEM Listing Rules, the role of the Audit Committee, and any deviations from the Corporate Governance Code [10.1 Disclosure on Changes of Information of Directors](index=50&type=section&id=DISCLOSURE%20ON%20CHANGES%20OF%20INFORMATION%20OF%20DIRECTORS) In accordance with GEM Listing Rules, there were **no changes** in directors' positions or updated information during the interim period since the release of the 2024 annual report - No Changes in Directors' Information: Since the release of the 2024 annual report, there have been **no changes** in directors' positions or updated information during the interim period[168](index=168&type=chunk)[172](index=172&type=chunk) [10.2 Audit Committee](index=50&type=section&id=AUDIT%20COMMITTEE) The Audit Committee, comprising three independent non-executive directors chaired by **Mr. Liu Zhen Bang**, reviews and monitors financial reporting principles, internal control procedures, and group results, having met twice this interim period to review unaudited consolidated results and confirm adequate staffing for accounting, finance, and internal control - Composition: Composed of **three independent non-executive directors**, including Mr. Wang Zhi He, Mr. Xu Yuan Jian, and Mr. Liu Zhen Bang (Chairman)[170](index=170&type=chunk)[173](index=173&type=chunk) - Responsibilities: To review and monitor financial reporting principles and practices, internal control procedures and matters, and to review the Group's quarterly, interim, and annual results[169](index=169&type=chunk)[173](index=173&type=chunk) - Meetings and Review: Two meetings were held during the interim period, and the unaudited consolidated results were reviewed[170](index=170&type=chunk)[173](index=173&type=chunk) - Staff Adequacy: The Audit Committee believes the Group has employed **sufficient staff** to handle accounting, financial, and internal control work[171](index=171&type=chunk)[173](index=173&type=chunk) [10.3 Compliance with Corporate Governance Code](index=51&type=section&id=CORPORATE%20GOVERNANCE) The group largely complied with the GEM Listing Rules' Corporate Governance Code during the interim period, with two deviations: non-executive directors lack fixed terms (but retire by rotation) and the Chairman and CEO roles are combined in **Mr. Wang Zhong Sheng**; the Board believes the current structure promotes efficient operations and will consider appointing an independent CEO, while all independent non-executive directors confirmed their independence and no non-compliance with the adopted code for directors' securities transactions was found - Compliance Status: Save as disclosed below, the Group has **complied with the Corporate Governance Code**[174](index=174&type=chunk)[177](index=177&type=chunk) - Deviation from Code Provision A.4.1: Non-executive directors do not have fixed terms but are subject to retirement by rotation at annual general meetings; the Board believes this arrangement provides **flexibility**[175](index=175&type=chunk)[177](index=177&type=chunk) - Deviation from Code Provision A.2.1: The Chairman (**Mr. Wang Zhong Sheng**) also oversees the Group's daily operations, and the Company has no "Chief Executive Officer" position; the Board believes this structure facilitates **strong and consistent leadership** and will continue to consider the feasibility of appointing an independent Chief Executive Officer[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk) - Code of Conduct for Securities Transactions by Directors: The Company has adopted the relevant code, and **no non-compliance** was noted during the interim period[180](index=180&type=chunk)[182](index=182&type=chunk) - Independent Directors: All independent non-executive directors have confirmed their independence, and the Company considers them to be **fully independent**[183](index=183&type=chunk)[184](index=184&type=chunk)