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].

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].