Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 36,705 thousand, a decrease from HKD 39,952 thousand in the same period of 2023, representing a decline of approximately 5.7%[4] - The company reported a loss before tax of HKD 12,389 thousand for the period, compared to a loss of HKD 7,610 thousand in the prior year, indicating an increase in losses of approximately 62.5%[4] - Total comprehensive loss for the period was HKD 14,942 thousand, up from HKD 12,343 thousand in the previous year, reflecting a rise of about 21.2%[4] - Basic and diluted loss per share was HKD 1.47 cents, compared to HKD 0.91 cents in the same period last year, marking an increase of approximately 61.5%[4] - The company reported a net loss attributable to shareholders of HKD 12,389,000 for the six months ended June 30, 2024[17] - The group reported a pre-tax loss of HKD 12,389,000 for the six months ended June 30, 2024, compared to a loss of HKD 7,620,000 for the same period in 2023, indicating an increase in losses of approximately 62.5%[37] - The basic and diluted loss per share for the current period was HKD 0.0147, compared to HKD 0.0091 for the same period in 2023, indicating an increase in loss per share[48] - Gross profit for the current period was approximately HKD 121,000, a significant decrease from HKD 492,000 in the same period of 2023, reflecting a decline in trading activities[48] Cash and Liquidity - Cash and cash equivalents at the end of the period were HKD 40,285 thousand, significantly up from HKD 5,662 thousand at the end of June 2023, showing an increase of approximately 610.5%[10] - The net cash generated from operating activities was HKD 42,418 thousand, a turnaround from a cash outflow of HKD 13,658 thousand in the same period last year[10] - The company has cash and cash equivalents of HKD 40,285,000, indicating a significant liquidity concern[17] - The group's cash and bank balances were approximately HKD 40,285,000 as of June 30, 2024, a substantial increase from approximately HKD 1,252,000 as of December 31, 2023, primarily due to a reduction in prepayments[61] Assets and Liabilities - Total assets less current liabilities amounted to HKD 240,029 thousand, down from HKD 255,955 thousand at the end of 2023, indicating a decrease of approximately 6.2%[6] - Non-current assets totaled HKD 150,317 thousand, slightly down from HKD 151,246 thousand at the end of 2023, reflecting a decrease of about 0.6%[6] - The company’s equity attributable to owners was HKD 237,381 thousand, down from HKD 252,323 thousand at the end of 2023, representing a decline of approximately 5.9%[6] - Total liabilities, including trade and other payables, amounted to approximately HKD 47,059,000, with HKD 46,469,000 due within the next twelve months[17] - Total assets as of June 30, 2024, amounted to HKD 324,375,000, while total liabilities were HKD 85,979,000, reflecting a stable asset-liability structure[27] Operational Strategy and Future Outlook - The company plans to enhance cost control measures to improve profitability and cash flow generation[17] - The company is considering various financing arrangements to bolster its capital base and support ongoing operations[17] - The company has identified significant uncertainty regarding its ability to continue as a going concern due to its financial obligations[17] - The company is actively seeking legal advice regarding terminated leases and aims to recover ownership and production from related wells[59] - The company is considering potential investments in clean energy and renewable energy for long-term sustainable development[60] - The company is exploring new business opportunities in international oil trade and upstream/downstream projects within the oil industry[60] Market Conditions and Risks - The geopolitical instability, including the Russia-Ukraine conflict and US-China trade disputes, poses risks to the supply and demand of oil and natural gas, potentially impacting the company's performance[53] - The company focused on trading petrochemical products during the period, as domestic consumption levels remained low post-pandemic, influenced by the real estate market downturn[49] - Oil prices fluctuated between $75.9 and $91.1 per barrel in the first half of 2024, while natural gas prices experienced significant volatility, opening at $2.61 and reaching a high of $3.3 before dropping to $1.58[56] Corporate Governance - The company confirmed that all directors adhered to the standards of conduct regarding securities trading during the period[73] - The company has not complied with Listing Rule 3.10A, which requires independent non-executive directors to account for at least one-third of the board after the resignation of Ms. Lam Shuk Yi on September 3, 2024[78] - The board will make every effort to identify suitable candidates to fill the vacancy within three months from September 3, 2024, to ensure compliance with the listing rules[78] - The audit committee has reviewed and confirmed that the accounting principles and practices adopted by the group are in accordance with the relevant listing rules as of June 30, 2024[80] - The board consists of five executive directors, three non-executive directors, and three independent non-executive directors as of the report date[83]
中港石油(00632) - 2024 - 中期财报