Financial Performance - Revenue for the six-month period ended June 30, 2024, was RMB 461,288, a decrease of 9.9% compared to RMB 511,829 for the same period in 2023[8]. - EBITDA for the same period was RMB 286,652, down 19.0% from RMB 354,046 in the prior year[8]. - Adjusted EBITDA loss for the period was RMB 281,215, compared to a loss of RMB 340,270 in the previous year[8]. - Basic loss per share for the six months ended June 30, 2024, was RMB (0.03), compared to RMB (0.02) for the same period in 2023[8]. - The net loss for the period was RMB 110.1 million, an increase of RMB 49.6 million compared to a net loss of RMB 60.5 million for the six months ended June 30, 2023[17]. - The Group's loss for the period increased from RMB 60.5 million to RMB 110.1 million, an increase of RMB 49.6 million[45]. - The Group's EBITDA decreased by approximately RMB 67.3 million, from approximately RMB 354.0 million for the six months ended June 30, 2023, to approximately RMB 286.7 million for the six months ended June 30, 2024[53]. - The Group's adjusted EBITDA for the six months ended June 30, 2024, was RMB 281.2 million, compared to RMB 340.3 million for the same period in 2023[54]. Production and Sales - Total gross production of crude oil decreased by 37.2% from 2.71 million barrels in the first half of 2023 to 1.70 million barrels in the first half of 2024[14]. - Total net production of crude oil allocated to the Group decreased by 19.5% from 0.99 million barrels in the first half of 2023 to 0.80 million barrels in the first half of 2024[14]. - Average daily net production of crude oil allocated to the Group decreased by 19.9% to 4,381 barrels per day in the first half of 2024 compared to the same period in 2023[14]. - Revenue from oil product sales decreased by 9.9% to RMB 461.3 million for the six months ended June 30, 2024, compared to RMB 511.2 million for the same period in 2023[17]. - The net crude oil sales volume decreased by 16.8% to 0.80 million barrels for the six months ended June 30, 2024, from 0.96 million barrels for the same period in 2023[24]. - The average realized price of crude oil increased to US$81.31 per barrel in the first half of 2024 from US$76.72 per barrel in the first half of 2023[10]. - The lifting costs increased to US$17.21 per barrel in the first half of 2024 from US$13.65 per barrel in the first half of 2023[10]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB 1,617,133, a decrease from RMB 1,726,326 as of December 31, 2023[8]. - Total equity as of June 30, 2024, was RMB (2,027,454), down from RMB (1,902,499) at the end of 2023[8]. - Total liabilities increased to RMB 3,644,587 as of June 30, 2024, compared to RMB 3,628,825 as of December 31, 2023, reflecting a rise of 0.4%[116]. - The Group's total borrowings were approximately RMB 2,839.7 million, an increase of RMB 77.0 million compared to December 31, 2023[65]. - The gearing ratio increased from 338.6% as of December 31, 2023, to 375.4% as of June 30, 2024, indicating a higher level of financial leverage[65]. - The debt-to-equity ratio increased from 338.6% on December 31, 2023, to 375.4% on June 30, 2024[67]. Cash Flow and Financing - For the six months ended June 30, 2024, the net cash generated from operating activities was RMB 255.8 million, compared to RMB 243.1 million for the same period in 2023, reflecting an increase of approximately 5.6%[58][61]. - Net cash used in investing activities for the six months ended June 30, 2024, amounted to RMB 133.3 million, a decrease from RMB 189.7 million in the same period of 2023, indicating a reduction of approximately 29.7%[63]. - Net cash used in financing activities for the six months ended June 30, 2024, was RMB 109.6 million, slightly lower than RMB 120.3 million for the same period in 2023, showing a decrease of approximately 8.8%[64]. - The company incurred net cash used in investing activities of RMB 133,282,000, a decrease from RMB 189,651,000 in the same period last year[127]. Strategic Initiatives and Outlook - The company is focusing on expanding its market presence and enhancing product offerings in response to current market challenges[8]. - Future outlook includes strategic initiatives aimed at improving operational efficiency and financial performance[8]. - The Group plans to continue drilling new wells to maintain production and generate sufficient operating cash flows[154]. - The outlook for the second half of 2024 indicates that crude oil prices are expected to continue fluctuating due to geopolitical risks and OPEC+ production cuts[22]. Governance and Compliance - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed internal control and financial reporting matters[105]. - The company has complied with the Corporate Governance Code throughout the period from January 1, 2024, to June 30, 2024[109]. - The Board of Directors has maintained compliance with the Listing Rules regarding independent non-executive Directors[111]. - The company has adopted the Model Code for Securities Transactions and confirmed compliance by all Directors during the reporting period[110]. Shareholder Information - FEEL holds 1,566,108,234 shares in the Company, including beneficial interests in 1,469,600,000 shares held through subsidiaries[84]. - As of June 30, 2024, Ms. Zhao Jiangbo holds a long position of 1,566,108,234 shares, representing approximately 46.24% of the company's interests[89]. - The company’s major shareholders include controlled corporations with significant stakes, indicating concentrated ownership[89]. - The total number of shares held by major shareholders reflects a high level of interest in the company, with percentages exceeding 40%[91]. Financial Risks and Management - The Group is exposed to various financial risks, including market risk (foreign exchange, interest rate, and crude oil price risks), credit risk, and liquidity risk[167]. - The financial information does not include all required disclosures for financial risk management and should be read in conjunction with the annual financial statements as of December 31, 2023[167]. - The Group's financial risk management policies have not changed since the year-end[169].
MI能源(01555) - 2024 - 中期财报