Financial Performance - For the three months ended June 30, 2024, the company reported total revenue of CAD 794,284, a decrease of 72.7% compared to CAD 2,915,430 for the same period in 2023[7]. - The company's net loss for the six months ended June 30, 2024, was CAD 7,277,834, compared to a net loss of CAD 4,062,151 for the same period in 2023, indicating a significant increase in losses[7]. - The company generated CAD 3,541,998 in revenue from product sales for the six months ended June 30, 2024, down from CAD 6,431,908 in the same period of 2023, a decline of 44.5%[7]. - The company reported a significant increase in trade income, with a loss of CAD (21,487) for the three months ended June 30, 2023, compared to a gain of CAD 237 for the same period in 2024[7]. - The company reported a net loss of C$ (7,277,834) for the six months ended June 30, 2024, compared to a net loss of C$ (4,062,151) for the same period in 2023, indicating a worsening financial performance[9]. - The company reported a trading income of C$3,332 for the three months ended June 30, 2024, compared to C$114,426 in the same period of 2023, reflecting a significant decrease[40]. - The total loss and comprehensive loss for the three months ended June 30, 2024, was CAD (3,848,000), a 96% increase from CAD (1,966,000) in 2023[91]. - Adjusted EBITDA for the six months ended June 30, 2024, showed a substantial decline, with a net loss of CAD 3,390,000 compared to a loss of CAD 177,000 in the same period of 2023, marking an increase of 1820%[126]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to CAD 31,340,104, down from CAD 35,507,629 as of December 31, 2023, reflecting a decrease of approximately 11.5%[4]. - The company's total liabilities decreased slightly to CAD 40,557,061 as of June 30, 2024, from CAD 41,007,614 as of December 31, 2023[4]. - As of June 30, 2024, total equity decreased to C$ (7,277,834) from C$ 4,671,055 as of June 30, 2023, reflecting a significant decline in retained earnings[8]. - The company's long-term debt as of June 30, 2024, is 13,804,485 CAD, down from 15,082,539 CAD as of December 31, 2023, indicating a decrease of about 8.4%[27]. - The company's total liabilities, including long-term payables, increased to 23,531,441 CAD as of June 30, 2024, compared to 21,498,517 CAD as of December 31, 2023, reflecting an increase of approximately 9.5%[24]. - The company's net debt stands at CAD 37,873,633 as of June 30, 2024, compared to CAD 37,385,853 as of December 31, 2023, indicating a slight increase[61]. - The company's total capital as of June 30, 2024, was C$28,657,000, down from C$31,887,000 at the end of 2023, indicating a decline of about 10.5%[95]. - The debt-to-equity ratio increased to 132% as of June 30, 2024, compared to 117% at the end of 2023, reflecting a higher leverage position[95]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2024, were CAD 577,677, compared to CAD 363,305 as of December 31, 2023, representing an increase of 58.9%[4]. - Operating cash flow for the six months ended June 30, 2024, was C$ (1,756,481), compared to C$ 2,351,575 for the same period in 2023, showing a negative shift in operational efficiency[9]. - The company has a net working capital deficit of C$13,307,000 as of June 30, 2024, slightly up from C$13,120,000 at the end of 2023[95]. - The company aims to ensure sufficient liquidity to meet financial obligations under both normal and stressed conditions, with ongoing updates to operational and financial forecasts[54]. - The company’s operational cash flow and ability to secure external financing are critical for meeting upcoming debt obligations and funding future operations[100]. Capital Expenditures and Investments - The company incurred C$ 1,900,000 in capital expenditures for property, plant, and equipment during the first half of 2024, reflecting ongoing investment in infrastructure[9]. - The company’s exploration and evaluation asset expenditures for the first half of 2024 were C$ (241,788), compared to C$ (1,383,466) for the same period in 2023, reflecting a decrease in investment in new projects[9]. - The company has a total commitment of CAD 124,770,970, with transportation commitments accounting for CAD 7,730,720 and the Gexin agreement totaling CAD 116,307,250[63]. Shareholder and Equity Information - The company issued shares for cash amounting to C$ 2,540,956 during the first half of 2024, contributing to the total equity changes[8]. - The company’s total share capital as of June 30, 2024, was C$ 222,430,877, an increase from C$ 219,802,889 as of June 30, 2023, indicating growth in equity financing[8]. - The company issued 63,000,000 shares for cash, raising C$2,540,956 as of January 1, 2024, increasing the total issued shares to 522,886,520 by June 30, 2024[35]. - The company has a total of 3,080,200 stock options outstanding as of June 30, 2024, with a weighted average exercise price of HK$0.51[38]. Operational Performance - The average daily natural gas production in Q2 2024 was 1,361 cubic feet, down 83.0% from Q1 2024's 8,030 cubic feet[71]. - The total production volume dropped by 77% to 280 boe/day from 1,210 boe/day year-over-year[77]. - The average sales price of natural gas fell by 38% to CAD 1.55 for the three months ended June 30, 2024, down from CAD 2.50 in the same period of 2023[81]. - The average trading price of natural gas was CAD 1.60 for the three months ended June 30, 2024, a decrease of 30% from CAD 2.28 in the same period of 2023[81]. - The company anticipates a recovery in natural gas prices starting in September 2024, prompting the closure of gas wells to preserve reserves[75]. Management and Governance - The company has established an Audit and Risk Committee, consisting of three independent non-executive directors, to oversee financial reporting and internal controls[131]. - The company has adhered to the corporate governance code, with a commitment to maintaining high standards to protect shareholder interests[128]. - The company has implemented disclosure controls and procedures to ensure timely and accurate reporting of financial information[120]. Compliance and Risks - Compliance with environmental regulations may require significant expenditures, and violations could lead to penalties or operational disruptions[124]. - The company’s ongoing operations are significantly impacted by global uncertainties, including geopolitical tensions and supply chain disruptions, affecting natural gas prices[100].
吉星新能源(03395) - 2024 - 中期业绩