Interim Report 2020

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Interim Report 2020 Contents PAGES CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND 2 OTHER COMPREHENSIVE INCOME CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 4 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 6 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 7 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 9 INTERIM DIVIDEND 35 MANAGEMENT DISCUSSION AND ANALYSIS 36 CHANGE IN DIRECTORSHIP 51 DIRECTORS’ AND CHIEF EXECUTIVES’ INTEREST IN SHARES 51 AND UNDERLYING SHARES SUBSTANTIAL SHAREHOLDERS’ INTEREST IN SHARES 52 AND UNDERLYING SHARES CORPORATE GOVERNANCE AND OTHER INFORMATION 53 Interim Report 2020 NewOcean Energy Holdings Limited 1 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended 30 June 2020 Six months ended 30 June 2020 2019 (Unaudited) (Unaudited) Notes HK$’000 HK$’000 Revenue 4 12,646,211 14,295,140 Cost of sales (12,594,313) (13,407,330) Gross profit 51,898 887,810 Other gains and losses 5 (317,721) 12,907 Other income 6 78,125 31,938 Selling and distribution expenses (262,290) (249,230) Administrative expenses (181,761) (192,089) Impairment losses on trade and other receivables (554,012) (8,000) Finance costs (146,282) (169,569) Share of profits (losses) of joint ventures 1,836 (287) Share of profit of an associate 278 608 (Loss) profit before taxation 7 (1,329,929) 314,088 Taxation 8 (20,803) (12,900) (Loss) profit for the period (1,350,732) 301,188 Other comprehensive (expense) income: Item that will not be reclassified to profit or loss: Exchange differences arising on translation to presentation currency (147,124) (79,996) Item that may be reclassified to profit or loss: Exchange differences arising on translation of foreign operations 69,548 30,412 Other comprehensive expense (77,576) (49,584) Total comprehensive (expense) income for the period (1,428,308) 251,604 2 NewOcean Energy Holdings Limited Interim Report 2020 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Continued) For the six months ended 30 June 2020 Six months ended 30 June 2020 2019 (Unaudited) (Unaudited) Note HK$’000 HK$’000 (Loss) profit for the period attributable to: Owners of the Company (1,243,385) 370,568 Non-controlling interests (107,347) (69,380) (1,350,732) 301,188 Total comprehensive (expense) income for the period attributable to: Owners of the Company (1,318,966) 320,043 Non-controlling interests (109,342) (68,439) (1,428,308) 251,604 Basic (loss) earnings per share 9 HK$(0.847) HK$0.252 Interim Report 2020 NewOcean Energy Holdings Limited 3 Condensed Consolidated Statement of Financial Position At 30 June 2020 As at As at 30 June 31 December 2020 2019 (Unaudited) (Audited) Notes HK$’000 HK$’000 Non-current assets Property, plant and equipment 11 2,139,366 2,254,174 Right-of-use assets 11 505,760 559,486 Goodwill 744,040 766,973 Other intangible assets 156,086 178,202 Interest in an associate 6,797 6,689 Interests in joint ventures 20,805 19,265 Deposits paid and prepayments 12 848,126 693,407 Deferred tax assets 810 821 4,421,790 4,479,017 Current assets Inventories 1,958,314 1,410,456 Trade receivables 13 3,600,286 4,778,317 Other debtors, deposits and prepayments 13 1,704,817 2,429,078 Amount due from an associate 13 6,234 6,716 Derivative financial instruments 46,948 6,606 Properties held for sales 144,698 146,841 Properties under development for sales 756,585 766,253 Pledged bank deposits 14 354,961 360,218 Bank balances and cash 1,384,744 2,288,684 9,957,587 12,193,169 4 NewOcean Energy Holdings Limited Interim Report 2020 Condensed Consolidated Statement of Financial Position (Continued) At 30 June 2020 As at As at 30 June 31 December 2020 2019 (Unaudited) (Audited) Notes HK$’000 HK$’000 Current liabilities Trade payables 15 443,327 974,192 Other creditors and accrued charges 230,820 211,974 Contracts liabilities 88,946 78,909 Lease liabilities 59,018 57,868 Amount due to an associate 10,174 9,480 Amount due to a joint venture 10,989 5,576 Derivative financial instruments 126,697 9,787 Tax liabilities 129,135 117,100 Borrowings secured by pledged bank deposits – repayable within one year 16 328,487 328,487 Borrowings secured by other assets – repayable within one year 16 27,520 12,529 Borrowings unsecured – repayable within one year 16 6,228,826 5,340,256 7,683,939 7,146,158 Net current assets 2,273,648 5,047,011 Total assets less current liabilities 6,695,438 9,526,028 Capital and reserves Share capital 17 146,812 146,812 Share premium and other reserves 6,543,900 7,862,866 Equity attributable to owners of the Company 6,690,712 8,009,678 Non-controlling interests (144,896) (35,554) Total equity 6,545,816 7,974,124 Non-current liabilities Deferred tax liabilities 60,574 64,280 Borrowings secured by other assets – repayable over one year 16 — 21,302 Borrowings unsecured – repayable over one year 16 — 1,351,836 Lease liabilities 89,048 114,486 149,622 1,551,904 6,695,438 9,526,028 Interim Report 2020 NewOcean Energy Holdings Limited 5 Condensed Consolidated Statement of Changes in Equity For the six months ended 30 June 2020 Attributable to owners of the Company Statutory Contributed Capital Non- Share Share Special surplus Exchange surplus Other redemption Retained controlling capital premium reserve reserves reserve accounts reserve reserve profits Total interests Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 (Note i) (Note ii) At 1 January 2020 (audited) 146,812 1,415,719 122,085 72,101 (244,582) 1,667 (127) 1,228 6,494,775 8,009,678 (35,554) 7,974,124 Loss for the period — — — — — — — — (1,243,385) (1,243,385) (107,347) (1,350,732) Exchange difference arising on translation to presentation currency — — — — (147,894) — — — — (147,894) 770 (147,124) Exchange difference arising on translation of foreign operations — — — — 72,313 — — — — 72,313 (2,765) 69,548 Total comprehensive expense for the period — — — — (75,581) — — — (1,243,385) (1,318,966) (109,342) (1,428,308) Appropriations — — — 3,447 — — — — (3,447) — — — At 30 June 2020 (unaudited) 146,812 1,415,719 122,085 75,548 (320,163) 1,667 (127) 1,228 5,247,943 6,690,712 (144,896) 6,545,816 At 1 January 2019 (audited) 146,812 1,415,719 122,085 68,523 (146,599) 1,667 (127) 1,228 5,856,178 7,465,486 (23,604) 7,441,882 Profit (loss) for the period — — — — — — — — 370,568 370,568 (69,380) 301,188 Exchange difference arising on translation to presentation currency — — — — (81,068) — — — — (81,068) 1,072 (79,996) Exchange difference arising on translation of foreign operations — — — — 30,543 — — — — 30,543 (131) 30,412 Total comprehensive (expense) income for the period — — — — (50,525) — — — 370,568 320,043 (68,439) 251,604 Appropriations — — — 996 — — — — (996) — — — Capital contribution from a non-controlling interest of a subsidiary — — — — — — — — — — 23,086 23,086 At 30 June 2019 (unaudited) 146,812 1,415,719 122,085 69,519 (197,124) 1,667 (127) 1,228 6,225,750 7,785,529 (68,957) 7,716,572 Notes: (i) The special reserve of the Group represents the difference between the share capital, share premium and capital redemption reserve of the Group’s former ultimate holding company whose shares were exchanged for the Company’s shares and the nominal amount of the share capital issued by the Company pursuant to a scheme of arrangement dated 14 April 1999. (ii) The statutory surplus reserves represent enterprise development and general reserve funds appropriated from the profit after taxation of subsidiaries established in the People’s Republic of China (the “PRC”) in accordance with the PRC laws and regulations. 6 NewOcean Energy Holdings Limited Interim Report 2020 Condensed Consolidated Statement of Cash Flows For the six months ended 30 June 2020 Six months ended 30 June 2020 2019 (Unaudited) (Unaudited) Notes HK$’000 HK$’000 Net cash generated from operating activities Operating cash flows before movements in working capital (272,145) 577,352 Increase in inventories (549,052) (25,242) Decrease (increase) in trade receivables 622,983 (149,684) Decrease (increase) in other debtors, deposits and prepayments 1,103,739 (28,488) Decrease in trade payables (526,294) (93,934) Other operating cash flows (net) (9,126) (124,425) 370,105 155,579 Net cash used in investing activities Interest received 60,441 13,467 Purchase of property, plant and equipment 11 (138,219) (57,683) Acquisition of a subsidiary 18 — (18,086) Loan advances to independent third parties (445,841) — Increase in deposits paid (164,954) — Other investing cash flows (net) 38,272 (80,803) (650,301) (143,105) Interim Report 2020 NewOcean Energy Holdings Limited 7 Condensed Consolidated Statement of Cash Flows (Continued) For the six months ended 30 June 2020 Six months ended 30 June 2020 2019 (Unaudited) (Unaudited) HK$’000 HK$’000 Net cash used in financing activities New borrowings raised 13,992,734 12,081,460 Repayments of borrowings (14,458,913) (12,626,657) Other financing cash flows (net) (181,611) (143,103) (647,790) (688,300) Net decrease in cash and cash equivalents (927,986) (675,826) Cash and cash equivalents at beginning of the period 2,288,684 2,295,797 Effect of foreign exchange rate changes 24,046 (15,708) Cash and cash equivalents at end of the period, represented by bank balances and cash 1,384,744 1,604,263 8 NewOcean Energy Holdings Limited Interim Report 2020 Notes to the Condensed Consolidated Financial Statements For the six months ended 30 June 2020 1.
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