阳光油砂(02012) - 2025 - 中期业绩

Second Quarter Results Announcement for the Period Ended June 30, 2025 Financial Data Summary Sunshine Oil Sands Ltd. announced its second-quarter results for the period ended June 30, 2025, with oil sales dropping to zero due to West Ells equipment maintenance, leading to an expanded net operating loss and negative operating cash flow, though net loss attributable to shareholders narrowed year-on-year Oil Sales (Net of Royalties) | Period | Amount (CAD Thousands) | | :--- | :--- | | Six Months Ended June 30, 2025 | 0 | | Six Months Ended June 30, 2024 | 21,458 | Oil sales were primarily impacted by revenue loss due to West Ells equipment maintenance in Q1 and Q2 2025[4][6] Net Operating Income (Loss) (Excluding One-time Exchange Gains (Losses)) | Period | Amount (CAD Thousands) | | :--- | :--- | | Three Months Ended June 30, 2025 | (2,100) | | Three Months Ended June 30, 2024 | 1,130 | Operating Cash Flow | Period | Amount (CAD Thousands) | | :--- | :--- | | Three Months Ended June 30, 2025 | (2,473) (Net Outflow) | | Three Months Ended June 30, 2024 | 753 (Net Inflow) | Operating cash flow was primarily impacted by revenue loss due to West Ells equipment maintenance in Q1 and Q2 2025[4][6] Net Profit (Loss) Attributable to Company Shareholders | Period | Amount (CAD Thousands) | | :--- | :--- | | Q2 2025 | (1,981) | | Q2 2024 | (10,974) | Selected Financial Figures (Balance Sheet) | Metric | June 30, 2025 (CAD Thousands) | December 31, 2024 (CAD Thousands) | | :--- | :--- | :--- | | Property, Plant and Equipment | 478,001 | 476,446 | | Exploration and Evaluation Assets | 241,208 | 239,259 | | Shareholders' Equity | 22,202 | 16,848 | Condensed Interim Financial Statements Condensed Consolidated Statement of Financial Position As of June 30, 2025, the company's total assets slightly increased to CAD 742.1 million, and shareholders' equity rose to CAD 22.2 million, but current liabilities significantly increased, with total liabilities remaining high, reflecting ongoing financial structural challenges Balance Sheet Key Data (CAD Thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Assets | 742,131 | 739,023 | +3,108 | | Current Assets | 16,516 | 16,496 | +20 | | Non-current Assets | 725,615 | 722,527 | +3,088 | | Total Liabilities and Shareholders' Equity | 742,131 | 739,023 | +3,108 | | Total Liabilities | 719,929 | 722,175 | -2,246 | | Current Liabilities | 125,265 | 109,162 | +16,103 | | Non-current Liabilities | 594,664 | 613,013 | -18,349 | | Total Shareholders' Equity | 22,202 | 16,848 | +5,354 | Condensed Consolidated Statement of Operations and Comprehensive Loss For the six months ended June 30, 2025, the company reported zero oil sales, leading to an expanded net loss of CAD 11.845 million, and despite a decrease in finance costs, basic and diluted loss per share remained at CAD 0.04 Revenue Overview (CAD Thousands) | Revenue Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Oil Sales, Net of Royalties | - | 10,266 | - | 21,458 | | Other Income | 373 | 380 | 541 | 916 | | Foreign Exchange Gain / (Loss) | 3,681 | (5,420) | 4,194 | (17,729) | | Total Revenue | 4,054 | 5,226 | 4,735 | 4,645 | Expenses Overview (CAD Thousands) | Expense Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Diluent | - | 4,668 | - | 9,610 | | Transportation | - | 1,576 | - | 4,017 | | Operating | 2,473 | 3,269 | 4,351 | 7,559 | | Depletion and Depreciation | 176 | 1,984 | 360 | 4,603 | | General and Administrative | 2,008 | 1,857 | 7,309 | 6,461 | | Finance Costs | 1,449 | 2,920 | 4,560 | 5,660 | | Total Expenses | 6,106 | 16,274 | 16,580 | 37,910 | Net Income / (Loss) and Loss Per Share (CAD Thousands) | Metric | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Loss Before Income Tax | (2,052) | (11,048) | (11,845) | (33,265) | | Net Income / (Loss) | (2,052) | (11,048) | (11,845) | (33,265) | | Net Income / (Loss) Attributable to Equity Holders of the Company for the Year | (1,981) | (10,974) | (11,697) | (33,118) | | Basic and Diluted Earnings / (Loss) Per Share | (0.01) | (0.05) | (0.04) | (0.14) | Condensed Consolidated Statement of Changes in Equity As of June 30, 2025, the company's total shareholders' equity increased to CAD 22.202 million, primarily driven by the issuance of common shares, despite recording a net loss during the period Overview of Changes in Equity (CAD Thousands) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Total Share Capital | 16,848 | 22,202 | | Net Income (Loss) and Comprehensive Income (Loss) for the Year | (11,845) | (11,845) | | Issuance of Common Shares | - | 15,744 | Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, the company experienced a net cash outflow of CAD 0.821 million from operating activities and CAD 1.494 million from investing activities, offset by a net cash inflow of CAD 2.713 million from financing activities, resulting in a period-end cash balance of CAD 0.732 million Cash Flow Overview (CAD Thousands) | Activity Type | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Net Cash Provided by (Used in) Operating Activities | 418 | (211) | (821) | (1,127) | | Net Cash Provided by (Used in) Investing Activities | (1,375) | 81 | (1,494) | 340 | | Net Cash Generated from Financing Activities | 1,358 | 664 | 2,713 | 1,192 | | Net Increase / (Decrease) in Cash | 401 | 534 | 398 | 405 | | Cash at End of Period | 732 | 914 | 732 | 914 | Notes to the Condensed Consolidated Interim Financial Statements Company Information Sunshine Oil Sands Ltd. is an oil sands heavy oil producer registered in Alberta, Canada, with shares listed on the Hong Kong Stock Exchange, and operates a joint venture in China for petroleum mineral evaluation and development - The company was incorporated on February 22, 2007, in Alberta, Canada, primarily engaged in oil sands heavy oil production in the Athabasca oil sands region of Canada[17] - The company's shares were listed on the Hong Kong Stock Exchange (stock code: 2012) on March 1, 2012, and voluntarily delisted from the Toronto Stock Exchange on September 30, 2015[17] - The company established Sunshine Oil Sands Hebei, a joint venture in China, on April 15, 2019, holding a 51% interest[18] Basis of Preparation Despite a net loss of CAD 11.8 million and net current liabilities of approximately CAD 108.75 million for the six months ended June 30, 2025, the financial statements are prepared on a going concern basis, with the company's ability to continue as a going concern dependent on successful refinancing, debt restructuring, and securing additional funding - For the six months ended June 30, 2025, the Group incurred a net loss of approximately CAD 11.8 million and had net current liabilities of approximately CAD 108.75 million[20] - The company's ability to continue as a going concern depends on achieving projected earnings, profitable operations, restructuring cash outflows, controlling expenses, refinancing current debt, and obtaining additional financing[21] - Management is in discussions with existing shareholders and creditors to refinance current debt, secure additional funding, and meet debt repayment obligations due within the next 12 months[21] Statement of Compliance The condensed consolidated interim financial statements are prepared in accordance with IFRS, HKEX Listing Rules, and the Hong Kong Companies Ordinance, presented in Canadian dollars, measured at historical cost, with certain disclosures condensed or omitted - The financial statements are prepared in accordance with International Financial Reporting Standards, the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, and the Hong Kong Companies Ordinance[22] - The statements are presented in Canadian dollars and prepared on a historical cost basis, with financial instruments measured at fair value[22] - Certain information and disclosures normally included in audited annual consolidated financial statements have been condensed or omitted[22] Adoption of Revised International Financial Reporting Standards (IFRS) The Group has initially applied amendments to IAS 21 "Lack of Exchangeability" effective January 1, 2024, with no significant impact on financial performance or position, and new or revised IFRS issued but not yet effective are also not expected to have a material impact - The Group has initially applied the amendments to IAS 21 "Lack of Exchangeability" for the financial year beginning January 1, 2024[23][24] - The application of new and revised IFRS has had no significant impact on the Group's financial performance and position for the current and prior periods[24] - The Directors anticipate that the application of new and revised IFRS issued but not yet effective will not have a material impact on the Group's results and financial position[25] Trade and Other Receivables As of June 30, 2025, the Group's total trade and other receivables slightly decreased to CAD 17.34 million, with an average credit period of 30 days granted to customers, and expected credit losses on trade receivables are considered minimal Trade and Other Receivables (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Other Receivables – Current | 15,784 | 16,177 | | Loans Receivable – Current | 10,834 | 11,366 | | Loans Receivable – Non-current | 1,556 | 1,496 | | Total | 17,340 | 17,673 | - The Group grants its trade customers an average credit period of 30 days[26] - As of June 30, 2025, the Company's Directors consider the expected credit losses on trade receivables to be minimal[29] Exploration and Evaluation Assets As of June 30, 2025, exploration and evaluation assets increased to CAD 241.2 million, primarily due to capital and non-cash expenditures, with no impairment losses or reversals recognized during the period, and impairment assessments based on the present value of future cash flows Exploration and Evaluation Assets Movements (CAD Thousands) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Balance | 239,259 | 241,208 | | Capital Expenditure | 728 | 1,496 | | Non-cash Expenditure | 560 | 453 | - For the six months ended June 30, 2025, the Group recognized no impairment losses (or reversals) for cash-generating units of exploration and evaluation assets[32] - Impairment assessments are estimated using the fair value less costs of disposal method, calculated as the present value of expected future cash flows (after tax), based on reports from independent reserve evaluators GLJ Petroleum Consultants[31] Property, Plant and Equipment As of June 30, 2025, the carrying value of property, plant and equipment slightly increased to CAD 478 million, with no impairment losses or reversals recognized for the West Ells cash-generating unit during the period, and impairment assessments based on the present value of future cash flows Property, Plant and Equipment Carrying Value (CAD Thousands) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Carrying Value | 476,446 | 478,001 | - For the six months ended June 30, 2025, the Group recognized no impairment losses (or reversals) for the West Ells cash-generating unit[34] - Impairment assessments are estimated using the fair value less costs of disposal method, calculated as the present value of expected future cash flows (after tax), based on reports from independent reserve evaluators GLJ Petroleum Consultants[33] Right-of-Use Assets and Lease Liabilities As of June 30, 2025, total right-of-use assets decreased to CAD 4.85 million and lease liabilities decreased to CAD 0.809 million, primarily due to depreciation and foreign exchange adjustments, with lease liabilities measured at the present value of unpaid lease payments discounted at 10% Right-of-Use Assets Movements (CAD Thousands) | Item | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Total | 5,326 | 4,850 | | Depreciation | (656) (2024) | (328) (2025) | | Foreign Exchange Adjustment | 318 (2024) | (148) (2025) | Lease Liabilities (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Lease Liabilities | 809 | 1,084 | - Lease liabilities are initially measured at the present value of unpaid lease payments at the commencement date, discounted using the interest rate implicit in the lease (10% for office and equipment)[36] Trade and Other Payables As of June 30, 2025, total trade and other payables increased to CAD 295.5 million, with CAD 20.681 million of trade payables overdue by more than 90 days, indicating liquidity pressure Trade and Other Payables (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade Payables | 21,510 | 20,340 | | Interest Payable | 215,578 | 215,594 | | Other Payables | 23,608 | 23,520 | | Accrued Liabilities | 34,867 | 26,464 | | Total | 295,563 | 285,918 | Aging Analysis of Trade Payables (CAD Thousands) | Aging | June 30, 2025 | | :--- | :--- | | 0 - 30 Days | 130 | | 31 – 60 Days | 18 | | 61 – 90 Days | 681 | | > 90 Days | 20,681 | Debt This section details the company's other loans and senior notes, including multiple interest waiver and deferral agreements, designed to provide more time for debt repayment or refinancing and to reduce financing costs Other Loans As of June 30, 2025, total other loans increased to CAD 24.517 million, with CAD 20.743 million classified as current liabilities, all unsecured and bearing annual interest rates between 0% and 36% Other Loans (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current | 20,743 | 15,213 | | Non-current | 3,774 | 3,890 | | Total | 24,517 | 19,103 | - These loans are unsecured and bear annual interest rates ranging from 0% to 36%[38] - Approximately CAD 20.743 million is due within one year[38] Senior Notes The company has entered into multiple interest waiver and deferral agreements with deferral holders, including for 2023, 2024, and 2025, waiving a total of USD 94.5 million in interest and extending the deferral period to August 31, 2027, to allow more time for repayment or refinancing - The 2023 Interest Waiver Agreement waived approximately USD 31.5 million in interest accrued from January 1, 2023, to December 31, 2023[39] - The 2023 Reinstatement and Amendment Deferral Agreement extended the deferral period to August 31, 2025, with unpaid amounts accruing interest at an annual rate of 10%[41] - The 2024 Interest Waiver Agreement waived USD 31.5 million in interest accrued from January 1, 2024, to December 31, 2024[40] - The 2025 Reinstatement and Amendment Deferral Agreement extended the deferral period to August 31, 2027, with unpaid amounts continuing to accrue interest at an annual rate of 10% (unless further interest waivers apply)[42] - The 2025 Interest Waiver Agreement waived USD 31.5 million in interest accrued from January 1, 2025, to December 31, 2025[43] Provisions As of June 30, 2025, the decommissioning liability provision increased to CAD 55.538 million, with estimated expenditures continuing until 2040, based on estimated costs for oil production area reclamation and abandonment, adjusted using discount and inflation rates Decommissioning Liability Provision (CAD Thousands) | Item | Balance as of January 1 | Impact of Discount Rate Change | Unwinding of Discount | Balance as of December 31 | | :--- | :--- | :--- | :--- | :--- | | 2025 | 53,049 | 2,052 | 437 | 55,538 | | 2024 | 49,829 | 1,466 | 1,754 | 53,049 | - As of June 30, 2025, the Group's total estimated undiscounted cash flows required to fulfill asset retirement obligations amounted to CAD 81.4 million[44] - Decommissioning costs are expected to continue until 2040, discounted using risk-free rates ranging from 3.59% to 4.28% per annum and inflated at an annual rate of 2.0%[44] Income Tax As of June 30, 2025, the Group's net deferred income tax asset was zero, primarily due to unrecognized deferred tax benefits offsetting deferred tax assets and liabilities Deferred Income Tax Assets (Liabilities) Components (CAD Thousands) | Item | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Exploration and Evaluation Assets and Property, Plant and Equipment | (33,236) | (50,611) | | Decommissioning Liability | 12,774 | 12,201 | | Tax Losses | 243,878 | 243,878 | | Deferred Tax Benefits Unrecognized | (223,435) | (205,487) | | Net Deferred Tax Assets | - | - | Share Capital As of June 30, 2025, the company's issued and fully paid share capital significantly increased to 503 million shares, totaling CAD 1.334 billion, primarily through the allotment of new shares to creditors to settle debts Movements in Issued and Fully Paid Share Capital | Item | June 30, 2025 (Number of Shares) | June 30, 2025 (CAD) | December 31, 2024 (Number of Shares) | December 31, 2024 (CAD) | | :--- | :--- | :--- | :--- | :--- | | Balance at Beginning of Year | 292,174,417 | 1,318,681 | 243,478,681 | 1,315,265 | | Placement – General Mandate | 48,695,736 | 3,049 | 48,695,736 | 3,416 | | Placement – Specific Mandate | 162,310,261 | 12,695 | - | - | | Balance at End of Year | 503,180,414 | 1,334,425 | 292,174,417 | 1,318,681 | - On April 17, 2025, the company allotted and issued 48,695,736 Class A common shares to Creditor 1 to settle approximately HKD 17.04 million in debt[47] - On June 25, 2025, the company allotted and issued 60,000,000 Class A common shares to Creditor 2 to settle approximately HKD 38.4 million in debt[47] - On April 28, 2025, the company allotted and issued 162,310,261 Class A common shares to Creditor 3 to settle approximately HKD 73.04 million in debt[48] Share-based Compensation This section outlines the company's employee share option scheme and share option movements, noting that all share options expired by June 30, 2025, resulting in no outstanding options and no share-based compensation expenses recognized during the period Employee Share Option Scheme The Post-IPO Share Option Scheme stipulates that the maximum number of Class A common shares reserved for issuance is 10% of the total issued and outstanding shares, with exercise prices determined by the Board, not lower than specific market prices on the HKEX - Under the Post-IPO Share Option Scheme, the maximum number of Class A common shares reserved for issuance is 10% of the total issued and outstanding shares[50] - The exercise price of share options is determined by the Board, not lower than the closing price on the HKEX on the grant date or the volume-weighted average trading price for the preceding five trading days[50] Share Option Movements As of June 30, 2025, all 200,000 outstanding share options at the beginning of the period had expired, resulting in no unexercised share options at period-end Share Option Movements Overview | Item | June 30, 2025 (Number of Share Options) | December 31, 2024 (Number of Share Options) | | :--- | :--- | :--- | | Balance at Beginning of Period | - | 200,000 | | Expired | - | (200,000) | | Balance at End of Period | - | - | - As of June 30, 2025, the weighted average remaining contractual life of unexercised share options was 0 years[51] Share-based Compensation For the three and six months ended June 30, 2025, the Group recognized no share-based compensation expenses - For the three and six months ended June 30, 2025, the Group recognized no share-based compensation expenses[52] Revenue For the three and six months ended June 30, 2025, the company's oil sales (net of royalties) were zero, a significant decrease from the prior year, with all revenue derived from Canadian customers and recognized at a point in time Oil Sales (Net of Royalties) (CAD Thousands) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | - | 10,266 | | Six Months Ended June 30 | - | 21,458 | - All revenue from contracts with customers is derived from Canada and recognized at a point in time[54][57] - The West Ells royalty rate is price-sensitive, starting at 1% of oil sands heavy oil sales and increasing with West Texas Intermediate crude oil prices[54] Segment Information The Group operates in a single business segment: the mining, production, and sale of crude oil products, with no geographical information presented as all revenue and most non-current assets are located in Canada; Customer B contributed 73.3% of revenue in 2024, but there were no major customers in 2025 due to no sales - The Group operates in a single business segment based on its products: the mining, production, and sale of crude oil products[56] - No geographical information is presented as all the Group's revenue is derived from Canadian customers, and the majority of its non-current assets are located in Canada[57] - In 2024, Customer B contributed 73.3% of the Group's revenue, while in 2025, there were no major customers due to no sales[58] Other Income For the three months ended June 30, 2025, other income amounted to CAD 0.373 million, primarily from reimbursements by Burgess Energy Holdings L.L.C. for mineral and surface lease rentals incurred by the Group Other Income Overview (CAD Thousands) | Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Interest Income | - | 3 | 2 | 4 | | Other Income | 373 | 377 | 539 | 746 | | Gain / (Loss) on Disposal of Assets | - | - | - | 166 | | Balance at End of Period | 373 | 380 | 541 | 916 | - Other income for the period primarily includes reimbursements from Burgess Energy Holdings L.L.C. to the Group for mineral and surface lease rentals incurred under the royalty agreement terms[59] General and Administrative Expenses For the six months ended June 30, 2025, general and administrative expenses increased to CAD 7.311 million, mainly due to higher salaries, consulting fees, and other expenses General and Administrative Expenses (CAD Thousands) | Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Salaries, Consulting Fees and Benefits | 1,615 | 1,373 | 3,234 | 2,819 | | Legal and Audit | 6 | 26 | 29 | 88 | | Other | 389 | 448 | 4,035 | 3,538 | | Period-end | 2,010 | 1,857 | 7,311 | 6,461 | Finance Costs For the six months ended June 30, 2025, finance costs decreased to CAD 4.56 million, primarily due to reduced interest expenses on loans from related companies and shareholders, despite a slight increase in senior notes interest expense Finance Costs (CAD Thousands) | Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Senior Notes Interest Expense | 298 | 294 | 610 | 588 | | Other Loans Interest Expense | 218 | 71 | 338 | 133 | | Interest Expense on Loans from Related Companies and Shareholders | 718 | 2,030 | 3,088 | 3,908 | | Amortization of Discount on Provisions | - | 441 | 437 | 872 | | Period-end Balance | 1,449 | 2,920 | 4,560 | 5,660 | Earnings / (Loss) Per Share For the six months ended June 30, 2025, basic and diluted loss per share was CAD 0.04, an improvement from CAD 0.14 in the prior year, mainly due to a narrower net loss Basic and Diluted Earnings / (Loss) Per Share | Period | 2025 | 2024 | | :--- | :--- | :--- | | Loss Per Share for the Six Months Ended June 30 | (0.04) | (0.14) | - Basic loss per share is calculated based on the loss attributable to owners of the Company of approximately CAD 11.845 million for the six months ended June 30, 2025 (2024: CAD 33.118 million), and the weighted average number of Class A common shares outstanding during the period[62][63] Capital and Financial Risk Management The Group manages its financial risks and capital requirements by raising capital through equity issuance and debt, and monitors foreign exchange rates, while facing liquidity risk and needing to ensure sufficient liquidity to repay maturing debts Capital Risk Management As of June 30, 2025, the Group's working capital deficit was CAD 108.7 million and shareholders' equity was CAD 22.202 million, with the company raising capital through equity issuance and debt to maintain financial flexibility and future business development Capital Structure (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Working Capital Deficit | 108,749 | 92,666 | | Shareholders' Equity | 22,202 | 16,848 | | Total | 130,951 | 109,514 | - The Group's strategy is to raise sufficient capital through equity issuance and debt to maintain its capital base, aiming for financial flexibility and future business development[64] - For the six months ended June 30, 2025, there were no changes in the Group's capital management objectives and strategies[65] Categories of Financial Instruments As of June 30, 2025, the Group's financial assets measured at amortized cost totaled CAD 16.241 million, and financial liabilities measured at amortized cost totaled CAD 687 million Categories of Financial Instruments (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Financial Assets Measured at Amortized Cost | 16,241 | 16,681 | | Financial Liabilities Measured at Amortized Cost | 687,081 | 668,042 | Fair Value of Financial Instruments The Company's Directors believe that the carrying amounts of financial assets and liabilities recognized at amortized cost in the consolidated financial statements approximate their fair values, which are determined using discounted cash flow analysis - The fair value of financial assets and liabilities is determined using generally accepted valuation models, employing discounted cash flow analysis[67] - The Company's Directors believe that the carrying amounts of financial assets and liabilities recognized at amortized cost approximate their fair values[67] Currency Risk The Group is exposed to foreign exchange rate fluctuations arising from expenses and debts denominated in USD, HKD, and RMB; a 1% increase or decrease in the USD to CAD exchange rate would impact the carrying value of debt by approximately CAD 2.6 million - The Group is exposed to risks arising from foreign exchange rate fluctuations, primarily related to expense commitments, deposits, accounts payable, and long-term debt denominated in USD, HKD, and RMB[68] 1% Exchange Rate Fluctuation Impact on Debt Carrying Value (CAD Thousands, as of June 30, 2024) | Currency | Impact | | :--- | :--- | | USD | Approx. 2,700 | | HKD | Approx. 700 | | RMB | Approx. 100 | - For the six months ended June 30, 2025, the Group did not enter into any forward exchange rate contracts[68] Liquidity Risk The Group manages liquidity risk by developing plans to ensure sufficient liquidity to repay liabilities at maturity through equity or debt proceeds; as of June 30, 2025, total financial liabilities cash outflows were CAD 663.5 million, with CAD 124.6 million due within one year - The Group manages liquidity risk by developing plans to ensure sufficient liquidity to repay liabilities at maturity through equity or debt proceeds[70] Financial Liabilities Cash Flow Timing (CAD Thousands, as of June 30, 2025) | Item | Total | Within One Year | One to Three Years | | :--- | :--- | :--- | :--- | | Trade and Accrued Payables | 295,563 | 92,258 | 203,305 | | Debt | 368,019 | 32,415 | 335,604 | | Total | 663,582 | 124,673 | 538,909 | Related Party Transactions This section discloses the Group's transactions with related parties, including consulting fees paid to a director's associated company, remuneration for key management personnel and directors, and loans from related companies and shareholders Purchase and Sale Transactions For the six months ended June 30, 2025, the Group paid CAD 0.25 million in management and consulting fees to a consulting firm associated with a director, and Executive Chairman Mr. Sun Guoping beneficially owns approximately 30.00% of the company's issued common shares - For the six months ended June 30, 2025, a consulting firm associated with a director of Sunshine Oil Sands charged the Group CAD 0.25 million for management and consulting services[73] - Mr. Sun Guoping, the Executive Chairman of the Company, beneficially owns or controls or directs 150,962,591 common shares, representing approximately 30.00% of the Company's issued common shares[73] Key Management Personnel and Directors' Remuneration For the six months ended June 30, 2025, total remuneration for directors and key management personnel was CAD 1.144 million, a slight decrease from the prior year Directors' and Key Management Personnel Remuneration (CAD Thousands) | Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Directors' Fees | 71 | 92 | 162 | 182 | | Salaries and Allowances | 491 | 489 | 980 | 980 | | Share-based Compensation | 1 | 1 | 2 | - | | Total | 563 | 580 | 1,144 | 1,162 | Loans from Related Companies As of June 30, 2025, non-current loans from related companies decreased to CAD 53.897 million from December 31, 2024, these loans are unsecured, bear a 10% annual interest rate, and are extendable for 2 to 3 years Loans from Related Companies (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current | 53,897 | 56,205 | - As of June 30, 2025, loans obtained by the Group from related companies are unsecured, bear an annual interest rate of 10%, with approximately CAD 53.897 million extendable for 2 to 3 years[75] Shareholder Loans As of June 30, 2025, shareholder loans significantly decreased to CAD 3.114 million, these loans are unsecured, bear a 10% annual interest rate, and have maturity dates between 1 and 3 years Shareholder Loans (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current | 3,114 | 20,990 | - As of June 30, 2025, loans from shareholders held by the Group are unsecured, bear an annual interest rate of 10%, with approximately CAD 3.114 million maturing between 1 and 3 years[76] Commitments and Contingencies The Group faces various commitments and contingencies, including annual lease rental obligations of CAD 2.5 million, disputes with RMWB over municipal property taxes and penalties, and a New York State court judgment on senior notes, for which the company is actively pursuing legal remedies Commitments As of June 30, 2025, the Group has an annual obligation to pay approximately CAD 2.5 million in oil sands mineral lease rentals and surface lease rentals - The Group has an annual obligation to pay approximately CAD 2.5 million in oil sands mineral lease rentals and surface lease rentals[77] Contingencies The Group is actively negotiating to resolve disputes with the Regional Municipality of Wood Buffalo (RMWB) regarding municipal property taxes (CAD 17.2 million) and overdue penalties (CAD 23.7 million) for 2016-2025, and has sought judicial review; additionally, the company is appealing a New York State court judgment for approximately USD 19.694 million on senior notes - The Company received demand notices from RMWB for municipal property taxes from 2016 to 2025, totaling CAD 17.2 million in accrued taxes and CAD 23.7 million in accrued overdue penalties[78] - The Company has sought judicial review to determine the impact of non-compliant tax notices on RMWB's property tax claims[78] - The Group received a judgment from a New York State court to pay non-deferral holders of senior notes a total of approximately USD 19.694 million (approximately CAD 26.048 million) in principal and interest, which the Company has appealed[80] - As of June 30, 2025, the Company had incurred CAD 0.82 million (approximately USD 0.57 million) in liens arising in the normal course of business[79] Subsidiaries The Group owns several wholly-owned subsidiaries (Sunshine Oil Sands (Hong Kong) Limited, Boswell Investments Limited, Sunshine Oil Sands Shanghai) and a 51% owned joint venture (Sunshine Oil Sands Hebei), with most having no operating activities as of June 30, 2024 - The Company owns several wholly-owned subsidiaries, including Sunshine Oil Sands (Hong Kong) Limited, Boswell Investments Limited (registered in the British Virgin Islands to seek new investment opportunities), and Sunshine Oil Sands Shanghai[81] - The Company's 51% owned joint venture is Sunshine Oil Sands Hebei[82] - As of June 30, 2024, most subsidiaries had no operating activities[81][82] Supplemental Cash Flow Information For the six months ended June 30, 2025, non-cash working capital changes provided a net cash inflow of CAD 9.516 million from operating activities, primarily influenced by an increase in trade and other payables Non-cash Working Capital Movements (CAD Thousands) | Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Trade and Other Receivables | (324) | 577 | (377) | (224) | | Prepaid Expenses and Deposits | - | (86) | 238 | (1) | | Trade and Other Payables | 3,992 | 23 | 9,655 | 4,374 | | Total | 3,668 | 514 | 9,516 | 4,149 | Subsequent Events Subsequent to the reporting period, the company settled Mr. Zhang Jun's debt by issuing shares on July 30, 2025, and entered an agreement to acquire a 51% equity interest in Nobao Technology Co. Ltd. on August 19, 2025; additionally, the company received a winding-up petition from Qiaoshi Finance Limited on August 20, 2025, which it is actively opposing - On July 30, 2025, the company entered into a settlement agreement with Mr. Zhang Jun, allotting and issuing 8,174,030 Class A ordinary voting shares at an issue price of HKD 0.50 per share to fully and finally settle his outstanding debt of HKD 4,087,015[84] - On August 19, 2025, the company agreed to acquire a 51% equity interest in Nobao Technology Co. Ltd. for a consideration of HKD 50.91945 million, to be paid by issuing 56,983,240 consideration shares[84] - On August 20, 2025, the company received a winding-up petition from Qiaoshi Finance Limited for a financial obligation of HKD 3.106295 million, which the company is taking legal measures to vigorously oppose[85] Approval of Interim Consolidated Financial Statements The Board of Directors approved the publication of the condensed interim consolidated financial statements on August 28, 2025 (Calgary time) / August 29, 2025 (Hong Kong time) - The Board of Directors approved the condensed interim consolidated financial statements and authorized their publication on August 28, 2025 (Calgary time) / August 29, 2025 (Hong Kong time)[86] Appendix to the Condensed Consolidated Interim Financial Statements (Unaudited) Sunshine Oil Sands Ltd. Non-Consolidated Statement of Financial Position As of June 30, 2025, Sunshine Oil Sands Ltd.'s non-consolidated statement of financial position shows total assets of CAD 737.3 million, total liabilities of CAD 706.6 million, and total shareholders' equity of CAD 30.726 million, a decrease from December 31, 2024 Sunshine Oil Sands Ltd. Non-Consolidated Statement of Financial Position (CAD Thousands) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | 737,378 | 738,246 | | Total Liabilities | 706,652 | 673,623 | | Total Shareholders' Equity | 30,726 | 64,623 | Directors' Remuneration and Other Staff Costs For the six months ended June 30, 2025, total staff costs (including directors' remuneration) increased significantly to CAD 4.483 million from CAD 2.819 million in the prior year, primarily due to growth in other staff salaries and benefits Directors' Remuneration and Other Staff Costs (CAD Thousands) | Item | Three Months Ended June 30 (2025) | Three Months Ended June 30 (2024) | Six Months Ended June 30 (2025) | Six Months Ended June 30 (2024) | | :--- | :--- | :--- | :--- | :--- | | Directors' Remuneration | 563 | 580 | 1,144 | 1,162 | | Other Staff Costs | 1,820 | 793 | 2,858 | 1,657 | | Total Staff Costs (Including Directors' Remuneration) | 2,383 | 1,373 | 4,483 | 2,819 | - Other staff salaries and other benefits increased from CAD 1.657 million for the six months ended June 30, 2024, to CAD 2.801 million for the same period in 2025[89]