Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 9,336,236, a decrease of 8.5% compared to HKD 10,208,266 for the same period in 2021[8] - Total comprehensive loss for the period was HKD 58,969, compared to a total comprehensive income of HKD 25,884 in the previous year[11] - Operating loss for the six months was HKD 1,053, a significant decline from an operating profit of HKD 59,412 in the same period last year[8] - The company reported a net loss of HKD 35,831 for the period, compared to a profit of HKD 12,083 in the previous year[8] - The total comprehensive loss for the period was HKD 35,831,000, compared to a profit of HKD 12,083,000 in the same period last year[40] - The group reported a net loss from foreign exchange of HKD 7,252,000 for the current period, compared to a gain of HKD 7,612,000 in the previous year[42] - The company recorded a loss of HKD 35,831,000 for the period, compared to a profit of HKD 12,083,000 in the previous period, primarily due to losses from its 51%-owned subsidiary in China, 延长浙江, related to pending litigation[137] Assets and Liabilities - Total assets increased to HKD 6,216,953 as of June 30, 2022, from HKD 4,508,705 at the end of 2021[13] - Current liabilities rose to HKD 4,674,786, up from HKD 2,906,621 at the end of the previous year[15] - Trade and other payables increased significantly to HKD 3,978,496 from HKD 2,198,499[15] - The total liabilities increased to HKD 5,108,478,000 as of June 30, 2022, compared to HKD 3,341,261,000 at the end of the previous year[31] - The company’s total liabilities decreased from HKD 12,428,488,000 as of December 31, 2021, to HKD 12,428,488,000 as of June 30, 2022, indicating stability in financial obligations[57] Cash Flow - Operating cash flow for the six months ended June 30, 2022, was HKD 240,326 thousand, compared to a cash outflow of HKD 151,234 thousand in the same period of 2021[20] - Net cash generated from operating activities was HKD 225,984 thousand, a significant improvement from a net cash outflow of HKD 157,382 thousand in the previous year[20] - Cash and cash equivalents at the end of the period increased to HKD 476,964 thousand, up from HKD 251,116 thousand in the prior year[20] - The company reported a net cash outflow from investing activities of HKD 112,024 thousand, compared to HKD 29,947 thousand in the previous year[20] - The company’s financing activities resulted in a net cash outflow of HKD 21,508 thousand, compared to a net cash outflow of HKD 3,079 thousand in the same period last year[20] Operational Highlights - The company plans to focus on enhancing operational efficiency and exploring new market opportunities moving forward[8] - The company operates in two main segments: exploration and production of oil and gas, and supply and procurement of oil-related products[26] - The company’s exploration and evaluation asset payments amounted to HKD 6,140 thousand for the period[20] - The company has entered into investment and cooperation agreements for the exploration and operation of the Madagascar 3113 exploration block, with capital investments shared among the company and its partners[61] Shareholder Information - The company did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the decision for the same period in 2021[47] - The weighted average number of ordinary shares for calculating basic and diluted earnings per share remained unchanged at 18,335,047 for both periods[49] - The major shareholder, 延长石油集团, holds 12,686,203,231 shares, representing approximately 69.19% of the total issued ordinary shares[162] Compliance and Governance - The company has adopted new or revised Hong Kong Financial Reporting Standards effective from January 1, 2022, which did not significantly impact the financial results for the period[24] - The company has maintained compliance with the Corporate Governance Code, with minor deviations noted regarding the separation of roles between the chairman and CEO[166] - All directors confirmed compliance with the standards set forth in the code for the six months ending June 30, 2022[176] Legal and Contingent Liabilities - The company faces legal claims totaling approximately RMB 760,028,000 (equivalent to HKD 890,829,000) related to processing fees, procurement costs, and interest, with assets amounting to RMB 457,863,000 (equivalent to HKD 536,661,000) frozen by the court[91] - Contingent liabilities were approximately RMB 493,419,000 (equivalent to HKD 578,336,000) as of June 30, 2022, arising from disputes related to processing fees and procurement costs[90] - The company has contingent liabilities amounting to approximately RMB 493,419,000 (equivalent to HKD 578,336,000) as of June 30, 2022, arising from disputes related to its 51%-owned subsidiary, 延长浙江[151] Employee and Administrative Costs - The total employee cost for the six months ended June 30, 2022, was HKD 41,327,000, compared to HKD 35,951,000 for the same period in the previous year[153] - The administrative expenses increased by HKD 4.1 million to HKD 42.68 million due to the absence of provincial subsidies provided to Novus[131]
延长石油国际(00346) - 2022 - 中期财报