Financial Performance - The Group's turnover for the three months ended March 31, 2020, was approximately RMB 33,652,000, representing a decrease of 21.9% compared to the same period in the previous financial year[12]. - The Group reported a loss of approximately RMB 4,353,000 for the three months ended March 31, 2020[12]. - Basic loss per share attributable to equity shareholders of the Company was approximately RMB 0.42 cents for the three months ended March 31, 2020[12]. - Gross profit for the period was RMB 8,661,000, down from RMB 12,338,000 in the same period of 2019[17]. - The Group's total comprehensive expense for the period was RMB 4,924,000, compared to a total comprehensive income of RMB 3,519,000 in the same period of 2019[19]. - The loss attributable to equity shareholders of the Company was RMB 5,513,000 for the period[17]. - Total revenue for the quarter was RMB 33,652,000, down 22% from RMB 43,090,000 year-over-year[33]. - The company reported a comprehensive loss for the period of RMB 5,513,000[24]. - The turnover decreased from RMB 43,090,000 to RMB 33,652,000 for the Quarter, mainly due to the outbreak of the coronavirus, resulting in a decrease in sales volume[38]. - Other revenue decreased from RMB 6,538,000 to RMB 110,000 due to no value-added tax refund received during the Quarter[38]. - Other net income for the quarter was RMB 100,000, a significant decrease from RMB 6,530,000 in the previous year[33]. Dividends and Shareholder Equity - The Board does not recommend the payment of any dividend for the three months ended March 31, 2020[12]. - The Group does not recommend the payment of any dividend for the Quarter, consistent with the corresponding period in 2019[36]. - As of March 30, 2020, the total equity attributable to shareholders was RMB 158,143,000[23]. - The Group's net assets as of March 31, 2020, were approximately RMB 148,219,000, with cash and bank balances of approximately RMB 13,656,000[56]. - As of March 31, 2020, Mr. Wang Zhong Sheng holds a beneficial ownership of 376,121,483 shares, representing approximately 35.66% of the company's shareholdings[68]. - As of March 31, 2020, Ms. Zhao Xin holds 488,706,754 shares, representing a 37.04% interest in the company through her spouse's holdings[72]. Operational Highlights - The Group's finance costs for the period were RMB 698,000, compared to RMB 1,671,000 in the same period of 2019[17]. - The Group's administrative expenses were RMB 11,228,000 for the period, an increase from RMB 10,266,000 in the same period of 2019[17]. - The Group experienced exchange differences on translation of financial statements of foreign entities amounting to RMB (571,000) for the period[19]. - For the first quarter of 2020, the turnover from the sales of liquefied coalbed gas was RMB 925,000, a decrease of 95.9% compared to RMB 22,603,000 in the same period of 2019[33]. - The sales of piped natural gas and provision of gas supply connection services generated RMB 32,727,000, an increase of 59.7% from RMB 20,487,000 in Q1 2019[33]. - Employee costs for the quarter were approximately RMB 3,863,000, compared to RMB 4,348,000 for the same period in 2019[60]. - The Group has an aggregate of 367 employees, including 19 in research and development, 199 in engineering and customer service, 126 in administration, and 23 in marketing[60]. Reserves and Production - The reserve evaluation of the CBM properties as of 31 March 2020 shows total original gas in place of 1,936 BCF, down from 2,724 BCF in 2012[45]. - Net 1P (Proved) reserves are 1,089 BCF, while Net 2P (Proved + Probable) reserves are 1,547 BCF as of 31 March 2020[45]. - As of March 31, 2020, the Group has completed the groundwork and drilling of 244 CBM wells, with 199 wells in production, maintaining the same number of wells as at the end of 2019[52]. - The existing gas output wells produce approximately 850 cubic meters of gas on average per day[52]. - The upstream business is steadily improving, with daily gas output insufficient to fully utilize the 500,000 cubic meters daily production capacity of liquefaction plants[62]. - The company plans to increase daily gas output to 350,000 cubic meters by the end of 2020 and to 850,000 cubic meters by mid-2021[62]. Future Plans and Market Outlook - The Group plans to accelerate the drilling program if adequate financing is obtained in the future[56]. - The company aims to resume its LNG project in the second half of 2020, supported by increasing upstream well numbers and stabilized LNG prices[62]. - The demand for natural gas is expected to maintain strong growth momentum due to increasing environmental concerns and the elimination of highly-polluted energy sources[65]. - The company anticipates reduced impact from external factors in 2020 due to stable self-produced well gas supply, leading to lower uncontrollable operational risks[62]. Corporate Governance - The audit committee held one meeting during the quarter, reviewing the group's unaudited consolidated results[95]. - The company has complied with the Corporate Governance Code, except for the lack of specific terms for independent non-executive directors[97]. - The company does not have a chief executive officer, which deviates from the Corporate Governance Code[97]. - The roles of the chairman and the chief executive are not separated, as the chairman oversees general operations[97]. - The Company is considering the feasibility of appointing a separate chief executive in compliance with code provision A.2.1 of the Code[99]. - The Company has adopted a code of conduct regarding securities dealings by Directors, with no reported non-compliance during the Review Period[99]. - All independent non-executive Directors have confirmed their independence according to Rule 5.09 of the GEM Listing Rules[99]. Share Options and Securities - The company has a new share option scheme that allows for the granting of options for 258,300,000 ordinary shares to directors, employees, and consultants[74]. - As of March 31, 2020, there are 32,119,074 share options outstanding with an exercise price of HK$3.81 and a weighted average remaining contractual life of 1.2 years[91]. - No share options were granted during the first quarter of 2020, and the number of options remained unchanged at 32,119,074[86]. - The share option scheme adopted on May 18, 2011, will remain in force for 10 years, expiring on May 17, 2021[74]. - The total number of options granted under the new scheme includes 215,220,000 options that vest immediately and 43,080,000 options that vest over two years[90]. - The subscription price per share under the New Share Option Scheme is determined by the Board and must be at least the higher of the closing price on the offer date or the average closing price for the preceding five business days[93]. - The company recorded no other persons with interests or short positions in shares as of March 31, 2020, apart from the disclosed individuals[72].
中国煤层气(08270) - 2020 Q1 - 季度财报