Earnings release
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- 1 - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. UNITED ENERGY GROUP LIMITED 聯合能源集團有限公司* (Incorporated in the Cayman Islands and continued in Bermuda with limited liability) (Stock Code: 467) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 FINANCIAL HIGHLIGHTS Six months ended 30 June 2026 HK$’000 2025 HK$’000 Change % Results Turnover 10,938,895 8,184,692 + 33.7 Gross profit 2,355,081 1,402,854 + 67.9 Profit for the period 952,711 740,142 + 28.7 Profit for the period attributable to owners of the Company 952,714 740,147 + 28.7 Basic earnings per share (HK cents) 3.71 2.88 + 28.8 EBITDA (Note 1) 3,682,369 3,697,066 - 0.4 Adjusted EBITDA (Note 1) 3,509,675 3,427,420 + 2.4 30 June 31 December 2026 HK$’000 2025 HK$’000 Change % Key items in Consolidated Statement of Financial Position Equity attributable to owners of the Company 14,118,069 13,179,426 + 7.1 Total assets 29,670,998 29,138,820 + 1.8 Net assets 14,123,463 13,184,823 + 7.1 OPERATION HIGHLIGHTS Six months ended 30 June 2026 2025 Change boed boed % Average Daily Working Interest Production (Note 2) Pakistan Assets 26,699 31,571 - 15.4 Iraq Assets 52,984 68,815 - 23.0 Egypt Assets 22,416 11,376 + 97.0 Note: 1. For EBITDA and adjusted EBITDA, please refer to “Other Financial Information” on pages 32 and 33 for more information. 2. Working interest production represents Group’s proportion prior to application of the state share under the concession agreements governing the assets. * For identification purposes only
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- 2 - The board of directors (the “Board”) of United Energy Group Limited (the “Company”) hereby present the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively referred to as the “Group”) for the six months ended 30 June 2026 together with unaudited comparative figures for the six months ended 30 June 202 5 as follows:– CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the six months ended 30 June 2026 Six months ended 30 June 2026 2025 Note HK$’000 HK$’000 (unaudited) (unaudited) Turnover 6 10,938,895 8,184,692 Cost of sales (8,583,814) (6,781,838) Gross profit 2,355,081 1,402,854 Investment and other income 106,514 113,170 Other gains and losses (215,139) 213,659 Exploration expenses (11,371) (65,168) Administrative expenses (362,381) (374,030) Other operating expenses (27,185) (30,929) Profit from operations 1,845,519 1,259,556 Finance costs 7 (215,577) (141,655) Share of (losses)/profits of associates (1,827) 7,913 Share of losses of joint ventures (24,490) - Profit before tax 1,603,625 1,125,814 Income tax expense 8 (650,914) (385,672) Profit for the period 9 952,711 740,142 Attributable to: Owners of the Company 952,714 740,147 Non-controlling interests (3) (5) 952,711 740,142 Earnings per share 10 Basic (cents per share) 3.71 2.88 Diluted (cents per share) N/A N/A
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- 3 - CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the six months ended 30 June 2026 Six months ended 30 June 2026 2025 HK$’000 HK$’000 (unaudited) (unaudited) Profit for the period 952,711 740,142 Other comprehensive income after tax: Items that may be reclassified to profit or loss: Exchange differences on translating foreign operations (15,197) 28,669 Release of exchange reserve and reclassified to profit or loss upon deemed disposal of investment in associates - 30,834 Other comprehensive income for the period, net of tax (15,197) 59,503 Total comprehensive income for the period 937,514 799,645 Attributable to: Owners of the Company 937,517 799,650 Non-controlling interests (3) (5) 937,514 799,645
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- 4 - CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 30 June 2026 30 June 31 December Note 2026 2025 HK$’000 HK$’000 (unaudited) (audited) Non-current assets Property, plant and equipment 12 14,039,011 13,626,285 Right-of-use assets 13 254,738 282,780 Intangible assets 1,118,673 1,274,847 Investment in an associate 18,629 20,456 Investment in joint ventures - - Advances, deposits and prepayments 37,208 38,657 Deferred tax assets 1,585,244 1,538,258 17,053,503 16,781,283 Current assets Inventories 288,463 239,934 Trade and other receivables 14 8,922,271 8,394,694 Financial assets at fair value through profit or loss (“FVTPL”) 6,286 5,202 Employee retirement benefits assets 10,034 10,034 Current tax assets 22,299 22,145 Bank and cash balances 3,368,142 3,685,528 Total current assets 12,617,495 12,357,537 Current liabilities Trade and other payables 15 9,454,484 9,615,685 Borrowings 16 749,329 837,123 Lease liabilities 91,671 94,472 Provisions 17 36,416 36,416 Current tax liabilities 1,648,461 1,686,983 Total current liabilities 11,980,361 12,270,679 Net current assets 637,134 86,858 Total assets less current liabilities 17,690,637 16,868,141
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- 5 - CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) At 30 June 2026 30 June 31 December Note 2026 2025 HK$’000 HK$’000 (unaudited) (audited) Non-current liabilities Borrowings 16 2,577,475 2,700,058 Lease liabilities 182,470 200,142 Provisions 17 715,225 694,880 Employee retirement benefits obligations 83,247 74,040 Deferred tax liabilities 8,757 14,198 3,567,174 3,683,318 NET ASSETS 14,123,463 13,184,823 Capital and reserves Share capital 18 260,405 260,405 Reserves 13,857,664 12,919,021 Equity attributable to owners of the Company 14,118,069 13,179,426 Non-controlling interests 5,394 5,397 TOTAL EQUITY 14,123,463 13,184,823
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- 6 - NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months ended 30 June 2026 1. BASIS OF PREPARATION These condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants (the “HKICPA”) and the applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. 2. MATERIAL ACCOUNTING POLICY INFORMATION These condensed consolidated financial statements should be read in conjunction with the 202 5 annual consolidated financial statements. Except as described in note 3 below, the accounting policies (including the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty) and methods of computation used in the preparation of these condensed consolidated finan cial statements are consistent with those used in the annual consolidated financial statements for the year ended 31 December 2025. 3. NEW AND AMENDED HKFRS ACCOUNTING STANDARDS A. New and amended standards adopted by the Group The Group has applied the following amendments to HKFRS Accounting Standards issued by the HKICPA, for the first time, which are mandatorily effective for the Group’s annual period beginning on 1 January 2026 for the preparation of the Group’s condensed consolidated financial statements. • Classification and Measurement of Financial Instruments - Amendments to HKFRS 9 and HKFRS 7; • Annual Improvements to HKFRS Accounting Standards - V olume 11; and • Contracts Referencing Nature –dependent Electricity - Amendments to HKFRS 9 and HKFRS 7. The Group did not change its accounting policies or make retrospective adjustments as a result of adopting the abovementioned amended standards. B. Impact of new and amended standards issued but not yet adopted by the Group A number of new standards and amendments to standards are effective for annual periods beginning after 1 January 2026 and earlier application is permitted. The Group has not early adopted any of the forthcoming new or amended standards in preparing these c ondensed consolidated financial statements. 4. FAIR VALUE MEASUREMENT The carrying amounts of the Group’s financial assets and financial liabilities as reflected in the condensed consolidated statement of financial position approximate their respective fair values. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following disclosures of fair value measurements use a fair value hierarchy that categories into three levels the inputs to valuation techniques used to measure fair value:
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- 7 - 4. FAIR VALUE MEASUREMENT (CONT’D) Level 1 inputs: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the measurement date. Level 2 inputs: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 inputs: unobservable inputs for the asset or liability. The Group’s policy is to recognise transfers into and transfers out of any of the three levels as of the date of the event or change in circumstances that caused the transfer. The recurring fair value of the financial assets at fair value through profit or loss at 30 June 2026 and 31 December 2025 are measured by using Level 1 of the fair value hierarchy. There were no changes in the valuation techniques used. 5. SEGMENT INFORMATION The chief operating decision maker is the board of the directors of the Company and the Group has identified three reportable segments as follows: 1. Exploration and production - activities relating to the exploration and production of crude oil and natural gas in Pakistan, Middle East and North Africa 2. Trading - activities relating to trading of energy products , including petrochemical and other commodities 3. Clean energy business - activities relating to sales of electricity generated from wind power and solar power The Group’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and market strategies. Operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance. Segment profit or loss does not include the following items: - investment and other income - other gains and losses - share of (losses)/profits of associates - share of losses of joint ventures Segment assets do not include the following items: - investment in an associate - deferred tax assets - financial assets at fair value through profit or loss - current tax assets - bank and cash balances Segment liabilities do not include the following items: - borrowings - lease liabilities - deferred tax liabilities - current tax liabilities
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- 8 - 5. SEGMENT INFORMATION (CONT’D) Exploration and production Trading Clean energy business Total HK$’000 HK$’000 HK$’000 HK$’000 (unaudited) (unaudited) (unaudited) (unaudited) For the six months ended 30 June 2026 Revenue from external customers 4,716,239 6,067,446 155,210 10,938,895 Segment profit/(loss) 1,014,472 (10,640) 83,821 1,087,653 As at 30 June 2026 Segment assets 22,431,294 1,093,751 1,145,353 24,670,398 Segment liabilities 9,182,352 1,025,009 82,011 10,289,372 For the six months ended 30 June 2025 Turnover with external customers 4,415,474 3,722,090 47,128 8,184,692 Segment profit/(loss) 403,550 (8,769) 10,619 405,400 As at 31 December 2025 (audited) (audited) (audited) (audited) Segment assets 21,110,498 1,629,396 1,127,337 23,867,231 Segment liabilities 8,458,937 1,856,250 105,834 10,421,021 Reconciliation of reportable segment profit or loss: Six months ended 30 June 2026 2025 HK$’000 HK$’000 (unaudited) (unaudited) Profit or loss Total profit of reportable segments 1,087,653 405,400 Share of (losses)/profits of associates (1,827) 7,913 Share of losses of joint ventures (24,490) - Investment and other income 106,514 113,170 Other gains and losses (215,139) 213,659 Consolidated profit for the period 952,711 740,142
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- 9 - 6. TURNOVER Turnover from contracts with customers for the period is as follows: Six months ended 30 June 2026 2025 HK$’000 HK$’000 (unaudited) (unaudited) Sales and production of crude oil, condensate, gas and liquefied petroleum gas (Note (a)) 4,379,298 4,318,738 Trading of energy products 6,067,446 3,722,090 Sales of electricity generated from wind power (Note (b)) 155,210 47,128 Other income – tax entitlement volumes (Note (c)) 336,941 96,736 10,938,895 8,184,692 The Group derives revenue from the transfer of goods at a point in time in the following geographical regions: Sales and production of crude oil, condensate, gas and liquefied petroleum gas (Note (a)) Trading of energy products Sales of electricity generated from wind power (Note (b)) Other income – tax entitlement volumes (Note (c)) Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) For the six months ended 30 June 2026 Primary geographical markets - Hong Kong - 306,521 - - 306,521 - Pakistan 1,138,356 265,933 155,210 - 1,559,499 - Singapore - 4,831,553 - - 4,831,553 - Egypt 1,198,045 - - 336,941 1,534,986 - Iraq 2,042,897 - - - 2,042,897 - Japan - 205,873 - - 205,873 - United States of America - 210,022 - - 210,022 - United Arab Emirates - 247,544 - - 247,544 Revenue from external customers 4,379,298 6,067,446 155,210 336,941 10,938,895
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- 10 - 6. TURNOVER (CONT’D) Sales and production of crude oil, condensate, gas and liquefied petroleum gas (Note (a)) Trading of energy products Sales of electricity generated from wind power (Note (b)) Other income – tax entitlement volumes (Note (c)) Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) For the six months ended 30 June 2025 Primary geographical markets - Pakistan 991,879 542,675 47,128 - 1,581,682 - Singapore 293,988 2,566,668 - - 2,860,656 - Egypt 472,278 - - 96,736 569,014 - Iraq 2,560,593 - - - 2,560,593 - United Arab Emirates - 612,747 - - 612,747 Revenue from external customers 4,318,738 3,722,090 47,128 96,736 8,184,692 Notes: (a) The turnover from sales and production of crude oil, condensate, gas and liquefied petroleum gas are net of sales tax, royalty to government, sales discounts and windfall levy amounting to approximately HK$ 146,330,000 (2025: HK$ 165,308,000), HK$162,470,000 (2025: HK$176,219,000), HK$297,000 (2025: HK$Nil), and HK$50,070,000 (2025: HK$28,607,000) respectively. (b) The turnover from sales electricity generated from wind power are net of sales tax amounting to approximately HK$25,733,000 (2025: HK$6,427,000). (c) Under the concession agreements in Egypt, income tax due on taxable profit is paid on behalf of the Group by the joint operation partner, Egyptian General Petroleum Corporation, from the Group’s share of production. To reflect this arrangement through the concession agreements, the Group notionally receive a greater share of hydrocarbon production, grossing up the Group’s entitlement interest share of production, by the amount required to cover the tax payable. The oil is produced and sold on behalf of the Group and proceeds remitted to the tax authorities. This income does not meet the HKFRS Accounting Standards definition of revenue and is therefore shown as other income with an equal and opposite tax charge recorded through current taxation.
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- 11 - 7. FINANCE COSTS Six months ended 30 June 2026 2025 HK$’000 HK$’000 (unaudited) (unaudited) Interest on bank loans 180,662 12,355 Interest expense on lease liabilities 11,216 7,960 Interest on advances from customers 6,544 102,823 Provisions - unwinding of discounts (note 17) 19,691 20,914 Others 758 745 Total borrowing costs 218,871 144,797 Amount capitalised (3,294) (3,142) 215,577 141,655 In 2026, the weighted average capitali sation rate on funds borrowed generally was at a rate of 11.8% (2025: 7.5%) per annum. 8. INCOME TAX EXPENSE Six months ended 30 June 2026 2025 HK$’000 HK$’000 (unaudited) (unaudited) Current tax - Overseas Provision for the period 692,568 450,608 Provision for Pillar Two income taxes 7,850 - 700,418 450,608 Deferred tax (49,504) (64,936) 650,914 385,672 No provision for Hong Kong Profits Tax has been made in the financial statements since the Group has no assessable profit for the six months ended 30 June 2026 and 2025. Tax charge on profits assessable elsewhere have been calculated at the rates of tax prevailing in the countries in which the Group operates, based on existing legislation, interpretation and practices in respect thereof. The Group is within the scope of the OECD Pillar Two model rules. Pillar Two legislation was enacted in Hong Kong, the jurisdiction in which United Energy Group Limited is operates and is subject to tax, as applicable, on 6 June 2025 through the Inland Rev enue (Amendment) (Minimum Tax for Multinational Enterprise Groups) Ordinance 2025. The Income Inclusion Rule ( “IIR”) and the Hong Kong Minimum Top-up Tax (“HKMTT”), which is designed to operate as a Qualified Domestic Minimum Top -up Tax, took effect retrospectively for fiscal years beginning on or after 1 January 2025. Implementation of the Undertaxed Profits Rule has been postponed to a date to be announced.
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- 12 - 8. INCOME TAX EXPENSE (CONT’D) As the legislation is now effective, the Group has applied the mandatory exception to recognizing and disclosing information about deferred tax assets and liabilities arising from Pillar Two model rules, as provided in the amendments to HKAS 12 issued in May 2023. Consequently, the Group neither recognizes nor discloses deferred tax information related to Pillar Two income taxes. For the six months ended 30 June 2026, the Group qualified for the “Transitional CbCR Safe Harbour” in 20 jurisdictions (including Pakistan, Iraq, Egypt and United Arab Emirates). Consequently, the top-up tax for these jurisdictions is deemed to be zero. For British Virgin Islands, the jurisdiction that did not satisfy the safe harbour criteria, the Group performed full GloBE calculations based on the OECD Model Rules and local legislation to determine the top-up tax expenses as disclosed in the table above. 9. PROFIT FOR THE PERIOD The Group’s profit for the period is arrived at after charging/(crediting) the following: Six months ended 30 June 2026 2025 HK$’000 HK$’000 (unaudited) (unaudited) Acquisition related costs (included in administrative expenses) - 1,798 Impairment losses on intangible assets (included in other gains and losses) 46,800 - Impairment losses on property, plant and equipment (included in other gains and losses) - 24,020 Property, plant and equipment written off (included in other gains and losses of approximately HK$932,000 (2025: HK$Nil) and exploration expenses of HK$Nil (2025: approximately HK$11,799,000)) 932 11,799 Impairment losses on trade receivables 120,120 - Gain on deemed disposal of investment in associates - (78,912) Gain on bargain purchase for acquisition of subsidiaries - (114,381) Other payables and accruals written back (29,922) - Amortisation of intangible assets 99,532 99,380 Depreciation 1,742,282 2,285,989 Depreciation of right-of-use assets 21,353 44,228 Directors’ remuneration 8,573 9,765 Fair value gains on financial assets at FVTPL (1,084) (814) Fair value gains on financial derivative instruments - (216) Realised loss/(gain) on financial derivative instruments 39,393 (16)
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- 13 - 10. EARNINGS PER SHARE (a) Basic earnings per share The calculation of basic earnings per share attributable to owners of the Company is based on the profit for the period attributable to owners of the Company of approximately HK$ 952,714,000 (2025: HK$740,147,000) and the weighted average number of ordinary shares of 25,707,541,697 (2025: 25,682,474,305) in issue during the period. (b) Diluted earnings per share The Company did not have any dilutive potential ordinary share for the six months ended 30 June 2026 and 2025. Diluted earnings per share for the six months ended 30 June 202 6 and 2025 are the same as the basic profit per share for the period. 11. DIVIDEND Six months ended 30 June 2026 2025 HK$’000 HK$’000 (unaudited) (unaudited) 2024 Final dividend of HK5 cents per ordinary share paid - 1,292,480 The directors of the Company do not recommend any interim dividend for the six months ended 30 June 2026 (2025: HK$Nil). 12. PROPERTY, PLANT AND EQUIPMENT During the six months ended 30 June 202 6, the Group acquired property, plant and equipment of approximately HK$2,143,856,000 (2025: HK$2,244,137,000), excluding property, plant and equipment acquired through a business combination of HK$Nil (2025: approximately HK$419,307,000 (note 22)). 13. RIGHT-OF-USE ASSETS During the six months ended 30 June 2026, the Group entered into a number of new lease agreements for plant and machinery and motor vehicles for fixed terms of 2 to 5 years (2025: properties and motor vehicles for fixed terms of 3 to 5 years). The Group makes fixed payments during the contract period. On lease commencement, the Group recognised approximately HK$22,869,000 (2025: HK$14,501,000) of right-of-use assets and lease liabilities. As referred to note 2 2, the Group completed the step acquisition of subsidiaries during the six months ended 30 June 2025. The Group recognised approximately HK$980,000 and HK$2,807,000 of right -of- use assets and lease liabilities upon the completion of the step acquisition respectively.
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- 14 - 14. TRADE AND OTHER RECEIV ABLES 30 June 31 December 2026 2025 HK$’000 HK$’000 (unaudited) (audited) Trade receivables (note (a)) 7,029,584 6,274,180 Allowance for trade receivables (227,286) (107,166) Allowance for price adjustments (note (b)) (17,299) (17,203) 6,784,999 6,149,811 Other receivables 2,137,659 2,245,270 Allowance for other receivables (387) (387) Other receivables, net of allowance (note (c)) 2,137,272 2,244,883 Total trade and other receivables 8,922,271 8,394,694 (a) Trade receivables The Group’s trading terms with customers are mainly on credit. The credit term generally ranges from 30 to 45 days (31 December 2025: 30 to 45 days) except for the customers in Iraq which were settled by having physical delivery of crude oil on accumulation of balance sufficient enough for cargo lifting. The Group seeks to maintain strict control over its outstanding receivables. Overdue balances are reviewed regularly by the directors. The aging analysis of trade receivables, based on the invoice date is as follows: 30 June 31 December 2026 2025 HK$’000 HK$’000 (unaudited) (audited) 0 to 30 days 2,601,034 4,049,487 31 to 60 days 165,081 206,577 61 to 90 days 1,609,532 646,099 Over 90 days 2,653,937 1,372,017 7,029,584 6,274,180 (b) Allowance for price adjustments This represents the provision for the possible price adjustment in gas prices as per the draft gas price notifications submitted to the relevant regulatory authorities in Pakistan in respect of certain gas sales agreements. Since the final price notification has not yet been received from the regulatory authorities, the management had estimated the potential price differential based on the draft notifications and a possible price reduction (excluding royalty expenses) of approximately HK$17,299,000 (31 December 2025: HK$17,203,000) was provided.
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- 15 - 14. TRADE AND OTHER RECEIV ABLES (CONT’D) (c) Other receivables The details of other receivables, and net of allowance, are as follows: 30 June 31 December 2026 2025 HK$’000 HK$’000 (unaudited) (audited) Due from joint operators 1,007,171 1,162,989 Advances to staff 43,589 16,735 Central excise duty receivables 6,597 5,384 Deposits and prepayments 373,057 545,707 Deposits in financial institutions 136,964 83,635 Government treasury bills 149,587 82,592 Interest receivables 3,244 1,714 Sales tax receivables 265,818 244,487 Other tax receivables 3,700 3,492 Withholding tax receivables 1,334 1,442 Others 146,211 96,706 2,137,272 2,244,883 15. TRADE AND OTHER PAYABLES 30 June 31 December 2026 2025 HK$’000 HK$’000 (unaudited) (audited) Trade payables (note (a)) 2,295,597 2,021,528 Other payables (note (b)) 7,158,887 7,594,157 Total trade and other payables 9,454,484 9,615,685
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- 16 - 15. TRADE AND OTHER PAYABLES (CONT’D) (a) Trade payables The aging analysis of trade payables, based on the date of receipt of goods, is as follows: 30 June 31 December 2026 2025 HK$’000 HK$’000 (unaudited) (audited) 0 to 30 days 1,516,897 1,762,887 31 to 60 days 280,490 84,761 61 to 90 days 153,999 40,603 Over 90 days 344,211 133,277 2,295,597 2,021,528 (b) Other payables 30 June 31 December 2026 2025 HK$’000 HK$’000 (unaudited) (audited) Accrual for operating and capital expenses 2,933,683 3,158,578 Due to joint operators 623,844 502,877 Deferred payment for acquisition of a subsidiary 49,729 50,458 Advances from a customer (Note (i)) - 624,000 Salaries and welfare payables 102,611 239,277 Provision for infrastructure funds 1,502,321 1,308,385 Other tax payables 1,934,413 1,672,674 Others 12,286 37,908 7,158,887 7,594,157 Note: (i) At 31 December 2025, the Group entered into an agreement with a customer for secured crude oil prepayment facilities to the extent of approximately HK$624,000,000 (equivalent to approximately US$80,000,000). Advances drawn under the facilities bear interes t rate at 1.50% plus 3 months Term SOFR per annum, are repayable principally by the delivery of the Group’s crude oil entitlement and are secured by the unlimited corporate guarantee of the Company. The advances from a customer has been early settled by the Group in cash during the six months ended 30 June 2026.
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- 17 - 16. BORROWINGS 30 June 31 December 2026 2025 HK$’000 HK$’000 (unaudited) (audited) Bank loans, secured 3,326,804 3,537,181 Analysed as: Current liabilities 749,329 837,123 Non-current liabilities 2,577,475 2,700,058 3,326,804 3,537,181 17. PROVISIONS Dismantling costs in respect of leasehold improvements Decommissioning costs Total HK$’000 HK$’000 HK$’000 At 1 January 2026 (audited) 500 730,796 731,296 Less: Actual costs incurred during the period - (6,837) (6,837) Add: Provisions recognised during the period - 7,491 7,491 Unwinding of discounts - 19,691 19,691 At 30 June 2026 (unaudited) 500 751,141 751,641 30 June 31 December 2026 2025 HK$’000 HK$’000 (unaudited) (audited) Analysed as: Current liabilities 36,416 36,416 Non-current liabilities 715,225 694,880 751,641 731,296 Oil and gas exploration and production activities may result in land subsidence and damage to the environment of the concession areas. Pursuant to the relevant rules and regulations, the Group is required to restore the concession areas back to acceptable conditions. The decommissioning costs obligation has been determined by management by discounting the expected future expenditures to their net present value using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. The amounts provided in relation to the decommissioning costs are reviewed at least annually based upon the facts and circumstances available at the time and the provisions are updated accordingly.
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- 18 - 17. PROVISIONS (CONT’D) The provision for dismantling costs in respect of leasehold improvements is calculated based on the net present value of costs to be incurred to remove leasehold improvements from the leased properties of the Group. The amounts are determined with referenc e to the quotations from external contractors and the management’s estimation. 18. SHARE CAPITAL 30 June 31 December 2026 2025 HK$’000 HK$’000 (unaudited) (audited) Authorised: 60,000,000,000 ordinary shares of HK$0.01 each 600,000 600,000 Issued and fully paid: 26,040,504,786 ordinary shares of HK$0.01 each 260,405 260,405 A summary of the movement in the issued share capital of the company is as follows: Number of shares Issued shares (excluding treasury shares) Treasury shares Total number of issued shares Nominal value of shares issued ’000 ’000 ’000 HK$’000 At 1 January 2025, 31 December 2025 and 1 January 2026 (audited) and 30 June 2026 (unaudited) 25,849,594 190,910 26,040,504 260,405
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- 19 - 19. SHARE-BASED PAYMENTS (a) Performance share unit scheme On 1 April 2019, the Company adopted a performance share unit scheme (the “PSU Scheme”) with objectives to provide the employees of the Group with incentives to drive success and growth in the shareholder value of the Group; to promote the effective achievement of the mid and long term performance goals of the Group; and to attract, motivate and retain core talents of the Group with rewards and incentives. Unless terminated earlier by the board of directors (the “Board”) pursuant to the PSU Scheme, the PSU Scheme shall be valid and effective for a period of ten years commencing on the adoption date. Pursuant to the PSU Scheme, the Board may, from time to time, at its absolute discretion cause to be transferred to the trust the necessary funds for the purchase of the Company’s shares to be held on trust in accordance with the rules as set out in the PS U Scheme and the trust deed. Such funds shall be applied towards the purchase of the specific number of the Company’s shares from the open market according to the written instructions of the Board. The Company shall not make any further grant of shares awa rd which will result in the aggregate number of awarded share under the PSU Scheme (exclude awarded shares that have been forfeited in accordance with the Scheme) exceeding 10% of the total issued shares capital of Company from time to time. During the six months ended 30 June 2026 and 2025, no shares were purchased by the trustee from the market. No share was granted to eligible employee pursuant to the PSU Scheme by the Company during the six months ended 30 June 2026 and 2025. Movements in the number of awarded shares granted under the PSU Scheme during the period are as follows: Number of awarded shares Date of grant Fair value per share at grant date Outstanding as at 1 January 2026 Granted during the period V ested during the period Forfeited during the period Outstanding as at 30 June 2026 V esting period 27 June 2023 HK$0.80 17,800,000 - (17,150,000) (650,000) - 27 June 2023 to 26 June 2026 17,800,000 - (17,150,000) (650,000) - The fair value of the shares at grant date was estimated by taking the market price of the Company’s shares on grant date. The Group recognised the total expenses of approximately HK$1,126,000 (2025: HK$5,575,000) for the six months ended 30 June 202 6 in relation to the PSU Scheme. As at 30 June 2026, there were 125,376,846 shares (31 December 2025: 142,526,846 shares) held by the trustee. (b) Share incentive scheme On 5 June 2026, the Company adopted the share incentive scheme (the “SI Scheme”) with objectives to provide the eligible persons (including all directors and employees of the Group, except independent non -executive directors of the Company) with the opport unity to acquire proprietary interests in the Company and to encourage them to work towards enhancing the value of the Company and its shareholders as a whole. Unless terminated earlier by the Board pursuant to the SI Scheme, the SI Scheme shall be valid and effective for a period of ten years commencing on the adoption date.
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- 20 - 19. SHARE-BASED PAYMENTS (CONT’D) (b) Share incentive scheme (cont’d) Pursuant to the SI Scheme, the Board shall be entitled at any time before the expiry of SI Scheme to offer share options or share awards to selected eligible persons at any time prior to the scheme's expiration, at its absolute discretion. The number of shares which may be issued in respect of all share options and share awards to be granted under the SI Scheme shall not (when aggregated with any other share options and share awards to be granted under any other share schemes of the Company) exceed 10% of t he total issued shares of the Company (excluding treasury shares of the Company) as at the date of adoption of the SI Scheme. During the six months ended 30 June 2026, no share option or share award was granted to eligible employee pursuant to the SI Scheme by the Company. 20. CAPITAL COMMITMENTS The Group’s capital commitments at the end of reporting period are as follows: 30 June 31 December 2026 2025 HK$’000 HK$’000 (unaudited) (audited) Contracted but not provided for: Acquisition of property, plant and equipment 564,619 1,418,566 Capital contribution to subsidiaries - 187,709 Capital contribution to joint ventures 780,000 - 1,344,619 1,606,275 21. CONTINGENT LIABILITIES (a) As at 30 June 2026 and 31 December 202 5, the Company issued various unlimited corporate guarantees in favour of the President of the Islamic Republic of Pakistan for providing United Energy Pakistan Limited (“UEPL”) with all necessary financial and other means to enable UEPL to fully perform its obligations as stipulated in the concession agreements. (b) Certain subsidiaries of the Group had dispute with the Pakistan government on the applicability of windfall levy on its production of oil and condensate . On 27 December 20 17, the government’s approval for the execution of windfall levy was granted and the windfall levy became applicable on the subsidiaries. Based on legal advice from external lawyers, the management believes that the applicability of the windfall levy is prospective, i.e. from the date of the government ’s approval. If the applicability of windfall levy is retrospective, further provision for the windfall levy of approximately HK$ 191,969,000 (31 December 202 5: HK$191,969,000) would be required to be made in the condensed consolidated financial statements for the period ended 30 June 2026. (c) As at 30 June 2026, certain subsidiaries of the Group received various tax orders in an attempt to re-assess tax liability for prior years by the Pakistan tax department. The subsidiaries of the Group are currently appealing against these orders and the cumulative potential tax exposure for the pending tax cases was approximately HK$1,650,379,000 ( 31 December 202 5: HK$1,503,437,000). (d) At the end of the reporting period, bank guarantees to the extent of approximately HK$55,933,000 (equivalent to US$7,171,000) (31 December 2025: HK$55,933,000 (equivalent to US$7,171,000)) in favor of certain government authorities was obtained by certain subsidiaries of the Group to guarantee their exploration, performance and financial obligations as stipulated in the concession agreements.
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- 21 - 22. ACQUISITION OF SUBSIDIARIES Step acquisition from associates to subsidiaries for the six months ended 30 June 2025 On 14 February 2025, the Group entered into a sale and purchase agreement with a related company, Orient Group Industrial and Development Company Limited to acquire 52% issued share capital of Orient Group Beijing Investment Holding Limited (whose name was subsequently changed to UEG Beijing Investment Holding Limited (“UEGBIH”)) and its subsidiaries (“UEGBIH Group”) at a cash consideration of approximately HK$148,200,000 (equivalent to approximately US$19,000,000) (the “Acquisition”). The Acquisition was completed on 12 May 2025 (the “Acquisition Date”). UEGBIH Group is engaged in the development and operation of a 99 -megawatt wind power project in Pakistan through its subsidiaries. The Acquisition was made as part of the Group’s strategy to expand its clean energy business sector. Upon the Acquisition Date, the Group’s equity interest in UEGBIH Group increased from 48% to 100%. UEGBIH Group became the wholly owned subsidiaries of the Group and its results have been consolidated into the financial statements of the Group thereafter. The Group accordingly remeasured the fair value of its pre-existing interest held in the UEGBIH Group at the Acquisition Date and recognised a gain of approximately HK$78,912,000 . The amount has been recognised under “other gains and losses” in the condensed consolidated financial statements for the six months period ended 30 June 2025 and the details are as follows: HK$’000 Carrying value of previously held equity interest in UEGBIH Group at the Acquisition Date 74,337 Release of foreign currency translation reserve 30,834 Less: fair value of pre-existing equity interest in UEGBIH Group at the Acquisition Date (184,083) Gain on deemed disposal of investment in associates (note 9) (78,912)
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- 22 - 22. ACQUISITION OF SUBSIDIARIES (CONT’D) Step acquisition from associates to subsidiaries for the six months ended 30 June 2025 (cont’d) The fair value of the identifiable assets and liabilities of UEGBIH Group acquired as at the Acquisition Date are as follows: HK$’000 Net assets acquired: Property, plant and equipment 419,307 Right-of-use assets 980 Intangible assets 173,815 Inventories 1,260 Trade and other receivables 239,700 Current tax assets 350 Bank and cash balances 167,725 Trade and other payables (15,963) Borrowings (295,718) Lease liabilities (2,807) Employee retirement benefits obligations (919) 687,730 Gain on bargain purchase (114,381) 573,349 Satisfied by: Cash 148,200 Receivables from UEGBIH Group before acquisition 241,066 Fair value of pre-existing equity interest in UEGBIH Group at the Acquisition Date 184,083 573,349 Net cash inflow arising on the Acquisition: Cash consideration paid (148,200) Cash and cash equivalent acquired 167,725 19,525 The fair value of trade and other receivables acquired is approximately HK$239,700,000. The gross amount due under the contractual is approximately HK$242,706,000, of which HK$3,006,000 is expected to be uncollectible. The Group recognised a gain on bargain purchase of HK$114,381,000 in the business combination. The gain is included in other gains and losses. The gain on bargain purchase is attributable to the increase in fair value of the net assets acquired between the valuation date used for determining the purchase considerations and the Acquisition Date.
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- 23 - 22. ACQUISITION OF SUBSIDIARIES (CONT’D) UEGBIH Group contributed turnover of approximately HK$47,128,000 and profit of approximately HK$28,036,000 in the period between the Acquisition Date and the six-months period ended 30 June 2025. If the acquisition had been completed on 1 January 2025, total Group turnover for the period would have been approximately HK$8,257,150,000, and profit for the period would have been approximately HK$753,706,000. The proforma information is for illustrative purposes only and is not necessarily an indication of the revenue and results of operations of the Group that actually would have been achieved had the acquisition been completed on 1 January 2025, nor is intended to be a projection of future results. Acquisition-related costs of approximately HK$1,798,000 have been charged to administrative expenses in the condensed consolidated financial statements for the six-months period ended 30 June 2025. 23. RELATED PARTY TRANSACTIONS (a) Name and relationship with related parties: Name of the related party Relationship 東方集團產業發展有限公司 (Orient Group Industrial & Development Co., Ltd. (“Orient Group Industrial & Development”)) # Mr. Zhang Hong Wei, a former director of the Company, has significant influence over the Orient Group Industrial & Development 東方集團有限公司 (Orient Group Co., Ltd. (“Orient Group”)) Mr. Zhang Hong Wei, a former director of the Company, has significant influence over the Orient Group 北京大成飯店有限公司 (Beijing Dacheng Hotels Limited (“BDHL”)) # BDHL is a subsidiary of Orient Group 東方安頤(北京)物業管理有限公司 (Orient Group Anyi (Beijing) Property Management Limited (“OGAY”)) # OGAY is a subsidiary of Orient Group # The English translation of the company name is for reference only. The official name of the company is in Chinese. (b) As referred to note 22 to the condensed consolidated financial statements, the Acquisition completed on 12 May 2025 at a cash consideration of approximately HK$148,200,000 (equivalent to approximately US$19,000,000) . The Acquisition was carried out in the ordinary course of business and constituted connected transactions as defined in Chapter 14A of the Listing Rules. (c) Orient Group and Orient Group Industrial & Development has provided corporate guarantees to the bank for banking facilities of approximately HK$715,282,000 granted to UEGBIH, the former associate of the Group. Orient Group also entered into an entrusted guarantee agreement with UEGBIH for the corporate guarantee services provided by Orient Group. Under the entrusted guarantee agreement, 2% service fee was charged at outstanding bank loan. During the six months ended 30 June 2026, Orient Group had waived such service charge of HK$Nil made to UEGBIH (2025: approximately HK$999,000). (d) For the six months ended 30 June 2026, leases payments of HK$Nil (2025: approximately HK$12,701,000) for leasing an office premises of the Group were paid to BDHL.
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- 24 - 23. RELATED PARTY TRANSACTIONS (CONT’D) (e) For the six months ended 30 June 2026, property management, electricity and rental expenses of HK$Nil (2025: approximately HK$1,723,000) for leasing an office premises of the Group were charged by OGAY . (f) For the six months ended 30 June 2026, service income on wind turbine operation and maintenance services of HK$Nil (2025: approximately HK$16,323,000) were received from a former associate of the Group, UEP Wind Power (Private) Limited. (g) The details of the remuneration paid to the key management personnel are set out in note 9 to the condensed consolidated financial statements. 24. EVENTS AFTER THE REPORTING PERIOD Subsequent to the reporting date, the conflicts in the Middle East have continued, and geopolitical tensions in the region persist. The disruptions to key supply routes, including the Strait of Hormuz, affect global supply chains and commodity prices; however, the extent and duration of such impacts remain uncertain. Management is closely monitoring the situation, as the evolving environment may increase risks related to regional security, logistics, and global energy landscape, which could potentially impact the Group’s operations. Along with the uplift of temporary curtailment requirement by local governing authorities in June 2026, the daily production level in Iraq resumed to pre-conflict level. Management will continue to monitor developments and assess potential implications for operations, financial position and performance.
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- 25 - MANAGEMENT DISCUSSION AND ANALYSIS Business Review The Group is one of the largest listed integrated energy companies in Hong Kong, with business presence in South Asia, MENA and Europe. The Group is principally engaged in upstream oil & natural gas, clean energy and trading businesses. Leveraging on management’s extensive experience in oil & gas business, the Group has successfully grown its footprint as one of the major players in energy space. Over time, the Group has established a solid and diversified portfolio through acquisitions and capital investments. As projected by the IMF in July 2026 World Economic Outlook, global growth is expected to slow down to 3.0% in 2026 before rebounding to 3.4% in 2027. The trajectory is shaped by the supply shock caused by the Middle East conflict, which is partially count erbalanced by accelerated demand from the global technology cycle powered by artificial intelligence adoption. Outcomes vary widely across countries, with energy exporters and technology -integrated economies generally faring better than commodity importers with limited tech exposure. Global headline inflation is projected to increase from 4.1% in 2025 to 4.7% in 2026 before moderating to 3.9% in 2027. Downside risks continue to predominate, particularly from potential re -escalation of geopolitical tensions, accelerated trade fragmentation, technology expectation corrections, and limited policy buffers, while upside potential exists from faster energy market normalization and robust AI investment. Global oil demand in 2026 is projected to grow by 0.8 million barrels per day, reaching an average of 105.94 mmbbld, as reported in the July 2026 OPEC Monthly Oil Market Report. The non-OECD region remains the key driver, contributing approximately 0.74 mmbbld to global demand growth, while OECD countries are expected to see only modest increases of around 0.04 mmbbld. On the supply side, faster unwinding of the remaining voluntary production cuts by some member countries of OPEC+ is anticipated in the second half of 2026. OPEC+ countries increased production by 3 mmbbld in June 2026 to 36.28 mmbbld, while the non-OPEC+ supply is expected to grow by 0.6 mmbbld in 2026. The Oil market environment was heavily influenced by disruptions stemming from the US-Iran conflict and restrictions in the Strait of Hormuz. Geopolitical tensions drove price volatility and supply tightness. Brent oil prices fluctuated widely during the first half of the year, starting at approximately US$65/bbl, peaking near US$120/bbl in March, and subsequently easing toward US$75/bbl by the end of June as demand weakened and hopes for a ceasefire grew. According to data from the U.S. Energy Information Administration, the average Brent oil price for the reporting period was approximately US$91.5/bbl, representing a 27.1% increase compared to the US$72.0/bbl average recorded in the corresponding period of 2025. The Group reported a profit attributable to the owners of the Company for the reporting period of approximately HK$ 952,714,000, representing a n increase of 28.7% compared to the corresponding period of approximately HK$740,147,000. Cost of sales and services for exploration and production rendered by the Group for the reporting period was approximately HK$ 2,483,775,000, it invested approximately HK$ 2,145,287,000 of capital expenditure in oil and gas exploration, development and production activities. The Group drilled 29 wells during the reporting period, including 6 wells, 3 wells and 20 wells in its Pakistan, Iraq and Egypt Assets respectively.
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- 26 - Exploration, Development and Production In the first half of 2026, the Group devoted continuous efforts to its oil and gas exploration. Adhering to the value-driven philosophy and anchoring on exploration and discoveries of small prolific oil and gas fields, 4 commercial discoveries were achieved, of which 1 was in Pakistan and 3 were in Egypt. For the six months ended 30 June 2026, the Group’s average daily gross production was approximately 161,038 boed, a 14.0% decrease compared to 187,258 boed in the corresponding period. Gross accumulated production was approximately 29.1 mmboe, a 14.0% decrease compared to approximately 33.9 mmboe in the corresponding period. The Group’s average daily working interest production was 102,099 boed, an 8.7% decrease compared to approximately 111,762 boed in the last period. Working interest accumulated production was approximately 18.5 mmboe, an 8.7% decrease compared to approximately 20.2 mmboe in the corresponding period. During the reporting period, both gross production and working interest production decrease d year-on-year, which is mainly due to certain production curtailments imposed by BOC on the Group’s Iraq Assets. In early June 2026, these curtailments were fully lifted by BOC, and Iraq Assets’ production has since recovered to pre -conflict levels. Pakistan Business As of 30 June 2026, the Group holds interests in 20 blocks for oil and gas exploration and production in Pakistan. For the six months ended 30 June 202 6, Pakistan Assets achieved an average daily gross production of approximately 37,640 boed, a decrease of 15.8% compared to the corresponding period, and an average daily working interest production of approximately 26,699 boed, a decrease of 15.4% compared to the corresponding period. The oil and liquids ratio is approximately 24% in the reporting period which was 3% higher than the corresponding period. Accumulated gross production and working interest production of the reporting period was approximately 6.8 mmboe and 4.8 mmboe, respectively. The 1 commercial discovery in Pakistan in the reporting period will contribute to reserve base and production profile. The Group owns a wind power project, with a total installed capacity of 99 MW , which is the largest single wind power plant in Pakistan. The project operates under a long-term energy purchase agreement with Central Power Purchase Agency of Pakistan. For the six months ended 30 June 2026, the project generated 120,552 MWh of electricity, supplying power to over 400,000 households annually and making a significant contribution to carbon reduction.
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- 27 - Iraq Business The Group holds a 60% participating interest in the EDPSC of Block 9 in Iraq and is the Operator of this block. For the six months ended 30 June 2026, average daily gross production was approximately 80,485 boed, decreasing by 20.6% compared to the corresponding period , due to certain production curtailments imposed by BOC. Average daily working interest production was approximately 48,291 boed, decreasing by 20.6% compared to the corresponding period. Block 9 production has recovered to pre-conflict level since 11 June 2026 . Accumulated gross and working interest production for the reporting period was approximately 14.6 mmboe and 8.7 mmboe respectively. Block 9 has an oil and liquids ratio of 92%. The Group holds a 30% participating interest in the GDPSC for the Siba contract area in Iraq and is the Operator of this block. Average daily gross production for the six months ended 30 June 2026 was approximately 15,644 boed, a decrease of 4 1.2% compared to the corresponding period, due to certain production curtailments imposed by BOC. Average daily working interest production was approximately 4,693 boed, decreased by 41.2% compared to the corresponding period. Siba production has recovered to pre -conflict level since 12 June 2026. Accumulated gross and working interest production were approximately 2.8 mmboe and 0.8 mmboe respectively. Siba has an oil and liquids ratio of approximately 64%. The Group holds a 100% participating interest in the EDPC of FAO contract area in Iraq and is the Operator of this block. In January 2026, the first exploration well was successfully completed, achieving an encouraging oil and gas discovery. The second well was spudded in June 2026. Both the exploration plan and the appraisal plan were approved by BOC and are being advanced holistically. The Group owns a 2.5 MW off-grid solar power plant in Block 9, which consists of 2.5MW solar panels, a 2.5MWh battery energy storage system, an 11kV transmission system, an energy management system and auxiliary equipment. The power plant delivers clean electricity to meet the daily power demands of the camp and has replaced a large portion of the diesel generator-based power supply previously used. Egypt Business Post the successful acquisition of Apex on 14 October 2025, the Group holds interests in eleven blocks in Egypt and is the Operator of eight of them . For the six -month period ended 30 June 2026, average daily gross production was approximately 27,269 boed, an increase of 87.1% compared to the corresponding period. A verage daily working interest production was approximately 22,416 boed, an increase of 97.0% compared to the corresponding period. Strong production performance was delivered with clear upside momentum, attributed to both the production ramp -up of the existing assets and the progressive integration of the Apex Assets. Accumulated gross and working interest production for the reporting period was approximately 4.9 mmboe and 4. 1 mmboe respectively. Oil and liquids ratio was approximately 95%. 3 commercial discoveries were made in Egypt in the reporting period, which will contribute to reserve base and production profile.
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- 28 - CORE STRENGTHS 1. Solid reserve base and strong operator capability The Group maintains a solid reserve base and a reserve life exceeding 15 years. Leveraging its strong operator capability and deep industry experience, the Group develops assets with high operational efficiency. This strong foundation offers clear visibili ty into future operations while underpinning sustainable growth. 2. A diversified and resilient portfolio The Group owns a well-diversified and resilient portfolio of assets spanning multiple regions, which effectively reduces concentration risk. Since the US -Iran conflicts started, while the Group’s Iraq Assets were impacted by the temporary blockade of the S trait of Hormuz, the Pakistan and Egypt Assets continued to benefit from elevated oil prices and reinforced the overall resilience of the Group’s operations. 3. Significant low-cost advantage and prudent financial management The Group remains committed to efficient business management, maintaining an industry -leading low-cost advantage. Operating expenses continue to be well-controlled, supporting strong cash flow generation. With a stable financial position and a low gearing ratio, the Group has a solid foundation for future growth and expanded financing capacity. 4. Industry-leading HSSE performance Operational safety is a top priority for the Group. Various HSSE indicators remain at industry - leading levels. A comprehensive risk prevention and control system, reinforced by a robust safety inspection mechanism, ensures the highest standards of workplac e safety and environmental responsibility. 5. Advancing a lower-carbon future In alignment with global carbon reduction initiatives and the energy transition, the Group has adopted a dual-engine strategy to develop both conventional and clean energy businesses. Its clean energy portfolio includes solar, wind and Battery Energy Storage System (“BESS”) projects , with additional opportunities being explored through cutting-edge technologies and innovative solutions to support a more sustainable energy future. Reflecting these efforts, the Group’s MSCI ESG rating was upgraded to AA in July 2026, placing it in the top quartile within its peer group. 6. Commitment to social responsibility The Group values its employees as its most important asset, fostering a diverse workforce representing multiple nationalities, cultures, and religions. Committed to social development in local communities, the Group actively invests in education, healthcar e, and vocational training programs, promoting sustainable income generation in the regions where it operates.
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- 29 - SALES AND MARKETING Sales of Crude Oil The Group sells crude oil and condensates produced in Iraq and Pakistan primarily through trading firms in international markets. The Group’s crude oil sales price is mainly determined by international benchmark prices of similar quality, with certain adjustments subject to prevailing market conditions. Prices are quoted and settled in US dollars with Brent Oil Price as basis. Regarding Egypt Assets, as per the articles of PSC, the Group sells crude oil to Egyptian General Petroleum Corporation (“EGPC”) at a price determined under the PSC, generally at a discount to Brent Oil Price. For the six months ended 30 June 2026, the Group’s total working interest crude and condensate selling volumes was 13.0 million barrels, representing a year -on-year decrease of approximately 13.9%. Average realized oil price (before government royalty, windfall levy and government take at working interest quantity) was approximately US$ 78.76/bbl, representing a year -on-year increase of 15.5%, mainly due to the increase of Brent Oil Price. Sales of Natural Gas The Group’s natural gas sales prices are based on negotiated long-term sales agreements. Contract terms normally include a price review mechanism which links the price of natural gas sold to international crude oil prices. The Group’s natural gas customer in Pakistan is primarily a government owned entity namely Sui Southern Gas Company Limited. The Group’s natural gas customer in Iraq is BOC with oil lifting arrangements. For the six months ended 30 June 202 6, the Group’s total working interest natural gas selling volume was 4.9 mmboe, representing a year -on-year decrease of 2.0%. Average realized gas price (before government royalty, windfall levy and government take at working interest quantity) was approximately US$30.34/boe, representing a year-on-year increase of 2.0%. Sales of Energy Products and Commodities The Group’s trading business carried energy products and commodities trading. Also, it optimized equity crude and product sales cargo liftings in Iraq and Pakistan. Trading activities were carried out with international counterparts, including BP, Total, Trafigura, Repsol, Aramco, Mercuria, Itochu, PTT, etc. Pricing was primarily based on the international benchmark prices of products with comparable quality, subject to adjustments reflecting prevailing market conditions. For the six months ended 30 June 2026, the Group’s total trading volume was approximately 1,285,110 tonnes with an average realized price of approximately US$605.30/tonne.
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- 30 - FINANCIAL RESULTS Financial Review For the six months ended 30 June 2026 (the “reporting period”), the Group reported a profit attributable to the owners of the Company of approximately HK$ 952,714,000, representing a n increase of 28.7% compared to the six months ended 30 June 202 5 (the “corresponding period”) of approximately HK$740,147,000. During the reporting period, the Group’s average daily working interest production was approximately 102,099 boed (Pakistan Assets of 26,699 boed, Iraq Assets of 52,984 boed and Egypt Assets of 22,416 boed), decreased compared to approximately 111,762 boed (Pakistan Assets of 31,571 boed, Iraq Assets of 68,815 boed and Egypt Assets of 11,376 boed) of the corresponding period. The Group proactively managed customer demand to achieve the above production results. The average realised oil and gas price of exploration and production (before government royalty, windfall levy, government take and other income – tax entitlement volumes at working interest quantity) was approximately US$65.70/boe, compared to approximately US$ 58.58/boe of the corresponding period , representing an in crease of 12.2%. Turnover Six months ended 30 June 2026 2025 HK$’000 HK$’000 Exploration and production 4,716,239 4,415,474 Trading 6,067,446 3,722,090 Clean energy business 155,210 47,128 10,938,895 8,184,692 The Group’s turnover for the reporting period was approximately HK$10,938,895,000, representing an increase of 33.7% as compared with the turnover of approximately HK$ 8,184,692,000 of the corresponding period. The increase in turnover was mainly contributed by the effect of the increase in trading business and increase average realised sales price in crude oil and liquids but partially offset by the decrease in production in Iraq Assets and Pakistan Assets during the reporting period. Exploration and Production Category Six months ended 30 June 2026 Six months ended 30 June 2025 Change Oil and gas sales* USD’000 1,194,772 1,182,219 + 12,553 + 1.1% Crude oil and liquids USD’000 1,025,798 1,028,267 - 2,469 - 0.2% Natural gas USD’000 148,385 149,080 - 695 - 0.5% LPG USD’000 20,589 4,872 + 15,717 + 322.6% Sales V olume mmboe 18.2 20.2 - 2.0 - 9.9% Crude oil and liquids mmboe 13.0 15.1 - 2.1 - 13.9% Natural gas mmboe 4.9 5.0 - 0.1 - 2.0% LPG mmboe 0.3 0.1 + 0.2 + 200.0% Realised prices* US$/boe 65.70 58.58 + 7.12 + 12.2% Crude oil and liquids US$/bbl 78.76 68.19 + 10.57 +15.5% Natural gas US$/boe 30.34 29.75 + 0.59 + 2.0% LPG US$/boe 76.46 52.65 + 23.81 + 45.2% * turnover before accounting for government royalty, windfall levy, government take and other income – tax entitlement volumes (at working interest quantity)
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- 31 - Cost of sales and services rendered Operating expenses for exploration and production activities The Group’s operating expenses for exploration and production activities (which is defined as the cost of sales excluding depreciation and amortisation and distribution expenses) slightly decreased 0.4% to approximately HK $693,979,000 in the first half of 202 6, compared with approximately HK$697,058,000 in the corresponding period . The overall operating expenses per boe (at working interest production) was approximately US$ 4.9 in the reporting period, compared with approximately US$4.4 in the corresponding period, increased by 11.4%. For Pakistan Assets, operating expenses per boe was approximately US$ 4.5, decreased by 21.1% (2025: approximately US$ 5.7 per boe). For Iraq Assets, operating expenses per boe was approximately US$ 3.9, increased by 21.9% (2025: approximately US$3.2 per boe); while for Egypt Assets, operating expense per boe was approximately US$7.7, decreased by 10.5% (2025: approximately US$8.6 per boe). Depreciation, depletion and amortisation Included in the cost of sales and services rendered, the depreciation, depletion and amortisation was approximately HK$1,801,393,000, representing a decrease of 23.5% as compared with the amount of approximately HK$2,354,880,000 in the corresponding period. Gross profit The Group’s gross profit for the reporting period was approximately HK $2,355,081,000 (gross profit ratio 21.5%) which represented a n increase of 67.9% as compared with gross profit of approximately HK$1,402,854,000 (gross profit ratio 17.1%) for the corresponding period. The increase in gross profit was mainly due to increase in average realised sales price and increase in clean energy business during the period. Exploration expenses The Group’s exploration expenses for the reporting period were approximately HK$11,371,000 (2025: approximately HK$ 65,168,000) which included the expenses for performance of geological and geophysical studies and surface use rights . I n 2025, the expenses included the written off loss of approximately HK$11,799,000 arising from dry exploration wells in Egypt Assets. Administrative expenses The Group’s administrative expenses for the reporting period were approximately HK $362,381,000 (2025: approximately HK$374,030,000) representing 3.3% (2025: 4.6%) of the turnover. Finance costs The Group’s finance costs for the reporting period were approximately HK $215,577,000, which represented an increase of 52.2% as compared with the finance costs of approximately HK$141,655,000 for the corresponding period . The increase in finance costs was mainly due to the increased weighted average outstanding balance of borrowings, together with increased weighted average interest rate during the reporting period. The weighted average interest rate of borrowings for the reporting period was 9.76% (2025: 9.69%). Income tax expense The Group’s income tax expense for the reporting period was approximately HK $650,914,000. This included the current income tax of approximately HK $700,418,000 and deferred tax income of approximately HK$49,504,000, compared with current income tax of approximately HK$450,608,000 and deferred tax income of approximately HK$64,936,000 for the corresponding period respectively. The Group’s effective tax rate for the reporting period was approximately 40.6%, representing a n increase 6.3 percentage points as compared with 34.3% for the corresponding period.
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- 32 - Net cash related to operating activities The Group’s net cash inflow from operating activities for the reporting period was approximately HK$2,733,678,000, representing a slight decrease of 0.2% as compared with the corresponding period of approximately HK$2,739,813,000. This was primarily attributed to increase in trade receivable during the current period. Net cash related to investing activities In the first half 202 6, the Group’s net cash used in investing activities increased by 1.3% to approximately HK$2,150,261,000 compared to approximately HK$2,122,961,000 in the corresponding period, mainly included the development expenditure of approximately HK $2,111,291,000 for the reporting period with an overall decreased by 4.6% as compared to the corresponding period and net payment for advance to joint venture company and net purchase of Government treasury bills approximately HK$91,485,000 during the reporting period. Net cash related to financing activities In the first half 202 6, the net cash used in financing activities was approximately HK$ 891,331,000, mainly represented the drawdown of bank loan of approximately HK$ 292,500,000, repayment of bank loans of approximately HK$ 513,811,000 and repayment of prepayment facilities of approximately HK$624,000,000 during the period. Dividend The Board has not recommended the payment of interim dividend for the reporting period. OTHER FINANCIAL INFORMATION To supplement our consolidated results which are prepared and presented in accordance with all applicable HKFRS Accounting Standards issued by the Hong Kong Institute of Certificate Public Accountants (“HKICPA”), we utilize non-HKFRS EBITDA and adjusted EBITDA as an additional financial measure. EBITDA and adjusted EBITDA are not required by, or presented in accordance with HKFRS Accounting Standards. We believe that the presentation of non -HKFRS measures when shown in conjunction with the corresponding HKFRS measures provides useful information to investors and management regarding financial and business trends in relation to our financial condition and results of operations, by eliminating any potential impact of items that our management does not consider to be indicative of our operating performance such as certain non-cash items and the impact of non-recurring transactions. We also believe that the non-HKFRS measures are appropriate for evaluating the Group’s operating performance. However, the use of this particular non -HKFRS measure has limitations as an analytical tool, and you should not consider it in isolation from, or as a substitute for analysis of, our results of operations or financial conditions as reported under HKFRS Accounting Standards. In addition, this non -HKFRS financial measure may be defined differently from similar terms used by other companies and therefore may not be comparable to similar measures used by other companies.
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- 33 - The following table set forth reconciliations of the Group’s non-HKFRS measures for the six months period ended 30 June 2026 and 202 5 to the nearest measures prepared in accordance with HKFRS Accounting standards. Six months ended 30 June Note 2026 2025 HK$’000 HK$’000 Profit for the period 952,711 740,142 Adjustments: Amortisation of intangible assets 9 99,532 99,380 Depreciation 9 1,742,282 2,285,989 Depreciation of right-of-use assets 9 21,353 44,228 Finance costs 7 215,577 141,655 Income tax expense 8 650,914 385,672 EBITDA 3,682,369 3,697,066 Adjustments: Property, plant and equipment written off 9 932 11,799 Impairment losses on property, plant and equipment 9 - 24,020 Impairment losses on intangible assets 9 46,800 - Share of losses/(profits) of associates 1,827 (7,913) Share of losses of joint ventures 24,490 - Gain on bargain purchase for acquisition of subsidiaries 9 - (114,381) Gain on release of financial guarantee contracts - (7,523) Deemed gain on disposal of investment in associates 9 - (78,912) Other payables and accruals written back 9 (29,922) - Impairment losses on trade receivables 9 120,120 - Other income – tax entitlement volumes 6 (336,941) (96,736) Adjusted EBITDA 3,509,675 3,427,420 EBITDA is calculated as the profit for the period, adjust for finance costs, income tax expense, amortisation of intangible assets, depreciation and depreciation of right-of-use assets. Adjusted EBITDA is calculated as the profit for the period, adjust for finance costs, income tax expense, amortisation of intangible assets, depreciation and depreciation of right-of-use assets, property, plant and equipment written off, impairment losses on property, plant and equipment and intangible assets , share of profits /losses of associates , share of losses of joint ventures , gain on bargain purchase for acquisition of subsidiaries, gain on release of financial guarantee contracts, deemed gain on disposal of investment in associates , other payables and accruals written back , impairment losses on trade receivables and other income – tax entitlement volumes. The adjusted EBITDA for the reporting period was approximately HK$3,509,675,000, slightly increased by 2.4% from the corresponding period of approximately HK$3,427,420,000. The increase in adjusted EBITDA was mainly attributable to the increase in average net realised sales price and increase in clean energy business during the reporting period.
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- 34 - Business and Market Outlook IMF projects global growth at 3.0% in 2026 and 3.4% in 2027, with the modest slowdown reflecting Middle East war effects partly offset by AI -driven technology momentum. Inflation is expected to rise to 4.7% in 2026 before easing to 3.9% in 2027. Risks rema in tilted to the downside amid potential renewed conflict, trade fragmentation, and policy uncertainties. Trade tensions and geopolitical risks may hinder growth and amplify inflation. On the commodity front, global oil demand is forecasted to increase by 0.8 mmbbld to an average of 105.94 mmbbld in 2026, as stated in the OPEC Monthly Oil Market Report of July 2026. While global oil demand is expected to see continued growth, supported p rimarily by the non-OECD region, supply is also projected to increase. Although geopolitical tensions have eased and supply conditions have improved, low global oil inventories and healthy seasonal refinery demand continue to support overall market fundamentals. As geopolitical tensions in Middle East region continue to ease, the Group anticipates that transit through the Strait of Hormuz can return to normal during 2026. The normalisation of shipping routes is expected to restore the Group Iraq Assets’ oil lifting to pre-disruption levels, thereby supporting an improvement in operating cash flows. While the resumption of supply routes may introduce some downward pressure on oil prices, average oil prices are still relatively high compared to 2025, and the Group re mains confident of delivering solid operational and financial performance for 2026. For 2026, the Group targets an average daily gross production of 176,000 to 200,000 boed, and an average daily working interest production of 105,400 to 118,900 boed. Capital expenditure is anticipated to fall within the range of US$500 –600 million, which represents a tightening compared with the approximately US$750 million projected for 2025. This level of investment remains essential to support the Group’s exploration, development and construction plans. In light of the uncertainties surrounding the Strait of Hormuz, the Group aims to manage capital expenditure towards the lower end of the guidance range. Furthermore, the Group maintains a strong emphasis on rigorous cash flow management and prudent financial stewardship to preserve enduring financial stability, robust strength, and operational agility. Pakistan Assets According to Pakistan Energy Outlook report prepared by Government of Pakistan, gas demand is expected to increase from approximately 3.56 bcfd in 2020 to approximately 4.24 bcfd in 2030. On the supply side, domestic production amounted to approximately 3. 69 bcfd in 2020 and is expected to decline quickly to approximately 2.82 bcfd in 2025, and approximately 2.18 bcfd by 2030. Gas shortage in Pakistan is mitigated by importing significantly more expensive LNG from the neighboring countries. Given that the Group’s production is predominantly gas, sales of natural gas are almost guaranteed to be taken up by the state-owned gas distribution customers. The Group continues to leverage its experience and understanding of the geology and geophysics in Lower Indus B asin, Middle Indus Basin, Kirthar and Suleman Fold Belt of Pakistan to unlock the potentials of these assets. In parallel, the Group will continue to look for similar opportunities in the market, such as participating in government bidding process, and strengthen cooperation with state -owned oil companies to further expand its footprint in Pakistan. For Pakistan Assets, the Group plans to achieve an average daily working interest production of 24,600 to 27,100 boed in 2026.
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- 35 - Iraq Assets Iraq possesses significant hydrocarbon resources, holding the world’s fifth -largest proven oil reserves. According to the Ministry of Oil’s 2025 estimates, the country’s reserves exceed 145 billion barrels of oil and 132 trillion cubic feet of gas, offerin g substantial resource endowment and long -term development potential. Iraq Assets bring high -quality assets to the Group’s portfolio with significant scale and strong development potential. The production base and long reserve life of these assets provide a sustainable development profile for the Group for the next two decades. As per reserve report issued by independent reserve auditor as of 31 December 2025, the Iraq Assets were reported with 2P working interest reserve of 566.4 mmboe. The Group will leverage its strong financial capability to further unlock the potential of Iraq Assets and replicate its past success story in the region where it operates. Average daily gross production of Iraq Assets is expected to reach 250,000 boed in the near future. In 2026, Iraq Assets are expected to achieve an average daily working interest production of 61,000 to 68,400 boed. Egypt Assets As a major African economy, Egypt demonstrated economic resilience in 2025, supported by a mature upstream sector with crude oil production averaging approximately 500,000 barrels per day. The Ministry of Petroleum and Mineral Resources has continued to implement reforms aimed at improving the investment climate since 2024, including the introduction of production -linked fiscal incentives, measures to accelerate the clearance of arrears to international oil companies, and streamlined licensing and bidding processes. Furthermore, the upstream M&A market in Egypt remains highly active, with notable joint ventures and asset acquisitions by international oil companies . The country’s strategic geographic position, anchored by the Suez Canal and its LNG export infrastructure , further reinforces its pivotal role in regional and global energy supply chains. In 2026, Egypt Assets are expected to achieve an average daily working interest production of 19,800 to 23,400 boed. Conclusion The first half of 2026 was marked by a challenging external environment, particularly due to geopolitical tensions in the Middle East. Against these headwinds, the Group’s high -quality and diversified asset base across multiple operating regions delivered essential operational resilience. This fundamental asset strength, further reinforced by effective management execution, underpin ned solid operational and financial performance for the Group. Moving forward, the Group remains confident that its diversified asset portfolio, disciplined financial management, and seasoned leadership team will enable it to navigate prevailing challenges and deliver sustainable, long-term shareholder value.
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- 36 - Liquidity and Financial Resources During the reporting period, the Group continues to maintain a strong financial position, with bank and cash balances amounting to approximately HK$3,368,142,000 as at 30 June 2026 (31 December 2025: approximately HK$3,685,528,000). The Group borrowings are noted below. These are from the banks and other trading commodity corporation, which show lenders confidence in the Group financial strength and its future plans. Principal amount outstanding at 30 June 2026 US$ Equivalent to HK$ Term loans 434,827,000 3,391,651,000 434,827,000 3,391,651,000 Principal amount repayable within From 30 June 2026 US$ Equivalent to HK$ Within 1 year 98,847,000 771,007,000 1 – 2 year 98,846,000 770,999,000 2 – 3 year 92,947,000 724,987,000 3 – 4 year 92,946,000 724,979,000 4 – 5 year 51,241,000 399,679,000 434,827,000 3,391,651,000 As at 30 June 2026, the gearing ratio was approximately 12.1% (31 December 2025: 15.3%), based on borrowings, advance from customers and lease liabilities under current liabilities and non -current liabilities of approximately HK$ 841,000,000 (31 December 20 25: approximately HK$ 1,555,595,000) and approximately HK$ 2,759,945,000 (31 December 20 25: approximately HK$ 2,900,200,000) respectively and total assets of approximately HK$29,670,998,000 (31 December 2025: approximately HK$29,138,820,000). As at 30 June 2026, the current ratio was approximately 1.05 times (31 December 2025: approximately 1. 01 times), based on current assets of approximately HK$ 12,617,495,000 (31 December 20 25: approximately HK$ 12,357,537,000) and current liabilities of approximately HK$11,980,361,000 (31 December 2025: approximately HK$12,270,679,000). As at 30 June 2026, the Group’s total borrowings (net of transaction cost and measured at amortised cost) amounted to approximately HK$3,326,804,000 (31 December 2025: approximately HK$3,537,181,000), all of them are denominated in United States dollars. The weighted average interest rate of the borrowings as at 30 June 2026 was 9.91% (31 December 2025: 9.81%). As at 30 June 202 6, the Group’s property, plant and equipment, right -of-use assets, intangible assets, advances, deposits and prepayments, trade and other receivable, inventory and bank balances, with total carrying value of approximately HK $12,563,062,000 (31 December 20 25: approximately HK$12,104,748,000) and share charges in respect of the equity interests of certain subsidiaries were pledged to secure the Group’s general banking facilities, trade and other payables and exploration, performance and financial obligations of the Group. The Group is continuously exploring opportunities to opt imise its capital structure, including the debt portfolio, to support organic, as well as inorganic growth, and will over the coming 12 -month period explore opportunities for tapping the international debt capital markets, including the possibility to issue a corporate bond. Material Acquisitions and Disposal The Group and the Company do not have other material acquisition and disposal during the reporting period.
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- 37 - Segment Information Particulars of the Group’s segment information are set out in Note 5 to Condensed Consolidated Financial Statements in this announcement. Capital Structure During the reporting period, the total number of issued shares of the Company (including treasury shares) was 26,040,504,786 shares as at 1 January 2026 and 30 June 2026 and the total number of issued shares of the Company (excluding treasury shares) was 25,849,594,786 shares as at 1 January 2026 and 30 June 2026. Employees As at 3 0 June 2026, the Group employed a total of 2,535 full time employees in Hong Kong, PRC, Pakistan, Dubai, MENA and other locations. Employees’ remuneration package is reviewed periodically and determined with reference to the performance of the individual and the prevailing market practices. The remuneration package included basis salaries, year-end bonus, medical and contributory provident fund. Contingent Liabilities Particulars of the Group’s contingent liabilities are set out in Note 21 to Condensed Consolidated Financial Statements in this announcement. Exposure to Fluctuations in Exchange Rates and Related Hedges The Group’s monetary assets and transactions are mainly denominated in United States dollars and Hong Kong dollars, which are relatively stable. Other currency involved include Renminbi, Pakistani Rupee, Iraqi Dinar and Egyptian Pound which exchange rate i mpact is not considered significant. The Group did not use financial instruments for hedging purposes during the reporting period and will continue to monitor the impact of any exchange fluctuations and take appropriate action to prevent any exposure to the Group. Sufficiency of Public Float The Company has maintained a sufficient public float throughout the six months ended 30 June 2026. Share Incentive Scheme The share incentive scheme of the Company (the “New Scheme”) with the maximum number of 2,584,959,478 shares of the Company (“Share(s)”) to be issued on the exercise of share options or subscription of share awards under the New Scheme (the “Scheme Limit”) was adopted pursuant to the shareholders’ resolution passed on 5 June 2026 for the primary purpose of providing the Eligible Persons with the opportunity to acquire proprietary interests in the Company and to encourage Eligible Persons to work towards enhancing the value of the Company and its Shares for the benefit of the Company and its Shareholders as a whole. The number of Shares which may be issued in respect of all share options and share awards to be granted under the New Scheme shall not (when aggregated with any other share options and share awards to be granted under any other share scheme(s) of the Compa ny) exceed 10% of the total issued share capital of the Company (excluding treasury shares of the Company) as at the date of adoption of the New Scheme. The New Scheme is effective for the period of ten years from 5 June 2026 (the date of adoption) to 4 June 2036. The period within which the share options must be exercised, or the share awards must be subscribed by the grantee under the New Scheme will be specified by the Board at the time of grant. This period must expire no later than 10 years from the relevant date of grant. The vesting period of share options and share awards granted under the New Scheme will also be specified by the Board at the time of grant which should not be less than 12 months and must expire no later than 10 years from the relevant date of grant . As at the date of this announcement, the remaining life of the New Scheme is approximately 9 years 9 months. The number of share options and share awards available for grant under the scheme mandate as at 30 June 2026 was 2,584,959,478 shares and the percentage of the issued shares (excluding treasury shares) that it represents was approximately 10%. During the reporting period, no share options or share awards were granted, exercised, subscribed, lapsed or cancelled under the New Scheme.
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- 38 - Performance Share Unit Scheme The PSU Scheme for employees of the Group or any subsidiaries of the Group was adopted by the Company on 1 April 2019. The PSU Scheme is effective for the period of ten years from 1 April 2019 (the date of adoption) to 31 March 2029. The PSU Scheme is subject to the provision of Chapter 17 of the Listing Rules. The specific objectives of the PSU Scheme are (i) to drive success and growth in the shareholder value of the Group; (ii) to promote the effective achievement of the mid - and long-term performance goals of the Group; and (iii) to attract, motivate and retain core talents of the Group with rewards and incentives. Subject to any early termination as may be determined by the Board pursuant to the scheme rules of the PSU Scheme, the PSU Scheme shall be valid and effective for a term of 10 years commencing on the adoption date. The Company shall not make any further award which will result in the aggregate number of shares underlying all grants made pursuant to the PSU Scheme (excluding awarded shares that have been forfeited in accordance with the PSU Scheme) to exceed 10% of the total number of the Company’s issued shares from time to time. The Board may from time to time while the PSU Scheme is in force and subject to all applicable laws, determine such vesting criteria and conditions or periods for the grant to be vested. The vesting period of share awards granted under the PSU Scheme will also be specified by the Board at the time of grant which should not be less than 12 months and must expire no later than 10 years from the relevant date of grant. During the reporting period, no share was granted under the PSU Scheme, 17,150,000 granted shares were vested and 650,000 granted shares were cancelled. Mr. Song Yu ( “Mr. Song”) was appointed as an executive director of the Company on 4 June 2025. As at the date of his appointment, Mr. Song holds 1,500,000 granted shares of the Company which were vested before his appointment in May 2025. Mr. Song also holds 1,200,000 granted shares of the Company under the PSU Scheme which has been vested in June 2026. Total of vested granted shares of 2,700,000 shares held by Mr. Song represents approximately 0.01% of the total issued shares. Save as disclosed above, t o the best of the Directors’ knowledge, information and belief, having made all reasonable enquiry, none of the selected participants is (i) a Director, nor a chief executive, or a substantial shareholder of the Company, or an associate of any of them; (ii) a participant with options and awards granted and to be granted exceeding the 1% individual limit under Rule 17.03D of the Listing Rules; or (iii) a related entity participant or service provider with options and awards granted and to be granted in any 12-month period exceeding 0.1% of the total issued shares. As at the date of this announcement, the total number of shares granted of two grants under the PSU Scheme since the date of adoption of the PSU Scheme is 60,147,163 shares and the number of shares acquired through on-market transactions and held in trust for the benefit of the employees by the trustee available for the future grant under the PSU Scheme is 125,376,846 shares, representing approximately 4.85% of the upper limit under the PSU Scheme mandate. As at the date of this announcement, the remaining life of the PSU Scheme is approximately 2 years 7 months. Share Option Scheme The share option scheme of the Company has expired on 27 May 2026. During the reporting period, no share options were granted, exercised, lapsed or cancelled under the share option scheme.
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- 39 - Disclosure of Interests Director’s interests and short positions in the securities of the Company and its associated corporations As at 30 June 2026, the following Directors had or were deemed to have interests or short positions in the shares, underlying shares or debentures of the Company and its associated corporations (within the meaning of Part XV of the SFO) (i) which were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which they were taken or deemed to have under such provisions of the SFO); or (ii) which were required, pursuant to section 352 of the SFO, to be entered in the register referred to therein; or (iii) which were otherwise required to notify the Company and the Stock Exchange pursuant to the Model Code: Number of Shares Name of Director Nature of interest Long Position Short Position Approximate % shareholding Yiu Chi Shing (Note 1) Attributable interest of controlled corporation 6,013,681,397 - 23.09% (L) Song Yu (Note 2) Beneficial Owner 2,700,000 - 0.01% (L) Notes: 1. Sheen Wise International Investment Limited is a wholly -owned subsidiary of Hong Kong (Xiamen) Investment Development Company Limited, which is itself a wholly-owned subsidiary of 廈門象嶼東洋國際貿易有限公司. This entity is, in turn, a wholly- owned subsidiary of 泉州東海開發有限公司, which is wholly-owned by China Point Investment Limited. China Point Investment Limited is a wholly-owned subsidiary of Equinox Investments Worldwide Limited, which is ultimately owned by Mr. Yiu Chi Shing. 2. Mr. Song Yu was appointed as an executive director of the Company on 4 June 2025. As at the date of his appointment, Mr. Song holds 1,500,000 granted shares of the Company which were vested before his appointment in May 2025. Mr. Song also holds 1,200,000 granted shares of the Company under the PSU Scheme which has been vested in June 2026. Total of vested granted shares of 2,700,000 shares held by Mr. Song represents approximately 0.01% of the total issued shares. 3. (L) denotes long position and (S) denotes short position. Save as disclosed above, as at 30 June 2026, none of the Directors and chief executive of the Company and their respective associates had or is deemed to have any interests or short positions in the shares, underlying shares or debentures of the Company or its associated corporations (within the meaning of Part XV of the SFO) (i) which were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which the Directors and chief executives of the Company are taken or deemed to have under such provisions of the SFO); or (ii) were required to be recorded in the register required to be kept by the Company pursuant to section 352 of the SFO; or (iii) which will be required, pursuant to the Model Code, to be notified to the Company and the Stock Exchange. Substantial Shareholders Persons who have an interest or short position which is disclosable under Divisions 2 and 3 of Part XV of the SFO and substantial Shareholders So far as is known to the Directors, as at 30 June 202 6, the following person (not being Directors or chief executive of the Company) had, or was deemed to have, interests or short positions in the shares or underlying shares which would fall to be disclosed to the Company and the Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO or who were directly or indirectly interested in 5% or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of any member of the Group:
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- 40 - Name Capacity and nature of interest Number of Shares Approximate % shareholding Yiu Chi Shing (Note a) Attributable interest of controlled corporation 6,013,681,397 (L) 23.09% (L) Equinox Investments Worldwide Limited (Note a) Attributable interest of controlled corporation 6,013,681,397 (L) 23.09% (L) China Point Investment Limited (Note a) Attributable interest of controlled corporation 6,013,681,397 (L) 23.09% (L) 泉州東海開發有限公司 (Note a) Attributable interest of controlled corporation 6,013,681,397 (L) 23.09% (L) 廈門象嶼東洋國際貿易有限公司 (Note a) Attributable interest of controlled corporation 6,013,681,397 (L) 23.09% (L) Hong Kong (Xiamen) Investment Development Company Limited (Note a) Attributable interest of controlled corporation 6,013,681,397 (L) 23.09% (L) Sheen Wise International Investment Limited (Note b) Beneficial owner 6,013,681,397 (L) 23.09% (L) Zhang Hong Wei (Note b) Attributable interest of controlled corporation 4,498,207,845 (L) 4,386,422,986 (S) 17.27% (L) 16.84% (S) 名澤東方投資有限公司 (Note b) Attributable interest of controlled corporation 3,605,207,845 (L) 3,605,207,845 (S) 13.84% (L) 13.84% (S) 東方集團有限公司 (Note b) Attributable interest of controlled corporation 3,605,207,845 (L) 3,605,207,845 (S) 13.84% (L) 13.84% (S) 東方集團產業發展有限公司 (Note b) Attributable interest of controlled corporation 3,605,207,845 (L) 3,605,207,845 (S) 13.84% (L) 13.84% (S) Huilan Investment Limited (Note b) Attributable interest of controlled corporation 3,605,207,845 (L) 3,605,207,845 (S) 13.84% (L) 13.84% (S) He Fu International Limited (Note b) Beneficial owner 3,605,207,845 (L) 3,605,207,845 (S) 13.84% (L) 13.84% (S) Wong Hung (Note c) Others (Note c) 3,614,239,845 (L) 13.88% (L) Ace Victory Developments Limited (Note c) Others (Note c) 3,614,239,845 (L) 13.88% (L) Notes: (a) Sheen Wise International Investment Limited is a wholly -owned subsidiary of Hong Kong (Xiamen) Investment Development Company Limited, which is itself a wholly-owned subsidiary of 廈門象嶼東洋國際貿易有限公司. This entity is, in turn, a wholly- owned subsidiary of 泉州東海開發有限公司, which is wholly-owned by China Point Investment Limited. China Point Investment Limited is a wholly-owned subsidiary of Equinox Investments Worldwide Limited, which is ultimately owned by Mr. Yiu Chi Shing. (b) Out of the 4,498,207,845 shares (17.27%), 3,605,207,845 shares (13.84%) were beneficially held by He Fu International Limited (“He Fu”) and 893,000,000 shares (3.43%) were beneficially held by other entities which were wholly-owned by Mr. Zhang Hong Wei. He Fu is a wholly-owned subsidiary of Huilan Investment Limited, which is 92% owned by 東方集團有限公司 and 8% owned by 東 方集團產業發展有限公司 . 東方集團產業發展有限公司 is wholly owned by 東方集團有限公司 , which comprises 6% ownership by its own wholly-owned subsidiary and 94% ownership by 名澤東方投資有限公司, which is ultimately wholly-owned by Mr. Zhang Hong Wei. Therefore, Mr. Zhang Hong Wei is deemed to be interested in those 4,498,207,845 shares (17.27%).
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- 41 - (c) On 9 April 2026, Ace Victory Developments Limited (“Ace Victory”) was granted a charging order against 3,605,207,845 shares (13.85%) of the Company which was directly held by He Fu. Ace Victory also held 9,032,000 shares (0.03%) of the Company. Mr. Wong Hung is sole shareholder of Ace Victory. Therefore, Mr. Wong Hung is deemed to be interested in those 3,614,239,845 shares (13.88%). (d) (L) denotes long position and (S) denotes short position. Save as disclosed above, as at 30 June 202 6, the Directors were not aware of any other person (other than the Directors and the chief executive of the Company) who had, or was deemed to have, interests or short positions in the shares or underlying shares (including any interests in options in respect of such capital), which would fall to be disclosed to the Company and the Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO, or who was directly or indirectly interested in 10% or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of any member of the Group. Corporate Governance The Company has applied the principles and complied with the code provisions as set out in the CG Code set out in Appendix C1 to the Listing Rules during the six months ended 30 June 2026 except that: - the CG Code Part 2 C .2.1 — the Company has the post of chief executive officer but it was still vacant CG Code Part 2 C.2.1 provides that the roles of chairman and chief executive should be separate and should not be performed by the same individual. Although the Company has separated the duties between the chairman and chief executive officer, the post of the chief execut ive officer is still vacant. In this connection, the executive function of the Company is performed by the executive Directors and management of the Company. Thus, significant decision of the Company is made by the Board. The Board considers that such stru cture will not affect the balance of power and authority between the chairman and the executive Directors. Compliance with the Model Code of the Listing Rules The Company has adopted the Model Code set out in Appendix C3 to the Listing Rules . Having made specific enquiry with the Directors, all the Directors confirmed that they have complied with the required standard as set out in the Model Code during the six months ended 30 June 2026. Audit Committee The Audit Committee of the Company comprise three independent non-executive directors, namely Mr. San Fung, Mr. Sun Chuen Wah Anthony and Ms. Tang Yuen Ching Irene . The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended 30 June 2026. The Audit Committee has also discussed with management and reviewed the accounting principles and practices adopted by the Group, as well as risk management, internal control and financial reporting matters, and found them to be satisfactory. Purchase, Sale or Redemption of Shares The Company has not redeemed any of its shares nor any of its subsidiaries has purchased or sold any of the Company’s shares during the six months ended 30 June 2026. Review of Interim Results The interim result for the six months ended 30 June 2026 have been reviewed by the Company’s Audit Committee. The unaudited condensed consolidated interim results of the Group for the six months ended 30 June 2026 have also been reviewed by the Company’s auditor, RSM Hong Kong, in accordance with Hong Kong Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the HKICPA. The auditor’s independent review report will be included in the Company’s interim report for the six months ended 30 June 202 6 to the shareholders.
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- 42 - Publication of interim report A detailed interim report containing all the information required by paragraph 46(1) to 46(9) of Appendix 16 to the Listing Rules will be dispatched to the shareholders and available on the Company’s website at www.ueg.com and the Stock Exchange’s website at www.hkexnews.hk in due course. By Order of the Board United Energy Group Limited Song Yu Chairman Hong Kong, 31 August 2026 As at the date of this announcement, the Board of the Company comprises the following directors: Executive directors: Mr. Song Yu (Chairman) and Mr. Chiu Ping Shun Non-executive director: Mr. Yiu Chi Shing (Vice Chairman) Independent non-executive directors: Mr. San Fung, Mr. Sun Chuen Wah Anthony and Ms. Tang Yuen Ching Irene
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- 43 - GLOSSARY AND DEFINITION In this announcement, unless the context otherwise requires, the following words and expressions have the following meanings. General Terms: “AGM” annual general meeting of the Company “Apex Assets” or “Apex” assets in Egypt area engaged Upstream business , held by Apex International Energy Holdings I “BOC” Basra Oil Company “Board” board of directors of the Company “CG Code” the Corporate Governance Code set out in Appendix C1 to the Listing Rules “China” or “PRC” the People’s Republic of China “Company” United Energy Group Limited “Director(s)” director(s) of the Company “Egypt Assets” assets in Egypt area engaged in Upstream business “Eligible Person” any director and employee of the Company (excluding independent non -executive directors of the Company) or a subsidiary (including persons who are granted Share Incentives under the Share Incentive Scheme as an inducement to enter into employment contracts with these companies) “Group” the Company and its subsidiaries “HK$” Hong Kong dollars, the lawful currency of Hong Kong “Hong Kong” the Hong Kong Special Administrative Region of China “HSSE” health, safety, security and environment “IMF” International Monetary Fund “Iraq Assets” assets in Iraq area engaged in Upstream business “Listing Rules” the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited “MENA” Middle East and North Africa “Model Code” Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 to the Listing Rules “OECD” Organisation for Economic Co-operation and Development “OPEC” Organisation of the Petroleum Exporting Countries “Pakistan Assets” assets in Pakistan area engaged in Upstream business “PSU Scheme” the performance share unit scheme adopted by the Company on 1 April 2019 “SFO” Securities and Future Ordinance (Chapter 571 of the Laws of Hong Kong) “Stock Exchange” The Stock Exchange of Hong Kong Limited “US$” or “US dollars” the lawful currency of the United States of America
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- 44 - Technical Terms: “1P” proved reserve “2P” proved plus probable reserve “bbl” Barrel “bcfd” billion cubic feet per day “boe” barrels of oil equivalent “boed” barrels of oil equivalent per day “CPF” central processing facilities “EDPC” Exploration Development and Production Contract “EDPSC” Exploration Development and Production Service Contract “FDP” field development plan “GDPSC” Gas Development and Production Service Contract “GW” Gigawatt “HSSE” Health, Safety, Security and Environment “LNG” liquefied natural gas “LPG” liquefied petroleum gas “MW” megawatt “MWh” megawatt-hour “mmbbld” million barrels per day “mmboe” million barrels of oil equivalent “Operator” the entity designated by the working interest owners to carry out the joint operations pursuant to the relevant agreement among them “PSC” profit sharing contract “Upstream business” or “E&P” oil and gas exploration, development, production and sales