Financial Performance - New Times Energy reported an annual profit of HK$285.9 million for 2022, a decrease from HK$329.4 million in 2021[18]. - The Group's revenue for 2022 was HK$20,913.2 million, up from HK$11,167.1 million in 2021, representing an increase of approximately 87.5%[15]. - Earnings per share for 2022 was HK$3.26, down from HK$3.76 in 2021, reflecting a decrease of approximately 13.3%[15]. - The Group reported a profit after tax of HK$285.9 million for 2022, down from HK$329.4 million in 2021[46]. - The Group's financial position improved with no external borrowings and highly liquid current assets of approximately HK$907.1 million as of December 31, 2022, compared to HK$642.6 million in 2021[50]. - The return on equity for the Group was 21.6% for the year ended December 31, 2022, down from 29.9% in 2021[50]. - Gross profit for the year was HK$421.5 million, up from HK$90.7 million in 2021, primarily due to strong energy commodity prices and contributions from Canadian operations[109]. - The Group recognized a net investment gain of HK$24.9 million during the year, recovering from a loss of HK$40.9 million in 2021, reflecting improved performance in certain listed equity securities[109]. - Finance costs for the year were HK$27.8 million, approximately doubling from HK$13.9 million in 2021, attributed to the full-year consolidation effect of Canadian operations[111]. - Profit attributable to the owners of the Company was HK$285.9 million for the year, down from HK$329.4 million in 2021, with basic and diluted earnings per share at 3.26 HK cents compared to 3.76 HK cents in 2021[112]. Production and Operations - The Group's Canadian oil and gas business produced approximately 11,500 barrels of oil equivalent (boe) per day, with 95% being natural gas[18]. - The overall production in Canada increased by approximately 1,150 boe per day as of early 2023 due to successful drilling and optimization programs[19]. - The Canadian oil and gas subsidiary, NTE Energy Canada Ltd., operates over 800 active wells, producing approximately 11,500 barrels of oil equivalent (95% natural gas) per day[46]. - Successful drilling and completion of six unconventional wells in 2022 increased total production in Canada by approximately 1,150 barrels of oil equivalent per day by early 2023[23]. - The Group's Argentinean oil production increased to approximately 1,350 barrels per day, although operations remain challenging due to various economic factors[33]. - NTEC's average daily production was approximately 11,500 barrels of oil equivalent (boe) per day, with 95% being natural gas, and natural gas sales accounted for 85% of total revenue for the year[60]. - NTEC increased oil production at the Los Blancos concession from approximately 800 barrels per day to 1,200 barrels per day, and subsequently to 1,350 barrels per day from September 2022 due to positive well behavior[78]. - The Group's Canadian oil and gas assets include over 800 active wells across approximately 761,000 acres, with Proved (1P) reserves estimated at 26.1 million boe, down from 30.2 million boe in 2021[57]. Sustainability and Environmental Initiatives - New Times Energy is transforming its 1,200 acres Discovery Park site into a green ecosystem hub powered by hydroelectricity as part of its energy transition strategy[21]. - The Group aims to work with local authorities to achieve net zero emissions while maintaining positive cash flows from its oil and gas operations[20]. - The Group is developing Discovery Park into a green ecosystem hub, focusing on sustainable energy and social responsibility[35]. - The planned facilities at Discovery Park include a liquid hydrogen plant capable of producing 60 tonnes of hydrogen daily and a renewable natural gas facility utilizing local biomass[31]. - The Group aims to create a circular economy at Discovery Park through vertical farming and modular construction manufacturing[26]. - Environmental and sustainability considerations will increasingly influence the Group's future business operations[36]. - The Group is actively exploring eco-investment opportunities to achieve net zero emissions, including Blue & Green Hydrogen and Carbon Capture, Utilization and Sequestration (CCUS)[55]. - The Group is transitioning its Discovery Park site into a green energy and ecosystem hub, aiming to develop industries such as hydrogen and bio-fuel production[102]. Market and Strategic Developments - The Group is optimistic about the new precious metals refinery expected to commence operations in Q2 2023, which is anticipated to enhance future profitability[34]. - The Group's commodities trading business, particularly in physical gold and silver, performed solidly, but the new precious metals refinery's operations have been deferred to Q2 2023 due to supply chain issues[54]. - The Group anticipates higher margins in the long term by bringing the refining process in-house once the new refinery is operational[98][100]. - The Group is actively seeking partnerships with established ag-tech companies to provide localized food supply solutions using indoor farming technologies[69]. - The Group is redeveloping its 1,200 acres Discovery Park site in British Columbia, aiming to enter the Vancouver market for green vegetables by the end of 2023[49]. Financial Position and Assets - Total assets increased to HK$2,165.4 million in 2022 from HK$1,736.4 million in 2021, reflecting a growth of about 24.7%[15]. - Market capitalization as of December 31, 2022, was HK$854.46 million, with a closing price of HK$0.097 per share[11]. - The Group's net working capital increased to HK$193.9 million as of December 31, 2022, compared to HK$151.0 million in 2021, mainly due to higher precious metal inventories[116]. - As of December 31, 2022, the Group's net current assets amounted to approximately HK$855.4 million, an increase from HK$684.1 million in 2021[128]. - Cash and bank balances as of December 31, 2022, were HK$851.2 million, up from HK$495.0 million in 2021[128]. - Total equity of the Group was HK$1,321.6 million as of December 31, 2022, compared to HK$1,101.5 million in 2021[129]. - The net asset value per share increased to HK$0.15 in 2022 from HK$0.13 in 2021[129]. - The Group's debt ratio was 39.0% as of December 31, 2022, compared to 36.6% in 2021[129]. - The Group did not have unsecured debt securities or short-term loans as of December 31, 2022, resulting in a gearing ratio of 0%[130]. Management and Governance - Mr. Cheng, the Executive Director, has extensive experience in property development and engineering management, having held various senior positions since 1984[174]. - Mr. Tang, the CEO, has over 20 years of senior management experience and has been with the group since August 2015[175]. - Mr. Lee, a non-executive director, has over 15 years of experience in corporate finance and investment, currently serving as a senior vice president at Chow Tai Fook Enterprises Limited[179]. - Mr. Yung, an independent non-executive director, has over 27 years of experience in finance and banking, previously serving as CEO of Landbridge Holdings Limited[184]. - Mr. Chiu, an independent non-executive director, has extensive experience in accounting and auditing services, currently serving as an independent director at DeTai New Energy Group Limited[185]. - Mr. Huang, an independent non-executive director, has over 30 years of experience in professional accounting, capital markets, and mergers and acquisitions[186]. - The company is focused on expanding its market presence and enhancing its strategic investments globally[179]. - The board includes members with diverse backgrounds in engineering, finance, and management, contributing to a well-rounded leadership team[190]. - The company is committed to innovation, as evidenced by Mr. Tang's U.S. Patent for wireless solar power transmission technology[177]. - The management team is well-equipped to navigate the complexities of the energy sector, leveraging their extensive industry experience[193]. Exploration and Reserves - The Group's total proved oil and gas reserves are 34.1 million barrels of oil equivalent (mmboe), a decrease from 40.0 mmboe as of December 31, 2021, representing a reduction of approximately 15%[162]. - The Greater Sierra Area holds 23.3 mmboe of total reserves as of December 31, 2022, down from 27.1 mmboe in 2021, indicating a decline of about 14%[162]. - In the Los Blancos Concession, proved oil reserves decreased from 1.3 million barrels (mmbbl) in 2021 to 0.5 mmbbl in 2022, a decline of approximately 62%[165]. - The Group holds approximately 92% average working interest in the mineral acreage on a Held By Production (HBP) basis, ensuring indefinite continuation of leases as long as there are producing wells[166]. - The reserves primarily consist of natural gas, accounting for approximately 95% of the total reserves[166]. - The Group's exploration and production activities are primarily located in British Columbia and Alberta, Canada[166]. - The Group's strategic focus includes enhancing oil and gas reserves through exploration and development in existing concessions[168].
新时代集团控股(00166) - 2022 - 年度财报