Production and Sales Performance - In 2021, Novus Energy Inc. achieved a production volume of 460,000 barrels, compared to 446,000 barrels in the previous year, with crude oil production at 409,000 barrels and natural gas at 12.41 million cubic meters[7]. - The average selling price for crude oil in the Viking region was CAD 77.09 per barrel, while natural gas sold for CAD 0.12 per cubic meter, contributing to total sales revenue of CAD 32.8 million, an increase of CAD 16.97 million from 2020[7]. - In Henan, the company sold 4.095 million tons of refined oil products, generating operating revenue of RMB 23.36 billion and a pre-tax operating profit of RMB 31.14 million[11]. - In 2021, Yanchang Petroleum (Zhejiang) achieved sales of 1.12 million tons of oil products, a year-on-year increase of 236%, with sales revenue of RMB 3.76 billion[17]. Financial Performance - The company's revenue for the year ended December 31, 2021, was HKD 19,776,474,000, a decrease of 27% compared to HKD 27,256,800,000 in 2020[23]. - The operating profit from exploration, extraction, and operational activities was HKD 23,913,000, a significant recovery from an operating loss of HKD 68,239,000 in the previous year[25]. - The total profit for the year was HKD 358,455,000, compared to a loss of HKD 792,669,000 in the previous year[39]. - The company reported a net profit of HKD 358,455 for the year, a significant recovery from a loss of HKD 792,669 in 2020[105]. Expenses and Cost Management - The total operating expenses for Novus in 2021 amounted to CAD 9.3 million, up from CAD 9.03 million in 2020, while administrative and management expenses rose to CAD 4.06 million from CAD 2.66 million[10]. - The company saved CAD 400,000 through the federal wage subsidy program and CAD 100,000 through federal rent subsidies in 2021[10]. - The procurement expenses decreased to HKD 19,315,716,000 from HKD 27,007,663,000, reflecting a reduction in sales volume[28]. - The administrative expenses increased to HKD 110,465,000 from HKD 66,532,000, attributed to the expansion of oil trading operations in China[34]. Assets and Liabilities - Current assets increased to HKD 2,855,109,000 in 2021 from HKD 1,499,139,000 in 2020, while total assets rose to HKD 4,508,705,000 from HKD 2,636,012,000[50]. - Total liabilities increased to HKD 3,341,261,000 in 2021 from HKD 1,834,876,000 in 2020, resulting in a capital-to-debt ratio of 286.2%, up from 229.0%[50][52]. - The current ratio decreased to 98.2% in 2021 from 113.2% in 2020, indicating a decline in short-term financial health[50][52]. - The company reported a net current liability of HKD 51,512,000 as of December 31, 2021, indicating significant uncertainty regarding its ability to continue as a going concern[191]. Investments and Capital Commitments - The company plans to enhance investments in technology, capital, and management to adapt to the evolving energy landscape[20]. - The company has a total of HKD 4,144,000 in capital commitments related to property, plant, and equipment as of December 31, 2021[58]. - The company’s property, plant, and equipment amounted to HKD 1,480,631,000, with increases attributed to the acquisition of oil and gas assets in Canada[42]. Corporate Governance and Management - The board of directors is committed to maintaining high standards of corporate governance and will regularly review and improve governance practices[156]. - The company has adopted the corporate governance practices as outlined in Appendix 10 of the listing rules[147]. - The board consists of four independent non-executive directors, ensuring objectivity and independence without performance-based equity compensation[172]. - The audit committee is composed entirely of independent non-executive directors, enhancing its independence and effectiveness[175]. Risk Management and Compliance - The company has adopted a risk management system based on the COSO framework to enhance operational effectiveness and compliance with applicable laws[197]. - The board has reviewed and monitored the effectiveness of the risk management and internal control systems at least annually[194]. - The independent auditor has reviewed the financial statements without reservation, confirming that they reflect a true and fair view[192]. Employee and Operational Metrics - As of December 31, 2021, the total number of employees was 240, an increase from 218 in 2020, with total employee costs amounting to HKD 78,654,000, up from HKD 55,026,000 in 2020[63]. - The company has implemented various preventive measures in response to the COVID-19 pandemic, ensuring employee health and safety[146]. - The company continues to assess the impact of the COVID-19 pandemic on its financial condition and future cash flows[146]. Related Party Transactions - The company has ongoing related party transactions with 河南延長, involving the supply and purchase of refined oil products[139]. - The total value of related party transactions under the supply agreement for the year ended December 31, 2021, did not exceed RMB 9,675,000,000 (approximately HKD 11,843,167,500)[143]. - The anticipated total value of related party transactions between Henan Yanchang and Yan'an Energy Chemical under the sales agreement did not exceed RMB 16,000,000 (approximately HKD 19,585,600) and RMB 120,000,000 (approximately HKD 146,892,000) for the year ended December 31, 2021[143].
延长石油国际(00346) - 2021 - 年度财报