Financial Performance - The Group recorded a revenue of approximately HK$353,588,000 for the year ended December 31, 2021, representing an increase of approximately HK$180.1 million or 103.8% compared to HK$173,480,000 in 2020[11]. - The profit attributable to the owners of the Company was approximately HK$123,775,000, a turnaround from a loss of approximately HK$14,173,000 in the previous year[12]. - Basic and diluted earnings per share for the year ended December 31, 2021, were 1.30 HK cents and 0.98 HK cents, respectively, compared to a loss of 0.15 HK cents per share in 2020[12]. - The revenue was primarily derived from the exploration, production, and distribution of natural gas segment, which accounted for the entire revenue of HK$353,588,000[11]. - The increase in profit was mainly due to a reversal of impairment of approximately HK$98.5 million, despite increases in various costs including depreciation and finance costs[12]. - The Kashi Project and natural gas distribution in Karamay generated revenue of approximately HK$353,588,000 in 2021, up from HK$173,480,000 in 2020, marking a significant increase of 103.5%[21]. - Segment profit before income tax for the Kashi Project was approximately HK$222,969,000 in 2021, compared to a loss of approximately HK$4,700,000 in 2020, indicating a turnaround in performance[21]. Costs and Expenses - The increase in depreciation of property, plant, and equipment was approximately HK$17.3 million, and the increase in finance costs was approximately HK$21.1 million[12]. - The income tax charge increased by approximately HK$81.4 million compared to the previous year[12]. - Operating expenses decreased to HK$32,371,000 in 2021 from HK$37,273,000 in 2020, showing a reduction of 19.3%[23]. - Exploration costs incurred in 2021 amounted to HK$40,881,000, a decrease from HK$71,104,000 in 2020, reflecting a reduction of 42.5%[23]. Strategic Focus and Projects - The Group's strategic focus remains on the natural gas sector, with no revenue contributions from other segments in the current year[11]. - The Company entered into a petroleum contract with China National Petroleum Corporation for the drilling and exploration of oil and/or natural gas in the Kashi Project, which has a term of 30 years[14]. - The overall development program for the Kashi Project was completed on July 8, 2019, with commercial production commencing on October 1, 2020[21]. - The management has focused resources on exploration and research during the exploration period of six years as per the Petroleum Contract[21]. - In the second half of 2021, new production wells commenced operation or construction at the Akemomu Gas Field, including well WD-1, which was converted from exploratory to production due to commercial gas flow[41]. Financial Position and Liabilities - As of December 31, 2021, the Group had outstanding secured other borrowings of approximately HK$453,750,000 (2020: HK$389,400,000)[27]. - The Group's cash and cash equivalents were approximately HK$167,280,000 as of December 31, 2021 (2020: HK$167,985,000)[27]. - The current ratio was approximately 40.5% as of December 31, 2021 (2020: 50.4%)[27]. - The ratio of total liabilities to total assets was approximately 37.6% as of December 31, 2021 (2020: 41.6%)[27]. - The Group's current liabilities primarily stem from payables related to property, plant, and equipment, totaling approximately HK$399,660,000 as of December 31, 2021, down from approximately HK$474,364,000 a year earlier[36]. - As of December 31, 2021, the Group's current liabilities exceeded current assets by HK$353,513,000, indicating material uncertainty regarding the Group's ability to continue as a going concern[36]. Corporate Governance - The company recognizes the importance of good corporate governance practices to attract international institutional investors and enhance shareholder value[70]. - The company has complied with the Corporate Governance Code except for the separation of roles between the chairman and CEO, which is currently held by Mr. Zhao Guoqiang[71]. - The position of chairman is currently vacant, and the board intends to identify a suitable candidate to fill the vacancy[71]. - The board held regular meetings only on a half-yearly basis, which is below the recommended quarterly meetings as per the corporate governance code[79]. - The Company has established three Board committees: audit committee, remuneration committee, and nomination committee to oversee specific aspects of the Group's affairs[103]. Risk Management and Internal Control - The audit committee acknowledges its responsibility in maintaining a sound and effective internal control system to safeguard shareholders' investments and the Company's assets[154]. - The Company did not have an internal audit function during the year due to cost-control measures, but will review the adequacy of its risk management and internal control systems[80]. - The Company emphasizes risk management regarding directors' liabilities and has arranged appropriate liability insurance for directors and senior management, reviewed annually[109]. Shareholder Engagement - The Company continues to enhance communications with investors, maintaining regular dialogue with investors and analysts[170]. - The Company is committed to addressing investor inquiries in an informative and timely manner[169]. - Shareholders can propose candidates for election as Directors by submitting required documents at least seven clear days before the general meeting[164]. Dividend Policy - The Company adopts a dividend policy considering financial performance, growth opportunities, and macroeconomic factors before declaring dividends[171]. - The directors do not recommend the payment of a final dividend for the year ended December 31, 2021[187].
中能控股(00228) - 2021 - 年度财报