Financial Performance - In 2021, the company's revenue increased compared to 2020, primarily due to the growth in natural gas business and the introduction of biomass gasification heating business[13]. - The company reported a loss in 2021 but is optimistic about future performance improvements[13]. - Total revenue for the year ended December 31, 2021, increased compared to the same period in 2020, primarily due to growth in the natural gas business and contributions from the new biomass gasification heating business[17]. - The audited loss before tax for the year was approximately HKD 4,794,000, compared to a profit of HKD 10,080,000 in 2020, primarily due to a decrease in gains from the sale of a subsidiary, which was HKD 14,550,000 compared to HKD 55,197,000 in 2020[30]. - Total revenue for the year ended December 31, 2021, was approximately HKD 141,544,000, an increase of about 60.4% compared to HKD 88,223,000 in the previous year[30]. Business Segments - The natural gas distribution and investment properties business is less affected by the pandemic due to its reliance on domestic demand, positioning the company favorably for future growth[14]. - The biomass gasification heating facility in Huaining County, Anhui Province, was launched as a new segment in the clean energy business, with optimistic growth expectations due to high local demand for heating[10]. - The clean energy business is identified as the core business moving forward, with plans to expand market share and explore growth opportunities[14]. - The natural gas business remains the core segment, benefiting from China's policies promoting clean energy usage, with significant growth expected due to rising demand for clean energy[17]. - The energy division, primarily consisting of natural gas and biomass gasification heating businesses, is expected to grow significantly due to the expansion of the sales network and the implementation of clean energy policies by the Chinese government[31]. Investment and Financial Transactions - The company completed the sale of 90% equity in Yichang Yiling District Zhongji Thermal Power Co., Ltd. for RMB 42,072,200, with the transaction finalized on August 24, 2021[22][23]. - The sale of 49% equity in Yichang Zhongji Natural Gas Utilization Co., Ltd. was completed for RMB 532,875, also finalized on August 24, 2021[25][26]. - The estimated gain from the sale of the two subsidiaries is approximately RMB 10,200,000, with net proceeds expected to be around RMB 42,300,000 after expenses[26]. - Approximately RMB 26,000,000 of the net proceeds will be used to repay outstanding payables to Zhongji Thermal Power Co., Ltd., with the remainder allocated for further investment in existing gas projects[26]. Corporate Governance - The board consists of a chairman, one executive director, one non-executive director, and three independent non-executive directors, ensuring diverse governance[149]. - The board of directors does not recommend the payment of any final dividend for the fiscal year ending December 31, 2021[82]. - The company has adopted key corporate governance practices, detailed in the annual report[123]. - The audit committee reviewed the financial statements for the year ended December 31, 2021, and confirmed compliance with applicable accounting standards and GEM listing rules[125]. - The company has established an audit committee composed entirely of independent non-executive directors to ensure accountability and independence[159]. Risk Management and Internal Control - The company has established a robust internal control system to safeguard assets and ensure reliable financial reporting[180]. - The risk management system aims to manage risks rather than eliminate them, providing reasonable assurance regarding the achievement of business objectives[181]. - The board is responsible for continuously monitoring and reviewing the effectiveness of the risk management and internal control systems[180]. - The internal audit team identified several internal control weaknesses and risks, but none were deemed significant, indicating the effectiveness of the risk management and internal control systems[185]. - The board believes that the risk management and internal control systems are effective and have no significant deficiencies, with annual reviews conducted[187]. Employee and Compensation - The total employee compensation for the year was approximately HKD 23,572,000, with 9 full-time employees in Hong Kong and 148 in China[46]. - The remuneration committee is responsible for reviewing and determining the remuneration of executive directors and senior management, ensuring competitive compensation[126]. Shareholder Information - The company has a share premium account of HKD 714,488,000 available for distribution to shareholders after solvency tests[75]. - The company has a total of 1,023,987,439 ordinary shares issued as of December 31, 2021[96]. - Major shareholders include Guo Xiuqin with 123,867,678 shares (12.10%) and Ji Shengzhi with 110,000,000 shares (10.74%) as of December 31, 2021[112]. - The company's top five customers accounted for approximately 73% of total sales, with the largest customer contributing about 62%[121]. - The largest supplier represented about 46% of total purchases, while the top five suppliers accounted for approximately 71% of total procurement[122].
中国基础能源(08117) - 2021 - 年度财报