Financial Performance - In the first half of 2025, the group's revenue decreased by approximately 32.9% to about HKD 111.3 million from approximately HKD 165.9 million in the same period of 2024[9]. - The net loss for the first half of 2025 was approximately HKD 11.5 million, an increase of about HKD 11.1 million compared to a net loss of approximately HKD 0.4 million in the first half of 2024[9]. - Total revenue for the first half of 2025 was approximately HKD 111.3 million, down about HKD 54.6 million or 32.9% from HKD 165.9 million in the first half of 2024[22]. - The company recorded an operating loss of approximately HKD 4.7 million in the first half of 2025, compared to an operating profit of HKD 7.6 million in the first half of 2024[34]. - The net loss for the first half of 2025 was approximately HKD 11.5 million, compared to a net loss of HKD 0.4 million in the first half of 2024[37]. - The basic loss per share attributable to the company's owners was approximately HKD 0.68, compared to approximately HKD 0.02 in the first half of 2024[9]. - The total comprehensive loss for the period amounted to HKD 8,652,000, compared to a total comprehensive income of HKD 1,492,000 in the previous year[75]. Revenue Breakdown - Revenue from the Chinese market decreased by approximately 26.4% to about HKD 108.9 million, primarily due to a reduction in enhanced oil recovery services in Southwest China[10]. - Revenue from the overseas market plummeted by approximately 86.7% to about HKD 2.4 million, mainly due to the expiration of a supervisory service contract in the Middle East[11]. - Revenue from Southwest China was approximately HKD 73.4 million, a decrease of about 35.4% from approximately HKD 113.7 million in the first half of 2024[12]. - Revenue from the Middle East dropped by approximately 90.1% to about HKD 1.4 million, significantly impacted by the lack of income from the expired supervisory service contract[14]. - Revenue from the North China region was approximately HKD 21.0 million, a decrease of about 4.1% from approximately HKD 21.9 million in the first half of 2024[13]. - Revenue from the Northwest China region increased by approximately 17.0% to about HKD 11.0 million, driven by increased drilling services[13]. - Revenue from overseas regions decreased to approximately HKD 1.0 million in the first half of 2025, down about HKD 2.8 million or 73.7% compared to HKD 3.8 million in the first half of 2024, primarily due to reduced drilling services in Uzbekistan[15]. - Oilfield project tools and services revenue was approximately HKD 105.4 million in the first half of 2025, a decrease of about HKD 42.3 million or 28.6% from HKD 147.7 million in the first half of 2024, mainly due to reduced production enhancement services in Southwest China[16]. - Consulting services revenue was approximately HKD 5.9 million in the first half of 2025, down about HKD 12.3 million or 67.6% from HKD 18.2 million in the first half of 2024, primarily due to the expiration of a supervisory service contract in the Middle East[17]. - Production enhancement revenue was approximately HKD 93.7 million in the first half of 2025, a decrease of about HKD 42.9 million or 31.4% from HKD 136.6 million in the first half of 2024, mainly due to reduced services in Southwest China[19]. - Drilling revenue increased to approximately HKD 10.7 million in the first half of 2025, up about HKD 2.6 million or 32.1% from HKD 8.1 million in the first half of 2024, primarily due to increased services in Northwest China[20]. - Completion revenue was approximately HKD 1.0 million in the first half of 2025, down about HKD 2.0 million or 66.7% from HKD 3.0 million in the first half of 2024, mainly due to reduced sales of completion tools in Northwest China[21]. - Revenue from Client 1 was approximately HKD 81.0 million in the first half of 2025, a decrease of about HKD 34.0 million or 29.6% from HKD 115.0 million in the first half of 2024, due to delays in shale gas production projects[23]. Cost and Expenses - The company's material costs were approximately HKD 19.5 million in the first half of 2025, down 18.1% from HKD 23.8 million in the first half of 2024, representing 17.5% of revenue[28]. - Depreciation of property, plant, and equipment decreased by 51.3% to approximately HKD 7.8 million in the first half of 2025 from HKD 16.0 million in the first half of 2024[29]. - Employee benefits expenses were approximately HKD 15.7 million in the first half of 2025, a decrease of 33.2% from HKD 23.5 million in the first half of 2024[30]. - The company incurred total other expenses of HKD 8,734,000, down from HKD 11,261,000 in the previous year[106]. - The net financing cost for the six months ended June 30, 2025, was HKD (5,670,000), a decrease of 16.0% compared to HKD (6,750,000) for the same period in 2024[108]. - The income tax expense for the six months ended June 30, 2025, was HKD 412,000, down from HKD 1,006,000 in the same period of 2024, reflecting a significant reduction of 59.0%[110]. Balance Sheet and Cash Flow - As of June 30, 2025, the company's equity in joint ventures was approximately HKD 82.3 million, a decrease of HKD 2.1 million from HKD 84.4 million as of December 31, 2024[39]. - Trade receivables as of June 30, 2025, were approximately HKD 153.3 million, a decrease of about HKD 48.3 million (or approximately 24.0%) from HKD 201.6 million as of December 31, 2024[43]. - Cash and cash equivalents increased to approximately HKD 18.8 million as of June 30, 2025, up by about HKD 3.2 million from HKD 15.6 million as of December 31, 2024[46]. - The group's debt-to-equity ratio was approximately 36.2% as of June 30, 2025, compared to 36.7% as of December 31, 2024[48]. - The average turnover period for trade receivables increased to approximately 289 days in the first half of 2025, compared to approximately 206 days in the first half of 2024[43]. - The group’s current liabilities net amounted to approximately HKD 7,896,000 as of June 30, 2025[84]. - The total current and non-current borrowings combined reached HKD 146,675,000, slightly down from HKD 147,186,000 as of December 31, 2024[121]. - Cash flow from investing activities showed a net cash outflow of HKD 1,561,000, compared to a net inflow of HKD 13,259,000 in the previous year[82]. - Financing activities resulted in a net cash outflow of HKD 2,921,000, an improvement from HKD 7,390,000 in the prior year[82]. - The group recorded a net cash generated from operating activities of HKD 4,142,000, a turnaround from a cash outflow of HKD 1,521,000 in the previous year[82]. Shareholder and Corporate Governance - The company decided not to declare an interim dividend for the first half of 2025, consistent with the decision in the first half of 2024[9]. - As of June 30, 2025, the largest shareholder, Mr. Wang Jinlong, holds 488,920,138 shares, representing approximately 28.32% of the company's equity[61]. - Major shareholders include Lee & Leung (B.V.I.) Limited with 335,737,745 shares, representing 19.44% of the issued share capital[64]. - HSBC International Trustee Limited holds 337,269,760 shares, accounting for 19.53% of the company's equity[65]. - The company has established an audit committee in compliance with corporate governance codes and listing rules[60]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim condensed consolidated financial information[60]. - The company confirms compliance with the standards set forth in the listing rules regarding securities transactions by directors[57]. Legal and Regulatory Matters - The company received a court summons on January 3, 2024, regarding a claim for approximately RMB 28.9 million in technical service fees from a service provider[147]. - As per the court ruling dated May 31, 2024, the company is required to pay approximately RMB 12.6 million in technical service fees, along with accrued interest from November 30, 2023[147]. - As of June 30, 2025, several bank accounts of the company, totaling approximately RMB 28.9 million, have been frozen pending the outcome of an appeal[150]. - The company is currently awaiting the results of an appeal filed against the court ruling[150]. - The board believes that the accrued technical service fees as of June 30, 2025, are sufficient based on legal counsel's advice[150]. Future Outlook and Strategy - The company plans to continue developing innovative products and services in oilfield services and is focusing on renewable energy projects[25][26]. - The company is optimistic about the market demand for enhanced oil recovery services and other oilfield services in the second half of 2025 due to stable international oil prices[26]. - The company is focusing on expanding its oilfield technology services and consulting offerings to improve future performance[101]. Stock Options and Equity - The old share option plan expired in February 2023, and no options can be granted from January 1, 2025[68]. - A new share option plan was conditionally adopted by shareholders on May 8, 2025, and became unconditional on May 23, 2025, valid for ten years[68]. - As of June 30, 2025, the number of share options available for grant under the new plan is 172,667,468[72]. - A total of 95,500,000 share options were granted in the first half of 2025, with an exercise price of HKD 0.075 and a closing price of HKD 0.074[68]. - The total number of stock options exercisable as of June 30, 2025, remained at 95,500,000, with no options forfeited or expired during the period[131]. - The share-based payment expense for the stock option plan was approximately HKD 188,000 for the six months ended June 30, 2025, and HKD 461,000 for the six months ended June 30, 2024[134].
百勤油服(02178) - 2025 - 中期财报