Financial Performance - Revenue for the six months ended June 30, 2024, was HK$165,807,000, a decrease of 0.28% from HK$168,281,000 in the same period of 2023[6]. - Profit for the period was HK$32,911,000, down from HK$34,494,000 in the previous year, representing a decline of 4.6%[6]. - For the six months ended June 30, 2024, the profit attributable to owners of the Company was HK$33,621,000, a decrease of 4.4% compared to HK$35,141,000 in the same period of 2023[7]. - The total comprehensive loss for the period was HK$660,000, significantly improved from a loss of HK$45,831,000 in the previous year[8]. - Basic earnings per share attributable to owners of the Company was HK$0.35, slightly down from HK$0.37 in 2023, while diluted earnings per share was HK$0.29 compared to HK$0.30[8]. - The Group's total revenue for the six months ended June 30, 2024, declined by approximately HK$2,474,000 or 1.5% to approximately HK$165,807,000[86]. - Profit attributable to owners of the Company for the six months ended June 30, 2024, was approximately HK$33,621,000, a decrease of approximately 4.3% period-on-period[86]. - Total comprehensive profit attributable to owners of the Company for the same period was approximately HK$267,000, reflecting a decrease of approximately 100.6%[86]. Costs and Expenses - Direct costs increased to HK$29,766,000 from HK$21,609,000, marking a rise of 37.5%[6]. - Staff costs increased to HK$9,404,000 from HK$8,299,000, an increase of 13.3%[6]. - Finance costs decreased to HK$20,124,000 from HK$26,567,000, a reduction of 24.3%[6]. - Income tax charge for the period was HK$9,022,000, down from HK$11,560,000, reflecting a decrease of 22%[6]. - The company reported a fair value loss of financial assets at fair value through profit or loss of HK$3,496,000, compared to a loss of HK$5,995,000 in the previous year[6]. - The company recorded a provision for impairment of intangible assets amounting to HK$3,310,000 for the six months ended June 30, 2024[31]. - Direct costs increased by approximately HK$8.2 million or 37.7% due to higher costs of raw materials and production during the period[97]. Assets and Liabilities - Total assets decreased to HK$2,317,781,000 as of June 30, 2024, from HK$2,366,420,000 at the end of 2023, reflecting a decline of 2.0%[9]. - Current assets increased to HK$170,818,000, up from HK$145,847,000, marking a growth of 17.1%[9]. - Total current liabilities decreased to HK$245,215,000 from HK$304,698,000, a reduction of 19.5%[10]. - Net current liabilities improved to (HK$74,397,000) from (HK$158,851,000), indicating a positive shift in financial position[10]. - Non-current assets totaled HK$2,146,963,000, down from HK$2,220,573,000, a decrease of 3.3%[9]. - The equity attributable to owners of the Company increased to HK$1,804,756,000 from HK$1,721,865,000, reflecting a growth of 4.8%[10]. - The Group's total liabilities as of June 30, 2024, were HK$427,592,000, unchanged from the previous reporting period[31]. - Total liabilities decreased from HK$634,564,000 in December 2023 to HK$503,961,000 in June 2024, a decrease of approximately 21%[36]. Cash Flow and Financing - For the six months ended June 30, 2024, the net cash generated from operating activities was HK$67,756,000, an increase from HK$56,483,000 in the same period of 2023, representing a growth of approximately 19.8%[13]. - The company repaid bank borrowings amounting to HK$53,500,000 during the period, impacting the net cash used in financing activities, which totaled HK$69,749,000[13]. - Cash and cash equivalents at the end of the period were HK$42,770,000, down from HK$134,167,000 at the end of June 2023, a decrease of approximately 68.1%[13]. - The company’s secured borrowings are charged at an interest rate of 8.5% per annum, repayable fully within 2 years from the drawdown date[73]. - The Group's current ratio was approximately 69.7% as of June 30, 2024, compared to 47.9% as of December 31, 2023[107]. Management and Governance - New management appointments were made, including Mr. Liu Dong as CEO, effective April 30, 2024[3]. - The Company has adopted the Model Code for securities transactions by directors, and all directors confirmed compliance during the review period[159]. - The Audit Committee comprises two non-executive Directors and three independent non-executive Directors, with three members possessing recognized professional qualifications in accounting[161]. - The Company will review the adequacy and effectiveness of its risk management and internal control systems to assess their effectiveness[155]. - The Company is required to appoint at least one director of a different gender by December 31, 2024, to comply with the new board diversity requirement[157]. Projects and Operations - The Company has two key projects: the Kashi Project and the Karamay Project, both located in Xinjiang, PRC[82]. - The natural gas market demand has shown steady recovery in the first half of 2024, aligning with China's macroeconomic stability[86]. - The Kashi Project's development period commenced on 9 July 2019, following the completion of the Overall Development Program filing on 8 July 2019[88]. - The production period for the Kashi Project is set for fifteen years for oil fields and twenty years for gas fields, subject to government approval for extension[111]. - The company is seeking additional debt and/or equity funding for the further development of the Kashi Project[112]. Shareholder Information - As of June 30, 2024, the total number of issued and fully paid ordinary shares is 12,165,344,000, amounting to HK$608,267,000[79]. - Alpha Eagle Limited holds 2,660,000,000 shares, representing approximately 21.87% of the issued share capital[126]. - Xinjiang Mingxin Oil Gas Exploration Development Co., Ltd. holds 3,630,000,000 shares, accounting for 29.84% of the issued share capital[126]. - The principal amount of convertible notes converted into ordinary shares reached HK$1,046,210,000 by June 30, 2024, with HK$446,880,000 converted during the six months ended June 30, 2024[76].
中能控股(00228) - 2024 - 中期财报