Financial Performance - The Group recorded a revenue of approximately HK$173,480,000 for the year ended 31 December 2020, an increase of 9.0% from HK$158,060,000 in 2019[12] - The loss attributable to the owners of the Company was approximately HK$14,173,000, significantly reduced from a loss of approximately HK$72,352,000 in the previous year[12] - Loss per share attributable to the owners of the Company was 0.15 HK cents, compared to a loss per share of 0.76 HK cents in 2019[12] - The revenue was primarily derived from the exploration, production, and distribution of natural gas segment, which accounted for the entire revenue of HK$173,480,000[12] - The money lending and food and beverage segments did not contribute any revenue to the Group in 2020, consistent with 2019[12] - The fair value gain in financial assets at fair value through profit or loss was approximately HK$5,205,000 in 2020, compared to a fair value loss of approximately HK$26,758,000 in 2019[12] - The decrease in deferred tax credit amounted to HK$107,280,000, impacting the overall financial results[12] Operational Focus - The Group's operational focus remains on the natural gas sector, with no diversification into other revenue-generating segments reported for the year[12] - Revenue from natural gas distribution operation in Karamay, Xinjiang was approximately HK$173,480,000 in 2020, an increase from HK$158,060,000 in 2019, representing a growth of 9%[20] - The segment loss before income tax improved to approximately HK$4,700,000 in 2020 from a loss of HK$137,024,000 in 2019, indicating a significant reduction in losses[20] - Exploration costs incurred for the year amounted to HK$71,104,000, reflecting the company's ongoing investment in exploration activities[27] Contracts and Agreements - The Company has a petroleum contract with China National Petroleum Corporation for a term of 30 years, commencing from 1 June 2009, for oil and natural gas exploration in Xinjiang, PRC[13] - The Gas Sales Agreement was signed on April 27, 2020, outlining volume commitments and price terms for gas sales[18] - The company entered into a second supplemental agreement with CNPC on June 20, 2019, to agree on profit sharing from 2009 to 2017[18] Financial Position - As of December 31, 2020, the Group had outstanding secured borrowings of approximately HK$389,400,000, compared to nil in 2019[35] - The Group's cash and cash equivalents were approximately HK$167,985,000 as of December 31, 2020, down from HK$226,798,000 in 2019[35] - The current ratio was approximately 50.4% as of December 31, 2020, compared to 59.7% in 2019[35] - The ratio of total liabilities to total assets was approximately 41.6% as of December 31, 2020, up from 37.1% in 2019[35] - The Group had capital commitments of approximately HK$115,501,000 as of December 31, 2020, down from HK$522,640,000 in 2019[43] Management and Governance - The Company is committed to maintaining good corporate governance standards and recognizes its importance in attracting international institutional investors[77] - The Company complied with all Corporate Governance Code provisions except for the separation of roles between the chairman and CEO, which was not established during the year[78] - The position of chairman was vacated during the year, and the board intends to identify a suitable candidate to fill the vacancy[78] - The Board consists of five members, including one executive director, one non-executive director, and three independent non-executive directors, with independent directors representing at least one-third of the Board[93] Risk Management - The board acknowledges its responsibility for maintaining effective risk management and internal control systems to safeguard shareholder investments and company assets[88] - The risk management systems are designed to provide reasonable assurance against material misstatements in financial statements[88] - The Company emphasizes risk management regarding directors' liabilities and has arranged appropriate liability insurance for directors and senior management, with coverage reviewed annually[114] Audit and Compliance - The audit committee comprises one non-executive director and three independent non-executive directors, ensuring sufficient financial management expertise[155] - The audit committee is responsible for monitoring the integrity of the Company's financial statements and annual reports, focusing on significant financial reporting judgments[160] - The committee must meet at least twice a year with the Company's auditors to discuss the audit process and any significant items that may need to be reflected in reports[163] Shareholder Engagement - The Company continues to enhance communications and relationships with its investors, maintaining regular dialogue with investors and analysts[188] - The Company adopts a dividend policy considering current and projected financial performance, growth opportunities, and macroeconomic factors[189] - Shareholders can submit written enquiries to the Company regarding their rights[192]
中能控股(00228) - 2020 - 年度财报