Executive Summary Financial Data Summary Oil sales increased, but Q2 net income turned to loss due to exchange losses and royalties, highlighting going concern issues Financial Data Summary (CAD thousands) | Metric | Six Months Ended June 30, 2024 (CAD thousands) | Six Months Ended June 30, 2023 (CAD thousands) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Oil Sales (Net of Royalties) | 21,458 | 17,945 | | Average Sales Volume of Diluted Bitumen (barrels/day) | 1,484.1 | 1,380.1 | Financial Data Summary (CAD thousands) | Metric | Three Months Ended June 30, 2024 (CAD thousands) | Three Months Ended June 30, 2023 (CAD thousands) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Net Operating Income (Excluding One-Time Exchange Loss) | 1,130 | 1,660 | | Operating Cash Flow | 753 | (702) | | Net Profit (Loss) Attributable to Equity Holders of the Company | (10,974) | 5,745 | - Oil sales (net of royalties) increased from CAD 17.9 million in H1 2023 to CAD 21.5 million in H1 2024, primarily due to higher sales prices for diluted bitumen1 - Net loss attributable to equity holders of the company for Q2 2024 was CAD 11.0 million, compared to a net profit of CAD 5.7 million in the prior-year period, marking a shift from profit to loss1 Condensed Consolidated Interim Financial Statements Condensed Consolidated Statement of Financial Position Total assets decreased, liabilities increased, and shareholders' equity significantly reduced, indicating financial pressure Condensed Consolidated Statement of Financial Position (CAD thousands) | Metric | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :--------------- | :--------------------- | :---------------------- | | Total Assets | 742,120 | 745,932 | | Current Assets | 7,862 | 5,951 | | Non-Current Assets | 734,258 | 739,981 | | Total Liabilities | 684,338 | 654,885 | | Current Liabilities | 91,634 | 85,409 | | Non-Current Liabilities | 592,704 | 569,476 | | Total Equity Attributable to Equity Holders of the Company | 57,782 | 91,047 | - Shareholders' equity decreased from CAD 91,047 thousand as of December 31, 2023, to CAD 57,782 thousand as of June 30, 2024, a 36.5% decrease45 Condensed Consolidated Statement of Comprehensive Income Net loss significantly widened due to foreign exchange loss and higher finance costs, despite increased oil sales revenue Condensed Consolidated Statement of Comprehensive Income (CAD thousands) | Metric | Six Months Ended June 30, 2024 (CAD thousands) | Six Months Ended June 30, 2023 (CAD thousands) | | :--------------------------------- | :--------------------------------- | :--------------------------------- | | Oil Sales (Net of Royalties) | 21,458 | 17,945 | | Other Income | 916 | 2,684 | | Foreign Exchange (Gain)/Loss | (17,729) | 12,000 | | Net Income/(Loss) | (33,265) | (5,979) | | Net Income/(Loss) Attributable to Equity Holders of the Group for the Year | (33,118) | (5,828) | | Basic and Diluted Earnings/(Loss) Per Share | (0.14) | (0.02) | - Foreign exchange shifted from a CAD 12.0 million gain in H1 2023 to a CAD 17.7 million loss in H1 2024, significantly impacting net profit6 - Finance costs increased from CAD 4.773 million in H1 2023 to CAD 5.660 million in H1 20246 Condensed Consolidated Statement of Changes in Equity Total equity attributable to equity holders significantly decreased due to the period's net loss, impacting the capital base Condensed Consolidated Statement of Changes in Equity (CAD thousands) | Metric | Balance as of December 31, 2023 (CAD thousands) | Balance as of June 30, 2024 (CAD thousands) | | :------------------- | :-------------------------- | :------------------------- | | Share Capital | 1,315,265 | 1,315,265 | | Accumulated Deficit | (1,294,508) | (1,327,626) | | Equity Attributable to Equity Holders of the Company | 92,265 | 59,147 | | Total Equity | 91,047 | 57,782 | - Equity attributable to equity holders of the company decreased from CAD 92,265 thousand as of December 31, 2023, to CAD 59,147 thousand as of June 30, 2024, primarily due to a CAD 33,118 thousand net loss during the period7 Condensed Consolidated Statement of Cash Flows Operating cash flow was negative, investing cash flow turned positive, and financing cash flow was positive, increasing cash balance Condensed Consolidated Statement of Cash Flows (CAD thousands) | Metric | Six Months Ended June 30, 2024 (CAD thousands) | Six Months Ended June 30, 2023 (CAD thousands) | | :----------------------- | :--------------------------------- | :--------------------------------- | | Net Cash Provided by (Used in) Operating Activities | (1,127) | (1,990) | | Net Cash Provided by (Used in) Investing Activities | 340 | (536) | | Net Cash Generated from Financing Activities | 1,192 | 2,312 | | Cash at End of Period | 914 | 234 | - Net cash used in operating activities improved from a CAD 1,990 thousand outflow in H1 2023 to a CAD 1,127 thousand outflow in H1 2024, though still negative9 - Net cash from investing activities shifted from a CAD 536 thousand outflow in H1 2023 to a CAD 340 thousand inflow in H1 2024, mainly due to proceeds from asset disposals9 Notes to the Condensed Consolidated Interim Financial Statements 1. Company Information Sunshine Oilsands Ltd. develops oil mineral properties in Alberta, producing bitumen, and has a Chinese joint venture - The company was incorporated on February 22, 2007, under Alberta laws, and its shares were listed on the HKEX on March 1, 201210 - The Group primarily engages in the evaluation and development of oil mineral properties, currently producing bitumen in the Athabasca oil sands region of Alberta, Canada10 - The company has a 51% interest in a joint venture, Sunshine Oilsands Hebei, in China, which had no business activities as of June 30, 20241064 2. Basis of Preparation Financial statements are on a going concern basis despite significant losses and net current liabilities, requiring debt restructuring and new financing - For the six months ended June 30, 2024, the Group incurred a net loss of approximately CAD 33.1 million and had net current liabilities of approximately CAD 83.8 million11 - The company's ability to continue as a going concern depends on successfully refinancing or restructuring existing debt, securing additional financing, and achieving profitable operations1112 - Management is actively discussing with existing shareholders and creditors to reduce expected cash outflows and secure additional financing for capital and operating expenditures12 2.1 Statement of Compliance Interim financial statements comply with IFRS and HKEX Listing Rules, presented in CAD, and should be read with the 2023 annual report - The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and the HKEX Listing Rules, presented in Canadian dollars13 - Certain information and disclosures have been condensed or omitted, and it is recommended to read this report in conjunction with the 2023 annual consolidated financial statements13 3. Adoption of Revised IFRS New and revised IFRS standards were adopted with no significant expected impact, and future amendments are listed - The company's directors do not expect the application of new and revised IFRS to have a significant impact on the Group's performance and financial position1415 - Issued but not yet effective IFRS amendments include revisions to IAS 21, IAS 16, IAS 1, IAS 7, IFRS 10, and IAS 2815 4. Trade and Other Receivables Total trade and other receivables slightly increased, with a 30-day credit period and minimal expected credit losses Trade and Other Receivables (CAD thousands) | Receivable Category | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :----------------- | :--------------------- | :---------------------- | | Trade Receivables | 3,494 | 3,501 | | Other Receivables – Current | 3,454 | 1,923 | | Other Receivables – Non-Current | 2,827 | 2,594 | | Other Loan Receivables – Non-Current | 10,665 | 12,049 | | Total | 20,440 | 20,067 | - The Group grants an average 30-day credit period to trade customers, with oil and gas marketing companies typically paying by the 25th of the month following production15 - As of June 30, 2024, the company's directors consider the expected credit losses on receivables to be minimal16 5. Exploration and Evaluation Assets Exploration and evaluation assets slightly increased, with no impairment losses recognized, using the FVLCD method Exploration and Evaluation Assets (CAD thousands) | Metric | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :----------------------- | :--------------------- | :---------------------- | | Beginning Balance | 237,971 | 235,044 | | Capital Expenditure | 643 | 2,234 | | Disposal of Assets | (750) | - | | Ending Balance | 238,346 | 237,971 | - For the six months ended June 30, 2024, the Group did not recognize any impairment losses for exploration and evaluation cash-generating units18 - Impairment tests use the FVLCD method, with cash flow data derived from reports by independent qualified reserve evaluators, GLJ Petroleum Consultants16 6. Property, Plant and Equipment Property, plant and equipment carrying amount slightly decreased, with no impairment losses, using the FVLCD method Property, Plant and Equipment (CAD thousands) | Metric | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :----------------------- | :--------------------- | :---------------------- | | Total Cost | 895,567 | 896,096 | | Accumulated Depreciation, Depletion and Impairment | 418,850 | 414,712 | | Carrying Amount | 476,717 | 481,384 | - For the six months ended June 30, 2024, the Group did not recognize any impairment losses for the West Ells cash-generating unit22 - Impairment tests use the FVLCD method, based on GLJ Petroleum Consultants' oil and gas reserve reports and oil price forecasts20 7. Right-of-Use Assets and Leases Right-of-use assets were CAD 5.7M, lease liabilities CAD 1.7M, and cash flows for leases CAD 0.36M Right-of-Use Assets and Leases (CAD thousands) | Metric | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :--------------- | :--------------------- | :---------------------- | | Total Right-of-Use Assets | 5,703 | 5,983 | | Lease Liabilities | 1,676 | - | - For the six months ended June 30, 2024, total cash flows for leases amounted to CAD 359 thousand24 8. Trade and Accrued Payables Total trade and accrued payables increased, with significant interest payable and high overdue trade payables Trade and Accrued Payables (CAD thousands) | Liability Category | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :--------------- | :--------------------- | :---------------------- | | Trade Payables | 19,815 | 18,973 | | Interest Payable | 201,558 | 190,886 | | Other Payables | 23,325 | 21,830 | | Accrued Liabilities | 24,373 | 22,317 | | Total | 269,071 | 254,006 | Aging of Trade Payables (CAD thousands) | Aging of Trade Payables | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :--------------- | :--------------------- | :---------------------- | | 0 - 30 Days | 910 | 972 | | 31 – 60 Days | 80 | 480 | | 61 – 90 Days | 172 | 86 | | > 90 Days | 18,653 | 17,435 | - Trade payables over 90 days reached CAD 18,653 thousand as of June 30, 2024, representing the vast majority of total trade payables, indicating pressure on long-term payment obligations26 9. Debt Debt includes other loans and senior notes with renewed extension and interest waiver agreements, but repayment challenges persist Debt (CAD thousands) | Debt Category | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :--------------- | :--------------------- | :---------------------- | | Total Other Loans | 16,155 | 15,454 | | Senior Notes (Current) | 10,950 | 10,581 | | Senior Notes (Non-Current) | 260,930 | 252,142 | - The company entered into a 2024 interest waiver agreement with the Extension Holders, waiving USD 31.5 million of interest accrued on the Senior Notes for the period from January 1 to December 31, 202429 - The Senior Notes extension agreement has been extended to August 31, 2025, with an annual interest rate of 10% during the period32 10. Provisions Asset retirement obligation provision increased to CAD 51.0M, based on estimated costs discounted using risk-free rates and inflation Provisions (CAD thousands) | Metric | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :------------------- | :--------------------- | :---------------------- | | Beginning Balance of Decommissioning Liabilities | 49,829 | 44,144 | | Impact of Discount Rate Change | 290 | 4,225 | | Unwinding of Discount | 872 | 1,460 | | Ending Balance (Non-Current) | 50,991 | 49,829 | - The total estimated undiscounted cash flows for asset retirement obligations are CAD 81.4 million, expected to continue until 204030 - Retirement costs are discounted using risk-free rates ranging from 2.69% to 2.95%, and an annual inflation rate of 2.0% is included30 11. Income Tax No deferred tax benefits were recognized, resulting in zero net deferred income tax assets, with non-capital losses offset by liabilities Deferred Tax Assets (Liabilities) (CAD thousands) | Deferred Tax Assets (Liabilities) Category | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :----------------------- | :--------------------- | :---------------------- | | Exploration and Evaluation Assets and Property, Plant and Equipment | (75,651) | (69,567) | | Decommissioning Liabilities | 11,728 | 11,461 | | Non-Capital Losses | 241,090 | 243,242 | | Unrecognized Deferred Tax Benefits | (177,319) | (185,173) | | Total | - | - | - The company has a significant amount of unrecognized deferred tax benefits, indicating that its accumulated losses have not yet fully offset future taxable profits33 12. Share Capital Issued share capital remained unchanged, with various authorized share classes, and a placement is underway to settle trade payables Share Capital (CAD thousands) | Metric | Number of Shares as of June 30, 2024 | Amount as of June 30, 2024 (CAD thousands) | Number of Shares as of December 31, 2023 | Amount as of December 31, 2023 (CAD thousands) | | :--------------- | :--------------------- | :-------------------------- | :---------------------- | :-------------------------- | | Beginning Balance | 243,478,681 | 1,315,265 | 243,478,681 | 1,315,265 | | Ending Balance | 243,478,681 | 1,315,265 | 243,478,681 | 1,315,265 | - The company's authorized share capital includes an unlimited number of Class A and B voting common shares, Class C, D, E, and F non-voting common shares, and Class G and H non-voting preferred shares34 - The company is undertaking a placement to issue 48,695,736 Class A common shares at HKD 0.38 per share to settle trade payables36 13. Share-based Compensation Unexercised share options totaled 200,000 with a CAD 0.60 exercise price and 0.19 years remaining, with no compensation expense Share-based Compensation | Metric | Number of Share Options as of June 30, 2024 | Weighted Average Exercise Price as of June 30, 2024 (CAD) | Number of Share Options as of December 31, 2023 | Weighted Average Exercise Price as of December 31, 2023 (CAD) | | :--------------- | :--------------------- | :---------------------------------- | :---------------------- | :---------------------------------- | | Beginning Balance | 200,000 | 0.60 | 6,500,000 | 1.96 | | Expired | - | - | (6,300,000) | 2.00 | | Ending Balance | 200,000 | 0.60 | 200,000 | 1.96 | - As of June 30, 2024, the weighted average remaining contractual life of unexercised share options was 0.19 years, a significant reduction from 0.69 years at December 31, 202338 - No share-based compensation expense was recognized by the company during the period39 14. Revenue Revenue from contracts with customers increased by 19.6% to CAD 21.5M, all from Canadian customers and recognized upon control transfer Revenue (CAD thousands) | Metric | Six Months Ended June 30, 2024 (CAD thousands) | Six Months Ended June 30, 2023 (CAD thousands) | | :--------------- | :--------------------------------- | :--------------------------------- | | Oil Sales | 22,111 | 18,256 | | Royalties | (653) | (311) | | Revenue from Contracts with Customers | 21,458 | 17,945 | - All revenue is derived from Canadian customers and recognized when control of goods is transferred, typically collected in the month following delivery40 - Royalty rates for West Ells are calculated based on price-sensitive royalty rates determined by the Government of Alberta, currently benchmarked against oil sands operations before break-even41 15. Segment Information The Group operates in a single segment: mining, producing, and selling crude oil, with all revenue and most assets in Canada - The Group has only one reportable and operating segment: mining, producing, and selling crude oil products42 - All of the Group's revenue is derived from Canadian customers, and the majority of non-current assets are also located in Canada43 - Customer A contributed 73.3% of the Group's total revenue for the six months ended June 30, 202444 16. Other Income Total other income significantly decreased due to reduced other income, despite a gain on asset disposal Other Income (CAD thousands) | Income Category | Six Months Ended June 30, 2024 (CAD thousands) | Six Months Ended June 30, 2023 (CAD thousands) | | :------------------- | :--------------------------------- | :--------------------------------- | | Interest Income | 4 | 3 | | Other Income | 746 | 2,681 | | Gain (Loss) on Disposal of Assets | 166 | - | | Ending Balance | 916 | 2,684 | - Other income (excluding interest and gain on asset disposal) decreased from CAD 2,681 thousand in H1 2023 to CAD 746 thousand in H1 202445 17. General and Administrative Expenses General and administrative expenses slightly decreased, with reductions in salaries, consulting, benefits, and legal/audit fees General and Administrative Expenses (CAD thousands) | Expense Category | Six Months Ended June 30, 2024 (CAD thousands) | Six Months Ended June 30, 2023 (CAD thousands) | | :----------------- | :--------------------------------- | :--------------------------------- | | Salaries, Consulting Fees and Benefits | 2,819 | 3,307 | | Rent | 16 | 16 | | Legal and Audit | 88 | 289 | | Other | 3,538 | 3,024 | | Ending | 6,461 | 6,636 | - Salaries, consulting fees, and benefits decreased from CAD 3,307 thousand in H1 2023 to CAD 2,819 thousand in H1 202446 - Legal and audit fees significantly decreased from CAD 289 thousand in H1 2023 to CAD 88 thousand in H1 202446 18. Finance Costs Total finance costs increased, driven by higher other interest expenses and unwinding of discount on provisions Finance Costs (CAD thousands) | Finance Cost Category | Six Months Ended June 30, 2024 (CAD thousands) | Six Months Ended June 30, 2023 (CAD thousands) | | :----------------------- | :--------------------------------- | :--------------------------------- | | Interest Expense on Senior Secured Notes | 588 | 583 | | Interest Expense on Other Loans | 133 | 304 | | Other Interest Expense | 3,908 | 3,042 | | Other Interest Expense - Leases | 159 | 125 | | Unwinding of Discount on Provisions | 872 | 719 | | Ending Balance | 5,660 | 4,773 | - Other interest expense increased from CAD 3,042 thousand in H1 2023 to CAD 3,908 thousand in H1 202447 - Unwinding of discount on provisions increased from CAD 719 thousand in H1 2023 to CAD 872 thousand in H1 202447 19. Earnings/(Loss) Per Share Basic and diluted loss per share significantly increased to CAD 0.14, reflecting substantial profitability deterioration Earnings/(Loss) Per Share | Metric | June 30, 2024 | June 30, 2023 | | :----------------------- | :------------ | :------------ | | Basic and Diluted – Class A Common Shares | 243,478,681 | 243,478,681 | | Loss Per Share | (0.14) | (0.02) | - Loss per share expanded from CAD 0.02 in H1 2023 to CAD 0.14 in H1 2024, reflecting a significant deterioration in the company's profitability49 20. Capital and Financial Risk Management Capital risk is managed via equity, JVs, and debt, while currency and liquidity risks are addressed, with a CAD 83.8M working capital deficit - The Group raises sufficient capital through equity issuance, joint ventures, and debt to maintain its capital base and financial flexibility50 Capital and Financial Risk Management (CAD thousands) | Metric | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :--------------- | :--------------------- | :---------------------- | | Working Capital Deficit | 83,772 | 79,458 | | Shareholders' Equity | 57,782 | 91,047 | | Total | 141,554 | 170,505 | - The Group faces foreign exchange rate fluctuation risks, primarily related to USD, HKD, and RMB denominated expenditure commitments, deposits, payables, and long-term debt53 20.1 Capital Risk Management Capital risk is managed via equity, JVs, and debt financing for flexibility, with a CAD 83.8M working capital deficit - The Group's strategy is to raise sufficient capital through equity issuance, joint ventures, and debt to maintain its capital base, aiming for financial flexibility and future business development50 Working Capital Deficit (CAD thousands) | Metric | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :----------- | :--------------------- | :---------------------- | | Working Capital Deficit | 83,772 | 79,458 | 20.2 Financial Instruments Categories Financial assets and liabilities are primarily measured at amortized cost, with carrying and fair values of CAD 20.0M and CAD 631.7M Financial Instruments Categories (CAD thousands) | Category | Carrying Amount as of June 30, 2024 (CAD thousands) | Fair Value as of June 30, 2024 (CAD thousands) | Carrying Amount as of December 31, 2023 (CAD thousands) | Fair Value as of December 31, 2023 (CAD thousands) | | :----------------------- | :---------------------------- | :---------------------------- | :----------------------------- | :----------------------------- | | Financial Assets Measured at Amortized Cost | 20,007 | 20,007 | 19,245 | 19,245 | | Financial Liabilities Measured at Amortized Cost | 631,671 | 631,671 | 603,137 | 603,137 | 20.3 Fair Value of Financial Instruments Carrying amounts of amortized cost financial instruments approximate fair values due to short-term maturity - The directors believe that the carrying amounts of financial assets and liabilities recognized at amortized cost approximate their fair values due to their short-term maturity52 20.4 Currency Risk The Group faces USD, HKD, and RMB currency risks, impacting debt and payables, with a CAD 5.4M unrealized foreign exchange loss - The Group faces foreign exchange rate fluctuation risks, primarily related to USD, HKD, and RMB denominated expenditure commitments, deposits, payables, and long-term debt53 Components of Foreign Exchange (Gain)/Loss (CAD thousands) | Components of Foreign Exchange (Gain)/Loss | Three Months Ended June 30, 2024 (CAD thousands) | Three Months Ended June 30, 2023 (CAD thousands) | | :------------------------ | :--------------------------------- | :--------------------------------- | | Unrealized Foreign Exchange Loss/(Gain) | 5,422 | (11,158) | | Realized Foreign Exchange Loss/(Gain) | (2) | - | | Total Foreign Exchange Loss/(Gain) | 5,420 | (11,158) | - A 1% upward or downward movement in the USD to CAD exchange rate would impact the carrying amount of debt by approximately CAD 2.7 million, HKD by CAD 0.7 million, and RMB by CAD 0.1 million54 20.5 Liquidity Risk Liquidity risk is managed by ensuring sufficient funds to meet obligations, with CAD 91.1M financial liabilities maturing within one year - The Group manages liquidity risk by developing plans to ensure sufficient liquidity to meet financial obligations when due, through proceeds from equity or debt55 Financial Liabilities Maturity Analysis (CAD thousands) | Financial Liability Category | Total (CAD thousands) | Within One Year (CAD thousands) | One to Two Years (CAD thousands) | | :--------------- | :------------ | :---------------- | :------------------ | | Trade and Accrued Payables | 269,071 | 76,298 | 192,773 | | Debt | 362,600 | 14,763 | 347,837 | | Total | 631,671 | 91,061 | 540,610 | 21. Related Party Transactions The Group engaged in related party transactions, including management fees and loans, with the Executive Chairman holding 61.70% of common shares - For the six months ended June 30, 2024, a consulting firm related to a director of Sunshine Oilsands charged the Group CAD 0.25 million for management and consulting services58 - Mr. Sun Guo Ping, the Executive Chairman of the company, beneficially owns or controls approximately 61.70% of the company's issued common shares58 21.1 Trading Transactions The company paid CAD 0.25M for management and consulting services to a related firm; the Executive Chairman holds 61.70% of common shares - For the six months ended June 30, 2024, a consulting firm related to a director of Sunshine Oilsands charged the Group CAD 0.25 million for management and consulting services58 - Mr. Sun Guo Ping, the Executive Chairman of the company, beneficially owns or controls approximately 61.70% of the company's issued common shares58 21.2 Key Management Personnel and Directors' Remuneration Key management and directors' remuneration totaled CAD 1.16M, consistent with prior year, primarily salaries and allowances Key Management Personnel and Directors' Remuneration (CAD thousands) | Remuneration Category | Six Months Ended June 30, 2024 (CAD thousands) | Six Months Ended June 30, 2023 (CAD thousands) | | :----------------- | :--------------------------------- | :--------------------------------- | | Directors' Fees | 182 | 180 | | Salaries and Allowances | 980 | 983 | | Share-based Compensation | - | - | | Total | 1,162 | 1,163 | 21.3 Related Company Loans Unsecured loans from related companies totaled CAD 53.4M, bearing 10% annual interest and extendable for 2-3 years Related Company Loans (CAD thousands) | Loan Category | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :------- | :--------------------- | :---------------------- | | Non-Current | 53,375 | 51,933 | | Total | 53,375 | 51,933 | - As of June 30, 2024, the Group's unsecured loans from related companies bear an annual interest rate of 10%, with approximately CAD 53,375 thousand extendable for 2 to 3 years60 21.4 Shareholder Loans Unsecured shareholder loans amounted to CAD 21.2M, with a 10% annual interest rate and extendable for 1-3 years - As of June 30, 2024, the Group's unsecured shareholder loans amounted to CAD 21,190 thousand, bearing an annual interest rate of 10% and extendable for 1 to 3 years61 22. Commitments and Contingencies Annual obligations include CAD 2.5M for lease rentals, and the company faces significant litigation, including tax disputes and a court judgment - The Group has annual obligations to pay oil sands mineral lease rentals and surface lease rentals, with annual payments of approximately CAD 2.5 million62 - The company received demand notices from RMWB for municipal property taxes from 2016 to 2024, totaling CAD 15.8 million in accrued taxes and CAD 17.6 million in accumulated overdue penalties63 - The company received a New York court judgment to pay non-extending holders of senior notes approximately USD 19.694 million (approximately CAD 26.048 million) in principal and interest, which the company has appealed63 22.1 Commitments Annual obligations include CAD 2.5M for oil sands mineral and surface lease rentals, with no other drilling or contractual commitments - The Group has annual obligations to pay oil sands mineral lease rentals and surface lease rentals, with annual payments of approximately CAD 2.5 million62 22.2 Litigation The company faces a CAD 15.8M tax dispute and a CAD 26.048M New York court judgment, both appealed, with uncertain outcomes - The company received demand notices from RMWB for municipal property taxes from 2016 to 2024, totaling CAD 15.8 million in accrued taxes and CAD 17.6 million in accumulated overdue penalties63 - The company received a New York court judgment to pay non-extending holders of senior notes approximately USD 19.694 million (approximately CAD 26.048 million) in principal and interest, which the company has appealed63 - The company believes it has adequately provided for such claims, but the outcome of litigation is uncertain and could materially adversely affect the company's consolidated net income or loss63 23. Subsidiaries The Group owns several subsidiaries, including a 51% interest in Sunshine Oilsands Hebei, with most having no operating activities - The Group owns wholly-owned subsidiaries including Sunshine Oilsands (Hong Kong) Ltd., Brighteous Investment Ltd., and Sunshine Oilsands (Shanghai) Ltd64 - Sunshine Oilsands Hebei is a joint venture in which the company holds a 51% interest64 - As of June 30, 2024, all subsidiaries except Sunshine Oilsands Hebei had no operating activities64 24. Supplemental Cash Flow Disclosures Non-cash working capital changes provided CAD 4.1M to operating cash flow, primarily from increased trade and other payables Supplemental Cash Flow Disclosures (CAD thousands) | Cash Flow Category | Six Months Ended June 30, 2024 (CAD thousands) | Six Months Ended June 30, 2023 (CAD thousands) | | :------------------- | :--------------------------------- | :--------------------------------- | | Trade and Other Receivables | (224) | (2,419) | | Prepaid Expenses and Deposits | (1) | 1,058 | | Trade and Other Payables | 4,393 | 7,605 | | Foreign Exchange Changes | (19) | 115 | | Total | 4,149 | 6,359 | - Non-cash working capital changes contributing to operating cash flow decreased from CAD 6,359 thousand in H1 2023 to CAD 4,149 thousand in H1 202465 25. Approval of Interim Consolidated Financial Statements The Board approved and authorized the issuance of the condensed interim consolidated financial statements on August 8/9, 2024 - The Board of Directors approved and authorized the issuance of the condensed interim consolidated financial statements on August 8, 2024 (Calgary time) / August 9, 2024 (Hong Kong time)66 Appendix A1. Sunshine Oilsands Ltd. Non-consolidated Statement of Financial Position Non-consolidated total assets were CAD 738.2M, liabilities CAD 673.6M, and equity CAD 64.6M, indicating high liabilities Sunshine Oilsands Ltd. Non-consolidated Statement of Financial Position (CAD thousands) | Metric | June 30, 2024 (CAD thousands) | December 31, 2023 (CAD thousands) | | :--------------- | :--------------------- | :---------------------- | | Total Assets | 738,246 | 740,887 | | Current Assets | 6,915 | 5,215 | | Non-Current Assets | 731,331 | 735,672 | | Total Liabilities | 673,623 | 645,029 | | Current Liabilities | 93,592 | 87,844 | | Non-Current Liabilities | 580,031 | 557,185 | | Total Equity | 64,623 | 95,858 | - Total equity in the non-consolidated statements decreased from CAD 95,858 thousand as of December 31, 2023, to CAD 64,623 thousand as of June 30, 2024, a decrease of approximately 32.6%68 A2. Directors' Remuneration and Other Employee Costs Directors' remuneration was CAD 1.16M, other employee costs CAD 2.14M, totaling CAD 3.31M Directors' Remuneration and Other Employee Costs (CAD thousands) | Cost Category | Six Months Ended June 30, 2024 (CAD thousands) | Six Months Ended June 30, 2023 (CAD thousands) | | :----------------- | :--------------------------------- | :--------------------------------- | | Directors' Remuneration | 1,163 | 1,312 | | Other Employee Costs | 2,144 | 1,420 | | Total Employee Costs | 3,307 | 2,732 | - Directors' remuneration decreased from CAD 1,312 thousand in H1 2023 to CAD 1,163 thousand in H1 202468 - Other employee costs increased from CAD 1,420 thousand in H1 2023 to CAD 2,144 thousand in H1 202468
阳光油砂(02012) - 2024 - 中期业绩