Financial Performance - For the six months ended June 30, 2023, the total comprehensive loss was HK$45,831,000 compared to a loss of HK$13,738,000 for the same period in 2022, indicating a significant increase in losses [10]. - The profit attributable to owners of the company for the period was HK$35,141,000, down from HK$61,875,000 in the previous year, reflecting a decrease of approximately 43.4% [10]. - Basic earnings per share decreased to HK$0.37 from HK$0.65, representing a decline of 43.1% year-over-year [10]. - Revenue for the six months ended June 30, 2023, was HK$168,281,000, a decrease of 9.3% compared to HK$185,555,000 in 2022 [22]. - Profit before income tax for the period was HK$46,054,000, down 35.3% from HK$71,072,000 in the previous year [22]. - Profit for the period decreased to HK$34,494,000, representing a decline of 44.1% from HK$61,707,000 in 2022 [22]. - Other income decreased to HK$1,043,000 from HK$2,847,000, reflecting a decline of 63.4% [22]. - Staff costs were reduced to HK$8,299,000, down 13.2% from HK$9,557,000 in the previous year [22]. - Finance costs slightly decreased to HK$26,567,000 from HK$26,883,000, a reduction of 1.2% [22]. - The accumulated losses increased to HK$284,110,000 as of June 30, 2023, compared to HK$204,351,000 at the beginning of the year [25]. - The comprehensive loss was adjusted for the impact of the fall of RMB and the appreciation of HKD, amounting to approximately HK$79,759,000 for the six months ended 30 June 2023 [184]. Assets and Liabilities - Total assets as of June 30, 2023, were HK$2,476,790,000, down from HK$2,560,109,000 at the end of 2022, a decrease of about 3.3% [11]. - Non-current assets decreased to HK$2,236,096,000 from HK$2,367,579,000, reflecting a reduction of approximately 5.5% [11]. - Current liabilities decreased to HK$510,039,000 from HK$543,941,000, showing a decline of about 6.2% [13]. - Net current liabilities improved to HK$269,345,000 from HK$351,411,000, indicating a positive change in liquidity [13]. - The total equity attributable to owners of the company decreased to HK$1,670,895,000 from HK$1,715,513,000, a decline of approximately 2.6% [13]. - The total liabilities of the Group as of June 30, 2023, were HK$796,003,000, down from HK$833,491,000 as of December 31, 2022 [93]. - Reportable segment liabilities as of June 30, 2023, were HK$648,382,000, a decrease from HK$690,618,000 as of December 31, 2022 [93]. Cash Flow and Liquidity - Net cash generated from operating activities was HK$56,483,000, compared to a cash outflow of HK$39,760,000 in the same period last year [29]. - Cash and cash equivalents at the end of the period amounted to HK$134,167,000, down from HK$150,988,000 at the end of June 2022 [29]. - The company reported a foreign exchange loss of HK$79,759,000 during the period [29]. - The Group anticipates sufficient working capital to meet financial obligations within twelve months from June 30, 2023, based on several underlying assumptions [62]. - The Group's cash flow management policy aims to minimize risks associated with foreign currency exchange rates and interest rate fluctuations [73]. Segment Information - The Group is organized into three reportable operating segments: exploration, production and distribution of natural gas; sales of food and beverages; and money lending business [57]. - Revenue from external customers for the six months ended June 30, 2023, was HK$168,281,000 [60]. - Reportable segment profit before income tax was HK$62,160,000, with a profit from natural gas exploration and production of HK$62,499,000 [60]. - No revenue was generated from the food and beverage segment for the six months ended 30 June 2023, with a segment loss before tax expenses of approximately HK$246,000 [190]. - The money lending business operated by Zhong Neng Finance Limited generated no revenue for the six months ended 30 June 2023, with a segment loss before tax expenses of approximately HK$93,000 [191]. Management and Governance - The interim financial statements for the six months ended June 30, 2023, have been reviewed by the Company's Audit Committee but not audited [72]. - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, with no significant changes to accounting policies or financial statement presentation [53][54]. - The Group's financial performance reflects a cautious approach to cash management and risk monitoring [73]. - The Group faced challenges from a slower-than-expected recovery of the PRC's economy post-COVID-19 and complex market conditions [197]. - The Group will continue to monitor the economic environment and adjust resource allocation as necessary in response to market conditions [190]. Shareholder Information - No dividends were declared or proposed for the six months ended June 30, 2023, similar to the previous year [102]. - The total issued and fully paid ordinary shares as of June 30, 2023, was 9,505,344,000 shares [161]. - The weighted average number of ordinary shares in issue remained constant at 9,505,344,000 for both periods [104]. Impairment and Asset Management - The Group recognized a reversal of impairment of approximately HK$479,000 for the Kashi Project for the six months ended 30 June 2023, compared to HK$4,316,000 for the same period in 2022 [106]. - The impairment assessment for the Kashi Project was conducted by management, using the same methodology and assumptions as at December 31, 2022 [134]. - No impairment loss of intangible assets was recognized during the six months ended June 30, 2023, consistent with the same period in 2022 [132]. - The future development of the Kashi Project is discussed in the "Management Discussion and Analysis" section of the interim report [134].
中能控股(00228) - 2023 - 中期财报