Financial Performance - Total revenue for the six months ended June 30, 2023, was approximately HKD 95,369,000, a decrease of about 13.2% compared to HKD 109,871,000 for the same period in 2022[4] - Loss attributable to owners of the company for the six months ended June 30, 2023, was approximately HKD 7,087,000, an improvement from a loss of HKD 14,006,000 in the same period of 2022[4] - Total comprehensive loss for the six months ended June 30, 2023, was HKD 23,622,000, compared to HKD 32,290,000 for the same period in 2022[9] - Basic and diluted loss per share for the six months ended June 30, 2023, was HKD 0.007, compared to HKD 0.014 for the same period in 2022[9] - The company reported a significant decrease in inventory, with current inventory at HKD 6,833,000 as of June 30, 2023, down from HKD 8,140,000 as of December 31, 2022[11] - The company reported a total comprehensive loss of HKD 21,411,000 for the six months ended June 30, 2023, compared to a total comprehensive loss of HKD 30,254,000 in the same period of 2022, reflecting an improvement of 29.3%[20] - The company incurred research and development expenses of HKD 220,000 for the six months ended June 30, 2023, compared to HKD 315,000 in the same period of 2022, reflecting a decrease of 30.2%[27] - The company reported a loss attributable to owners of the company of HKD 7,087,000 for the six months ended June 30, 2023, compared to a loss of HKD 14,006,000 for the same period in 2022, representing a 49.6% improvement[31] Revenue Sources - Revenue from the transportation and distribution of natural gas decreased to HKD 75,170,000 for the six months ended June 30, 2023, compared to HKD 89,350,000 in the same period of 2022, a decline of 15.8%[21] - Revenue from external customers for the six months ended June 30, 2023, was HKD 95,369,000, a decrease of 13.5% from HKD 109,871,000 in the same period of 2022[34] - The biomass gasification heating business in Huaining County, Anhui Province, is expected to generate considerable revenue due to high heating demand, although it reported losses in 2023 due to incomplete construction and operations[51] - The property investment business in Yichang provided stable cash inflows, supported by the local government's development of an automotive manufacturing industrial park[52] - The company anticipates that the natural gas business will continue to grow due to increasing demand for clean energy in China, supported by government policies[51] Assets and Liabilities - Non-current assets increased to HKD 592,887,000 as of June 30, 2023, from HKD 564,521,000 as of December 31, 2022[11] - Current assets decreased to HKD 109,507,000 as of June 30, 2023, from HKD 174,000,000 as of December 31, 2022[11] - Total liabilities decreased to HKD 390,598,000 as of June 30, 2023, from HKD 403,103,000 as of December 31, 2022[12] - The company's net assets amounted to HKD 311,796,000 as of June 30, 2023, down from HKD 335,418,000 as of December 31, 2022[12] - The trade receivables as of June 30, 2023, were HKD 12,869,000, down 52.1% from HKD 26,893,000 as of December 31, 2022[37] - The impairment provision for trade receivables decreased to HKD 6,776,000 as of June 30, 2023, from HKD 8,161,000 as of December 31, 2022[38] - The company reported trade payables of HKD 16,257,000 as of June 30, 2023, an increase from HKD 12,473,000 as of December 31, 2022[42] - The total interest-bearing borrowings as of June 30, 2023, were HKD 265,697,000, slightly up from HKD 263,438,000 as of December 31, 2022[43] Cash Flow and Financing - For the six months ended June 30, 2023, the company reported a net cash inflow from operating activities of HKD 16,290,000, an increase from HKD 11,503,000 in the same period of 2022, representing a growth of 41.5%[15] - The company reported a significant increase in financing activities, generating HKD 55,596,000 in cash inflow for the six months ended June 30, 2023, compared to HKD 17,545,000 in the same period of 2022, an increase of 216.5%[15] - Cash and cash equivalents at the end of June 30, 2023, were HKD 64,664,000, down from HKD 121,203,000 at the end of June 30, 2022[15] Corporate Governance - The company has established an audit committee to review financial controls and risk management systems[90] - The remuneration committee is responsible for considering the compensation policies for all executive directors and senior management[92] - There were no reported conflicts of interest among directors and major shareholders during the review period[89] - The company has adopted a code of conduct for securities trading that meets or exceeds the GEM Listing Rules[99] - The board of directors consists of both executive and independent non-executive directors, ensuring accountability and independence[101] - The company has complied with the principles and code provisions of the Corporate Governance Code during the reporting period[96] - The nomination committee is composed of three independent non-executive directors, ensuring proper governance and oversight[93] - The independent non-executive director Wang Xiaobing resigned on March 1, 2023[93] - The company continues to review its board structure and composition at least annually to align with corporate strategy[93] Employee and Shareholder Information - The group has a total of 157 full-time employees, with total employee compensation (including directors' remuneration) amounting to approximately HKD 10,279,000 for the six months ended June 30, 2023[61] - Major shareholders include Ms. Guo Xiuqin and Dongcheng Energy Investment Limited, each holding approximately 12.10% of the company's shares[85] - Ji Shengzhi and Lu Ke each hold approximately 10.74% of the company's shares[85] - The company has a stock option plan that allows for the issuance of shares up to 30% of the total issued share capital, subject to shareholder approval[80] - The exercise price of the stock options cannot be lower than the highest of the closing price on the grant date or the average closing price over the five trading days prior to the grant date[80] - The stock option plan has a term of ten years from the date of adoption[80] Future Outlook - The company expects the performance to improve with the growth of the clean energy business, particularly in the natural gas sector, which is anticipated to contribute significant revenue[57] - The board is optimistic about the group's performance due to the expansion of the energy division, particularly with the implementation of clean energy policies by the Chinese government[57] - The company will continue to explore viable investment opportunities to enhance its value amid current global economic uncertainties[54]
中国基础能源(08117) - 2023 - 中期财报