Financial Performance - The Group's revenue for the year ended December 31, 2022, was HK$543.08 million, representing an increase of 37.8% compared to HK$394.24 million in 2021[9]. - The loss for the year was HK$553.18 million, a decrease from a loss of HK$786.23 million in 2021, indicating an improvement of 29.7%[9]. - The Group recorded total revenue of approximately HK$543,080,000 for the fiscal year ended December 31, 2022, an increase of 37.9% from HK$394,236,000 in 2021[31]. - The Group reported a net loss of approximately HK$553,180,000 for 2022, an improvement from a net loss of HK$786,225,000 in 2021, primarily due to impairment losses and high finance costs[32]. - The loss per share for the year was HK$16.49, an improvement from HK$23.57 in the previous year[9]. Production and Sales - Total gas production in 2022 was approximately 169.10 million cubic meters, while gas sales were approximately 165.23 million cubic meters, achieving a sale-to-production rate of 97.7%[12][14]. - The average sale-to-production rate for CBM in 2022 was 97.7%, with residential piped sales accounting for 3.4% and industrial piped sales 96.6% of total sales[14][15]. - Sales from the Sanjiao CBM Project amounted to approximately HK$318,642,000, representing an increase of 88.6% compared to HK$168,969,000 in 2021, driven by a 32% increase in gas production[32]. - The production volume of CBM was approximately 169.10 million cubic meters in 2022, up from 128.06 million cubic meters in 2021, while sales volume increased to 165.23 million cubic meters from 127.03 million cubic meters[44]. - The gas sale-to-production rate for the year was approximately 97.7%, slightly down from 99.2% in 2021[44]. Financial Position and Liabilities - The Group's net current liabilities as of December 31, 2022, were approximately HK$2.64 billion, reflecting significant financial pressure due to heavy borrowing in recent years[21]. - The equity attributable to owners of the Company decreased to HK$1.01 billion in 2022 from HK$1.91 billion in 2021, a decline of 47%[12]. - Non-current assets as of December 31, 2022, were valued at HK$4.44 billion, a decrease from HK$5.02 billion in 2021[12]. - As of December 31, 2022, the Group's net assets were approximately HK$1,024,000,000, down from HK$1,924,000,000 as of December 31, 2021[72]. - The Group's external borrowings, including the liability component of convertible notes, were approximately HK$2,202,000,000, compared to HK$2,151,000,000 in the previous year[72]. Debt Restructuring and Financial Strategy - The Company is actively working on a debt restructuring plan to resolve its financial crisis within the year, seeking support from creditors and shareholders[21]. - The Company is actively seeking potential investors and exploring financing options to improve its financial position[78]. - The directors expect to obtain necessary approvals for the proposed debt restructuring and believe the Group will have sufficient working capital moving forward[85]. - The company expects to complete a debt restructuring exercise with the assistance of a potential investor, aiming to obtain necessary approvals from unsecured creditors[89]. - The audit committee believes that the liquidity issues will be substantially mitigated after the completion of the restructuring exercise, allowing for a removal of the disclaimer opinion regarding the company's ongoing concern[90]. Project Performance - The Sanjiao CBM Project continues to perform well, producing results ahead of expectations despite the ongoing financial crisis[18]. - As of December 31, 2022, the Sanjiao CBM Project had completed a total of 182 wells, including 12 newly added wells, with 149 wells in the normal dewatering and gas producing stage[40]. - The approved CBM production capacity for the Sanjiao CBM Project is 500 million cubic meters per annum, valid for 25 years since the mining permit was granted in July 2017[39]. - The cumulative production of coalbed methane in Shanxi reached 9.61 billion cubic meters in 2022, accounting for approximately 83.2% of the national production during the same period[24]. Corporate Governance and Management - The company has maintained compliance with all provisions of the Corporate Governance Code throughout the year ended December 31, 2022, except for the lack of insurance cover for directors since May 2022[136]. - The roles of Chairman and Chief Executive Officer are held by the same individual, which the Board believes ensures consistent leadership and effective strategy implementation[137]. - The Company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each performing distinct roles[172]. - The Company has a clear delegation of responsibilities to divisional management for day-to-day operations, enhancing operational efficiency[149]. - The Company has a strong commitment to corporate governance practices, emphasizing transparency, accountability, and the enhancement of shareholder value[135]. Research and Development - The company has a significant investment in research and development, focusing on new technologies and products to enhance market competitiveness[121]. - The company has been involved in various scientific projects, contributing to advancements in oil, natural gas, and coalbed methane research[121]. - The company has a history of collaboration with national and provincial scientific projects, enhancing its research capabilities and industry standing[129]. - The company has received multiple awards for scientific and technological progress, reflecting its commitment to innovation and excellence in the energy sector[121]. Market Outlook - China's total natural gas consumption is expected to rebound by nearly 7% in 2023, providing a favorable market environment for the company's core business in the Sanjiao block[100]. - The company plans to add 25 to 30 multilateral horizontal wells in the Sanjiao CBM Project, targeting an annual production capacity of 500 million cubic meters within the next 2 to 3 years[100]. - The company aims to resolve its significant financial burden by negotiating with existing creditors and pushing forward the debt restructuring plan within this year[101].
中国油气控股(00702) - 2022 - 年度财报