Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 417,643,000, a 44.2% increase from RMB 289,495,000 in the same period of 2020[20]. - Adjusted EBITDA for the period was RMB 270,031,000, compared to RMB 159,275,000 in the prior year, reflecting a significant improvement[20]. - The loss for the period was RMB 304,670,000, a reduction from a loss of RMB 834,471,000 in the same period of 2020[20]. - The Group's loss for the period decreased by 63.5% to RMB 304.7 million in 1H2021 compared to RMB 834.5 million in 1H2020, with a loss per share of RMB 0.09[34]. - The Group's loss before income tax was RMB 260.0 million for the six months ended June 30, 2021, a decrease of RMB 572.6 million, or 68.8%, compared to a loss of RMB 832.6 million for the same period in 2020[69]. - The Group's EBITDA increased by approximately RMB 602.0 million, from approximately negative RMB 353.4 million for the six months ended June 30, 2020, to approximately RMB 248.6 million for the six months ended June 30, 2021[80]. - The Group's adjusted EBITDA increased by approximately RMB 110.7 million, or 69.5%, from approximately RMB 159.3 million for the six months ended June 30, 2020, to approximately RMB 270.0 million for the six months ended June 30, 2021[84]. Production and Sales - In 1H2021, the Group's oil and gas production decreased by 1.7% to approximately 2.29 million barrels of oil equivalent (BOE) compared to 1H2020, while net oil and gas production increased by 10.7% to about 1.14 million BOE[34]. - Net sales of crude oil increased by 11.9% to approximately 1.13 million barrels in 1H2021, while natural gas sales increased by 15.0% to 975 thousand standard cubic feet (Mscf) compared to 1H2020[34]. - The average realized crude oil price increased by 39.6% to US$57.20 per barrel in 1H2021 compared to 1H2020, and the average realized natural gas price increased to US$6.60 per Mscf[34]. - The total production volume of crude oil from China oilfields was 1,138,979 barrels in 2021, compared to 1,030,745 barrels in 2020[24]. - The total production volume of natural gas from China oilfields was 975 Mscf in 2021, consistent with the previous year[24]. - The Group's average daily net production of crude oil was 6,293 barrels in 2021, unchanged from the previous year[24]. Financial Position - Total assets as of June 30, 2021, amounted to RMB 1,759,382,000, up from RMB 1,691,332,000 at the end of 2020[20]. - Cash and cash equivalents increased to RMB 1,110,152,000 as of June 30, 2021, compared to RMB 1,079,358,000 at the end of 2020[20]. - As of June 30, 2021, the Group's borrowings amounted to approximately RMB 3,648.4 million, a decrease of approximately RMB 37.7 million compared to December 31, 2020[103][105]. - The Group's gearing ratio improved from negative 3,445.2% as of December 31, 2020, to negative 858.3% as of June 30, 2021[103][105]. - The total borrowings to Adjusted EBITDA ratio decreased from 13.6 as of December 31, 2020, to 6.8 as of June 30, 2021[103][105]. Operational Efficiency - The company reported an adjusted EBITDA margin improvement, indicating better operational efficiency[20]. - The lifting cost for crude oil in China oilfields was US$12.74 per barrel in 1H2021, up from US$8.37 in 1H2020[26]. - The Group drilled 62 wells during the period, all of which were successful[26]. Strategic Initiatives - The company is focusing on expanding its market presence and enhancing its product offerings in the upcoming quarters[20]. - Future outlook includes strategic initiatives aimed at reducing losses and improving profitability[20]. - The company is actively exploring new technologies and potential acquisitions to drive growth[20]. - The Group continues to explore and test advanced new technologies, including hydraulic pumping unit lifting systems and biomass-burned boilers[46]. Debt and Restructuring - The Company is in discussions for debt restructuring, including extension of maturity and reduction of interest rates, to improve its financial position[48]. - As of the report date, no agreement regarding debt restructuring has been reached between the Company and its creditors[48]. - The Group is actively discussing debt restructuring with creditors to improve financial conditions and address liquidity issues[50]. Shareholding Structure - The company reported a total of 1,577,095,234 shares held by FEEL, Mr. Zhang, and Mr. Zhao, including beneficial interests in 1,469,600,000 shares through subsidiaries[124]. - The shareholding structure indicates a concentrated ownership, with FEEL holding 80% of the interests[123]. - The company has a significant concentration of ownership, with major shareholders holding substantial percentages of shares[140]. - The Acting-in-Concert Agreement among major shareholders ensures coordinated decision-making regarding shareholder matters[146]. Share Options and Incentives - The Company adopted the 2010 Share Option Scheme on November 27, 2010, allowing the grant of options to selected participants for a period of 10 years[159]. - The 2021 Share Option Scheme was adopted on June 25, 2021, allowing the grant of options for another 10 years[172]. - A total of 142,516,803 share options were granted under the 2021 Scheme to directors, executives, and employees[181]. - The options granted under the 2021 Scheme will vest on the grant date and have a term of 10 years[179]. Corporate Governance - The company has complied with the principles and code provisions of the Corporate Governance Code throughout the period from January 1, 2021 to June 30, 2021[200]. - The Audit Committee reviewed the accounting principles and practices adopted by the Group and discussed internal control and financial reporting matters[199].
MI能源(01555) - 2021 - 中期财报