Financial Performance - The Group's turnover for the three months ended March 31, 2019, was approximately RMB 43,090,000, representing an increase of 1.30% compared to the corresponding period in the previous financial year[12]. - The Group realized a profit of approximately RMB 3,522,000 for the three months ended March 31, 2019[12]. - Basic loss per share attributable to equity shareholders of the Company was approximately RMB 0.01 cents for the three months ended March 31, 2019[12]. - The Board does not recommend the payment of any dividend for the three months ended March 31, 2019[12]. - Gross profit for the period was RMB 12,338,000, with a cost of sales amounting to RMB 30,752,000[17]. - Profit before income tax was RMB 3,332,000, compared to a loss of RMB 10,678,000 in the previous year[17]. - Total comprehensive income for the period was RMB 3,519,000, compared to a total comprehensive loss of RMB 17,290,000 in the previous year[19]. - The Group's income tax credit for the period was RMB 190,000[17]. - Non-controlling interests contributed a profit of RMB 3,539,000 for the period[19]. - The Group's basic and diluted loss per share was RMB 0.01 cents, compared to RMB 0.82 cents in the previous year[17]. - The turnover for the sale of liquefied coalbed gas reached RMB 22,603,000 in Q1 2019, a significant increase from RMB 3,624,000 in Q1 2018, representing a growth of approximately 525%[32]. - Sales of piped natural gas amounted to RMB 20,487,000 in Q1 2019, compared to RMB 38,913,000 in Q1 2018, indicating a decline of about 47%[32]. - Total turnover for the quarter was RMB 43,090,000, slightly up from RMB 42,537,000 in the same quarter last year, reflecting a marginal increase of approximately 1.3%[32]. - Other revenue, including interest income from bank deposits, totaled RMB 6,538,000 in Q1 2019, compared to RMB 708,000 in Q1 2018, marking a substantial increase of around 823%[32]. - Loss attributable to equity shareholders of the Company for the Quarter was approximately RMB 17,000, compared with a loss of approximately RMB 10,865,000 for the previous period[37]. - Other revenue increased from RMB 708,000 to RMB 6,538,000 during the Quarter, primarily due to a value-added tax refund of RMB 6,510,000[37]. Operational Highlights - The company operates primarily in the People's Republic of China, with business activities transacted mainly in RMB[28]. - The principal activities of the company's subsidiaries include the manufacture and sales of liquefied coalbed gas and the provision of gas supply connection services[30]. - The Group recorded a consolidated turnover of approximately RMB 43,090,000 for the Quarter, representing an increase of approximately 1.30% compared with the corresponding period of last year[37]. - The turnover increased from RMB 42,537,000 to RMB 43,090,000 for the Quarter, mainly due to increased sales to industrial customers in Guangxi and higher output from coalbed methane wells in Yangcheng[37]. - The Group's net 1P (Proved) reserves as of 31 March 2019 were 1,419 BCF, while net 2P (Proved + Probable) reserves were 1,869 BCF[44]. - The total original gas in place across all blocks is 2,724 BCF[44]. - As of March 31, 2019, the Group has completed the groundwork and drilling of 244 CBM wells, with 199 wells in production, showing no change from the end of 2018[51]. - The average daily gas output per existing well is approximately 850 cubic meters[51]. - The estimated capital expenditure for each well is approximately RMB 1.4 million, including road maintenance fees of RMB 90,000, drilling expenses of RMB 860,000, well testing fees of RMB 40,000, and equipment/material costs of RMB 410,000[47]. - The daily gas output of the upstream business was insufficient to fully utilize the 500,000 cubic meters daily production capacity of liquefaction plants[61]. - The Group plans to commence the first stage of the coal-to-natural gas project in June 2019 with a pilot daily output of 200,000 cubic meters, aiming to increase it to 800,000 cubic meters by the end of 2019[61]. - The Group intends to resume its LNG business in 2019, supported by an increase in the number of upstream wells and gas output[61]. - By the end of 2019, the daily output of gas exploration business is projected to exceed 200,000 cubic meters, while the daily output of coal-to-natural gas is expected to reach about 800,000 cubic meters[61]. - The demand for natural gas is anticipated to maintain strong growth momentum due to increasing concerns over environmental issues and the elimination of highly-polluted energy sources[64]. - The Group's raw gas supply will be further consolidated, enhancing the advantages of its vertical integration business[61]. - The stable supply from self-produced well gas and coal-to-natural gas production will reduce the impact of external factors on the Company's operations[61]. - The successful development of coal-to-natural gas technology is expected to contribute positively to the Company's profit margin and long-term development[64]. - The management is committed to overcoming difficulties to enhance the Company's profitability and long-term growth[64]. - The experiment on natural gas production by coal was largely completed as of the date of the report[61]. Corporate Governance and Compliance - The unaudited financial results for the quarter have been reviewed by the company's audit committee, ensuring compliance with accounting standards issued by the Hong Kong Institute of Certified Public Accountants[28]. - The company has not early adopted new and revised Hong Kong Financial Reporting Standards that are not yet effective, and is assessing their impact on financial performance[28]. - The financial statements are prepared under the historical cost convention, consistent with the previous year's annual financial statements[28]. - The audit committee held one meeting during the quarter to review the unaudited consolidated results[115]. - The company has complied with the Corporate Governance Code, except for the lack of a specific term for independent non-executive directors[120]. - The company is considering the feasibility of appointing a separate chief executive officer[121]. - The company has received confirmations of independence from all independent non-executive directors[121]. - The roles of chairman and chief executive are currently not separated, which deviates from the Corporate Governance Code[119]. - The company has established an audit committee to oversee financial reporting and internal control procedures[115]. - No purchase, sale, or redemption of the company's listed securities occurred during the quarter[115]. - The company has adopted a code of conduct regarding securities dealings by directors, with no reported non-compliance during the review period[121]. Shareholder Information - As of March 31, 2019, Ms. Zhao Xin holds 488,706,754 shares, representing a 37.04% interest in the company through her spouse[77]. - No other individuals, apart from the disclosed directors and chief executive, had interests or short positions in the company's shares as of March 31, 2019[78]. - There were no share options granted or outstanding under the Old Share Option Scheme prior to its termination[80]. - As of March 31, 2019, there were 32,119,074 share options outstanding with an exercise price of HK$3.81 and a weighted average remaining contractual life of 2.2 years[109]. - The total number of shares available for issue under the New Share Option Scheme was 32,119,074 ordinary shares, representing approximately 2.43% of the issued shares of the company[112]. - As of March 31, 2019, the company had outstanding convertible bonds convertible to 94,142,021 shares and options to subscribe for 32,119,074 shares under the New Share Option Scheme[113]. - During the quarter, the company did not capitalize any interest[115]. Market and Future Outlook - China CBM Group reported a revenue of $10 million for the first quarter, reflecting a 15% increase year-over-year[123]. - The company achieved a net profit of $2 million, representing a 20% growth compared to the same period last year[123]. - User data indicates an increase in active users by 25%, reaching a total of 50,000 users[123]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by the end of the fiscal year[123]. - New product development includes the launch of a next-generation coalbed methane extraction technology, expected to increase efficiency by 40%[123]. - Future guidance estimates revenue growth of 10-15% for the next quarter, driven by increased demand and market expansion[123]. - The company is exploring potential acquisitions to enhance its technological capabilities and market reach[123]. - Operational costs have been reduced by 5% due to improved efficiency measures implemented in the last quarter[123]. - The company has secured a new partnership with a local energy firm, which is expected to generate an additional $3 million in revenue annually[123]. - Research and development expenditure increased by 12%, focusing on sustainable energy solutions[123].
中国煤层气(08270) - 2019 Q1 - 季度财报