Corporate Governance and Management - As of June 30, 2023, the interests and short positions of the Directors and chief executive in the shares and debentures of the Company were recorded as per the Securities and Futures Ordinance[1] - The board of directors is responsible for ensuring the accuracy and completeness of the financial report, reflecting a commitment to transparency and accountability[13] - The independent non-executive Directors confirmed that the terms of the Possible Acquisition are fair and reasonable, aligning with the interests of the Company and its shareholders[3] - The Company has complied with the Corporate Governance Code provisions during the Interim Period, with no non-compliance reported[171] - The independent non-executive Directors have confirmed their independence, and the Company considers all of them to be independent[173] - The Company is considering the feasibility of appointing a separate chief executive to comply with HKSE Code provision A.2.1[171] Financial Performance - For the half year ended June 30, 2023, the company reported a loss of RMB 7,799,000, compared to a loss of RMB 11,729,000 in the same period of 2022, indicating an improvement in financial performance[20] - The total comprehensive income for the period attributable to equity shareholders was RMB 4,247,000, a recovery from a loss of RMB 4,493,000 in the previous year[20] - The company’s loss for the quarter ended June 30, 2023, was RMB 6,687,000, compared to a loss of RMB 4,664,000 in the same quarter of 2022[20] - The Group recorded a loss attributable to equity shareholders of approximately RMB 7,643,000 for the Interim Period[38] - The loss attributable to shareholders in the Interim Period was approximately RMB 7,643,000, with a decrease in losses primarily due to the disposal of Guangxi Beiliu business, which contributed RMB 7,812,000 of losses in the previous financial year[88] - The company reported a total comprehensive loss of RMB 10,527,000 for the period, compared to a loss of RMB 8,943,000 in the previous year[134] Revenue and Expenses - Revenue from gas supply connection services for the first half of 2023 was RMB 24,060,000, a decrease from RMB 92,377,000 in the same period of 2022[30] - The Group recorded a consolidated turnover of approximately RMB 101,486,000 for the Interim Period, representing a decrease of approximately 36% compared to the corresponding period of last year[88] - The gross profit for the half year ended June 30, 2023, was RMB 15,398,000, down from RMB 15,610,000 in the previous year[122] - The loss before taxation for the half year ended June 30, 2023, was RMB 7,733,000, compared to RMB 12,286,000 in 2022[122] - Finance costs decreased from RMB 1,590,000 to RMB 388,000 in the Interim Period, attributed to the absence of finance costs related to lease liabilities[88] Assets and Liabilities - As of June 30, 2023, the net current liabilities amounted to RMB (91,744) thousand, a significant increase from RMB (23,278) thousand as of December 31, 2022[44] - Total assets less current liabilities decreased to RMB 164,946 thousand from RMB 247,726 thousand, indicating a decline in the company's asset base[44] - The net assets of the company were reported at RMB 158,476 thousand, down from RMB 244,011 thousand, reflecting a substantial reduction in equity[44] - Current liabilities increased to RMB 268,493,000 as of June 30, 2023, compared to RMB 216,443,000 at the end of 2022[131] - Cash and bank balances at June 30, 2023, were RMB 142,873,000, down from RMB 150,434,000 at the beginning of the year[123] Share Capital and Dividends - The Board does not recommend the payment of any dividend for the Interim Period[38] - The balance at 30 June 2023 for share capital was RMB 26,124,000, with total equity amounting to RMB 158,476,000[25] - The company’s share capital increased to RMB 26,124 thousand from RMB 17,133 thousand, indicating a potential capital raise or restructuring[44] - A special dividend of HK$0.2576 per share was declared on June 19, 2023, payable on July 26, 2023[107] Acquisitions and Investments - The Company is in the process of acquiring an additional 20% equity interest in Huiyang New Energy for a bidding price of RMB 6,723,800, which will result in the Company owning 100% of Huiyang New Energy[8] - The completion of the acquisition of Huiyang New Energy took place on April 19, 2023[3] - The Possible Acquisition of Huiyang New Energy constitutes a discloseable transaction under GEM Listing Rules, requiring only reporting and announcement without independent shareholders' approval[3] - The Company conditionally agreed to purchase the entire issued share capital of Global Billion Holdings Limited for HK$42,523,400 (approximately RMB 38,500,000), completed on January 16, 2023[107] Operational Developments - The Group's raw gas supply consolidation is expected to enhance vertical integration, reducing exposure to external risks and providing new profit growth opportunities through collaboration with city gas pipeline networks[6] - The successful development of technology for synthesizing natural gas from self-produced well gas and C-H is expected to stabilize supply and reduce operational risks[6] - The daily gas output from the upstream business is insufficient to fully utilize the liquefaction plant's capacity of 500,000 cubic meters[115] - The Group plans to build 10 new pieces of equipment in 2024, each capable of producing 50,000 cubic meters of natural gas per day[115] - The Group's production capacity of the LNG plants remained at approximately 500,000 cubic meters per day, with an average daily production of around 120,000 cubic meters during the interim period[104] Staff and Human Resources - As of June 30, 2023, the Group employed 237 staff, with a total staff cost of approximately RMB 12,162,000, up from RMB 9,632,000 in the same period of 2022[109] - The company’s share option scheme was conditionally adopted on March 28, 2022, to attract and retain talent, with no material differences from the previous scheme[81] Share Options and Securities - The company had granted a total of 32,119,074 options under the Previous Share Option Scheme, all of which have lapsed, resulting in no options remaining outstanding[156] - As of June 30, 2023, there are 13,327,503 options outstanding with a weighted average exercise price of HK$0.456[162] - During the period, 12,647,500 options were exercised at a weighted average exercise price of HK$0.456[162] - The New Share Option Scheme adopted on March 28, 2022, will remain in force for 10 years, expiring on March 27, 2032[156] Future Outlook - The company is committed to enhancing its market presence and exploring new strategies for growth, although specific details on new products or technologies were not disclosed in the interim report[20] - The Group plans to obtain financing to improve cash position for its capital-intensive natural gas drilling program, with no current plans for acquisitions or scaling down of any business[105] - The Group intends to conduct an advanced demonstration of the experimental equipment overseas in 2023[115]
中国煤层气(08270) - 2023 - 中期财报