Financial Performance - The Group's revenue for the quarter ended June 30, 2020, was approximately RMB 43,801,000, representing a decrease of approximately 19.02% compared to the same period in the previous financial year[14]. - For the six months ended June 30, 2020, the Group's revenue was approximately RMB 77,453,000, reflecting a decrease of approximately 20.3% year-on-year[14]. - The Group recorded a loss attributable to equity shareholders of approximately RMB 8,437,000 for the Interim Period[14]. - Loss per share for the Group was approximately RMB 0.64 cents for the Interim Period[14]. - The Board does not recommend the payment of any dividend for the Interim Period[14]. - Revenue for the quarter ended June 30, 2020, was RMB 43,801,000, a decrease of 19.0% compared to RMB 54,092,000 in the same quarter of 2019[19]. - The company reported a loss for the period of RMB 5,287,000, compared to a profit of RMB 5,477,000 in the previous year[21]. - Total comprehensive loss for the period was RMB 5,809,000, compared to a comprehensive income of RMB 5,480,000 in 2019[21]. - The Group recorded a consolidated turnover of approximately RMB 77,453,000 for the Interim Period, representing a decrease of approximately 20.3% compared to the corresponding period of last year[91]. - Loss attributable to equity shareholders of the Company for the Interim Period was approximately RMB 8,437,000, compared to a profit of approximately RMB 5,358,000 for the previous period[91]. Cash Flow and Assets - Cash inflow from operating activities was RMB 2,140,000, a significant improvement from an outflow of RMB 56,103,000 in the same period last year[28]. - Cash and bank balances decreased to RMB 13,984,000 as of June 30, 2020, down from RMB 18,265,000 at the beginning of the year[28]. - Net current liabilities improved to RMB (296,798,000) from RMB (310,739,000) at the end of 2019[25]. - Non-current assets totaled RMB 415,817,000, a decrease from RMB 442,489,000 at the end of 2019[23]. - The company reported total equity of RMB 142,410,000, down from RMB 153,143,000 at the end of 2019[25]. - As of June 30, 2020, the total equity attributable to shareholders was RMB 142,410,000, a decrease from RMB 158,143,000 at the beginning of the year[30]. - The company reported accumulated losses of RMB 576,360,000 as of June 30, 2020, indicating ongoing financial challenges[30]. Revenue Breakdown - Revenue for the quarter ended June 30, 2020, was RMB 1,791,000 from sales of liquefied coalbed gas, a decrease of 66.1% compared to RMB 5,294,000 in the same quarter of 2019[41]. - Revenue from gas supply connection services was RMB 42,010,000 for the quarter ended June 30, 2020, down 13.8% from RMB 48,798,000 in the same quarter of 2019[41]. - Total revenue for the half year ended June 30, 2020, was RMB 43,801,000, a decline of 19.0% compared to RMB 54,092,000 in the same period of 2019[41]. Operational Highlights - The company primarily operates in the People's Republic of China, with business activities transacted in RMB[35]. - The principal activities include the manufacture and sales of liquefied coalbed gas and provision of logistics services[37]. - The Group's revenue and assets were primarily derived from the liquefied coalbed gas business in China, with other segments being immaterial[43]. - As of June 30, 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[101]. - The existing gas output wells produce approximately 850 cubic meters of gas on average per day[101]. - The daily gas output of the upstream business was insufficient to fully utilize the 500,000 cubic meters daily production capacity of liquefaction plants[111]. Future Plans and Market Outlook - The Group plans to accelerate the drilling program if adequate financing is obtained in the future, either from increased gas sales or fundraising[106]. - The Group plans to increase daily gas output to 350,000 cubic meters by mid-2021 and to 850,000 cubic meters by the end of 2021[111]. - The management anticipates strong growth momentum in the natural gas market due to rising environmental concerns and the elimination of highly-polluted energy sources[114]. - The Group intends to resume its LNG project in the second half of 2020, supported by increasing upstream well numbers and gas output[111]. Shareholder Information - As of June 30, 2020, Mr. Wang Zhong Sheng holds a total of 488,706,754 shares, representing approximately 37.04% of the shareholdings[119]. - As of June 30, 2020, Mr. Wang Zhong Sheng holds a total of 470,588,254 long positions in shares, which includes 324,750 shares from options, 376,121,483 issued shares, and convertible bonds convertible to 94,142,021 shares[1]. - Ms. Zhao Xin, spouse of Mr. Wang Zhong Sheng, holds 488,706,754 shares, representing approximately 37.04% of the company's shareholding[125]. Corporate Governance - The audit committee held two meetings during the Interim Period to review the Group's unaudited consolidated results[154]. - The Group has complied with the Corporate Governance Code during the Interim Period, except for certain provisions regarding the appointment of non-executive directors[158]. - The Company is considering the feasibility of appointing a separate chief executive to comply with the HKSE Code[160]. - The Company has adopted a code of conduct regarding securities dealings by Directors, with no reported non-compliance during the Interim Period[160]. - All independent non-executive Directors have confirmed their independence as per the GEM Listing Rules[160].
中国煤层气(08270) - 2020 - 中期财报