Company Overview - China CBM Group Company Limited is primarily engaged in the manufacture and sales of liquefied coalbed gas, with operations located in the PRC[25]. - The Group's production of liquefied coalbed gas is concentrated in the Shanxi Qinshui Basin, known for its rich reserves[26]. - The headquarters of the Group is located in Tianjin, PRC[26]. - The company was initially listed on the GEM of The Stock Exchange of Hong Kong Limited on 12 August 2003[25]. Operations and Production - Significant investments have been made in resources exploration and exploitation at coalbed methane blocks in Yangcheng, Shanxi, since July 2011[27]. - The Group has successfully supplied gas to its liquefied natural gas (LNG) plant, enhancing its position in China's unconventional gas market[27]. - The distribution network extends to Shanxi, Guangxi, and Guangdong Provinces, among others[26]. - As of December 31, 2018, the company completed groundwork and drilling of 244 coalbed methane (CBM) wells, with 199 wells currently producing gas[34]. - The average gas output from existing production wells is 850 cubic meters per day per well, contributing to stable revenue and cash flow[35]. - The company suspended its liquefied natural gas (LNG) business in 2018 but continued its CBM extraction and production operations[34]. - The Group's natural gas production by coal projects in Guangxi Beiliu and Hebei Nuoxin are expected to start production in Q2 2019 with an average daily output of 200,000 cubic meters, aiming to increase to 800,000 cubic meters by the end of 2019[50]. - The daily gas output of the upstream business was insufficient to fully utilize the liquefaction plants' daily production capacity of 500,000 cubic meters[73]. Financial Performance - The Group recorded a consolidated turnover of approximately RMB168,097,000 for the year ended 31 December 2018, representing a decrease of approximately 5.86% compared to the previous year[57]. - The loss attributable to equity shareholders of the Company for the year ended 31 December 2018 was approximately RMB105,686,000, an increase from approximately RMB70,219,000 for the year ended 31 December 2017[57]. - Sales of liquefied coalbed gas decreased by 87.17%, offsetting the increase in sales of piped natural gas[57]. - The Group incurred a net loss of approximately RMB121,933,000 for the year ended 31 December 2018[199]. - As of 31 December 2018, the Group's current liabilities exceeded its current assets by approximately RMB337,433,000[199]. - The Group's distributable reserves amounted to approximately RMB134,807,000 as of December 31, 2018, down from RMB336,144,000 in 2017[151]. - The Directors do not recommend the payment of a dividend for the year ended December 31, 2018[149]. Strategic Goals and Commitments - The Group aims to provide high-quality clean energy while promoting the harmonious coexistence of man and nature[28]. - The company emphasizes social responsibility in its exploration and development in the new energy sector[28]. - The company plans to invest heavily in advancing its CBM extraction technology and techniques to maintain its leading position in technological advancement[40]. - The company is focused on sustainable development and long-term growth in the CBM business[41]. - The Group aims to maximize shareholders' investment return by seizing opportunities in the growing CBM market in China[50]. Corporate Governance - The Board comprises a total of five Directors, including two executive Directors and three independent non-executive Directors, with independent non-executive Directors representing at least one-third of the Board[83]. - The Company has adopted a code of conduct regarding Directors' securities transactions that meets the standards set out in Rules 5.48 to 5.67 of the GEM Listing Rules[81]. - The Board has reviewed and monitored the Company's corporate governance policies and practices, training and continuous professional development of directors and senior management, and compliance with legal and regulatory requirements during 2018[83]. - The Company has ensured that one of the independent non-executive Directors possesses appropriate professional qualifications or accounting and financial management expertise as required by the GEM Listing Rules[83]. - The Company Code contains all the Code Provisions of the Code and other provisions, ensuring high transparency and accountability to shareholders[81]. Audit and Compliance - The Audit Committee held four meetings in 2018, with full attendance from all members[128]. - The Audit Committee reviewed the Group's annual financial results for the year ended December 31, 2017, and interim results for the six months ended June 30, 2018[128]. - The Group's results for the year ended December 31, 2018, were reviewed and deemed compliant with applicable accounting standards and GEM Listing Rules[131]. - The Company emphasizes the importance of high-quality corporate reporting to reinforce trust with stakeholders[135]. - The Group incurred an impairment loss on property, plant, and equipment of approximately RMB31,617,000, and on trade and other receivables of approximately RMB39,090,000 for the year ended 31 December 2018[57]. Shareholder Information - The Company allows shareholders holding at least one-tenth of the paid-up capital to requisition an extraordinary general meeting[132]. - The Company has established procedures for shareholders to direct inquiries to the Board[131]. - The Company recognizes the importance of shareholder feedback and ongoing communication with stakeholders[139]. - The Company has a dividend policy aimed at allowing shareholders to participate in profits while retaining adequate reserves for future growth, with factors such as financial results and liquidity requirements considered in dividend declarations[188].