2022-07-03-港交所-百田石油_二零二一年报_203页_4mb

2021 Annual Report Summary

Core Content

This is the 2021 Annual Report of Polyard Petroleum International Group Limited (the "Company"), which provides an overview of the company's financial performance, business operations, and strategic direction. The report is structured in accordance with the GEM Listing Rules and includes key information regarding the company's corporate governance, financial statements, and management discussion and analysis.

Main Points

1. GEM Market Characteristics

• GEM is designed for small and mid-sized companies with higher investment risks.
• Securities traded on GEM may be more susceptible to market volatility compared to those on the Main Board.
• No assurance is given of a liquid market for GEM-traded securities.
• The Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for the contents of the report.

2. Company Structure and Governance

• The company has a board of directors comprising executive, non-executive, and independent non-executive directors.
• Mr. Lai Chun Liang is the Chairman and CEO and is also the Compliance Officer.
• Mr. Cheng Yun Sing CPA is the Company Secretary.
• Mr. Lai Chun Liang and Mr. Cheng Yun Sing CPA are the authorized representatives.
• The Audit Committee, Remuneration Committee, and Nomination Committee are in place, with members appointed or resigned during the year.

3. Financial Overview

• The Group did not generate any turnover in 2021 (2020: Nil).
• Net profit attributable to owners was approximately HK$74,472,000 (2020: loss of HK$25,069,000).
• Profit was primarily driven by the joint venture in the Philippines South Cebu Oil and Gas Project (SC49), with HK$158,713,000 of income from the project (2020: HK$20,817,000).
• Administrative and operating expenses decreased by HK$5,735,000 or 36.9% due to reduced business costs.
• Finance costs decreased to HK$26,023,000 (2020: HK$28,482,000), mainly due to the conversion of convertible bonds.

4. Convertibles and Debt Settlement

• The company has several convertible bonds outstanding, including:
  • CB A (HK$100,000,000): Extended from 2017 to 2019, partially transferred to East Asia.
  • CB A1 (HK$75,000,000): Fully converted into shares on 14 July 2020.
  • CB A2 (HK$25,000,000): Still outstanding, with settlement discussions ongoing.
  • CB B (HK$50,000,000): Extended from 2018 to 2019.
• Subscription agreements were signed with Mr. Lam Nam and East Asia in 2020, with HK$40,000,000 and HK$46,900,000 respectively.
• The subscription shares were issued on 15 January 2021.

5. Business Operations and Projects

• SC49 Project:
  • Located in South Cebu, Philippines, with hydrocarbon discoveries in prior drillings.
  • CIMP holds 80% participating interest, with the Group indirectly holding 50.4%.
  • The drilling plan for 2021 was postponed due to travel restrictions from the pandemic.
  • Drilling work is expected to resume in 2022 after the lifting of foreigner-entry restrictions.
  • The company is working on crude oil dehydration facilities and storage tanks, which are expected to be operational in 2022.
  • First phase oil refinery near the project site is planned, with land rented and equipment contracts signed.
  • A 48MW gas power plant is to be developed with China Huadian Engineering Co. Ltd. in March 2022.

6. Other Projects

• Philippines San Miguel Coal Mine Project:
  • Progressed to the development phase.
  • Operation was delayed due to the pandemic.
  • DOE granted a two-year moratorium in July 2021.
  • The company disposed of its indirect interest in Mexford Holdings Limited and its subsidiaries in November 2021, holding 64% of the coal mine project.

7. Future Outlook

• The Group remains cautious about the economic outlook due to uncertainties in the oil and gas industry and macroeconomic environment.
• The Company will continue to evaluate commercial feasibility of potential projects, especially small to medium-sized oil fields.
• The Group will seek operating funds from the financial market and focus exploration efforts on the SC49 project.
• The Company is working to ensure smooth development and production to maintain stable cash flow.

Key Information

• Company Name: Polyard Petroleum International Group Limited (百田石油國際集團有限公司)
• Registered Office: Cricket Square, Grand Cayman, Cayman Islands
• Legal Adviser: Stevenson, Wong & Co.
• Principal Place of Business in Hong Kong: Unit 06, 4/F., Lu Plaza, No.2 Wing Yip Street, Kwun Tong, Kowloon, Hong Kong
• Principal Share Registrar and Transfer Office in Cayman Islands: Suntera (Cayman) Limited
• Hong Kong Branch Share Registrar and Transfer Office: Tricor Standard Limited
• Auditors: Confucius International CPA Limited
• Principal Bankers:
  • The Hongkong and Shanghai Banking Corporation Limited
  • Bank of China (Hong Kong) Limited
• Company Website: www.ppig.com.hk

Summary of Financial Highlights

Conclusion

The report outlines the challenges faced by the company in 2021, particularly due to the ongoing impact of the pandemic, which delayed operations and affected oil demand. Despite these challenges, the company has made strategic moves to enhance its operations and expand downstream industrialization through partnerships and infrastructure development. The company remains focused on SC49 and is actively working to restore operations and improve financial stability in the coming year.