Financial Performance - Total revenue for the six months ended June 30, 2020, was RMB 289,495,000[15] - Adjusted EBITDA from continuing operations was RMB 159,275,000[15] - Loss for the period was RMB 834,471,000, with losses from continuing operations also at RMB 834,471,000[15] - The Group's total loss for the six months ended June 30, 2020, was RMB 834.5 million, an increase of RMB 237.3 million, or 39.7%, compared to a loss of RMB 597.2 million for the same period in 2019[70] - The Group's loss before income tax increased by RMB 491.5 million, or 144.1%, from RMB 341.1 million for the six months ended June 30, 2019, to RMB 832.6 million for the six months ended June 30, 2020[67] - The Group's EBITDA decreased from approximately RMB 117.1 million for the six months ended June 30, 2019, to approximately negative RMB 353.4 million for the six months ended June 30, 2020, primarily due to an impairment charge of RMB 529.0 million on long-lived assets[83] - Adjusted EBITDA decreased by approximately RMB 35.9 million, or 18.4%, from approximately RMB 195.2 million for the six months ended June 30, 2019, to approximately RMB 159.3 million for the six months ended June 30, 2020, mainly due to a significant drop in realized oil prices[83] Assets and Liabilities - Total assets as of June 30, 2020, amounted to RMB 1,699,375,000, a decrease from RMB 2,422,915,000 as of December 31, 2019[15] - Total equity was reported at RMB (3,650,465,000) as of June 30, 2020, compared to RMB (2,744,132,000) at the end of 2019[15] - The Group's borrowings to total equity ratio increased from 321.0% as of December 31, 2019, to 860.6% as of June 30, 2020, primarily due to a decrease in total equity[102] - Total borrowings as of June 30, 2020, amounted to approximately RMB 4,140.0 million, representing an increase of approximately RMB 140.7 million compared to December 31, 2019[101] Production and Sales - Crude oil sales volume decreased to 1,009,115 barrels from 1,464,420 barrels, representing a decline of approximately 31%[18] - Net production volume of crude oil was 1,030,745 barrels, down from 1,468,901 barrels, indicating a reduction of about 30%[18] - Average daily net production of crude oil was 5,663 barrels, with total production equivalent to 5,664 BOE[18] - The Group's oil and gas production decreased by 76.3% to approximately 2.33 million barrels of oil equivalent (BOE) in 1H2020 compared to 1H2019[30] - Net oil and gas production fell by 87.9% to about 1.03 million BOE in 1H2020 compared to 1H2019[30] Costs and Expenses - Lifting costs for crude oil were reported at US$8.37 per barrel for China oilfields, unchanged from the prior year[23] - The Group reduced lifting costs for Daan by US$1.64 per barrel, or 16.3%, from US$10.01 per barrel in 1H2019 to US$8.37 per barrel in 1H2020[39] - Employee compensation costs decreased by RMB7.7 million, or 13.3%, from RMB57.7 million for the six months ended June 30, 2019, to RMB50.0 million for the six months ended June 30, 2020[60] - Distribution and administrative expenses decreased by RMB25.9 million, or 42.1%, from RMB61.5 million for the six months ended June 30, 2019, to RMB35.6 million for the six months ended June 30, 2020[60] Impairment and Taxation - The Group recognized an impairment charge of RMB529.0 million on long-lived assets in the PRC due to significantly lower global oil prices during the six months ended June 30, 2020[63] - Income tax expense decreased by RMB20.5 million, or 91.5%, from RMB22.4 million for the six months ended June 30, 2019, to RMB1.9 million for the six months ended June 30, 2020[70] Cash Flow - For the six months ended June 30, 2020, the net cash generated from operating activities was RMB 55.1 million, compared to RMB 165.2 million for the same period in 2019, reflecting a decrease of 66.7%[93][94] - Net cash used in investing activities for the six months ended June 30, 2020, amounted to RMB 31.9 million, primarily due to the purchase of property, plant, and equipment totaling RMB 42.2 million[95][96] - As of June 30, 2020, net cash used in financing activities amounted to RMB 28.6 million, primarily due to repayments of borrowings of RMB 10.4 million, payment of loan arrangement fees of RMB 12.8 million, and lease liability payments of RMB 5.3 million[100][101] Market and Strategic Outlook - The company is focusing on expanding its market presence and enhancing operational efficiency[16] - Future outlook includes potential new product developments and strategic partnerships to drive growth[16] - The geopolitical situation and the COVID-19 pandemic have created significant risks to sustained oil price recovery, impacting future outlook[42] Shareholder Information - Mr. Zhao Jiangwei holds a long position of 1,577,095,234 shares, representing 48.23% of the corporation[113] - The total long interests held by FEEL, Mr. Zhang, and Mr. Zhao in the company include 1,469,600,000 shares through subsidiaries[120] - The Company has a stock incentive compensation plan and share option scheme, with interests in outstanding stock options[130] Employee Incentives - The company aims to enhance employee retention and motivation through the share option scheme[172] - The share options are part of a broader strategy to align employee interests with shareholder value[172] - The 2015 Share Award Scheme is designed to retain and attract personnel for the group's development[185]
MI能源(01555) - 2020 - 中期财报