Financial Performance - For the year ended December 31, 2024, the Group recorded revenue of approximately HK$300,101,000, a decrease of 9.6% from HK$332,034,000 in 2023[17]. - EBITDA decreased from approximately HK$219,443,000 in 2023 to approximately HK$174,027,000 in 2024, a decline of 20.7%[19]. - Profit attributable to owners of the Company decreased by approximately HK$42,185,000 or 60.7% to approximately HK$27,344,000 for the year ended December 31, 2024, primarily due to increased impairment provisions and other operating expenses[29][33]. - The EBITDA margin decreased by 8.1% year-on-year to 58.0%, while the net profit margin decreased by 11.8% year-on-year to 8.9% for the year ended December 31, 2024[30][33]. - Revenue for the year ended 31 December 2024 decreased by approximately HK$33,593,000 or 10.6% year-on-year to approximately HK$282,777,000, primarily due to technical problems in certain gas fields, resulting in a gas production decrease of approximately 9.8% to approximately 431.0 million cubic meters[67][71]. Production and Operations - The Group produced approximately 431.0 million cubic meters of natural gas, representing a decrease of approximately 9.8% compared to the previous year[18]. - The Group's revenue from the production and distribution of natural gas decreased by approximately HK$31,933,000 year-on-year[18]. - The technical issues in certain gas fields, such as water and slurry blockage, contributed to the decrease in production[18]. - Segment profit before income tax for the Kashi Project was approximately HK$87,191,000 for the year ended December 31, 2024, down from approximately HK$114,598,000 in 2023, representing a decline of about 23.9%[51][55]. - Revenue from the Karamay Project increased by approximately HK$1,660,000 or 10.6% to approximately HK$17,324,000 for the year ended 31 December 2024[81][85]. Impairment Provisions - Provision for impairment of property, plant, and equipment increased from approximately HK$1,803,000 in 2023 to approximately HK$9,121,000 in 2024[22]. - Provision for impairment of intangible assets rose from approximately HK$3,330,000 in 2023 to approximately HK$4,554,000 in 2024[22]. - The carrying amount of the Kashi Project's cash-generating unit (CGU) as of December 31, 2024, was approximately HK$2,040,678,000, exceeding the recoverable amount of approximately HK$2,031,791,000, resulting in an impairment provision of approximately HK$4,554,000 for intangible assets and approximately HK$4,333,000 for property, plant, and equipment[23][27]. - The impairment provision for property, plant, and equipment increased from approximately HK$1,803,000 for the year ended December 31, 2023, to approximately HK$9,121,000 for the year ended December 31, 2024, including a provision of approximately HK$4,778,000 for properties in Hong Kong[26][33]. Operating Expenses - Other operating expenses increased by approximately HK$10,457,000 or 103.0% to approximately HK$20,607,000, primarily due to duty fees on the gain from the transfer of mining rights[28][33]. - Operating expenses increased by approximately HK$11,475,000 or 40.0% to approximately HK$40,166,000 for the year ended December 31, 2024, driven by higher office and administration expenses[70][74]. - Direct costs increased by approximately HK$3,393,000 or 8.8% to approximately HK$41,835,000 for the year ended December 31, 2024, attributed to higher repair and maintenance work volume compared to 2023[68][72]. Financial Position - The gearing ratio improved to approximately 24.9% as of June 30, 2024, down from approximately 34.0% as of December 31, 2023[90]. - As of December 31, 2024, the Group's outstanding secured and unsecured borrowings were approximately HK$203,700,000 and HK$58,108,000 respectively, compared to HK$353,160,000 and Nil in 2023[91]. - The Group's cash and cash equivalents decreased to approximately HK$34,346,000 in 2024 from approximately HK$45,203,000 in 2023[91]. - The current ratio was approximately 44.7% in 2024, down from 47.9% in 2023[91]. - The total liabilities to total assets ratio improved to approximately 21.1% in 2024 from 26.8% in 2023[91]. Corporate Governance - The company is committed to maintaining good corporate governance standards and has complied with the Corporate Governance Code during the reporting period, with some deviations noted[149]. - The company has established a framework for reviewing its governance structure to adapt to changing circumstances and ensure effective leadership[149]. - The company has appointed independent non-executive directors with extensive experience in accounting and corporate governance to strengthen its board[143]. - The Company has implemented a Whistleblowing Policy to allow confidential reporting of misconduct by employees and business partners[160]. - The Company has an Anti-corruption Policy that mandates strict compliance with conduct guidelines and the Prevention of Bribery Ordinance[161]. Management and Leadership Changes - Mr. Liu Dong appointed as CEO and executive Director effective April 30, 2024[128]. - Mr. Yan Danhua appointed as non-executive Director and member of the Audit Committee on July 19, 2024[131]. - Mr. Chen Jianxin appointed as non-executive Director and member of the Audit Committee on July 19, 2024[135]. - The company is focused on expanding its leadership team with experienced professionals in the energy sector[134]. - The appointments of new directors are expected to enhance the company's strategic direction and operational efficiency[140]. Employee and Diversity Initiatives - As of December 31, 2024, the company had 54 employees, with a gender ratio of approximately 2:1 (Male: Female), reflecting a reasonable balance of gender diversity in the natural gas exploration and development industry[193]. - The company values diverse talents and experiences among its employees to foster innovative ideas and drive enterprise growth[193]. - All board appointments are based on meritocracy, considering objective criteria and the benefits of diversity, including gender, age, cultural background, and professional experience[192]. - The Company has adopted a Board Diversity Policy to ensure a balance of skills, experience, and diverse perspectives necessary for executing its strategic objectives[191].
中能控股(00228) - 2024 - 年度财报