Financial Performance - Revenue for the six months ended June 30, 2025, was HK$118,833,000, a decrease of 28.3% compared to HK$165,807,000 for the same period in 2024[14] - Profit for the period was HK$9,792,000, down 70.3% from HK$32,911,000 in the previous year[14] - Basic earnings per share were HK$0.09, a decrease from HK$0.35 in the prior year[16] - Other income for the period was HK$1,486,000, down 26.3% from HK$2,016,000 in 2024[14] - The company reported a profit of HK$10,823,000 for the period, contributing to a total comprehensive income of HK$62,054,000[20] - Profit attributable to owners of the Company fell to HK$10,823,000 for the six months ended June 30, 2025, a decline of 67.8% compared to HK$33,621,000 for the same period in 2024[72] - EBITDA decreased from approximately HK$102.6 million for the six months ended June 30, 2024, to approximately HK$65.9 million for the same period in 2025, reflecting the revenue decline[144][146] Comprehensive Income - Total comprehensive profit for the period amounted to HK$61,331,000, compared to a loss of HK$660,000 in the same period last year[16] - The exchange loss attributable to owners turned around from approximately HK$33,354,000 for the six months ended 30 June 2024 to an exchange gain of approximately HK$51,231,000 for the six months ended 30 June 2025[154] Assets and Liabilities - Total assets increased to HK$2,345,585,000 as of June 30, 2025, up from HK$2,270,535,000 at December 31, 2024, representing a growth of approximately 3.3%[17] - Total liabilities rose to HK$493,871,000 as of June 30, 2025, compared to HK$480,152,000 as of December 31, 2024, indicating an increase of approximately 2.4%[55] - Current assets rose to HK$232,554,000, an increase of 28.6% from HK$180,875,000 at the end of 2024[19] - Net current liabilities decreased to HK$175,955,000, a reduction of 21.5% compared to HK$223,996,000 at December 31, 2024[19] - Total current liabilities slightly increased to HK$408,509,000, compared to HK$404,871,000 at the end of 2024[19] Cash Flow - Net cash generated from operating activities decreased to HK$51,226,000 for the six months ended June 30, 2025, down from HK$67,756,000 in the same period of 2024, representing a decline of approximately 24%[23] - The Group reported a net cash used in investing activities of HK$1,687,000 for the six months ended June 30, 2025, compared to a net cash generated of HK$5,055,000 in the prior year[23] - The net increase in cash and cash equivalents for the six months ended June 30, 2025, was HK$22,442,000, compared to an increase of HK$3,062,000 in the same period of 2024[23] - Cash and cash equivalents at the end of the period totaled HK$57,272,000, up from HK$42,770,000 at the end of the previous year[23] Segment Performance - For the six months ended June 30, 2025, revenue from external customers in the exploration, production, and distribution of natural gas segment was HK$118,833,000, while in 2024 it was HK$165,807,000, indicating a decrease of approximately 28.3%[48][50] - Reportable segment profit before income tax for the six months ended June 30, 2025, was HK$25,707,000, down from HK$54,720,000 in 2024, representing a decline of about 53.1%[48][53] - The exploration, production, and distribution of natural gas segment remains the primary revenue driver, contributing 100% of the total revenue in 2025[48] Impairment and Provisions - The provision for impairment of intangible assets was HK$9,620,000, significantly higher than HK$3,310,000 in the previous year[14] - An impairment loss of approximately HK$9,620,000 was recognized for intangible assets during the six months ended 30 June 2025, compared to HK$3,310,000 in the same period of 2024[83] - Provision for impairment of property, plant, and equipment increased from approximately HK$860,000 to approximately HK$2,537,000[145][147] Capital and Financing - The company proposed a capital reorganisation on August 14, 2025, involving a consolidation of every 40 shares into one consolidated share with a par value of HK$2.00[112] - The proposed rights issue aims to raise approximately HK$238.7 million by issuing up to 152,066,800 rights shares at a subscription price of HK$1.57 per share[115] - The outstanding principal amount of convertible notes as of June 30, 2025, was HK$232,790,000, unchanged from December 31, 2024[177][181] Economic Environment - The domestic economic situation in the PRC has been deteriorating, impacting market demand for natural gas and leading to volatility in the natural gas pipeline transportation and sales[126] - The Group will continue to monitor the economic environment and review resource allocation as necessary, particularly in the food and beverage and money lending segments, which have not generated revenue[135][139] Management and Governance - The Directors believe that the Group will have sufficient working capital to meet its financial obligations within the next twelve months, contingent on several assumptions including financial support from a shareholder[34] - Key management personnel remuneration for the six months ended June 30, 2025, was zero for directors' short-term employee benefits, compared to HK$530,000 in 2024[111] - The Company has maintained compliance with the Securities and Futures Ordinance regarding the disclosure of interests by Directors[200]
中能控股(00228) - 2025 - 中期财报