XCEC(SH:600777)2021-08-13 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately ¥2.11 billion, a decrease of 14.44% compared to the same period last year [19]. - Net profit attributable to shareholders increased by 200.87% to approximately ¥302.75 million, compared to ¥100.62 million in the previous year [19]. - Basic earnings per share rose to ¥0.045, reflecting a 200% increase from ¥0.015 in the same period last year [20]. - The weighted average return on equity increased to 2.407%, up by 1.78 percentage points from 0.622% in the previous year [20]. - Total assets increased by 14.73% to approximately ¥26.08 billion compared to ¥22.73 billion at the end of the previous year [19]. - The company's net assets attributable to shareholders decreased by 3.47% to approximately ¥12 billion, primarily due to the decline in the USD reporting exchange rate [20]. - The company's operating revenue for the first half of the year was ¥2,109,723,236.65, a decrease of ¥35,615,080.45 year-on-year, with a decline of 14.44% [39]. - The company's operating costs for the first half of the year were ¥1,096,460,600.00, a decrease of ¥800,181,600.00 year-on-year, representing a decline of 42.19% [37]. - The company reported a net loss of CNY 481,062,871.65, compared to a loss of CNY 783,810,779.15 in the previous period, showing an improvement in financial performance [118]. Asset Acquisition and Operations - The company completed the acquisition of oil and gas assets in Howard County, Texas, for approximately $419.7 million [25]. - The company successfully acquired Grenadier oil and gas assets in the first quarter, enhancing resource reserves and optimizing asset structure for long-term development [35]. - The company employs a service outsourcing model for various operational needs, including drilling and completion services [27]. - The company has implemented enhanced oil recovery techniques to improve production efficiency in its oil fields [26]. - The company's crude oil net production for the first half of the year was 5.483 million barrels, a decrease of 1.624 million barrels year-on-year, representing a decline of approximately 22.74% [37]. - The company's natural gas net production was 2.172 million barrels of oil equivalent, an increase of 308,000 barrels of oil equivalent year-on-year, with a growth rate of approximately 16.53% [37]. - The company maintained a net well count of 848, an increase of 61 wells compared to the end of 2020, which supports future production growth [37]. Legal and Regulatory Matters - The company is currently involved in a lawsuit regarding a trust default, with a potential obligation of CNY 3.582 billion [6]. - The company has appointed legal counsel to actively respond to the ongoing lawsuit as of the report date [6]. - The company received a notice from the China Securities Regulatory Commission regarding an investigation into information disclosure violations, which is still ongoing [93]. - The company is currently involved in significant litigation and arbitration matters, including disputes related to debt issues and shareholder lawsuits [91]. Financial Position and Liabilities - The total amount of guarantees provided by the company, including those to subsidiaries, is 991.63 million RMB, representing 82.66% of the company's net assets [97]. - The amount of guarantees exceeding 50% of net assets is 391.78 million RMB [97]. - Total liabilities reached CNY 14,080,374,813.03, up from CNY 10,301,861,926.47, reflecting a growth of approximately 36.5% [118]. - Current liabilities totaled CNY 3,312,566,212.79, significantly higher than CNY 1,660,442,266.34, marking an increase of approximately 99.4% [117]. Shareholder and Governance Matters - The company reported a significant increase in accounts receivable, rising by 72.82% to CNY 1,302,057,468.56, attributed to increased uncollected payments from oil and gas sales [42]. - The total number of common shareholders at the end of the reporting period was 131,472 [100]. - The top ten shareholders held a total of 2,000,000,000 shares, representing 29.93% of the total shares [102]. - The company announced several board member resignations due to personal reasons, including the chairman and general manager [79]. - The company held a board meeting to re-elect Liu Ke as chairman and reappoint him as general manager [81]. Environmental and Social Responsibility - The company adheres to local environmental regulations and has not faced significant environmental incidents during the reporting period [64]. - The company is committed to reducing its carbon footprint and has implemented measures to promote clean production and environmental protection [65]. Related Party Transactions - The company committed to avoiding or reducing related party transactions with Xin Chao Industrial and its subsidiaries [70]. - All transactions between the company and Xin Chao Industrial will adhere to market principles and be conducted at fair market prices [70]. - The company guarantees not to obtain any improper benefits through related party transactions [70]. - The company will ensure that any related transactions are disclosed and conducted in accordance with legal requirements [69]. Accounting and Financial Reporting - The financial statements are prepared based on the going concern principle, indicating a good ability to continue operations for the next 12 months [154]. - The company adheres to the accounting standards, ensuring that the financial statements accurately reflect its financial position and operating results [156]. - The company has established specific accounting policies for revenue recognition based on its operational characteristics [155]. - The company recognizes transactions involving the disposal of subsidiary equity as a single transaction if they are part of a package deal [174].