Financial Performance - The Group incurred a loss of approximately HK$1,089,443,000 for the year ended December 31, 2023[10]. - Revenue for the year ended 31 December 2023 was HK$370,177,000, a decrease of 31.8% compared to HK$543,080,000 in 2022[16]. - Loss before income tax for 2023 was HK$1,045,771,000, compared to a loss of HK$506,473,000 in 2022, representing a significant increase in losses[16]. - Loss for the year attributable to owners of the Company was HK$1,086,976,000, up from HK$551,779,000 in 2022, indicating a 96.8% increase in losses[16]. - Basic and diluted loss per share for 2023 was HK$32.49, compared to HK$16.49 in 2022, reflecting a 96.5% increase in loss per share[16]. - The Group recorded a net loss of approximately HK$1,089,443,000 in 2023, compared to a net loss of HK$553,180,000 in 2022, primarily due to impairment losses and high financing costs[51]. Current Liabilities and Financial Position - As of December 31, 2023, the Group had net current liabilities of approximately HK$2,945,576,000[10]. - The Group maintained cash and cash equivalents of approximately HK$81,334,000 as of December 31, 2023[10]. - The Group's non-current liabilities were reported at HK$761,287,000, with net current liabilities at HK$2,945,576,000[44]. - The Group's external borrowings, including the liability component of convertible notes, were approximately HK$2,161 million as of 31 December 2023, slightly down from HK$2,202 million in 2022[61]. - The significant financial pressure arises from a convertible note held by Crescent Spring with a principal and overdue interest of approximately HK$2,069 million, which matured in September 2020[61]. - There are material uncertainties regarding the Group's ability to continue as a going concern, dependent on generating adequate financing and operating cash flows[70]. Debt Restructuring and Liquidity - The company is focused on addressing its liquidity challenges while exploring new market opportunities[10]. - The restructuring plan aims to alleviate financial burdens and reorganize debt, providing opportunities for business expansion[39]. - The Group has been actively seeking suitable investors and financing solutions to improve liquidity, with a binding agreement signed on 8 December 2023 for restructuring equity, business, and debt[63]. - The restructuring transactions are expected to provide further opportunities for the expansion of the Group's business[100]. - The Company is seeking advice from legal and debt restructuring advisors to address the Court's concerns[101]. - The debt restructuring plan is seen as an effective remedy to address the company's debt issues and resolve the auditor's non-standard opinion[140]. Operational Performance - The sales mix for 2023 indicated a 94.9% contribution from industrial piped sales[7]. - Total gas production in 2023 was approximately 191.62 million cubic meters, while gas sales were approximately 186.60 million cubic meters[18]. - The Sanjiao CBM Project completed a total of 205 wells as of 31 December 2023, including 23 newly added wells compared to the previous year[28]. - The total CBM daily processing capacity of the CBM processing station has exceeded 640,000 cubic meters[28]. - Coalbed methane (CBM) sales increased by approximately 10.6% in 2023, with sales amounting to HK$352,253,000 compared to HK$318,642,000 in 2022[32]. - The average sale-to-production ratio for CBM in 2023 was approximately 97.4%, slightly down from 97.7% in 2022[44]. Impairment and Financial Costs - An impairment loss of approximately HK$866,829,000 was recognized for the Sanjiao CBM Project, up from HK$388,900,000 in 2022[51]. - The finance cost for the Group amounted to approximately HK$268,231,000 in 2023, an increase from HK$247,146,000 in 2022[51]. Governance and Compliance - The Company complied with all provisions of the Corporate Governance Code throughout the year ended December 31, 2023, except for the lack of insurance cover for directors since May 2022[155]. - The Board consists of three independent non-executive directors, meeting the requirements of the Listing Rules[161]. - The Company has received annual confirmations of independence from all independent non-executive directors, ensuring their capability to exercise independent judgment[162]. - The Company has a robust risk management and internal control system, contributing to a low risk of litigation against directors[155]. Environmental and Social Responsibility - The company is committed to complying with local environmental regulations and has published an ESG report detailing its environmental, social, and governance practices[114]. - The Group strictly complied with local environmental regulations in the PRC during the year, as detailed in the Environmental, Social, and Governance Report 2023[135].
中国油气控股(00702) - 2023 - 年度财报