Financial Performance - Total revenue for the group in 2024 decreased by 12.4% compared to 2023, primarily due to a decline in natural gas demand and prices influenced by market and weather conditions [16]. - The company reported a loss before tax of approximately HKD 27,103,000 for the year, compared to a loss of HKD 17,083,000 in 2023, indicating an increase in losses due to decreased natural gas demand and prices [25]. - The net asset value of the group as of December 31, 2024, was approximately HKD 261,362,000, down from HKD 300,614,000 in 2023 [28]. - The company reported a total loss for the year of HKD 25,513,000, compared to a loss of HKD 19,625,000 in the previous year, representing a 30.00% increase in losses [192]. - The company's total assets as of December 31, 2024, amounted to HKD 756,306,000, slightly up from HKD 755,286,000 in 2023 [195]. - The company's net assets decreased to HKD 261,362,000 in 2024 from HKD 300,614,000 in 2023, a decline of 13.00% [196]. - Basic and diluted loss per share for the year was HKD 0.026, compared to HKD 0.017 in 2023, indicating a 52.94% increase in loss per share [193]. - The company reported a decrease in total comprehensive loss to HKD 36,486,000 in 2024 from HKD 34,783,000 in 2023, an increase of 4.88% [193]. Business Operations - The natural gas business remains a cornerstone of the group's operations, with expansion in Wuhu and Yichang becoming strategic hubs for this segment [9]. - The biomass gasification heating plant in Huaining County, Anhui Province, showed stable growth, meeting the increasing demand for sustainable energy solutions in the region [10]. - The clean energy facility in Yichang was completed and is expected to start production by the end of 2024, contributing significantly to future growth [9]. - The biomass gasification heating business in Huaining County, Anhui Province, is expected to achieve breakeven in the near future as construction is completed [19]. - The company remains optimistic about the natural gas business outlook, supported by government policies promoting clean energy usage [18]. Investment and Market Strategy - The company is committed to expanding its market share in China, focusing on clean energy as the core of its business strategy [12]. - The company is actively exploring new investment opportunities to enhance shareholder value [12]. - The group is actively exploring potential investment opportunities to enhance long-term value and ensure sustainable growth [26]. - The company plans to continue its market expansion efforts, focusing on enhancing its product offerings and exploring potential acquisitions [200]. Financial Management and Governance - The company plans to implement stringent cost control measures and maintain an efficient workforce to enhance shareholder value amid challenging economic conditions [25]. - The company has established governance practices, which are detailed in the report [97]. - The audit committee held four meetings during the review year to review the group's interim and annual reports [98]. - The company has established a robust internal control system to safeguard assets and ensure reliable financial reporting, with an internal audit team reporting directly to the audit committee [148]. - The board of directors confirmed their responsibility for preparing the financial statements for the year ending December 31, 2024, ensuring compliance with GEM listing rules [145]. Shareholder and Equity Information - The board recommends not to declare any dividends for the year ending December 31, 2024 [57][67]. - As of December 31, 2024, the company has no retained earnings available for distribution to shareholders, but has a share premium account of HKD 714,488,000 that can be distributed [60]. - The company has a shareholding structure where major shareholders hold significant stakes, with the largest shareholder owning 12.10% of the company [88]. - The company has adopted a dividend policy that allows for distributions in cash or shares, subject to board discretion and shareholder approval [65]. Risk Management - The company has established a risk management and internal control system that includes tracking identified risks and continuously updating response procedures [151]. - The company believes that broadening the scope of eligible participants for the share option scheme will provide flexibility in rewarding those who contribute to the group's growth [83]. - The board has implemented a policy for handling and disclosing insider information to prevent violations of disclosure regulations [154]. - The company encourages employees and stakeholders to report any suspected fraud or misconduct through its whistleblowing policy [155]. Compliance and Audit - The independent auditor has audited the consolidated financial statements and found them to fairly reflect the company's financial position as of December 31, 2024 [166]. - The audit opinion is based on compliance with Hong Kong auditing standards and ethical guidelines [167]. - The external auditor's fees for audit services amounted to approximately HKD 1,320,000 for the year ending December 31, 2024, compared to HKD 1,280,000 in 2023 [147]. - The company has maintained compliance with all relevant laws and regulations without any significant violations during the review year [107].
中国基础能源(08117) - 2024 - 年度财报