Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 368,222,000, a significant increase from HKD 39,952,000 in the same period of 2022, representing a growth of 820%[3] - Gross profit for the same period was HKD 25,788,000, compared to HKD 492,000 in 2022, indicating a substantial increase in profitability[3] - The net loss attributable to the company's owners for the period was HKD 10,982,000, a recovery from a loss of HKD 7,620,000 in the previous year[3] - Total comprehensive loss for the period was HKD 4,567,000, compared to a loss of HKD 12,343,000 in the same period last year, showing an improvement[3] - The basic and diluted loss per share improved from HKD 0.91 to HKD 1.30, indicating a recovery in earnings per share[3] - The company reported a loss before tax of HKD 7,610,000 for the six months ended June 30, 2023, compared to a profit before tax of HKD 15,955,000 in the same period of 2022, indicating a shift of approximately 147.7%[23] - Basic and diluted loss per share for the six months ended June 30, 2023, was HKD (0.91), compared to earnings per share of HKD 1.30 for the same period in 2022[29] - The company incurred financing costs of HKD 6,879,000 for the six months ended June 30, 2023, compared to HKD 48,000 in the same period of 2022, reflecting a significant increase[23] Cash Flow and Assets - For the six months ended June 30, 2023, the net cash generated from operating activities was HKD 18,521,000, compared to a net cash outflow of HKD 13,658,000 in the same period of 2022[8] - The net cash generated from investing activities was HKD 110,000, a significant improvement from a net cash outflow of HKD 69,000 in the previous year[8] - The net cash outflow from financing activities decreased to HKD 1,092,000 from HKD 2,774,000 year-over-year[8] - The cash and cash equivalents at the end of the period increased to HKD 24,708,000 from HKD 5,662,000 at the end of June 2022[8] - Current assets increased from HKD 138,284,000 as of December 31, 2022, to HKD 158,557,000 as of June 30, 2023, reflecting a growth of 14.6%[4] - The company's total assets decreased slightly from HKD 515,397,000 to HKD 502,138,000, a decline of 2.5%[4] - The net asset value attributable to the owners of the company was HKD 459,647,000 as of June 30, 2023, compared to HKD 447,304,000 at the end of 2022, an increase of 2.7%[4] - The company reported cash and bank balances of approximately HKD 5,662,000 as of June 30, 2023, down from HKD 15,147,000 at the end of 2022[55] Liabilities and Equity - Current liabilities increased from HKD 30,140,000 to HKD 38,101,000, representing a rise of 26.2%[4] - The company reported a total liability of HKD 83,959,000 as of June 30, 2023, down from HKD 92,836,000 as of December 31, 2022[22] - The company’s total liabilities included deferred tax liabilities of HKD 51,754,000 as of June 30, 2023, unchanged from the previous year[22] - The debt-to-asset ratio was approximately 15.77% as of June 30, 2023, a slight decrease from 16.77% at the end of 2022[55] Operational Highlights - The company maintained stable operations and maintenance at the Utah oil and gas field, despite uncertainties affecting the local service providers[42] - The company plans to continuously evaluate the situation at the Utah oil and gas field and adjust its development direction and strategy as necessary[42] - The company has reviewed its pricing policy to mitigate the impact of price volatility on its operations[47] - The company is exploring new business opportunities in international oil trade and considering investments in clean and renewable energy for long-term sustainability[52] Market Conditions - The company faces price risks that could negatively impact its revenue and performance due to fluctuations in natural gas and oil prices[45] - Future oil and gas price volatility is expected due to global economic growth uncertainties and geopolitical tensions[47] - Brent crude oil prices fluctuated between $72 and $89 per barrel in the first half of 2023, with a peak of $89.9 in January and a drop to $75.41 by June[46] - WTI crude oil prices experienced a range of approximately 24% during the same period, starting at $80.5 per barrel and falling to $70.6 by June[50] - Henry Hub natural gas prices decreased by about 123%, from $4.4 per million British thermal units at the beginning of 2023 to $2.8 by June[50] Corporate Governance - The company has adhered to the corporate governance code as per the listing rules during the reporting period[80] - The board of directors has adopted a set of standards for securities trading that comply with the listing rules[76] - As of June 30, 2023, the company has complied with the listing rules regarding the composition of the board, with four independent non-executive directors, meeting the requirement of one-third[83] - The audit committee has confirmed that the financial statements for the six months ending June 30, 2023, have sufficient disclosure as per listing rules[84] - The board of directors consists of five executive directors and four independent non-executive directors as of the report date[89] Shareholder Information - As of June 30, 2023, the company has 841,879,482 issued shares[65] - New China Oil (Hong Kong) Limited holds 580,172,014 shares, representing approximately 68.91% of the issued share capital[69] - The ownership of New China Oil (Hong Kong) Limited is distributed among Yu Zhibo (46.28%), Chen Junyan (34.92%), and Chen Yaxin (18.80%)[65] Other Information - The company did not recommend the payment of an interim dividend for the current period, consistent with the previous year[28] - The company has not purchased, sold, or redeemed any listed securities during the reporting period[78] - No significant events occurred after June 30, 2023, up to the report date[88] - The company has no significant contingent liabilities or major acquisitions during the reporting period[57][59] - The company incurred approximately HKD 1,010,000 in costs related to the Utah oil and gas field during the reporting period[75] - No further exploration or development activities were conducted in the Utah oil and gas field during the reporting period[75] - The group has maintained a competitive employee compensation structure, with approximately 25 employees as of June 30, 2023[74] - The company is currently evaluating the potential impact of new accounting standards on its financial performance and position[14] - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[11]
中港石油(00632) - 2023 - 中期财报