Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 358,431,000, an increase from RMB 333,273,000 in the same period of 2018, representing a growth of approximately 7.2%[11] - EBITDA from continuing operations decreased to RMB 117,055,000 in 2019 from RMB 197,271,000 in 2018, reflecting a decline of about 40.6%[11] - The loss for the period was RMB 597,224,000, compared to a loss of RMB 521,253,000 in 2018, indicating an increase in loss of approximately 14.6%[11] - Total equity improved to (RMB 1,692,017,000) as of June 30, 2019, compared to (RMB 2,224,054,000) at the end of 2018, indicating a reduction in negative equity by approximately 24%[11] - The basic loss per share for the period was RMB 0.197, compared to RMB 0.180 in the same period of 2018, reflecting a deterioration in per-share performance[11] Cash Flow and Liquidity - Cash and cash equivalents increased to RMB 28,115,000 as of June 30, 2019, from RMB 10,349,000 at the end of 2018, representing a significant increase of approximately 171.5%[11] - Net cash generated from operating activities for the six months ended June 30, 2019 was RMB 165.2 million[104] - Net cash used in investing activities during the same period was RMB 114.7 million[104] - Net cash used in financing activities for the six months ended June 30, 2019 was RMB 68.7 million[104] - The cash balance as of December 31, 2018 was RMB 28.1 million, resulting in a net decrease in cash and cash equivalents of RMB 17.8 million by June 30, 2019[104] Production and Sales - Total crude oil sales volume decreased to 1,464,420 barrels from 1,516,672 barrels, a decline of approximately 3.4%[14] - Average realized price for crude oil in China oilfields was $52.68 per barrel, down from $57.65 per barrel[16] - Net production volume of crude oil was 1,468,901 barrels, a decrease from 1,538,686 barrels, representing a decline of about 4.5%[14] - Average daily net production of crude oil was 8,116 barrels, compared to 8,500 barrels previously, indicating a reduction of approximately 4.5%[14] - Total gas production was 41,008,126 Mscf, down from 44,872,989 Mscf, reflecting a decrease of around 8.5%[14] Market and Strategic Initiatives - The company continues to focus on operational efficiency and cost management strategies to mitigate losses and improve financial performance in the upcoming periods[12] - The company is exploring new market expansion opportunities and potential acquisitions to enhance its growth trajectory moving forward[12] - Ongoing research and development efforts are aimed at introducing new products and technologies to strengthen the company's competitive position in the market[12] Cost Management - The company plans to continue focusing on cost management and operational efficiency to improve profitability in the upcoming quarters[23] - Lifting costs for crude oil in China oilfields were reported at $10.01 per barrel, an increase from previous costs[16] - Employee compensation costs decreased by RMB 42.9 million, or 42.6%, from RMB 100.6 million to RMB 57.7 million, primarily due to a reduction in headcount and the absence of new share awards[69] - Distribution and administrative expenses increased by RMB 19.4 million, or 46.1%, from RMB 42.1 million to RMB 61.5 million, primarily due to increased amortization related to financing[71] Debt and Financing - As of June 30, 2019, the Group's borrowings amounted to approximately RMB 4,389.6 million, an increase of approximately RMB 53.6 million compared to December 31, 2018[116] - The gearing ratio increased from 164.7% as of December 31, 2018, to 203.2% as of June 30, 2019, primarily due to increased borrowings[121][124] - The total borrowings to Adjusted EBITDA ratio rose from 10.6 to 11.2 during the same period[121][124] - Net finance costs rose by RMB 60.8 million, or 26.8%, from RMB 226.7 million for the six months ended June 30, 2018, to RMB 287.5 million for the same period in 2019[75] Shareholding Structure - The company holds a total of 1,577,095,234 shares, with a long position representing approximately 49.12% of the corporation's total shares[142] - The beneficial ownership includes 1,469,600,000 shares held through subsidiaries, along with 7,887,000 share options granted to both Mr. Zhang and Mr. Zhao[148] - The company has undergone significant share transfers, with 475,000,000 shares transferred to New Sun International Energy Limited, indicating ongoing market expansion efforts[147] - The controlling shareholders, including Mr. Zhang and Mr. Zhao, have entered into an Acting-in-Concert Agreement to coordinate decisions regarding shareholder matters[147] Impairment and Losses - The Group recognized an impairment charge of RMB 4.7 million on investment in PetroBroad for the six months ended June 30, 2019, compared to RMB 3.2 million for the same period in 2018, representing an increase of 46.9%[75] - Net other losses increased to RMB 38.5 million for the six months ended June 30, 2019, from RMB 13.5 million in the same period of 2018, marking an increase of 185.2%[75] - Loss before income tax was RMB 341.1 million for the six months ended June 30, 2019, compared to RMB 179.5 million for the same period in 2018, an increase of 90.0%[76] Taxation - Income tax expense increased to RMB 22.4 million for the six months ended June 30, 2019, from RMB 16.7 million in the same period of 2018, representing an increase of 34.1%[81] - The effective tax rate for the six months ended June 30, 2019, was negative 7%, compared to negative 9% for the same period in 2018[81]
MI能源(01555) - 2019 - 中期财报