Financial Performance - Revenue for the six months ended June 30, 2024, was HK$201,672,000, representing a 27.5% increase from HK$158,069,000 in the same period of 2023[3]. - Gross profit increased to HK$81,096,000, up 10% from HK$73,757,000 year-over-year[3]. - Loss for the period was HK$47,641,000, an improvement from a loss of HK$83,835,000 in the prior year, indicating a reduction of 43%[3]. - Other income significantly rose to HK$24,542,000 compared to HK$349,000 in the previous year[3]. - Total comprehensive loss for the period was HK$139,539,000, down from HK$211,338,000 in the same period last year, reflecting a 34% improvement[4]. - Basic and diluted loss per share improved to HK$1.42 from HK$2.49 year-over-year[4]. - The company reported a loss for the period of HK$47,382,000 for the six months ended June 30, 2024[8]. - Total comprehensive loss for the period was HK$138,957,000, which includes an other comprehensive loss of HK$91,575,000[8]. - Loss before income tax expense for the six months ended June 30, 2024, was HK$47,382,000, compared to a loss of HK$83,448,000 for the same period in 2023, representing a 43% improvement[39]. Expenses and Costs - Selling and distribution expenses decreased to HK$1,722,000 from HK$4,428,000, showing a reduction of 61%[3]. - Administrative expenses rose to HK$26,288,000, compared to HK$20,988,000 in the previous year, marking a 25% increase[3]. - Finance costs decreased to HK$127,505,000 from HK$134,701,000, indicating a reduction of 5.5%[3]. - Total finance costs decreased to HK$126,392,000 for the six months ended June 30, 2024, down from HK$132,267,000 in 2023, reflecting a reduction of approximately 4%[41]. - Expenditure on property, plant, and equipment was HK$30,647,000 for the six months ended June 30, 2024, compared to HK$52,007,000 in 2023, indicating a decrease of about 41%[41]. - Employee costs, including directors' remuneration, increased to HK$12,466,000 for the six months ended June 30, 2024, compared to HK$12,023,000 in 2023, reflecting a rise of about 4%[37]. - Depreciation on property, plant, and equipment rose to HK$36,256,000 for the six months ended June 30, 2024, from HK$32,265,000 in 2023, an increase of approximately 12%[37]. Assets and Liabilities - Total assets decreased from HK$3,731,764,000 as of December 31, 2023, to HK$3,581,919,000 as of June 30, 2024, representing a decline of approximately 4.02%[6]. - Current liabilities increased from HK$3,139,832,000 to HK$3,381,007,000, an increase of about 7.71%[7]. - Cash and cash equivalents decreased from HK$81,334,000 to HK$57,314,000, a reduction of approximately 29.5%[7]. - Total non-current assets decreased from HK$3,537,508,000 to HK$3,408,392,000, a decline of about 3.64%[5]. - The capital deficiency attributable to owners of the company increased to HK$316,710,000 as of June 30, 2024, from HK$177,753,000 at the beginning of the year[8]. - Trade and other receivables increased from HK$90,057,000 to HK$96,629,000, an increase of about 7.3%[5]. - Total current liabilities amounted to HK$1,276,651,000 as of June 30, 2024, compared to HK$1,239,419,000 as of December 31, 2023, representing a rise of approximately 3.0%[51]. - Trade payables decreased significantly to HK$867,000 from HK$1,931,000, a reduction of about 55.0%[51]. Cash Flow and Financing - Net cash generated from operating activities increased significantly to HK$149,320,000 for the six months ended June 30, 2024, compared to HK$44,097,000 in the same period of 2023, representing a growth of 238%[9]. - The Group reported net cash used in investing activities of HK$74,938,000, which is an increase from HK$37,497,000 in 2023, indicating a rise of 100%[9]. - As of June 30, 2024, the Group had net current liabilities of HK$3,207,480,000, raising concerns about its ability to continue as a going concern[15]. - The financial pressure primarily stems from a convertible note held by Crescent Spring, with a principal and overdue interest totaling approximately HK$2,182,000,000[15]. - The Group has been actively seeking investors and exploring financing options, including debt restructuring activities, to improve its liquidity position[15]. - The restructuring is expected to provide necessary funds to repay outstanding debts and extend the maturity dates of major debts, allowing more time to meet obligations[15]. Restructuring and Future Outlook - On December 8, 2023, the Group entered into binding agreements aimed at restructuring its equity, business, and debts, involving various parties including investors and Crescent Spring[15]. - The completion of the restructuring is anticipated to lower the Company's debt level and increase its equity, providing further opportunities for business expansion[15]. - The Group is actively pursuing restructuring transactions to improve liquidity and address outstanding debts, with a focus on obtaining necessary funds through equity issuance[78]. - The domestic natural gas market in 2024 is projected to see an increase in annual consumption by 30 billion to 35 billion cubic meters, driven by the promotion of cleaner natural gas[82]. - The Sanjiao CBM Project, as the Group's core business, has experienced an increase in production and sales volume in recent years and will continue to focus on its development in 2024[82]. - The Group remains confident in successfully implementing the restructuring actions and resolving cash flow issues in the foreseeable future[81]. Segment Performance - For the six months ended June 30, 2024, the total revenue from external customers was HK$200,871,000, with HK$165,726,000 from coalbed methane and HK$35,145,000 from raw and cleaned coal[25]. - The Group operates four reportable segments: coalbed methane, raw and cleaned coal, oil and gas exploitation, and financial services, each requiring different business strategies[22][23]. - The Sanjiao CBM Project has shown stable growth in recent years, which the Directors believe will help resolve cash flow tightness and meet financial obligations in the foreseeable future[17][19]. - Sales from the Sanjiao CBM Project amounted to approximately HK$165,726,000, representing an increase of approximately 11.1% from HK$149,221,000 in the prior year[65]. - The EBITDA for the Sanjiao CBM Project was approximately HK$154,943,000, reflecting a 40% increase compared to HK$110,740,000 in the same period last year[63]. Governance and Compliance - The interim financial report has been prepared in accordance with the same accounting policies as the 2023 annual financial statements, ensuring consistency in financial reporting[18][20]. - The Audit Committee reviewed the accounting principles and practices adopted by the group and discussed financial reporting matters for the six months ended June 30, 2024[99]. - The company complied with all code provisions of the Corporate Governance Code throughout the six months ended June 30, 2024, except for certain provisions[100]. - Dr. Dai Xiaobing serves as both Chairman and Chief Executive Officer, which the board believes ensures consistent leadership[105].
中国油气控股(00702) - 2024 - 中期财报