Company Overview - China CBM Group Company Limited is primarily engaged in the manufacture and sales of liquefied coalbed gas, with operations located in the PRC[20] - The Group's production of liquefied coalbed gas is concentrated in the Shanxi Qinshui Basin, known for its rich resources[21] - The company was initially listed on the GEM of The Stock Exchange of Hong Kong Limited on August 12, 2003[20] - The company was incorporated in the Cayman Islands in July 2002 and continued in Bermuda[20] - The Group's headquarters is located in Beijing, China[21] - The Group's distribution network extends to various regions, including Shanxi Province[21] Business Operations - The Group's business activities include the exploitation, liquefaction production, and sales of natural gas[21] - The Group has established a complete business process covering CBM extraction, liquefaction, pipelines, transportation, distribution, and technical services[29] - The Group aims to stabilize gas supply from suppliers and increase the utilization rate of LNG plants in 2022, which is expected to enhance income, profit, and cash flow contributions[34] - The Group has developed a diversified customer base, including industrial, commercial, and residential customers, optimizing the sales mix towards a more balanced approach[35] - The average daily production of the Group's LNG plants was only around 50,000 cubic meters for the year, despite a production capacity of approximately 500,000 cubic meters per day[34] Financial Performance - The Group recorded a consolidated turnover of approximately RMB215,125,000 for the year ended 31 December 2021, representing an increase of approximately 19.96% compared to the previous year[55] - The loss attributable to equity shareholders for the year ended 31 December 2021 was approximately RMB2,236,000, a significant improvement from a loss of approximately RMB40,627,000 in 2020[55] - The gross loss recorded in 2021 was approximately RMB491,000, primarily due to increased costs in the liquefied natural gas business and a shortage in raw gas supply[55] - The gain from selling subsidiaries amounted to approximately RMB50,785,000 in 2021[55] - An impairment loss of property, plant, and equipment was recognized at approximately RMB26,376,000 during the year[55] Reserves and Production - The total original gas in place on all blocks was 193.6 BCF as of 31 December 2021, down from 272.4 BCF in March 2012[60] - The net 1P (Proved) reserves were 108.9 BCF as of 31 December 2021, significantly increased from 3.5 BCF in March 2012[60] - The net 2P (Proved + Probable) reserves were 154.7 BCF as of 31 December 2021, up from 27.7 BCF in March 2012[60] - As of December 31, 2021, the Group completed groundwork and drilling of 229 coalbed methane (CBM) wells, with 164 operating wells contributing to stable production[29] - The production capacity of the Group's LNG plants remained at approximately 500,000 cubic meters per day, but the average daily production was only around 50,000 m³ due to insufficient raw gas supply[67] Technology and Innovation - The Group is committed to investing heavily in developing and advancing CBM extraction technology and techniques to maintain its leading position in technological advancement[36] - The company has initiated R&D on C-H to Synthesis of natural gas technology, with small-scale production expected to start before the end of 2021[51] - The first experimental equipment underwent trial runs in June 2021, with improvements proposed due to supply chain disruptions caused by COVID-19[51] - The company plans to construct 10 units of new equipment, each capable of producing 50,000 cubic meters of natural gas daily[51] - The successful development of C-H to Synthesis technology will enable stable gas supply for the LNG plant, enhancing commercial value[86] Governance and Compliance - The Group operates under the GEM Listing Rules, which cater to small and mid-sized companies[5] - The Company has complied with GEM Listing Rules regarding the composition of independent non-executive Directors, with at least one-third of the Board being independent[104] - The Board comprises a total of eight Directors, including two executive Directors and three independent non-executive Directors, ensuring compliance with GEM Listing Rules[104] - The Company has implemented corporate governance functions, including monitoring compliance with legal and regulatory requirements[106] - The Board held 16 meetings in 2021, indicating active governance and oversight[117] Social Responsibility and Market Potential - The Group emphasizes social responsibility while exploring and developing in the new energy sector, aiming to provide high-quality clean energy[23] - Demand for natural gas in China is increasing, with the government likely to encourage unconventional gas production to meet this demand[45] - China's natural gas demand is continuously increasing, indicating significant market potential for clean energy development[48] - The company is positioned to benefit from government policies encouraging unconventional gas production, particularly coalbed methane[48] Risk Management - The company emphasizes the potential investment risks associated with small and mid-sized companies listed on GEM[2] - The Group aims to reduce exposure to external risks by consolidating its raw gas supply through self-produced well gas and new technology[51] - The Group's gearing ratio was approximately 19.49% as of December 31, 2021, a significant decrease from 49.65% in 2020[69] - The Company has established internal control policies to manage risks in pursuit of strategic objectives[111] Management and Personnel - The Group employs a total of 336 staff, including 30 R&D personnel and 182 project and customer service staff[77] - The total staff cost recognized in profit or loss for the year was approximately RMB22,224,000, an increase from approximately RMB18,027,000 in 2020[77] - The remuneration packages for key management (excluding Directors) fell within the range of HK$0 to HK$1,000,000, equivalent to approximately RMB830,000 in 2021, compared to RMB890,000 in 2020[138] Stakeholder Communication - The Company has maintained ongoing communication with stakeholders, publishing annual, interim, and quarterly reports to provide detailed information about the Group[183] - The Company aims to present a balanced and clear assessment of its performance, position, and prospects in all corporate communications[175] - The Company recognizes the importance of high-quality corporate reporting in reinforcing trust with stakeholders[175]
中国煤层气(08270) - 2021 - 年度财报