Financial Performance - For the six months ended June 30, 2023, the Group recorded revenue of RMB 49.1 million, a decrease of 3.5% compared to RMB 50.9 million for the same period in 2022[7]. - The Group generated a gross profit of RMB 20.3 million from oil exploration and storage, down from RMB 25.2 million in the comparative period, reflecting a decline of 19.4%[7]. - Loss attributable to equity holders of the Company was RMB 444.8 million, compared to RMB 381.0 million in the comparative period, indicating an increase in loss of 16.7%[8]. - The Group recorded a total comprehensive loss of RMB 396.8 million for the Period, compared to RMB 355.8 million in the Comparative Period, primarily due to currency exchange fluctuations[73][78]. - The Group recorded a net loss of RMB 441,580,000 for the six months ended June 30, 2023, compared to a net loss of RMB 374,145,000 in the same period of 2022[163]. Financial Position - As of June 30, 2023, total assets amounted to RMB 1,463,271,000, an increase from RMB 1,421,562,000 as of December 31, 2022, reflecting a growth of approximately 2.93%[132]. - Non-current liabilities increased to RMB 2,497,755,000 as of June 30, 2023, from RMB 2,353,292,000 at the end of 2022, marking a rise of approximately 6.14%[133]. - Current liabilities totaled RMB 7,872,609,000, up from RMB 7,578,581,000, reflecting an increase of about 3.87%[133]. - The Group's total current borrowings amounted to RMB 1,598.6 million, which were either overdue or due for repayment within 12 months[74][79]. - As of June 30, 2023, total borrowings increased to RMB 4,045.5 million from RMB 3,829.8 million as of December 31, 2022, with RMB120.1 million (approximately 3.0%) in RMB and RMB3,925.4 million (approximately 97.0%) in other currencies[81][85]. Cash Flow and Liquidity - Cash and cash equivalents decreased to RMB 5.4 million as of June 30, 2023, from RMB 14.6 million as of December 31, 2022, with RMB2.6 million (approximately 48.7%) in RMB and RMB2.8 million (approximately 51.3%) in other currencies[91][95]. - Net cash used in operating activities for the six months ended June 30, 2023, was RMB (3,735,000), a decrease from RMB 18,190,000 generated in the same period of 2022[148]. - The Group's cash flow projections indicate sufficient working capital to meet financial obligations for the next twelve months, although uncertainties remain regarding the achievement of these plans[188][189]. Debt and Financing - The Group has outstanding promissory notes totaling RMB 2,485,170,000, which require negotiation for further arrangements, including maturity extensions[190]. - The Group is negotiating with lenders regarding overdue borrowings of RMB1,997,029,000, including RMB48,584,000 and RMB349,803,000 that are overdue[181]. - The Group has drawn down USD120,006,000 (approximately RMB870,197,000) from a loan facility for oilfield operations, with a total facility of up to USD250,000,000 (approximately RMB1,812,825,000)[183]. Operational Highlights - The Kyrgyzstan Project recorded sales of 65,933 barrels of light crude oil, a 13.4% increase from 57,996 barrels in the comparative period[51]. - The Group's production increased by approximately 13.7% to 65,933 barrels, compared to 57,996 barrels in the Comparative Period[65][69]. - The Group aims to increase oil extraction efficiency and maintain sustainable oil storage business while seeking new synergistic business opportunities in response to the volatile global economic environment[97][98]. Corporate Governance - The Company has complied with the corporate governance code as per the listing rules[109]. - The Audit Committee has reviewed the accounting principles and practices adopted by the Company and discussed internal control and financial reporting matters[107]. Shareholder Information - As of June 30, 2023, substantial shareholders include China Minsheng Banking Corp. Ltd. with 7,006,000,000 shares (146.86% of issued share capital) and Ms. Yu Gelin with 1,420,120,000 shares (29.77%)[118]. - The interests of Mr. Zhang Zhi Rong and Fine Profit Enterprises Limited are recorded at 388,301,031 shares (8.14% of issued share capital)[120].
华荣能源(01101) - 2023 - 中期财报