Business Operations - The Group is engaged in the manufacture and sales of liquefied coalbed gas, with operations primarily located in the Shanxi Qinshui Basin, which is known for its rich liquefied coalbed gas resources [19][20]. - Significant investments have been made in resource exploration and exploitation at coalbed methane blocks in Yangcheng, Shanxi, since July 2011, enhancing the utilization of the liquefied natural gas (LNG) plant [21]. - The commercial production of coalbed gas has transformed the Group into a vertically integrated natural gas company, strengthening its position in China's unconventional gas market [21]. - The Group's distribution network extends to various regions, including Shanxi Province, ensuring a broad market reach for its products [20]. - The focus on liquefaction production and sales of natural gas positions the Group favorably within the energy sector in China [19]. - The Group's commitment to new energy sector development reflects its strategic direction towards sustainable energy solutions [22]. Financial Performance - The Group recorded a consolidated turnover of approximately RMB 326,509,000 for the year ended December 31, 2022, representing an increase of approximately 51.78% compared to the previous year [53]. - The profit attributable to equity shareholders for the year ended December 31, 2022, was approximately RMB 127,293,000, a significant recovery from a loss of approximately RMB 2,236,000 in 2021 [54]. - Sales of liquefied coalbed gas increased from RMB 31,462,000 in 2021 to RMB 160,016,000 in 2022, driven by rising international commodity prices and the resumption of full operations [53]. - The Group has generated revenue, profit, and cash flow from its natural gas exploitation business, with expectations for further improvement as production well capabilities increase [27]. - The Group's net 1P (Proved) reserves as of December 31, 2022, were 108.9 BCF, a significant increase from 3.5 BCF in 2012 [60]. - The net 2P (Proved + Probable) reserves increased to 154.7 BCF as of December 31, 2022, compared to 27.7 BCF in 2012 [60]. - The Group's gain on the disposal of Guangxi Beiliu Gas Co., Ltd. business was approximately RMB 100,797,000 in 2022 [55]. - Other income increased from RMB 7,981,000 to RMB 11,352,000, primarily due to unconventional subsidies granted by the Central Finance Bureau [55]. Production Capacity and Technology - As of December 31, 2022, the Group has completed the groundwork and drilling of 229 Coalbed Methane (CBM) wells, with 164 of these being operational wells contributing to stable production [26]. - The average daily production capacity of the Group's LNG plants remained at approximately 500,000 cubic meters, with an average daily production of only around 150,000 m³ for the year 2022 [32]. - The Group plans to conduct an advanced demonstration of its new C-H to Synthesis of natural gas technology in 2023, with the intention to build 10 pieces of equipment in 2024, each capable of producing 50,000 cubic meters of natural gas per day [47]. - The Group aims to stabilize gas supply from suppliers and increase the utilization rate of LNG plants in 2023, which is expected to enhance income, profit, and cash flow contributions [32]. - The Group is committed to investing heavily in advancing CBM extraction technology and techniques to maintain its leading position in technological advancement [34]. - The upstream business is steadily improving, with daily gas output insufficient to fully utilize the liquefaction plant's capacity of 500,000 cubic meters [90]. Governance and Compliance - The Company was initially listed on the GEM of The Stock Exchange of Hong Kong Limited on August 12, 2003, and has continued to operate under the GEM Listing Rules [19]. - The Board consists of eight directors, including two executive directors and three non-executive directors, with three independent non-executive directors representing at least one-third of the Board [115]. - The Company has complied with GEM Listing Rules, ensuring that one independent non-executive director possesses appropriate professional qualifications or financial management expertise [115]. - The Company has established policies for business activities, internal controls, and administration to ensure effective governance [130]. - The Board reviews corporate governance policies and practices regularly to ensure compliance with legal and regulatory requirements [118]. - The Company recognizes the importance of high-quality corporate reporting to reinforce trust with stakeholders [190]. Environmental and Social Responsibility - The Group aims to provide high-quality clean energy while promoting the harmonious coexistence of man and nature, adhering to the principle of social responsibility [22]. - The Group emphasizes its commitment to environmental and social responsibility, ensuring compliance with relevant laws and regulations [40]. - The demand for natural gas is expected to maintain strong momentum due to increasing environmental concerns and the shift towards cleaner energy sources [94]. Future Plans - The Group plans to build 10 new gas production units by 2024, each capable of producing 50,000 cubic meters of natural gas per day [48]. - The second trial production unit is expected to be completed in 2023, with plans for advanced demonstration and expert evaluation of the new technology [48]. - The Group plans to accelerate the drilling program if adequate financing is secured in the future, focusing on upstream CBM exploration and extraction [78].
中国煤层气(08270) - 2022 - 年度财报