Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 300,101 thousand, a decrease of 9.6% compared to HKD 332,034 thousand in 2023[3] - Profit before interest, tax, depreciation, and amortization (EBITDA) was HKD 174,027 thousand, down 20.7% from HKD 219,443 thousand in the previous year[3] - Net profit attributable to the company's owners was HKD 27,344 thousand, representing a significant decline of 60.7% from HKD 69,529 thousand in 2023[3] - Basic earnings per share decreased by 65.8% to HKD 0.25 from HKD 0.73 in the prior year[3] - The company reported a total loss before tax of HKD 56,399 for the year 2024, compared to a profit of HKD 90,765 in 2023, marking a significant decline[26] - The company's profit before tax decreased to HKD 27,344,000 in 2024 from HKD 69,529,000 in 2023, reflecting a decline of approximately 60.7%[33] - The net profit margin decreased by 11.8% to 8.9% for the year ended December 31, 2024, mainly due to the reasons mentioned above[54] Assets and Liabilities - Non-current assets decreased from HKD 2,220,573,000 in 2023 to HKD 2,089,660,000 in 2024, a decline of approximately 5.9%[6] - Current assets increased from HKD 145,847,000 in 2023 to HKD 180,875,000 in 2024, representing an increase of about 24%[6] - Total assets decreased from HKD 2,366,420,000 in 2023 to HKD 2,270,535,000 in 2024, a reduction of approximately 4.0%[6] - Current liabilities rose from HKD 304,698,000 in 2023 to HKD 404,871,000 in 2024, an increase of around 32.8%[6] - The company’s current liabilities net value showed a decline from HKD (158,851,000) in 2023 to HKD (223,996,000) in 2024, worsening by about 41%[6] - The company’s total liabilities decreased from HKD 329,866,000 in 2023 to HKD 75,281,000 in 2024, a significant reduction of approximately 77%[7] - The total liabilities reported as of December 31, 2024, were HKD 480,152, down from HKD 634,564 in 2023, indicating a decrease of approximately 24.2%[26][24] Cash Flow and Financing - The company incurred financing costs of HKD 36,059 thousand, down from HKD 49,176 thousand in 2023[4] - Total financing costs decreased to HKD 36,059,000 in 2024 from HKD 49,176,000 in 2023, a reduction of approximately 26.7%[29] - The company has entered into an oil contract with China National Petroleum Corporation for exploration and production in the Tarim Basin, Xinjiang, with a term of 30 years starting from June 1, 2009[60] - Other borrowings amount to approximately RMB 249,341,000 (equivalent to approximately HKD 261,808,000) due for repayment by December 31, 2025[59] Market Outlook and Strategy - The company plans to focus on market expansion and new product development in the upcoming fiscal year[4] - Future guidance indicates a cautious outlook due to current market conditions and operational challenges[4] - The management is seeking high-quality borrowers in the lending business to reduce the risk of defaults, adopting a cautious stance given the current financial situation[84] Segment Performance - The reported segment profit before tax for the natural gas exploration, production, and distribution segment was HKD 87,191, down from HKD 114,598 in the previous year, indicating a decrease of about 23.9%[22][26] - Revenue from major customers in the natural gas exploration, production, and distribution segment showed a decline, with Customer A contributing HKD 282,777 in 2024 compared to HKD 316,370 in 2023[27] - The natural gas distribution business in the Kashgar project generated revenue of approximately HKD 300,101,000 in 2024, compared to HKD 332,034,000 in 2023, reflecting a decrease of about 9.6%[65] Corporate Governance - The company has not declared any dividends for the current year, consistent with the previous year (2023: none) [107] - The company has adopted the securities trading standards as per the listing rules, confirming compliance throughout the review period [106] - The board of directors has appointed a new independent non-executive director, effective December 20, 2024, to enhance board diversity [105] - The company has deviated from certain corporate governance codes, believing that the previous structure did not undermine the balance of power between the board and management [103] - The board has not held regular meetings as per the governance code, conducting only semi-annual meetings instead of the required quarterly ones [104] - The company lacks an internal audit function, which will be reviewed to assess the effectiveness of risk management and internal controls [104] Management Changes - Zhao Guoqiang resigned as Executive Director, CEO, and Authorized Representative effective April 30, 2024, to focus on personal matters[85] - Liu Wenxuan appointed as Executive Director, CEO, and Authorized Representative effective April 30, 2024[85] - Feng Huiyuan joined the company as Vice President on September 16, 2024, with a background in business management and technology[88] - Zheng Zhenying resigned as Independent Non-Executive Director and various committee roles effective December 20, 2024, to focus on personal matters[89] - Qian Yingying appointed as Independent Non-Executive Director and committee member effective December 20, 2024[89]
中能控股(00228) - 2024 - 年度业绩