Financial Performance - Revenue for the six months ended June 30, 2022, was HK$258,285,000, representing a 101.9% increase from HK$128,140,000 in the same period of 2021[8]. - Gross profit for the same period was HK$62,876,000, up 55.6% from HK$40,387,000 in 2021[8]. - Loss for the period was HK$95,370,000, a significant improvement compared to a loss of HK$219,185,000 in the prior year, reflecting a 56.5% reduction in losses[8]. - Total comprehensive income for the period was HK$(206,719,000), compared to HK$(193,690,000) in 2021, indicating a slight increase in overall losses[14]. - Basic and diluted loss per share was HK$(2.81), an improvement from HK$(6.56) in the previous year[14]. - The company reported a loss for the period of HK$93,846,000 for the first half of 2022[30]. - The accumulated losses as of June 30, 2022, were HK$283,358,000, compared to HK$171,736,000 at June 30, 2021[30]. - The total comprehensive income for the period ended June 30, 2022, was a loss of HK$204,817,000, compared to a loss of HK$194,005,000 in the previous year[30]. - The profit before income tax expense for the period was HK$51,608, compared to a loss of HK$220,009 in the previous year, indicating a substantial turnaround[65]. - The company reported a profit for the period of HK$51,608, contrasting with a loss of HK$219,185 for the same period in 2021[65]. Expenses and Costs - Direct costs increased to HK$195,409,000, up from HK$87,753,000, reflecting a 122.3% rise[8]. - Selling and distribution expenses were HK$7,072,000, slightly higher than HK$6,874,000 in 2021, indicating a 2.9% increase[8]. - Administrative expenses decreased to HK$16,133,000 from HK$20,270,000, showing a 20.1% reduction[8]. - Other income decreased significantly to HK$429,000 from HK$30,414,000, a decline of 98.6%[8]. - Finance costs rose to HK$132,907,000 from HK$121,329,000, marking a 9.5% increase[8]. - The cost of inventories sold recognized as expenses surged to HK$117,234,000, compared to HK$40,783,000 in the prior year, indicating a significant increase in operational costs[1]. - Depreciation on property, plant, and equipment rose to HK$27,956,000 from HK$13,888,000, reflecting increased asset utilization or investment[1]. - Employee costs, including directors' remuneration, decreased slightly to HK$11,910,000 from HK$12,295,000 year-over-year[1]. Assets and Liabilities - Total non-current assets increased to HK$5,019,869, up from HK$4,767,267, representing a growth of approximately 5.3%[18]. - Current assets rose to HK$210,072 from HK$151,891, marking an increase of about 38.2%[18]. - Total assets decreased slightly to HK$5,171,760 from HK$4,977,339, reflecting a decline of approximately 3.9%[18]. - Total current liabilities increased to HK$2,454,739 from HK$2,428,366, which is an increase of about 1.1%[23]. - Net current liabilities improved to HK$2,244,667 from HK$2,276,475, indicating a reduction of approximately 1.4%[23]. - Total non-current liabilities decreased to HK$805,112 from HK$819,187, showing a decline of about 1.7%[23]. - Total equity attributable to owners of the Company decreased to HK$1,705,860 from HK$1,910,677, representing a decline of approximately 10.7%[23]. - Cash and cash equivalents increased significantly to HK$47,616 from HK$13,800, reflecting a growth of about 245.5%[18]. - Inventories rose to HK$30,770 from HK$13,323, indicating an increase of approximately 130.8%[18]. - Loans receivable increased to HK$20,817 from HK$15,618, marking a growth of about 33.9%[18]. - As of June 30, 2022, total borrowings amounted to HK$834,333,000, an increase of 4.2% from HK$797,959,000 as of December 31, 2021[125]. - The non-current portion of borrowings as of June 30, 2022, was HK$478,313,000, down from HK$501,050,000[125]. Cash Flow - For the six months ended June 30, 2022, the net cash generated from operating activities was HK$54,336,000, a decrease from HK$58,349,000 in the same period of 2021[30]. - The net cash used in investing activities for the same period was HK$85,436,000, significantly higher than HK$4,273,000 in 2021[30]. - The net cash generated from financing activities was HK$33,032,000 in the first half of 2022, contrasting with a net cash used of HK$38,069,000 in the same period of 2021[30]. Business Segments and Operations - The Group operates four reportable segments: coalbed methane, raw and cleaned coal, oil and gas exploitation, and financial services[54]. - The revenue from the Sanjiao CBM Project was approximately HK$133,593,000, up approximately 69% from HK$79,043,000 in the prior year[151]. - The raw coal washing project in Shanxi Province generated revenue of approximately HK$118,003,000, an increase from HK$44,987,000 in the previous interim period[156]. - EBITDA for the Sanjiao CBM Project was approximately HK$93,265,000, reflecting a 53% increase from HK$60,938,000 in the prior year[143]. - The gas sale-to-production rate for the Sanjiao CBM Project was approximately 97%, stable compared to 96% in the previous interim period[143]. - As of June 30, 2022, the Sanjiao CBM Project had completed a total of 170 wells, with 143 wells in the normal dewatering and gas producing stage[150]. Financial Strategy and Outlook - The Group's overall financial condition is expected to gradually improve as it explores various financing options and debt restructuring plans[41]. - Management is exploring various options to mitigate financial pressure, including additional financing and negotiations with creditors[174]. - The Group aims to maintain a prudent financial strategy and proactive debt management while focusing on the development of the Sanjiao CBM Project[174]. - The Group anticipates receiving the remaining balance of the shortfall of the guaranteed profit for the years 2020 and 2021 before the end of 2022[157]. - The Group expects stronger demand for natural gas in the second half of 2022 as the economy recovers from the COVID-19 pandemic[172]. Legal and Compliance Issues - A winding-up petition was filed against the Company on August 17, 2022, related to an alleged unpaid amount of approximately HK$10,216,000 concerning corporate bonds[140]. - The company has taken legal actions against the vendor for the refund of deposits and settlement of related interest receivables[115]. Shareholder Information - Sino Oil and Gas Resources Investments Limited (SOGRI) owns 85,119,500 shares and has a short position of 70,800,000 shares[195]. - Dr. Dai Xiaobing beneficially owns 73,384,500 shares and has a short position of 66,724,500 shares[196]. - The company issued convertible bonds with an aggregate principal amount of US$130,000,000 on September 29, 2016[199]. - Based on the conversion price of HK$0.168 per share, a maximum of 6,012,500,000 shares may be allotted and issued upon exercise of the conversion rights[199]. - As of June 30, 2022, no other directors or chief executives had any interests or short positions in the shares of the company[200].
中国油气控股(00702) - 2022 - 中期财报