TIDMGEL
RNS Number : 7228Z
Greka Engineering & Technology Ltd
22 September 2015
22 September 2015
GREKA ENGINEERING & TECHNOLOGY LTD.
("Greka Engineering" or the "Company")
Interim Results 2015
Greka Engineering & Technology Ltd. (AIM: GEL), the
unconventional gas sector engineering and technology business with
pipeline, gas compression and power generation assets in China,
announces its unaudited financial results for the six months ended
30 June 2015.
FINANCIAL HIGHLIGHTS
-- Group revenue of US$2.7m (H1 2014: US$2.7m)
o Unconventional Gas Gathering revenue increased 29% to US$0.9m
(H1 2014: US$0.7m)
o Electricity Generation revenue increased 83% to US$1.1m (H1
2014: US$0.6m)
o Engineering and Technologies revenue decreased 64% to US$0.5m
(H1 2014: US$1.4m)
o Construction revenue of US$0.2m
-- Gross profit increased 26% to US$0.7m (H1 2014: US$0.6m)
-- EBITDA of US$0.3m (H1 2014: US$0.3m)
-- Loss per share reduced 20% to US$0.12 (1H 2014: loss per share of US$0.15)
-- Cash and bank deposits of US$3.0m at period end (FY 2014: US$2.6m)
OPERATIONAL HIGHLIGHTS
-- Unconventional Gas Gathering and Transmission
o Gas volume processed of 661,244 MCF (18.7MCM), a 21% increase
over comparative period (H1 2014: 548,137 MCF or 15.5MCM)
o Sales volume of 577,656 MCF (16.4 MCM), representing growth of
21% over comparative period (H1 2014: 477,720 MCF processed for
sale (13.5 MCM))
o Total pipeline owned and managed by the Company of 51.9km
o No lost time due to injury or accident
-- Electricity Generation
o 8,676,154 kwh of electricity generated during period, a 23%
increase over comparative period (H1 2014: 7,067,193 kwh)
o Sales volume of 7,080,091 kwh, representing growth of 29% over
comparative period (H1 2014: 5,486,457 kwh)
o Total power line owned and managed by the Company of
79.6km
o Signed power supply contract with CUCBM (China United Coalbed
Methane Corporation, Ltd. , a CNOOC subsidiary)
o No lost time due to injury or accident
-- Engineering & Technologies
o Sales volume of 31 gas dispensers, 48% decrease in equipment
sales
o Total customers 156 (2014:147)
o No lost time due to injury or accident
o Developed two new products (LNG pump & intelligent movable
CNG dispensers)
Mr. Randeep S. Grewal, Chairman of Greka Engineering,
commented:
"We are quite pleased with the results at half year. The
expected reduction in equipment sales was well off-set by an
increase in the core business of processing and transporting gas
and generating power. The continuing expansion in the client base
for power sales demonstrates the potential within this new market
segment for the Company."
For more information of Greka Engineering, please visit the
company website at www.grekaengineering.com or contact:
Smith & Williamson
Nominated Adviser
Dr Azhic Basirov / David Jones / Ben
Jeynes +44 20 7131 4000
-------------------------------------- ---------------------
WH Ireland
Broker
Tim Feather / Liam Gribben +44 113 394 6600
-------------------------------------- ---------------------
Walbrook + 44 20 7933 8780
Media & Investor Relations get@walbrookpr.com
Paul Cornelius / Guy McDougall
-------------------------------------- ---------------------
About Greka Engineering & Technology
Greka Engineering & Technology Ltd., (AIM; GEL) was demerged
from Green Dragon Gas Ltd. (AIM; GDG) via a dividend in specie and
was admitted to trading on AIM in September 2013.
Greka Engineering offers turnkey solutions to over 100 upstream,
midstream and downstream gas suppliers. The Company's technologies
include Compressed Natural Gas/Liquefied Natural Gas (CNG/LNG)
compressor equipment, CNG retail dispenser equipment and CBM
wellhead extraction technologies. The Company also supplies
proprietary Integrated Circuit Card Point of Sale (ICC POS) and
Supervisory Control and Data Acquisition (SCADA) software and
hardware solutions for the remote management of transmission
systems, power facilities, vehicle management and retail
services.
In addition, the Company invests in, operates and maintains
wholly owned assets for its customers in return for service
contracts based on the volume management.
The Company has historically completed several Engineering,
Procurement, Construction and Management (EPCM) contracts including
the design, construction and management of gas gathering systems, a
gas pipeline in Shanxi Province to the China West-East pipeline,
the installation and commissioning of a 10MW gas-fired power
facility in the Shanxi province and the construction of CNG retail
stations.
Chairman's Statement
During the six months under review, the Company made progress in
several areas including expanding the Integrated Production
Facility and signing a new power contract with CUCBM. As a result,
I am pleased to report H1 revenue of US$2.7m despite revenue from
equipment sales bring significantly lower than the comparative
period in 2014.
The Company continued to build and improve on our infrastructure
assets to increase capacity with the objective of providing
continued revenue growth and at the same time meeting the demand
from our key customer, Green Dragon Gas. It is notable that CUCBM,
also within the same gas production block, as expected continues to
increase its demand for services from the Company. Furthermore, the
Company successfully negotiated a connecting fee structure based on
length of required pipelines from its clients so as to reduce our
capital expenditure exposure.
In this first half, 9 new wells with 10km of additional pipe
line were successfully connected to our gas gathering system which,
along with some optimisation, increased our processed gas volume by
21% from 548,137 MCF or 15.5MCM in H1 2014 to 661,244 MCF
(18.7MCM), a 19% increase in average daily volume. This provided
33% of revenue, a 7% increase over 26% in H1 2014.
We built an additional 7.8 km of power lines to supply an
additional 21 wells for Green Dragon Gas. As a result, the Company
now has a total of 79.6km of power lines. We also saw substantial
growth within our power generation business. Jiaqin Agriculture
Company (our first unaffiliated client for power) completed its
equipment test process and began to use our power. We also signed a
milestone power contract with CUCBM for an additional 54 wells
following the successful implementation of the initial test of the
9 wells previously connected into the Company's power station last
year. As a result, 8,676,154 kwh of electricity was generated
during the period, a 23% increase over comparative period (H1 2014:
7,067,193 kwh), resulting in an 83% increase in power revenue (H1
2015: US$1.1m compared to H1 2014: US$0.5m). Revenue from power
generation provided 41% of the Company's overall revenue (H1 2014:
22%).
In accordance with our objective this year, the Company
successfully completed research on the development of C/LNG pump
skids, a new product which will be launched later this year. We
expect this new product to meet the evolving industry demand for
dual fuel capability. Once in production, we hope to reverse our
declining product sales.
In our technology division, the Company signed two contracts
including 10 SCADA systems for wellheads and one SCADA system for a
CNG retail gas station with Green Dragon Gas. These projects are
ongoing and we expect to complete them by the year end.
It has been a busy first half year within each of our segments.
While the equipment manufacturing division focused on evolving from
CNG dispensers to C/LNG dispensers, each of the other segments saw
organic growth. This is expected to continue in the second half of
the year.
I look forward to providing further updates in due course.
Randeep S. Grewal
Chairman
22 September 2015
Consolidated Statement of Comprehensive Income
Six months Six months Year ended
ended 30 June ended 30 31 December
2015 June 2014 2014
US$'000 US$'000 US$'000
Note Unaudited Unaudited Audited
----------------------------------------- ------- ------------------ ------------------ ------------------
Revenue 3 2,732 2,674 5,233
Cost of sales (2,030) (2,116) (4,083)
----------------------------------------- ------- ------------------ ------------------ ------------------
Gross profit 702 558 1,150
Selling and distribution (111) (126) (294)
Administrative expenses (1,192) (1,196) (2,831)
Other operating loss 6 1 9
----------------------------------------- ------- ------------------ ------------------ ------------------
Total administrative expenses (1,297) (1,321) (3,116)
Loss from operations (595) (763) (1,966)
Finance income 4 1 - 2
Finance costs 4 (32) (24) (58)
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September 22, 2015 02:00 ET (06:00 GMT)
----------------------------------------- ------- ------------------ ------------------ ------------------
Loss before income tax (626) (787) (2,022)
Income tax credit 6 60 45 78
----------------------------------------- ------- ------------------ ------------------ ------------------
Loss for the year from continuing
operations (566) (742) (1,944)
Profit from discontinuing operations 7 92 135 241
----------------------------------------- ------- ------------------ ------------------ ------------------
Loss for the period (474) (607) (1,703)
Other comprehensive(expense)income
that may be reclassified subsequently
to profit or loss:
Exchange differences on translation
foreign operations (6) (159) (95)
----------------------------------------- ------- ------------------ ------------------ ------------------
Total comprehensive losses for
the period (480) (766) (1,798)
----------------------------------------- ------- ------------------ ------------------ ------------------
Loss attributable to:
- Owners of the company (474) (607) (1,703)
----------------------------------------- ------- ------------------ ------------------ ------------------
Total comprehensive income attributable
to:
- Owners of the company (480) (766) (1,798)
----------------------------------------- ------- ------------------ ------------------ ------------------
Basic and diluted loss per share
attributable to owners of the company
arising from:
- Continuing operations (cents) 5 (0.14) (0.18) (0.47)
- Discontinuing operations (cents) 5 0.02 0.03 0.05
Total (0.12) (0.15) (0.42)
----------------------------------------- ------- ------------------ ------------------ ------------------
Consolidated Statement of Financial Position
As at 31
As at 30 As at 30 December
June 2015 June 2014 2014
US$'000 US$'000 US$'000
Note Unaudited Unaudited Audited
------------------------------------- --------- -------------------- -------------------- --------------------
ASSETS
Non-current Assets
Property, Plant and Equipment 8 21,141 24,476 20,738
Intangible assets 1,654 2,151 1,901
22,795 26,627 22,639
------------------------------------- --------- -------------------- -------------------- --------------------
Current assets
Inventories 9 1,568 1,778 1,978
Trade and other receivables 10 8,349 8,049 9,731
Cash and cash equivalents 2,961 2,829 2,626
------------------------------------- --------- -------------------- -------------------- --------------------
12,878 12,656 14,335
------------------------------------- --------- -------------------- -------------------- --------------------
Assets held for sale 7 1,753 1,753 1,753
------------------------------------- --------- -------------------- -------------------- --------------------
Total assets 37,426 41,036 38,727
------------------------------------- --------- -------------------- -------------------- --------------------
LIABILITIES
Current liabilities
Trade and other payables 11 3,733 5,066 3,830
Loans and borrowings 12 4,056 4,680 4,706
Current tax liabilities 17 12
------------------------------------- --------- -------------------- -------------------- --------------------
7,789 9,763 8,548
Non-current liabilities
Deferred taxation liabilities 13 413 537 475
413 537 475
------------------------------------- --------- -------------------- -------------------- --------------------
TOTAL LIABILITIES 8,202 10,300 9,023
------------------------------------- --------- -------------------- -------------------- --------------------
Total net assets /(liabilities) 29,224 30,736 29,704
------------------------------------- --------- -------------------- -------------------- --------------------
Capital and reserves
Share capital 4 4 4
Share premium account 35,949 35,949 35,949
Foreign exchange reserve 534 476 540
Accumulated losses (7,263) (5,693) (6,789)
------------------------------------- --------- -------------------- -------------------- --------------------
Total equity attributable to owners
of the Company 29,224 30,736 29,704
Consolidated Statement of Changes in Equity
Foreign
Share Share exchange Accumulated
capital premium reserve losses Total
US$'000 US$'000 US$'000 US$'000 US$'000
------------------------------------- --------- --------- ---------- ------------ --------
At 1 January 2014 4 35,949 635 (5,086) 31,502
------------------------------------- --------- --------- ---------- ------------ --------
Loss for the year (607) (607)
Other comprehensive income:
Items that will may be reclassified
subsequently to profit or
loss:
- Exchange difference on
translation of foreign operations (159) (159)
------------------------------------- --------- --------- ---------- ------------ --------
Total comprehensive income
for the period (159) (607) (766)
At 30 June 2014 4 35,949 476 (5,693) 30,736
------------------------------------- --------- --------- ---------- ------------ --------
At 1 January 2015 4 35,949 540 (6,789) 29,704
------------------------------------- --------- --------- ---------- ------------ --------
Loss for the period (474) (474)
Other comprehensive income:
Items that will may be reclassified
subsequently to profit or
loss:
- Exchange difference on
translation of foreign operations (6) (6)
------------------------------------- --------- --------- ---------- ------------ --------
Total comprehensive income
for the period (6) (474) (480)
At 30 June 2015 4 35,949 534 (7,263) 29,224
------------------------------------- --------- --------- ---------- ------------ --------
The following describes the nature and purpose of each reserve
within owners' equity:
-- Share capital: Amount subscribed for share capital at nominal value.
-- Share premium: Amount subscribed for share capital in excess
of nominal value, including capital contributions
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-- Foreign exchange reserve: Foreign exchange differences
arising on translating the results, assets and liabilities of
foreign operations into the reporting currency.
-- Retained deficit: Cumulative net gains and losses recognized in profit or loss.
Consolidated Statement of Cash Flows
Six months Six months Year ended
ended 30 ended 30 31 December
June 2015 June 2014 2014
US$'000 US$'000 US$'000
Unaudited Unaudited Audited
----------------------------------------- ------------------ ------------------ -------------------
Operating activities
(Loss) / Profit before income
tax (626) (787) (2,022)
Loss before tax from discontinuing
operations 92 135 241
----------------------------------------- ------------------ ------------------ -------------------
(534) (652) (1,781)
Adjustments for:
Depreciation 575 825 1,022
Amortisation of other intangible
assets 247 247 495
Loss on disposal of property, (1) - -
plant and equipment
Finance income (1) - (2)
Finance costs 32 24 58
----------------------------------------- ------------------ ------------------ -------------------
Operating cash flows before changes
in working capital 318 282 (208)
Movement in inventories 412 230 (93)
Movement in trade and other receivables (380) (423) 208
Movement in trade and other payables 1,811 (515) (549)
----------------------------------------- ------------------ ------------------ -------------------
Cash generated(utilized by) / generated
from operations 2,161 (426) (642)
Income tax payment 60 (13) 78
----------------------------------------- ------------------ ------------------ -------------------
Net cash generated (utilized by)
/ generated from operating activities 2,221 (439) (564)
----------------------------------------- ------------------ ------------------ -------------------
Investing activities
Payments for purchase of property,
plant and equipment (1,203) (206)
Payments for intangible assets - -
Proceeds from disposal of property, - -
plant and equipment
Cash acquired with subsidiary - - -
undertaking
Interest received 1 2
-----------------------------------------
Net cash used in investing activities (1,202) - (204)
----------------------------------------- ------------------ ------------------ -------------------
Financing activities
Proceeds from the issue of share, -
net of issue costs
Proceeds of short term loan 607 650
Repayment of short term loan (654) (650) (650)
Finance costs paid (32) (24) (58)
Net cash (used in)/from financing
activities (686) (67) (58)
----------------------------------------- ------------------ ------------------ -------------------
Net (decrease)/increase in cash
and cash equivalents 333 (506) (826)
Cash and cash equivalents at the
beginning of the year 2,626 3,494 3,494
----------------------------------------- ------------------ ------------------ -------------------
2,959 2,988 2,668
Effect of foreign exchange rate
changes 2 (159) (42)
----------------------------------------- ------------------ ------------------ -------------------
Cash and cash equivalents at end
of period 2,961 2,829 2,626
========================================= ================== ================== ===================
Notes to the financial information
1. GENERAL
Greka Engineering & Technology Limited ("the Company") is
incorporated in Cayman Islands under the Companies Law (2010
Revision) of the Cayman Islands. The registered office and
principal place of business of the Company are located at PO Box
472, 2nd floor, Harbour Place, 103 South Church Street, George
Town, Grand Cayman KY1-1106, Cayman Islands and 12/F., No. 5
Building, Hua Meilong Plaza, Jing Wu Nan Road, Economy and
Technology Development District, Zhengzhou, PRC respectively.
The Company is an investment holding company for a group of
companies whose principal activities consist of the provision of
engineering, procurement, construction and management for
infrastructure projects in the PRC. These businesses are
hereinafter collectively referred to as the "Group".
2. PRINCIPAL ACCOUNTING POLICIES
The interim financial statements are presented in United States
dollars which is same as the functional currency of the Company.
The functional currency of the subsidiaries of the Group is the
Chinese Renminbi.
Basis of preparation
The condensed financial information for the six months ended 30
June 2015 and 30 June 2014 is unaudited and does not constitute the
Group's statutory financial statements for those periods. The
condensed consolidated financial information should be read in
conjunction with the annual financial statements for the year ended
31 December 2014, which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union except for IAS 34. The financial statements of
the Group for the 6 months ended 30 June 2015 were approved and
authorized for issue by the Audit Committee and the Board on 21
September 2015.
The interim financial statements have been prepared in
accordance with the accounting policies that are consistent with
the December 2014 financial statements and the same policies are
expected to apply for the year ended 31 December 2015. The
financial information for the six months to 30 June 2015 does not
constitute audited accounts of the Company or the Group. The
accounts for the year ended 31 December 2014 were audited and the
auditor's report for the year ended 31 December 2014 was
unqualified add did not include any references to any matters to
which auditors drew attention by way of emphasis.
After making enquiries, the directors have a reasonable
expectation that the Company and the Group have adequate resources
to continue in operational existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in
preparing the half-yearly condensed financial statements.
The financial information is presented in United States dollars
and all values are rounded to the nearest thousand dollars
(US$'000) except when otherwise indicated.
The preparation of financial information in conformity with
IFRSs requires the use of certain critical accounting estimates. It
also requires management to exercise its judgment in the process of
applying the Group's accounting policies. Actual results may differ
from these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized in
the period in which the estimate is revised if the revision only
affects that period or in the period of revision and future periods
if the revision affects both current and future periods.
3. REVENUE AND SEGMENT INFORMATION
The Group determines its operating segments based on the reports
reviewed by the chief operating decision-makers ("CODMs") that are
used to make strategic decisions.
The Group reports its operations as two reportable segments: gas
equipment sales and the provision of contract infrastructure
services in the People's Republic of China (the "PRC"). The
division of the engineering and technology operations into two
reportable segments is reflective of how the CODMs manage the
business.
The accounting policies of the reportable segments are the same
as those described in the summary of principal accounting policies
(see Note 2). The Group evaluates the performance of its operating
segments based on revenues from external customers and segmental
profits.
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Six months Ended 30 June 2015 - unaudited
Gas equipment Infrastructure Consolidated from
sales services continuing operations
US$'000 US$'000 US$'000
--------------------- ---------------------- ---------------- ------------------------------
Revenue 571 2,161 2,732
Cost of sales (421) (1,609) (2,030)
Gross profit/(loss) 150 552 702
As at 30 June 2015 - unaudited
Transportation
Gas equipment Infrastructure Services (Discontinued
sales services Operations) Intercompany Consolidated
US$'000 US$'000 US$'000 US$'000 US$'000
--------------------- -------------- --------------- ------------------------ ------------------ ----------------
Segment assets 5,346 32,715 1,753 (2,388) 37,426
Segment liabilities 11,460 35,083 (38,341) 8,202
Six months Ended 30 June 2014 - unaudited
Gas equipment Infrastructure Consolidated from continuing
sales services operations
US$'000 US$'000 US$'000
--------------- ----------------- ---------------- ------------------------------
Revenue 1,326 1,348 2,674
Cost of sales (1,049) (1,067) (2,116)
Gross profit 277 281 558
As at 30 June 2014 - unaudited
Transportation
Services
Gas equipment Infrastructure (Discontinued
sales services Operations) Intercompany Consolidated
US$'000 US$'000 US$'000 US$'000 US$'000
--------------------- -------------- --------------- ------------------ -------------------- ---------------
Segment assets 7,060 32,267 1,753 (44) 41,036
Segment liabilities 9,868 36,429 - (35,997) 10,300
Year Ended 31 December 2014-Audited
Consolidated
Gas equipment Infrastructure from continuing
sales services Intercompany operations
US$'000 US$'000 US$'000 US$'000
--------------------- --------------------- ---------------- ----------------- -----------------------------
Revenue 1,973 3,734 (474) 5,233
Cost of sales (1,488) (3,069) 474 (4,083)
Gross profit/(loss) 485 665 1,150
As at 31 December 2014-Audited
Transportation
Services
Gas equipment Infrastructure (Discontinued
sales services Operations) Intercompany Consolidated
US$'000 US$'000 US$'000 US$'000 US$'000
--------------------- -------------- --------------- ------------------ ------------------ ----------------
Segment assets 5,773 32,632 1,753 (1,431) 38,727
Segment liabilities 11,024 35,321 (37,322) 9,023
Gas equipment sales represent the net invoiced value of gas
equipment sales provided to 39 (2014:51) customers for the period.
Infrastructure services represent sales to wholly owned
subsidiaries of the Green Dragon Gas group, the Greka Drilling
Limited group and three external customers.
4. FINANCE INCOME / EXPENSES
Six months Six months Year ended
ended 30 ended 30 June 31 December
June 2015 2014 2014
US$'000 US$'000 US$'000
------------------------ ----------------- ----------------- ------------------
Unaudited Unaudited Audited
Bank interest income 1 - 2
------------------------ ----------------- ----------------- ------------------
Bank interest expenses 32 24 58
------------------------ ----------------- ----------------- ------------------
5. LOSS PER SHARE
The calculation of the basic and diluted earnings per share
attributable to the owners of the Company is based on the following
data:
There were no potentially dilutive instruments. The basic and
diluted loss per share are equal as the Company has no dilutive
instruments. There have been no shares or potentially dilutive
instruments issued between year-end and the date these financial
statements were approved.
Six months Six months Year ended
ended 30 June ended 30 31 December
2015 June 2014 2014
US$'000 US$'000 US$'000
---------------------------------- ---------------- --------------- ---------------
Unaudited Unaudited Audited
Loss for the year
-Continuing operations (566) (742) (1,944)
-Discontinuing operations 92 135 241
---------------------------------- ---------------- --------------- ---------------
Loss for the purpose of basic
and diluted loss per share (474) (607) (1,703)
---------------------------------- ---------------- --------------- ---------------
Denominators
Number of shares used in basic
and diluted loss calculations 409,622,133 409,622,133 409,622,133
Basic and diluted loss per share
(cents)
- Continuing operations (0.14) (0.18) (0.47)
- Discontinuing operations 0.02 0.03 0.050
---------------------------------- ---------------- --------------- ---------------
6. TAXATION
The Company is incorporated in the Cayman Islands and is not
subject to income tax. The primary operating companies are
incorporated in the PRC and are subject to 25% tax rates.
7. ASSETS HELD FOR SALE / DISCONTINUING OPERATIONS
The strategy of the Group is to develop its engineering and
technology operations. In order to focus on the delivery of this
strategy, prior to the demerger from Green Dragon Gas Ltd, during
2012 one of the Company's subsidiaries agreed a proposal to sell
its non-core transportation operations to subsidiaries being
retained within the Green Dragon Gas Ltd group following the
demerger. Subsequently, it entered a legal agreement with Green
Dragon Gas Limited on 1 July 2013 to dispose of motor vehicles and
equipment for $1,753,357 of cash consideration in line with the
previously agreed proposals. Notwithstanding the period that has
elapsed between meeting the requirements for classification as
assets held for sale, the Group remains committed to the disposal
and expects it to complete in due course. The completion of the
transaction is subject to obtaining necessary legislative
approvals.
The following are the totals for the major classes of assets
relating to the Group's transportation operation at the end of the
reporting period:
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2015 2014 2014
US$'000 US$'000 US$'000
------------------------ ------------------------ ------------------------ ------------------------
Unaudited Unaudited Audited
Motor vehicles 1,733 1,733 1,733
Fixtures, fittings and
equipment 17 17 17
(MORE TO FOLLOW) Dow Jones Newswires
September 22, 2015 02:00 ET (06:00 GMT)
Plant and machinery 3 3 3
------------------------- ------------------------ ------------------------ ------------------------
1,753 1,753 1,753
------------------------ ------------------------ ------------------------ ------------------------
The loss on discontinuing operations in the Consolidated
Statement of Comprehensive Income can be analysed, as follows:
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2015 2014 2014
US$'000 US$'000 US$'000
------------------ --------------------- --------------------- --------------------
Unaudited Unaudited Audited
Transportation
service revenue 131 190 387
Cost of sales (39) (55) (146)
Administrative
expenses
------------------ --------------------- --------------------- --------------------
92 135 241
------------------ --------------------- --------------------- --------------------
The Consolidated Statement of Cash Flows contains the following
elements related to discontinuing operations:
Six months Six months Year ended
ended 30 ended 30 31 December
June 2015 June 2014 2014
US$'000 US$'000 US$'000
-------------------------------- -------------------- --------------- -------------
Unaudited Unaudited Audited
Net cash flows attributable to
operating activities 92 135 241
Net cash flows attributable to
investing activities (482)
The discontinued operations and assets held for sale are
classified within the transportation services segment in Note
3.
8. PROPERTY, PLANT AND EQUIPMENT
During the period, the Group incurred approximately US$1,203,665
on additions to buildings & structures and equipment (30 June
2014- US$Nil; 31 December 2014 - US$1,827,000).
9. INVENTORIES
Six months Six months Year ended
ended 30 June ended 30 31 December
2015 June 2014 2014
US$'000 US$'000 US$'000
------------------------------- ------------------- ------------------- -----------------
Unaudited Unaudited Audited
Raw materials and consumables 548 638 719
Work-in-progress 864 554 1,037
Finished goods 156 586 222
------------------------------- ------------------- ------------------- -----------------
1,568 1,778 1,978
------------------------------- ------------------- ------------------- -----------------
The amount of cost of sales recognised in respect of inventories
utilised was $924,520 (2014: $733,844) which is recognised in cost
of sales. There has been no significant impairment of
inventories.
10. TRADE AND OTHER RECEIVABLES
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2015 2014 2014
US$'000 US$'000 US$'000
---------------------------------- ------------------- ------------------- -------------------
Unaudited Unaudited Audited
Trade receivable 1,420 1,887 1,236
Prepayments 324 384 525
Other receivables 4,353 4,051 4,028
Amounts due from related parties
(note 14) 2,252 1,727 3,942
---------------------------------- ------------------- ------------------- -------------------
8,349 8,049 9,731
---------------------------------- ------------------- ------------------- -------------------
The fair values of trade and other receivables approximate their
respective carrying amounts at the end of each reporting periods
due to their short maturities.
11. TRADE AND OTHER PAYABLES
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2015 2014 2014
US$'000 US$'000 US$'000
-------------------------------- ------------------- --------------------- ------------------
Unaudited Unaudited Audited
Trade payables 1,711 1,007 1,817
Other current liabilities 269 4,054 260
Amounts due to related parties
(note 14) 1,753 5 1,753
-------------------------------- ------------------- --------------------- ------------------
3,733 5,066 3,830
-------------------------------- ------------------- --------------------- ------------------
Trade and other payables are expected to be settled within one
year. Their fair values approximate their respective carrying
amounts at the end of each reporting periods due to their short
maturities.
12. LOANS AND BORROWINGS
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2015 2014 2014
US$'000 US$'000 US$'000
------------------------------- ------------------ ------------------ ------------------
Unaudited Unaudited Audited
Loans and borrowing - secured 4,056 4,680 4,706
------------------------------- ------------------ ------------------ ------------------
The bank loan of USD650, 000 has been returned to the bank on 19
June 2015.
13. DEFERRED TAXATION
Six months Six months Year ended
ended 30 June ended 30 June 31 December
2015 2014 2014
US$'000 US$'000 US$'000
----------------------------------- --------------------- --------------------- -------------------
Unaudited Unaudited Audited
Deferred tax liabilities
At the beginning of the year 475 599 599
Reversal of temporary differences (62) (62) -124
----------------------------------- --------------------- --------------------- -------------------
At the end of the year 413 537 475
----------------------------------- --------------------- --------------------- -------------------
There were no unrecognised deferred tax assets or liabilities in
either year. Tax losses in the PRC expire after 5 years. The Group
have not offset deferred tax assets and liabilities across
different jurisdictions.
14. RELATED PARTY TRANSACTIONS
The related parties of the Group, which are noted below, are
companies that are all fellow subsidiaries of Green Dragon Gas
Limited and Greka Drilling Limited which are under common
management and control.
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