Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 919,261,000, a decrease of 23.8% from HKD 1,205,336,000 in the same period of 2021[11] - Gross profit for the same period was HKD 40,639,000, down 13.4% from HKD 47,125,000 year-on-year[11] - The net profit attributable to the company's owners was HKD 19,968,000, a decline of 50.2% compared to HKD 40,076,000 in the previous year[13] - The company reported a total comprehensive loss of HKD 72,836,000 for the period, compared to a loss of HKD 51,550,000 in the same period last year[13] - The basic and diluted earnings per share were HKD 0.15, down from HKD 0.31 in the previous year[13] - The pre-tax profit for the six months ended June 30, 2022, was HKD 19,577,000, compared to HKD 42,327,000 for the same period in 2021[90] - The company reported other income of HKD 18,336,000 for the six months ended June 30, 2022, an increase from HKD 12,094,000 in the previous year[87] - The profit from the sale of a joint venture was HKD 5,961,000, which was not recorded in the previous year[87] - The company experienced a decrease in interest income, reporting HKD 1,281,000 for the six months ended June 30, 2022, down from HKD 4,062,000 in 2021[87] - The company’s revenue from industrial customers was HKD 17,972,000, reflecting a loss of HKD 1,372,000 for the segment[69] - The group recorded a gross profit of HKD 40.6 million in the first half of 2022, a decrease of 13.8% compared to HKD 47.1 million in the same period of 2021[131] - The gross profit margin increased from 3.9% in the first half of 2021 to 4.4% in the first half of 2022, attributed to improved operational efficiency and resource allocation[131] - EBITDA decreased by 14.6% to HKD 123.4 million in the first half of 2022 from HKD 144.4 million in the same period of 2021, impacted by the COVID-19 pandemic and increased legal and professional fees[132] Assets and Liabilities - Non-current assets decreased to HKD 3,256,016 thousand as of June 30, 2022, down from HKD 3,688,218 thousand as of December 31, 2021, representing a decline of approximately 11.7%[18] - Current assets totaled HKD 1,316,870 thousand as of June 30, 2022, compared to HKD 1,547,919 thousand as of December 31, 2021, indicating a decrease of about 15%[18] - Total liabilities decreased to HKD 3,944,435 thousand as of June 30, 2022, from HKD 4,535,154 thousand as of December 31, 2021, reflecting a reduction of approximately 13.1%[20] - The company's net assets amounted to HKD 628,451 thousand as of June 30, 2022, down from HKD 700,983 thousand as of December 31, 2021, a decrease of around 10.3%[20] - The company reported a total equity of HKD 628,451 thousand as of June 30, 2022, with a significant portion attributed to the equity attributable to owners of the company at HKD 535,150 thousand[20] - The company's reserves showed a negative balance of HKD 179,086 thousand as of June 30, 2022, compared to a negative balance of HKD 109,392 thousand as of December 31, 2021, indicating a worsening of approximately 63.7%[20] - The total assets as of June 30, 2022, amounted to HKD 4,572,886,000, a decrease from HKD 5,236,137,000 as of December 31, 2021[78] - The total liabilities as of June 30, 2022, were HKD 3,944,435,000, compared to HKD 4,535,154,000 as of December 31, 2021[78] Cash Flow - For the six months ended June 30, 2022, the net cash used in operating activities was HKD (40,979) thousand, slightly higher than HKD (40,869) thousand for the same period in 2021[29] - The net cash generated from investing activities was HKD 299,458 thousand, a significant improvement compared to the net cash used of HKD (321,220) thousand in the prior year[29] - The net cash used in financing activities was HKD (177,975) thousand, a decrease from the net cash generated of HKD 231,224 thousand in the previous year[29] - As of June 30, 2022, the total cash and cash equivalents increased by HKD 80,504 thousand, compared to a decrease of HKD (130,865) thousand in the same period of 2021[29] - The company’s cash and cash equivalents at the end of the period were HKD 332,475 thousand, down from HKD 496,638 thousand at the end of the previous year[29] - Cash and bank balances increased to HKD 332,475 thousand as of June 30, 2022, compared to HKD 230,945 thousand as of December 31, 2021, representing an increase of approximately 43.9%[18] - Cash and cash equivalents increased by 44.0% to HKD 332.5 million as of June 30, 2022, compared to HKD 230.9 million as of December 31, 2021[141] Market Strategy and Operations - The company aims to leverage the historical opportunities presented by China's economic development and energy structure adjustment to expand its market presence[6] - The company is focused on developing and operating urban gas projects and supplying LNG to end industrial users[6] - The company plans to actively explore potential regional projects and expand its market space to build a complete value chain[6] - The company is committed to cross-industry cooperation to achieve leapfrog development[6] - The company plans to enhance its LNG full industry chain layout and consider further development in oil and gas trading to improve competitiveness[126] - Future challenges include weakened urban gas demand post-heating season and low operating rates among downstream users due to the pandemic and high gas prices[125] - The natural gas business experiences seasonal fluctuations, with higher demand typically in the second half of the year due to winter heating consumption[60] Shareholder and Governance - The company’s shares resumed trading on the Hong Kong Stock Exchange on July 25, 2022, after fulfilling all resumption guidance[157] - As of June 30, 2022, Beijing Gas Group Limited held a 41.13% stake in the company, making it the largest shareholder[160] - The company has adopted the corporate governance code as per the listing rules and has complied with its provisions during the first half of 2022[166] - The board consists of seven members, including three executive directors and three independent non-executive directors, ensuring compliance with governance standards[188] - The audit committee has reviewed the accounting principles and discussed risk management and internal controls for the six months ending June 30, 2022[187] Financing and Debt - The total bank and other borrowings amounted to HKD 3,112.1 million, with HKD 2,078.4 million due for repayment by June 30, 2023[36] - The company has taken measures to alleviate liquidity pressure, including applying for the resumption of trading of its shares on the stock exchange effective July 25, 2022[38] - The board is in discussions with major shareholders regarding potential asset injections and loan advances to improve financial conditions[38] - The company's financing agreements include a commitment that Beijing Gas Group will directly hold approximately 41.13% of the issued shares, ensuring it remains the largest shareholder[170] - The company entered into a three-year syndicated term loan agreement for HKD 890,000,000 on August 17, 2020, with a commitment to maintain Beijing Gas Group as the single largest shareholder holding at least 36% of the issued shares[172] - A loan agreement for up to HKD 200,000,000 was established on October 10, 2020, with the same shareholder commitment as above[173] - A working capital loan agreement for HKD 300,000,000 was signed on October 20, 2020, with a repayment extension to November 22, 2022[175] - On November 2, 2020, a loan agreement for up to HKD 200,000,000 was signed, with a commitment to maintain at least 35% of the issued shares by Beijing Gas Group[176] - An additional commitment of HKD 310,000,000 was agreed upon on November 20, 2020, as part of the financing agreement[178] - The company issued USD 30,000,000 notes on July 15, 2022, in exchange for previously issued notes, with a covenant requiring Beijing Gas Group to maintain at least 40% voting rights[179] - The net debt ratio improved to 442.3% as of June 30, 2022, from 477.7% as of December 31, 2021[146]
北京燃气蓝天(06828) - 2022 - 中期财报