On the evening of April 24, Geo-Jade released its 2021 performance report and its Q1 2022 performance report. In 2021, the company's net profit excluding non-recurring items turned positive, and in Q1 of this year, its performance increased by 9,664% year-on-year.

In 2021, the company produced 932,300 tons of oil, achieving an operating income of RMB 2.453 billion and a total profit of -RMB 774 million. The net profit attributable to shareholders was -RMB 943 million, with earnings per share of -RMB 0.4167. However, the company's net profit after excluding non-recurring items was RMB 704,000, thus achieving profitability. Benefiting from the rise in international oil prices and other factors, the company's 2021 operating income increased by 51.22% compared to 2020. The gross profit margin of its core oil and gas business rose to 62.37%, an increase of 20.87 percentage points. The annual report indicates that the company’s losses were primarily due to estimated guarantee losses of about RMB 416 million based on accounting policies, a reduction in fair value due to prolonged pandemic effects impacting investment property by RMB 238 million, and changes in fair value of other non-current financial assets by RMB 345 million.

In Q1 2022, the company achieved an operating income of RMB 680 million, up 27.17% from the same period last year. The net profit attributable to shareholders was RMB 78 million, a year-on-year increase of 9,664%, while the net profit excluding non-recurring items was RMB 102 million, up 12,407% year-on-year, with earnings per share of RMB 0.0343. The substantial growth in revenue and profit in Q1 was driven by the higher average international oil prices compared to the same period last year, and the significant performance improvement of its subsidiary, Maten.

The company also announced that according to Article 9.8.1 (vi) of the Listing Rules, it currently meets the conditions for a "special risk warning" because "the company's lowest net profit, before or after excluding non-recurring items, has been negative for the last three consecutive fiscal years, and the audit report for the latest fiscal year shows uncertainty regarding the company’s ability to continue as a going concern." Therefore, its stock will be subject to a special risk warning in trading.

Meanwhile, the annual report shows that the net cash flow from operating activities for Geo-Jade in 2021 was RMB 616 million, an increase of 11.52% compared to the previous year. The positive trend continued into Q1 2022, with net cash flow from operating activities at RMB 219 million, an increase of 187% year-on-year, reflecting significant improvement in operational data.

Currently, the company's operational blocks are mainly located in Kazakhstan. The main producing projects, Maten and Kozhan oil fields, are situated in the Caspian Basin, internationally recognized as a resource-rich but underdeveloped oil and gas area. Through scientific development plans and advanced extraction technologies, the production and sales of the Maten and Kozhan oil fields have increased year by year.

The company adheres to a "going out" strategy to acquire oil and gas resources at low cost. This year, it will continue to monitor international crude oil market trends, analyze market price spreads, changes in sales channels, and the latest market dynamics, exploring effective sales measures and strategies under low oil price conditions. Furthermore, following the company's strategy of pursuing both oil and gas, it will closely monitor information in the natural gas market, actively explore trade channels, and seek opportunities in commodity trade. The company plans to leverage its position in the Hainan Free Trade Port to develop oil product trading and new energy projects as new business growth points.