中國煤層氣集團有限公司 China CBM Group Company Limited China CBM Group Company Limited 中國煤層氣集團有限公司 (於開曼群島註冊成立並在百慕達繼續營業之有限公司) (Incorporated in the Cayman Islands and continued in Bermuda with limited liability) (於開曼群島註冊成立並在百慕達繼續營業之有限公司) 2021 Interim Report 中期報告 C H A R A C T E R I S T I C S O F T H E G R O W T H ENTERPRISE MARKET ("GEM") OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attache ...

Financial Performance - The Group's turnover for the three months ended March 31, 2021, was approximately RMB 57,247,000, representing an increase of 70.11% compared to the same period in the previous financial year[6]. - The Group reported a loss of approximately RMB 4,844,000 for the three months ended March 31, 2021[6]. - Basic loss per share attributable to equity shareholders of the Company was approximately RMB 0.37 cents for the three months ended March 31, 2021[6]. - The Board does not recommend the payment of any dividend for the three months ended March 31, 2021[6]. - Gross profit for the Group was RMB 3,911,000 for the three months ended March 31, 2021, compared to RMB 8,661,000 in the same period of 2020[10]. - The Group's cost of sales for the three months ended March 31, 2021, was RMB 53,336,000, up from RMB 24,991,000 in the previous year[10]. - Total comprehensive expense for the period was RMB 5,309,000 for the three months ended March 31, 2021, compared to RMB 4,924,000 in the same period of 2020[11]. - The loss before income tax for the Group was RMB 4,940,000 for the three months ended March 31, 2021[10]. - The total comprehensive expense attributable to equity shareholders of the Company was RMB 5,214,000 for the three months ended March 31, 2021[11]. - Loss attributable to equity shareholders of the Company for the Quarter was approximately RMB 4,844,000, compared with a loss of approximately RMB 5,513,000 for the previous period[28]. Revenue Breakdown - The company reported a turnover of RMB 57,247,000 for the first quarter of 2021, a significant increase from RMB 33,652,000 in the same period of 2020, representing a growth of approximately 70.4%[23]. - Sales of liquefied coalbed gas, including logistic services, contributed RMB 13,830,000 to the turnover, up from RMB 925,000 year-on-year[23]. - Sales of piped natural gas and gas supply connection services generated RMB 43,417,000, compared to RMB 32,727,000 in the previous year, reflecting a growth of about 32.5%[23]. - Other revenue, including interest income from bank deposits, totaled RMB 1,228,000, an increase from RMB 110,000 in the first quarter of 2020[23]. Operational Highlights - The company operates primarily in the People's Republic of China, with all business activities conducted in RMB[18]. - The company is focused on the manufacture and sales of liquefied coalbed gas and piped natural gas, along with providing gas supply connection services[21]. - The Group recorded a consolidated turnover of approximately RMB 57,247,000 for the Quarter, representing an increase of approximately 70.11% compared with the corresponding period last year[28]. - The turnover increased significantly from RMB 33,652,000 to RMB 57,247,000, mainly due to the LNG plant resuming production in February 2021, contributing approximately RMB 13,706,000 to turnover[28]. - Gross profit decreased from RMB 8,661,000 to RMB 3,911,000 due to increased unit costs of liquefied coalbed gas and a significant increase in the purchase price of LNG[28]. - The average daily production of the LNG plant was around 200,000 m3, leading to increased unit costs[28]. - The operation of the LNG terminal in Beihai city was terminated due to an accident in November 2020, affecting supply and pricing[28]. Assets and Liabilities - The Group's net assets as of March 31, 2021, were approximately RMB 113,485,000, including cash and bank balances of approximately RMB 17,608,000[41]. - The Group's gearing ratio was approximately 50.31%, calculated by total external borrowings divided by shareholders' funds[41]. - There was no provision for Hong Kong profits tax as the Group did not derive any income subject to it during the Quarter[25]. Human Resources - As of March 31, 2021, the Group has a total of 328 employees, with staff costs approximately RMB 4,164,000 for the quarter, up from RMB 3,863,000 in the same period last year[44]. Future Plans and Strategies - The Group aims to enhance its market position through the expansion of its liquefied coalbed gas and natural gas services[21]. - The Group is focused on upstream CBM exploration and extraction, with no current plans for acquisitions or scaling down of any business[41]. - The Group aims to improve its cash position through opportunistic financing to accelerate the drilling program if adequate financing is secured in the future[41]. - The Group plans to achieve a daily output of 500,000 cubic meters by the end of 2022, supported by increasing upstream well numbers and gas output[46]. Corporate Governance - The Audit Committee held one meeting during the quarter to review the Group's unaudited consolidated results[103]. - The Group has employed sufficient staff for accounting, financial, and internal control purposes to maintain high-quality corporate governance[103]. - The Company has complied with the Corporate Governance Code provisions, except for the lack of a specific term for independent non-executive Directors, who are subject to retirement by rotation at annual general meetings[105]. - The Company does not have a chief executive officer, which deviates from the code provision A.2.1, but is considering the feasibility of appointing one in the future[107]. - All independent non-executive Directors have confirmed their independence, and the Company considers them to be independent[109].

Financial Performance - The company reported a consolidated profit of approximately HKD 60 million for the year 2020, representing a decrease of 15% compared to the previous year[21]. - The Group recorded a consolidated turnover of approximately RMB179,329,000 for the year ended 31 December 2020, representing a slight increase of approximately 6.6% compared to the previous year[51]. - The Group recorded a loss attributable to equity shareholders of approximately RMB40,627,000 for the year ended 31 December 2020, an improvement from a loss of approximately RMB63,510,000 in the previous year[51]. - The gross profit decreased from RMB46,767,000 to RMB21,310,000, attributed to low average daily production of around 200,000 m³ and increased unit costs of liquefied coalbed gas[51]. - Revenue for 2020 increased to RMB 179,329,000 from RMB 168,229,000 in 2019, representing a growth of approximately 6.56%[200]. - Gross profit decreased to RMB 21,310,000 in 2020 from RMB 46,767,000 in 2019, a decline of about 54.5%[200]. - Loss for the year decreased to RMB 36,224,000 in 2020 from RMB 68,811,000 in 2019, reflecting a decline of approximately 47.4%[200]. - Basic and diluted loss per share was 3.08 cents in 2020, down from 4.81 cents in 2019[200]. Operational Highlights - User data indicated a total of 1.2 million active users, reflecting a growth of 10% year-over-year[21]. - The daily output of liquefied natural gas (LNG) in 2020 was approximately 200,000 cubic meters, with operations resumed in early 2021 after a temporary suspension[34]. - The Group's profitability and cash flow improved due to stable gas output from the gas blocks, driven by the increase in the number and capabilities of production wells[34]. - The Group aims to optimize its sales mix by shifting from a residential user-dominated mix to a more balanced customer base[37]. - The Group plans to achieve a daily output of 500,000 cubic meters from its C-H to Synthesis natural gas production project by the end of 2022[43]. Strategic Initiatives - The company has set a revenue guidance of HKD 70 million for the next fiscal year, aiming for a 16.67% increase[21]. - New product development includes the launch of a methane extraction technology expected to enhance production efficiency by 25%[21]. - A strategic acquisition of a local competitor is in progress, which is projected to increase the company's market capitalization by 30%[21]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share within three years[21]. - The Group plans to invest heavily in developing and advancing CBM extraction technology and techniques to maintain its leading position in technological advancement[37]. Corporate Governance - The Company has adopted a code of conduct for Directors' securities transactions that meets or exceeds the standards set out in the GEM Listing Rules[76]. - The Board comprises a total of eight Directors, including two executive Directors and three independent non-executive Directors, with independent Directors representing at least one-third of the Board[76]. - The Company has established a set of corporate governance standards and practices to direct and manage its business affairs[74]. - The Board is responsible for the overall direction and supervision of the Company's business and affairs[76]. - The Company has made efforts to respect the rights of shareholders and recognize their legitimate interests[74]. Risk Management - The Group has established internal control policies to manage risks in pursuit of strategic objectives[80]. - The audit committee assists the directors in overseeing the financial reporting process and internal controls[193]. - The Company must disclose matters related to its ability to continue as a going concern unless liquidation or cessation of operations is intended[191]. - The Group has established a sound control environment and necessary mechanisms to monitor and correct noncompliance[128]. Shareholder Information - The Directors do not recommend the payment of a dividend for the year ended 31 December 2020[138]. - The Group's distributable reserves amounted to approximately RMB 87,414,000 as of 31 December 2020, down from RMB 139,558,000 in 2019[140]. - The Company has a dividend policy aimed at allowing shareholders to participate in profits while retaining adequate reserves for future growth[178]. - The Company maintains a register of substantial shareholders as required under the Securities and Futures Ordinance[153]. Future Outlook - Future outlook remains cautiously optimistic, with a focus on maintaining profitability amidst market volatility[21]. - The management anticipates strong growth momentum in the natural gas market due to increasing concerns over environmental issues[70].

Financial Performance - The Group's revenue for the nine months ended September 30, 2020, was approximately RMB 114,432,000, representing a decrease of approximately 8.11% compared to the same period in the previous financial year[10]. - The Group reported a loss attributable to owners of the Company of approximately RMB 15,681,000 for the nine months ended September 30, 2020[10]. - Loss per share for the Company was approximately RMB 1.19 cents for the nine months ended September 30, 2020[11]. - Gross profit for the nine months ended September 30, 2020, was RMB 26,099,000, compared to RMB 29,248,000 for the same period in 2019[16]. - The loss before taxation for the nine months ended September 30, 2020, was RMB 17,846,000, compared to a profit of RMB 6,310,000 in the same period of 2019[16]. - The total comprehensive income for the period was a loss of RMB 6,530,000, significantly worse than a loss of RMB 2,499,000 in Q3 2019[20]. - For the nine months ended September 30, 2020, the company experienced a loss of RMB 17,837,000, compared to a profit of RMB 6,499,000 in the same period of 2019[20]. - The total comprehensive income attributable to equity shareholders for the period was a loss of RMB 5,577,000, compared to a loss of RMB 4,000,000 in Q3 2019[20]. - The accumulated losses at September 30, 2020, reached RMB 592,041,000, indicating a significant increase in losses compared to previous periods[24]. Revenue and Sales - Revenue for the company represents the sales value of goods supplied and services provided, excluding value-added and business taxes[27]. - Revenue from sales of liquefied coalbed gas was RMB 1,537,000 for the quarter, up from RMB 1,264,000 in the previous year, while sales of piped natural gas reached RMB 35,442,000, compared to RMB 26,082,000 in the same period last year[30]. - The decrease in other revenue was mainly due to the absence of Value Added Tax refunds and other interest income during the Review Period[45]. - The Group recorded a consolidated turnover of approximately RMB 114,432,000 for the Review Period, representing a decrease of approximately 8.11% compared to the corresponding period last year[44]. Costs and Expenses - The total cost of sales for the nine months ended September 30, 2020, was RMB 88,333,000, compared to RMB 95,280,000 in the previous year[16]. - The Group's finance costs for the nine months ended September 30, 2020, were RMB 2,424,000, an increase from RMB 1,860,000 in the previous year[16]. - The Group's administrative and other operating expenses for the nine months ended September 30, 2020, were RMB 39,308,000, compared to RMB 48,634,000 in the previous year[16]. Shareholder Information - The Group did not recommend payment of any dividend for the Review Period, consistent with the previous year[36]. - Mr. Wang Zhong Sheng holds a beneficial ownership of 470,588,254 shares, representing 35.66% of the Company[71]. - As of September 30, 2020, Ms. Zhao Xin holds 488,706,754 shares, representing 37.04% of the company's total shareholding[75]. - The weighted average number of shares in issue for the Quarter and the Review Period was 1,319,484,534 shares, unchanged from the previous year[37]. Reserves and Assets - The net 1P (Proved) reserves of coalbed methane properties were 1,089 BCF as of 30 September 2020, down from 1,547 BCF as of 31 March 2012[50]. - The Group's net 3P (Proved + Probable + Possible) reserves were 1,936 BCF as of 30 September 2020, down from 2,050 BCF[50]. - The Group's net assets as of September 30, 2020, are approximately RMB 135,880,000, including cash and bank balances of approximately RMB 17,685,000[60]. - The Group's gearing ratio is approximately 41.25%, calculated by total external borrowings divided by shareholders' funds[60]. Operational Updates - As of September 30, 2020, the Group has completed the groundwork and drilling of 244 CBM wells, with 199 wells in production, maintaining the same number of production wells as at the end of 2019[56]. - The average daily gas output from existing gas wells is approximately 850 cubic meters[58]. - The daily gas output of the upstream business was insufficient to fully utilize the 500,000 cubic meters daily production capacity of liquefaction plants[65]. - The Group plans to increase daily gas output to 350,000 cubic meters by mid-2021 and to 850,000 cubic meters by the end of 2021[65]. - The experiment on synthetic natural gas production was successfully completed, with small-scale production expected to start by the end of 2020[65]. - The Group intends to resume its LNG project in the second half of 2020, supported by increasing upstream well numbers and gas output[65]. Corporate Governance - The Company has complied with the Corporate Governance Code provisions, except for the appointment of a chief executive officer, which is currently under consideration[96]. - The audit committee has held three meetings during the Review Period to review the Group's unaudited consolidated results[94]. - The Company has adopted a code of conduct regarding securities dealings by Directors, with no reported non-compliance during the Review Period[96]. - The roles of the chairman and chief executive are currently combined, which deviates from the Corporate Governance Code[94]. Financial Management - The Group's financial management strategies aim to minimize financial risks and avoid highly-geared financing arrangements[60]. - The company has not early adopted new and revised HKFRS that have been issued but are not yet effective, and is assessing their impact on financial performance[27]. - The Group does not have any plans for acquisition or investment outside of upstream CBM exploration and extraction[60].

Financial Performance - The Group's revenue for the quarter ended June 30, 2020, was approximately RMB 43,801,000, representing a decrease of approximately 19.02% compared to the same period in the previous financial year[14]. - For the six months ended June 30, 2020, the Group's revenue was approximately RMB 77,453,000, reflecting a decrease of approximately 20.3% year-on-year[14]. - The Group recorded a loss attributable to equity shareholders of approximately RMB 8,437,000 for the Interim Period[14]. - Loss per share for the Group was approximately RMB 0.64 cents for the Interim Period[14]. - The Board does not recommend the payment of any dividend for the Interim Period[14]. - Revenue for the quarter ended June 30, 2020, was RMB 43,801,000, a decrease of 19.0% compared to RMB 54,092,000 in the same quarter of 2019[19]. - The company reported a loss for the period of RMB 5,287,000, compared to a profit of RMB 5,477,000 in the previous year[21]. - Total comprehensive loss for the period was RMB 5,809,000, compared to a comprehensive income of RMB 5,480,000 in 2019[21]. - The Group recorded a consolidated turnover of approximately RMB 77,453,000 for the Interim Period, representing a decrease of approximately 20.3% compared to the corresponding period of last year[91]. - Loss attributable to equity shareholders of the Company for the Interim Period was approximately RMB 8,437,000, compared to a profit of approximately RMB 5,358,000 for the previous period[91]. Cash Flow and Assets - Cash inflow from operating activities was RMB 2,140,000, a significant improvement from an outflow of RMB 56,103,000 in the same period last year[28]. - Cash and bank balances decreased to RMB 13,984,000 as of June 30, 2020, down from RMB 18,265,000 at the beginning of the year[28]. - Net current liabilities improved to RMB (296,798,000) from RMB (310,739,000) at the end of 2019[25]. - Non-current assets totaled RMB 415,817,000, a decrease from RMB 442,489,000 at the end of 2019[23]. - The company reported total equity of RMB 142,410,000, down from RMB 153,143,000 at the end of 2019[25]. - As of June 30, 2020, the total equity attributable to shareholders was RMB 142,410,000, a decrease from RMB 158,143,000 at the beginning of the year[30]. - The company reported accumulated losses of RMB 576,360,000 as of June 30, 2020, indicating ongoing financial challenges[30]. Revenue Breakdown - Revenue for the quarter ended June 30, 2020, was RMB 1,791,000 from sales of liquefied coalbed gas, a decrease of 66.1% compared to RMB 5,294,000 in the same quarter of 2019[41]. - Revenue from gas supply connection services was RMB 42,010,000 for the quarter ended June 30, 2020, down 13.8% from RMB 48,798,000 in the same quarter of 2019[41]. - Total revenue for the half year ended June 30, 2020, was RMB 43,801,000, a decline of 19.0% compared to RMB 54,092,000 in the same period of 2019[41]. Operational Highlights - The company primarily operates in the People's Republic of China, with business activities transacted in RMB[35]. - The principal activities include the manufacture and sales of liquefied coalbed gas and provision of logistics services[37]. - The Group's revenue and assets were primarily derived from the liquefied coalbed gas business in China, with other segments being immaterial[43]. - As of June 30, 2020, the Group has completed the groundwork and drilling of 244 CBM wells, with 199 wells in production, maintaining the same number of wells as at the end of 2019[101]. - The existing gas output wells produce approximately 850 cubic meters of gas on average per day[101]. - The daily gas output of the upstream business was insufficient to fully utilize the 500,000 cubic meters daily production capacity of liquefaction plants[111]. Future Plans and Market Outlook - The Group plans to accelerate the drilling program if adequate financing is obtained in the future, either from increased gas sales or fundraising[106]. - The Group plans to increase daily gas output to 350,000 cubic meters by mid-2021 and to 850,000 cubic meters by the end of 2021[111]. - The management anticipates strong growth momentum in the natural gas market due to rising environmental concerns and the elimination of highly-polluted energy sources[114]. - The Group intends to resume its LNG project in the second half of 2020, supported by increasing upstream well numbers and gas output[111]. Shareholder Information - As of June 30, 2020, Mr. Wang Zhong Sheng holds a total of 488,706,754 shares, representing approximately 37.04% of the shareholdings[119]. - As of June 30, 2020, Mr. Wang Zhong Sheng holds a total of 470,588,254 long positions in shares, which includes 324,750 shares from options, 376,121,483 issued shares, and convertible bonds convertible to 94,142,021 shares[1]. - Ms. Zhao Xin, spouse of Mr. Wang Zhong Sheng, holds 488,706,754 shares, representing approximately 37.04% of the company's shareholding[125]. Corporate Governance - The audit committee held two meetings during the Interim Period to review the Group's unaudited consolidated results[154]. - The Group has complied with the Corporate Governance Code during the Interim Period, except for certain provisions regarding the appointment of non-executive directors[158]. - The Company is considering the feasibility of appointing a separate chief executive to comply with the HKSE Code[160]. - The Company has adopted a code of conduct regarding securities dealings by Directors, with no reported non-compliance during the Interim Period[160]. - All independent non-executive Directors have confirmed their independence as per the GEM Listing Rules[160].

Financial Performance - The Group's turnover for the three months ended March 31, 2020, was approximately RMB 33,652,000, representing a decrease of 21.9% compared to the same period in the previous financial year[12]. - The Group reported a loss of approximately RMB 4,353,000 for the three months ended March 31, 2020[12]. - Basic loss per share attributable to equity shareholders of the Company was approximately RMB 0.42 cents for the three months ended March 31, 2020[12]. - Gross profit for the period was RMB 8,661,000, down from RMB 12,338,000 in the same period of 2019[17]. - The Group's total comprehensive expense for the period was RMB 4,924,000, compared to a total comprehensive income of RMB 3,519,000 in the same period of 2019[19]. - The loss attributable to equity shareholders of the Company was RMB 5,513,000 for the period[17]. - Total revenue for the quarter was RMB 33,652,000, down 22% from RMB 43,090,000 year-over-year[33]. - The company reported a comprehensive loss for the period of RMB 5,513,000[24]. - The turnover decreased from RMB 43,090,000 to RMB 33,652,000 for the Quarter, mainly due to the outbreak of the coronavirus, resulting in a decrease in sales volume[38]. - Other revenue decreased from RMB 6,538,000 to RMB 110,000 due to no value-added tax refund received during the Quarter[38]. - Other net income for the quarter was RMB 100,000, a significant decrease from RMB 6,530,000 in the previous year[33]. Dividends and Shareholder Equity - The Board does not recommend the payment of any dividend for the three months ended March 31, 2020[12]. - The Group does not recommend the payment of any dividend for the Quarter, consistent with the corresponding period in 2019[36]. - As of March 30, 2020, the total equity attributable to shareholders was RMB 158,143,000[23]. - The Group's net assets as of March 31, 2020, were approximately RMB 148,219,000, with cash and bank balances of approximately RMB 13,656,000[56]. - As of March 31, 2020, Mr. Wang Zhong Sheng holds a beneficial ownership of 376,121,483 shares, representing approximately 35.66% of the company's shareholdings[68]. - As of March 31, 2020, Ms. Zhao Xin holds 488,706,754 shares, representing a 37.04% interest in the company through her spouse's holdings[72]. Operational Highlights - The Group's finance costs for the period were RMB 698,000, compared to RMB 1,671,000 in the same period of 2019[17]. - The Group's administrative expenses were RMB 11,228,000 for the period, an increase from RMB 10,266,000 in the same period of 2019[17]. - The Group experienced exchange differences on translation of financial statements of foreign entities amounting to RMB (571,000) for the period[19]. - For the first quarter of 2020, the turnover from the sales of liquefied coalbed gas was RMB 925,000, a decrease of 95.9% compared to RMB 22,603,000 in the same period of 2019[33]. - The sales of piped natural gas and provision of gas supply connection services generated RMB 32,727,000, an increase of 59.7% from RMB 20,487,000 in Q1 2019[33]. - Employee costs for the quarter were approximately RMB 3,863,000, compared to RMB 4,348,000 for the same period in 2019[60]. - The Group has an aggregate of 367 employees, including 19 in research and development, 199 in engineering and customer service, 126 in administration, and 23 in marketing[60]. Reserves and Production - The reserve evaluation of the CBM properties as of 31 March 2020 shows total original gas in place of 1,936 BCF, down from 2,724 BCF in 2012[45]. - Net 1P (Proved) reserves are 1,089 BCF, while Net 2P (Proved + Probable) reserves are 1,547 BCF as of 31 March 2020[45]. - As of March 31, 2020, the Group has completed the groundwork and drilling of 244 CBM wells, with 199 wells in production, maintaining the same number of wells as at the end of 2019[52]. - The existing gas output wells produce approximately 850 cubic meters of gas on average per day[52]. - The upstream business is steadily improving, with daily gas output insufficient to fully utilize the 500,000 cubic meters daily production capacity of liquefaction plants[62]. - The company plans to increase daily gas output to 350,000 cubic meters by the end of 2020 and to 850,000 cubic meters by mid-2021[62]. Future Plans and Market Outlook - The Group plans to accelerate the drilling program if adequate financing is obtained in the future[56]. - The company aims to resume its LNG project in the second half of 2020, supported by increasing upstream well numbers and stabilized LNG prices[62]. - The demand for natural gas is expected to maintain strong growth momentum due to increasing environmental concerns and the elimination of highly-polluted energy sources[65]. - The company anticipates reduced impact from external factors in 2020 due to stable self-produced well gas supply, leading to lower uncontrollable operational risks[62]. Corporate Governance - The audit committee held one meeting during the quarter, reviewing the group's unaudited consolidated results[95]. - The company has complied with the Corporate Governance Code, except for the lack of specific terms for independent non-executive directors[97]. - The company does not have a chief executive officer, which deviates from the Corporate Governance Code[97]. - The roles of the chairman and the chief executive are not separated, as the chairman oversees general operations[97]. - The Company is considering the feasibility of appointing a separate chief executive in compliance with code provision A.2.1 of the Code[99]. - The Company has adopted a code of conduct regarding securities dealings by Directors, with no reported non-compliance during the Review Period[99]. - All independent non-executive Directors have confirmed their independence according to Rule 5.09 of the GEM Listing Rules[99]. Share Options and Securities - The company has a new share option scheme that allows for the granting of options for 258,300,000 ordinary shares to directors, employees, and consultants[74]. - As of March 31, 2020, there are 32,119,074 share options outstanding with an exercise price of HK$3.81 and a weighted average remaining contractual life of 1.2 years[91]. - No share options were granted during the first quarter of 2020, and the number of options remained unchanged at 32,119,074[86]. - The share option scheme adopted on May 18, 2011, will remain in force for 10 years, expiring on May 17, 2021[74]. - The total number of options granted under the new scheme includes 215,220,000 options that vest immediately and 43,080,000 options that vest over two years[90]. - The subscription price per share under the New Share Option Scheme is determined by the Board and must be at least the higher of the closing price on the offer date or the average closing price for the preceding five business days[93]. - The company recorded no other persons with interests or short positions in shares as of March 31, 2020, apart from the disclosed individuals[72].

中國煤層氣集團有限公司 China CBM Group Company Limited (於開曼群島註冊成立並在百慕達繼續營業之有限公司) Annual Report 年度報告 二零一九年年報 中國煤層氣集團有限公司 CHARACTERISTICS OF THE GEM ("GEM") OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the ...

Financial Performance - The revenue of China CBM Group Company Limited for the nine months ended September 30, 2019, was approximately RMB 124,528,000, representing an increase of approximately 1.78% compared to the same period in the previous financial year[11]. - The Group realized a profit attributable to owners of the Company of approximately RMB 1,357,000 for the nine months ended September 30, 2019[11]. - The profit per share for the Company was approximately RMB 0.10 cents for the nine months ended September 30, 2019[11]. - The Group's revenue for the three months ended September 30, 2019, was RMB 27,346,000, compared to RMB 38,713,000 for the same period in 2018, indicating a decline[16]. - The gross profit for the nine months ended September 30, 2019, was RMB 29,248,000, compared to RMB 7,348,000 for the same period in 2018[16]. - The loss before taxation for the three months ended September 30, 2019, was RMB 2,497,000, compared to a profit of RMB 207,000 for the same period in 2018[16]. - The loss for the period for the three months ended September 30, 2019, was RMB 2,500,000, compared to a profit of RMB 207,000 for the same period in 2018[19]. - The total comprehensive loss for the nine months ended September 30, 2019, was RMB 24,841,000[19]. - The total comprehensive income for the period was RMB (2,499,000), a significant decrease from RMB 8,698,000 in Q3 2018[22]. - The equity shareholders of the company experienced a total comprehensive loss of RMB 4,000,000, compared to a profit of RMB 3,817,000 in the previous year[22]. - The company’s total comprehensive income for the nine months ended September 30, 2019, was RMB 6,506,000, compared to a loss of RMB 1,410,000 for the same period in 2018[22]. Dividend and Shareholder Information - The Board does not recommend the payment of any dividend for the nine months ended September 30, 2019[11]. - The Group did not recommend payment of any dividend for the Review Period, consistent with the corresponding period in 2018[40]. - As of September 30, 2019, Mr. Wang Zhong Sheng holds a beneficial ownership of 470,588,254 shares, representing approximately 35.66% of the company's shareholdings[81]. - Ms. Zhao Xin, spouse of Mr. Wang Zhong Sheng, has an interest in 488,706,754 shares, representing 37.04% of the company's total shareholding[86]. - The total number of shares held by Mr. Wang Zhong Sheng includes various forms of ownership, emphasizing his significant stake in the company[2]. Operational Highlights - The company operates primarily in the People's Republic of China, with business activities transacted in RMB[30]. - The principal activities include the manufacture and sales of liquefied coalbed gas and provision of gas supply connection services[30]. - As of September 30, 2019, the Group completed drilling 244 CBM wells, with 199 wells in production, maintaining the same number of production wells as at the end of 2018[59]. - The average daily gas output per existing well is approximately 850 cubic meters[61]. - The upstream business is steadily improving, with daily gas output expected to reach 350,000 cubic meters in the first half of 2020 and 850,000 cubic meters by the end of 2020[73]. - The daily production capacity of liquefaction plants is currently 500,000 cubic meters, but is not fully utilized due to raw gas supply shortages[73]. Financial Position and Assets - The Group's net assets as of September 30, 2019, were approximately RMB 229,731,000, including cash and bank balances of approximately RMB 5,849,000[63]. - The Group's gearing ratio was approximately 22.40%, calculated as total external borrowings divided by shareholders' funds[63]. - The weighted average number of shares in issue for the Quarter and the Review Period was 1,319,484,534 shares[41]. - The company had no material contingent liabilities as of September 30, 2019[111]. Employee and Cost Management - Employee costs for the nine months ended September 30, 2019, were approximately RMB 12,169,000, a decrease from approximately RMB 16,466,000 for the same period in 2018[66]. - The Group has 341 employees, including 7 in research and development, 192 in engineering and customer service, 120 in administration, and 22 in marketing[66]. Corporate Governance and Compliance - The audit committee has held three meetings during the Review Period to review the Group's unaudited consolidated results[115]. - The Company has complied with the Corporate Governance Code provisions, except for the lack of a specific term for independent non-executive Directors[115]. - The Company has confirmed that all independent non-executive Directors are independent according to Rule 5.09 of the GEM Listing Rules[119]. - The roles of chairman and chief executive are currently held by the same individual, which deviates from code provision A.2.1[115]. - The Company is considering the feasibility of appointing a separate chief executive to comply with code provision A.2.1[117]. Future Outlook and Strategic Plans - The management anticipates strong growth in natural gas market demand due to increasing environmental concerns and the elimination of highly-polluted energy sources[76]. - The company plans to accelerate its drilling program if adequate financing is obtained in the future[63]. - The company plans to resume its LNG project by the end of 2019, supported by increasing upstream well numbers and gas output[73]. - Future outlook includes potential market expansion and new product development strategies[111].

中 國 煤 層 氣 集 團 有 限 公 司 China CBM Group Company Limited (於開曼群島註冊成立壹在百縣連繼續營藥之有限公司) (Incorporated in the Cayman Islands and continued in Bermuda with limited liability) 股份代號 : Stock Code: 8270 中国联成 水服泰能源发展有限公司 Interim Report 中期報告 2019 | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Financial Performance - The Group's turnover for the three months ended March 31, 2019, was approximately RMB 43,090,000, representing an increase of 1.30% compared to the corresponding period in the previous financial year[12]. - The Group realized a profit of approximately RMB 3,522,000 for the three months ended March 31, 2019[12]. - Basic loss per share attributable to equity shareholders of the Company was approximately RMB 0.01 cents for the three months ended March 31, 2019[12]. - The Board does not recommend the payment of any dividend for the three months ended March 31, 2019[12]. - Gross profit for the period was RMB 12,338,000, with a cost of sales amounting to RMB 30,752,000[17]. - Profit before income tax was RMB 3,332,000, compared to a loss of RMB 10,678,000 in the previous year[17]. - Total comprehensive income for the period was RMB 3,519,000, compared to a total comprehensive loss of RMB 17,290,000 in the previous year[19]. - The Group's income tax credit for the period was RMB 190,000[17]. - Non-controlling interests contributed a profit of RMB 3,539,000 for the period[19]. - The Group's basic and diluted loss per share was RMB 0.01 cents, compared to RMB 0.82 cents in the previous year[17]. - The turnover for the sale of liquefied coalbed gas reached RMB 22,603,000 in Q1 2019, a significant increase from RMB 3,624,000 in Q1 2018, representing a growth of approximately 525%[32]. - Sales of piped natural gas amounted to RMB 20,487,000 in Q1 2019, compared to RMB 38,913,000 in Q1 2018, indicating a decline of about 47%[32]. - Total turnover for the quarter was RMB 43,090,000, slightly up from RMB 42,537,000 in the same quarter last year, reflecting a marginal increase of approximately 1.3%[32]. - Other revenue, including interest income from bank deposits, totaled RMB 6,538,000 in Q1 2019, compared to RMB 708,000 in Q1 2018, marking a substantial increase of around 823%[32]. - Loss attributable to equity shareholders of the Company for the Quarter was approximately RMB 17,000, compared with a loss of approximately RMB 10,865,000 for the previous period[37]. - Other revenue increased from RMB 708,000 to RMB 6,538,000 during the Quarter, primarily due to a value-added tax refund of RMB 6,510,000[37]. Operational Highlights - The company operates primarily in the People's Republic of China, with business activities transacted mainly in RMB[28]. - The principal activities of the company's subsidiaries include the manufacture and sales of liquefied coalbed gas and the provision of gas supply connection services[30]. - The Group recorded a consolidated turnover of approximately RMB 43,090,000 for the Quarter, representing an increase of approximately 1.30% compared with the corresponding period of last year[37]. - The turnover increased from RMB 42,537,000 to RMB 43,090,000 for the Quarter, mainly due to increased sales to industrial customers in Guangxi and higher output from coalbed methane wells in Yangcheng[37]. - The Group's net 1P (Proved) reserves as of 31 March 2019 were 1,419 BCF, while net 2P (Proved + Probable) reserves were 1,869 BCF[44]. - The total original gas in place across all blocks is 2,724 BCF[44]. - As of March 31, 2019, the Group has completed the groundwork and drilling of 244 CBM wells, with 199 wells in production, showing no change from the end of 2018[51]. - The average daily gas output per existing well is approximately 850 cubic meters[51]. - The estimated capital expenditure for each well is approximately RMB 1.4 million, including road maintenance fees of RMB 90,000, drilling expenses of RMB 860,000, well testing fees of RMB 40,000, and equipment/material costs of RMB 410,000[47]. - The daily gas output of the upstream business was insufficient to fully utilize the 500,000 cubic meters daily production capacity of liquefaction plants[61]. - The Group plans to commence the first stage of the coal-to-natural gas project in June 2019 with a pilot daily output of 200,000 cubic meters, aiming to increase it to 800,000 cubic meters by the end of 2019[61]. - The Group intends to resume its LNG business in 2019, supported by an increase in the number of upstream wells and gas output[61]. - By the end of 2019, the daily output of gas exploration business is projected to exceed 200,000 cubic meters, while the daily output of coal-to-natural gas is expected to reach about 800,000 cubic meters[61]. - The demand for natural gas is anticipated to maintain strong growth momentum due to increasing concerns over environmental issues and the elimination of highly-polluted energy sources[64]. - The Group's raw gas supply will be further consolidated, enhancing the advantages of its vertical integration business[61]. - The stable supply from self-produced well gas and coal-to-natural gas production will reduce the impact of external factors on the Company's operations[61]. - The successful development of coal-to-natural gas technology is expected to contribute positively to the Company's profit margin and long-term development[64]. - The management is committed to overcoming difficulties to enhance the Company's profitability and long-term growth[64]. - The experiment on natural gas production by coal was largely completed as of the date of the report[61]. Corporate Governance and Compliance - The unaudited financial results for the quarter have been reviewed by the company's audit committee, ensuring compliance with accounting standards issued by the Hong Kong Institute of Certified Public Accountants[28]. - The company has not early adopted new and revised Hong Kong Financial Reporting Standards that are not yet effective, and is assessing their impact on financial performance[28]. - The financial statements are prepared under the historical cost convention, consistent with the previous year's annual financial statements[28]. - The audit committee held one meeting during the quarter to review the unaudited consolidated results[115]. - The company has complied with the Corporate Governance Code, except for the lack of a specific term for independent non-executive directors[120]. - The company is considering the feasibility of appointing a separate chief executive officer[121]. - The company has received confirmations of independence from all independent non-executive directors[121]. - The roles of chairman and chief executive are currently not separated, which deviates from the Corporate Governance Code[119]. - The company has established an audit committee to oversee financial reporting and internal control procedures[115]. - No purchase, sale, or redemption of the company's listed securities occurred during the quarter[115]. - The company has adopted a code of conduct regarding securities dealings by directors, with no reported non-compliance during the review period[121]. Shareholder Information - As of March 31, 2019, Ms. Zhao Xin holds 488,706,754 shares, representing a 37.04% interest in the company through her spouse[77]. - No other individuals, apart from the disclosed directors and chief executive, had interests or short positions in the company's shares as of March 31, 2019[78]. - There were no share options granted or outstanding under the Old Share Option Scheme prior to its termination[80]. - As of March 31, 2019, there were 32,119,074 share options outstanding with an exercise price of HK$3.81 and a weighted average remaining contractual life of 2.2 years[109]. - The total number of shares available for issue under the New Share Option Scheme was 32,119,074 ordinary shares, representing approximately 2.43% of the issued shares of the company[112]. - As of March 31, 2019, the company had outstanding convertible bonds convertible to 94,142,021 shares and options to subscribe for 32,119,074 shares under the New Share Option Scheme[113]. - During the quarter, the company did not capitalize any interest[115]. Market and Future Outlook - China CBM Group reported a revenue of $10 million for the first quarter, reflecting a 15% increase year-over-year[123]. - The company achieved a net profit of $2 million, representing a 20% growth compared to the same period last year[123]. - User data indicates an increase in active users by 25%, reaching a total of 50,000 users[123]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by the end of the fiscal year[123]. - New product development includes the launch of a next-generation coalbed methane extraction technology, expected to increase efficiency by 40%[123]. - Future guidance estimates revenue growth of 10-15% for the next quarter, driven by increased demand and market expansion[123]. - The company is exploring potential acquisitions to enhance its technological capabilities and market reach[123]. - Operational costs have been reduced by 5% due to improved efficiency measures implemented in the last quarter[123]. - The company has secured a new partnership with a local energy firm, which is expected to generate an additional $3 million in revenue annually[123]. - Research and development expenditure increased by 12%, focusing on sustainable energy solutions[123].