Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 36,705,000, a decrease of 8.4% compared to HKD 39,952,000 in the same period of 2023[1] - The cost of sales for the same period was HKD 36,584,000, resulting in a gross profit of HKD 121,000, compared to a gross profit of HKD 492,000 in 2023[1] - The pre-tax loss for the period was HKD 12,389,000, compared to a pre-tax loss of HKD 7,610,000 in 2023, indicating a deterioration in financial performance[1] - The total comprehensive loss for the period amounted to HKD 14,942,000, compared to HKD 12,343,000 in the same period last year, reflecting a 20.9% increase in losses[2] - Basic and diluted loss per share was HKD 1.47, compared to HKD 0.91 in the previous year, representing an increase of 61.5%[2] - The company reported a net loss attributable to shareholders of approximately HKD 12,389,000, compared to a net loss of HKD 7,620,000 for the same period in 2023[33] - Gross profit for the period was approximately HKD 121,000, a sharp decline from HKD 492,000 in the prior year, primarily due to a 75% decrease in revenue from oil and related products[33] Assets and Liabilities - Non-current assets totaled HKD 150,317,000 as of June 30, 2024, slightly down from HKD 151,246,000 at the end of 2023[3] - Current liabilities increased to HKD 84,346,000 from HKD 81,167,000, indicating a rise in short-term financial obligations[4] - The company's net assets decreased to HKD 238,396,000 from HKD 253,338,000, reflecting a decline in overall equity[4] - Total assets as of June 30, 2024, were HKD 324,375,000, a decrease from HKD 337,122,000 as of December 31, 2023[18] - The company recorded a total liability of HKD 85,979,000 as of June 30, 2024, compared to HKD 83,784,000 as of December 31, 2023, indicating a 2.4% increase in liabilities[18] - The company has a cash balance of HKD 40,285,000, while total liabilities due within the next twelve months amount to HKD 46,469,000, indicating a liquidity concern[11] Operational Activities - The company has ongoing exploration and production activities in the oil and gas sector, with a focus on expanding its market presence and operational capabilities[5] - The company focused on trading petrochemical products during the period, with revenue from this segment being HKD 36,705,000[34] - The company is maintaining stable operations and maintenance at the Utah oil and gas fields, despite uncertainties in local service providers[35] - The company plans to continuously evaluate the situation at the Utah oil and gas fields and adjust its development strategies accordingly[35] - The company is currently assessing legal implications regarding lease terminations in Utah, which were due to a lack of production since 2020, potentially leading to fines if production requirements are not met[37] - The operational costs in Utah's oil fields are significantly influenced by third-party service providers, and any failure to comply with agreements could adversely affect operations[38] Strategic Plans and Challenges - The company plans to enhance cost control measures to improve profitability and cash flow in the future[12] - The company is evaluating new financing arrangements to support its operations and capital needs[12] - The company faces macroeconomic risks due to geopolitical instability, including the Russia-Ukraine war and U.S.-China trade disputes, which may negatively impact oil and gas supply and downstream demand[36] - Oil prices fluctuated between $75.9 and $91.1 per barrel in the first half of 2024, while natural gas prices experienced significant volatility, impacting revenue and operational performance[39] - The company is considering fundraising activities to support new drilling plans once production resumes at the remaining leases[40] - The strategic agenda includes improving cost efficiency while maintaining production growth, focusing on exploration quality management and strict cost control[41] Corporate Governance and Leadership - The board of directors includes five executive directors and three non-executive directors, along with three independent non-executive directors[54] - The company is led by Chairman and CEO Yu Jiyuan[54] - The board composition reflects a diverse leadership structure with a total of eleven members[54] - The presence of independent directors indicates a commitment to transparency and accountability[54] - The company is focused on strategic decision-making to enhance shareholder value[54] - The announcement serves as a formal communication to stakeholders regarding board composition and leadership[54]

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 161,497,000, a decrease of 54.5% compared to HKD 355,277,000 in 2022[6] - The company reported a net loss of HKD 49,552,000 for 2023, compared to a loss of HKD 1,193,000 in the previous year, indicating a significant decline in profitability[6] - Basic and diluted loss per share for the year was HKD 5.89, compared to HKD 0.14 in 2022, reflecting a substantial increase in losses per share[6] - Average return on equity was -11.4% for 2023, compared to -0.3% in 2022, highlighting a deterioration in shareholder returns[6] - The gross profit for the year was approximately HKD 1,509,000, down from HKD 15,277,000 in 2022[27] - The net loss attributable to shareholders was approximately HKD 49,552,000, significantly higher than the net loss of HKD 1,193,000 in the previous fiscal year[28] - The oil and gas segment recorded a loss of HKD 48,091,000 for the fiscal year, compared to a profit of HKD 5,660,000 in 2022[30] Operational Strategy - The company has maintained basic operations in the Utah oil field amid geopolitical uncertainties, reflecting a cautious approach to investment[8] - The management expressed cautious optimism regarding the recovery of the Chinese economy and its potential positive impact on domestic demand[9] - The company is committed to enhancing operational efficiency and adjusting trading strategies in response to market challenges[8] - There has been a gradual recovery in the profitability of certain refinery clients, indicating signs of market recovery[8] - The company is actively reviewing its pricing policies to mitigate the negative impacts of price uncertainties in the oil and gas market[33] - The company plans to continue evaluating the situation in the Utah oil and gas field and adjust its development strategies as necessary[30] Leadership and Governance - The annual salary of the Chairman was adjusted from HKD 1,083,000 to HKD 2,123,000 as of April 17, 2023[11] - The company appointed Mr. Yu Zhibo as an executive director on April 17, 2023, who has over ten years of experience in the petrochemical industry[12] - Mr. Jin Ailong was appointed as an executive director on April 17, 2023, and has been managing domestic oil trading since January 2022[13] - The company reported significant leadership changes, with several directors transitioning between executive and non-executive roles in 2023[17][18] - The company has a strong focus on expanding its operations in the petrochemical sector, leveraging the experience of its board members[12][20] - The company has a diverse board with members holding various qualifications, including CPA and tax advisor certifications, enhancing its governance[21][22] - The company is committed to maintaining a strong leadership team with extensive industry experience to navigate market challenges[20] - The board's composition reflects a strategic approach to governance, with independent directors contributing to oversight and decision-making[21] Environmental and Social Responsibility - The company is actively responding to climate change and preparing for energy transition, aiming to transform into an integrated energy enterprise[65] - The company has set environmental targets since the year ended December 31, 2021, focusing on emissions reduction, waste management, and resource conservation[65] - The board has authorized a working group to track and review the company's performance in achieving environmental goals[65] - The company emphasizes the importance of enhancing employee education and environmental awareness to balance economic growth and environmental responsibilities[66] - The company is exploring various decarbonization pathways and potential investments in renewable and low-carbon alternative energy[65] - The company has developed a climate change and environmental protection policy to identify, analyze, and manage climate-related issues[66] - The company has established a governance framework to effectively manage environmental, social, and governance (ESG) issues, integrating them into its business operations and decision-making processes[69] - The board is responsible for overseeing ESG matters and has a diverse composition to ensure a range of skills and experiences in managing these issues[69] - A working group has been formed to systematically manage ESG issues, consisting of an executive director and senior management with expertise in ESG[70] - The company conducts annual materiality assessments to understand stakeholder expectations and prioritize significant ESG issues[74] - Stakeholder engagement is deemed crucial for sustainable growth, with various communication channels established to incorporate stakeholder expectations into the company's operations[71] - The company aims to promote responsible business practices and sustainable development, creating value for shareholders[68] Employee and Workplace Practices - The company has 27 full-time employees as of December 31, 2023, an increase from 25 employees in 2022[103] - Employee gender distribution is 63% male and 37% female as of December 31, 2023[104] - Employee turnover rate decreased significantly from 52% in 2022 to 8% in 2023[111] - Male employee turnover rate dropped from 65% in 2022 to 18% in 2023[111] - The company adheres to fair and transparent performance evaluation systems for determining employee compensation and promotion opportunities[110] - The company provides competitive compensation and benefits, including mandatory social insurance contributions in mainland China[110] - The percentage of trained employees increased from 92% in 2022 to 100% in 2023, with an average training hours of 5.52 hours in 2023 compared to 6.45 hours in 2022[120] - The percentage of trained female employees rose from 85% in 2022 to 100% in 2023, with average training hours increasing from 7.98 hours to 7.12 hours[120] - The company is committed to maintaining a safe and pleasant working environment for employees, including regular air quality assessments[96] Financial Position and Liquidity - Total liabilities increased to HKD 20,296,000 in 2023 from HKD 4,634,000 in 2022, resulting in a total debt to total capital ratio of 5.0%[6] - The company's cash and bank balances were approximately HKD 1,252,000 as of December 31, 2023, a decrease from approximately HKD 15,147,000 the previous year, primarily due to reduced cash outflow from operations[41] - The current ratio as of December 31, 2023, was 2.29, down from 4.16 the previous year, indicating a decrease in liquidity[41] - The company's capital debt ratio was approximately 23.41% as of December 31, 2023, compared to 16.77% the previous year, reflecting an increase in leverage[51] - The company only had HKD 1,252,000 in bank balances and cash, raising significant doubts about its ability to continue as a going concern[54] - The board believes that the company will be able to continue as a going concern after considering plans and measures[54] Shareholder Information - The company reported no final dividend for the year ended December 31, 2023, consistent with the previous year[160] - The company has a total of 841,879,482 shares issued as of December 31, 2023[170] - Major shareholder Xinhua Petroleum (Hong Kong) Limited holds 580,172,014 shares, representing approximately 68.91% of the issued share capital[173] - Directors Yu Zhibo and Chen Junyan each hold 580,172,014 shares in a controlled corporation, accounting for 68.91%[170] - The company has established a major shareholder register in compliance with the Securities and Futures Ordinance[173] - The total number of shares available for issuance under the share option plan is 61,227,598 shares, accounting for approximately 7.27% of the issued shares as of the report date[177] Compliance and Risk Management - The group has established strict policies and procedures for the production and sales activities to ensure high-quality products and services[130] - The group emphasizes the importance of understanding customer needs as a foundation for continuous business improvement[133] - The group has a robust anti-corruption policy in place, with no concluded legal cases related to corruption against the group or its employees during the reporting period[138] - The company has not reported any significant violations of environmental laws during the reporting period[79] - The group maintained compliance with all relevant environmental regulations and standards during the reporting period[158] - The company has not reported any significant violations of labor laws related to forced labor and child labor during the reporting period[122]

Financial Performance - For the year ended December 31, 2023, the total revenue was HKD 161,497,000, a decrease of 54.5% compared to HKD 355,277,000 in 2022[4] - The gross profit for the year was HKD 1,509,000, down from HKD 15,277,000 in the previous year, indicating a significant decline in profitability[4] - The net loss for the year was HKD 49,552,000, compared to a loss of HKD 1,193,000 in 2022, reflecting a substantial increase in losses[5] - The total comprehensive loss for the year amounted to HKD 52,388,000, compared to HKD 11,243,000 in the prior year, highlighting worsening financial performance[5] - The group reported a net loss attributable to shareholders of HKD 49,552,000 for the year ending December 31, 2023[11] - The group incurred a loss before tax of HKD 59,279,000 in 2023, compared to a profit before tax of HKD 9,454,000 in 2022, reflecting a substantial decrease in financial performance[23][32] - The group reported a loss for the year of HKD 49,552,000 in 2023, compared to a loss of HKD 1,193,000 in 2022, indicating a worsening financial situation[23][27] - The oil and gas segment reported a loss of HKD 48,091,000 for the fiscal year 2023, compared to a profit of HKD 5,660,000 in the previous year[66] Assets and Liabilities - The company's total assets decreased to HKD 533,042,000 from HKD 553,498,000 in 2022, indicating a reduction in asset base[7] - The net asset value as of December 31, 2023, was HKD 408,274,000, down from HKD 460,662,000 in the previous year[8] - Non-current assets decreased to HKD 347,166,000 from HKD 394,941,000 in the previous year, indicating a decline in long-term asset investments[7] - The group's total liabilities increased to HKD 124,768,000 in 2023 from HKD 92,836,000 in 2022, marking an increase of approximately 34.4%[25][29] - The group has only HKD 1,252,000 in bank balances and cash, indicating significant uncertainty regarding its ability to continue as a going concern[11] - Total trade and other payables amounted to approximately HKD 50,581,000, with HKD 49,007,000 due within the next twelve months[11] Earnings Per Share - The basic and diluted loss per share for the year was HKD 5.89, compared to HKD 0.14 in 2022, showing a significant deterioration in earnings per share[5] - The basic and diluted loss per share for the year was HKD 0.0589, compared to a loss of HKD 0.0014 in the previous year[62] Cost Management - The company's administrative expenses were HKD 19,086,000, slightly reduced from HKD 20,465,000 in 2022, showing some cost control efforts[4] - The group plans to enhance cost control measures to improve profitability and cash flow from operations[15] Impairment and Valuation - The group recognized an impairment loss provision of HKD 39,870,000 for intangible assets in 2023, compared to HKD 6,645,000 in 2022, indicating increased risk in asset valuation[25][29] - Management must make estimates and judgments regarding potential impairment of oil and gas assets based on future price expectations and production conditions[19] Market Conditions - Brent crude oil prices fluctuated between USD 71.8 and USD 96.6 per barrel during 2023, closing at USD 77.0 per barrel in December[67] - Natural gas prices declined from USD 4.4 at the beginning of 2023 to USD 2.5 by December, and further to USD 1.8 by early March 2024[67] - The Henry Hub natural gas price decreased by approximately 57% from USD 4.4 per million British thermal units at the beginning of 2023 to USD 2.5 by the end of December[72] Future Outlook - The company anticipates ongoing evaluation and adjustment of its strategies in response to market conditions and geopolitical factors affecting its operations[66] - Future outlook includes potential market expansion and new product development initiatives[102] Governance and Compliance - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the standards set out in the listing rules[89] - The audit committee has reviewed and confirmed the accounting policies and practices adopted by the group, ensuring appropriate disclosures in the financial statements[95] - The board of directors includes five executive directors and three non-executive directors, indicating a diverse leadership structure[102]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 368,222,000, a significant increase from HKD 39,952,000 in the same period of 2022, representing a growth of 820%[3] - Gross profit for the same period was HKD 25,788,000, compared to HKD 492,000 in 2022, indicating a substantial increase in profitability[3] - The net loss attributable to the company's owners for the period was HKD 10,982,000, a recovery from a loss of HKD 7,620,000 in the previous year[3] - Total comprehensive loss for the period was HKD 4,567,000, compared to a loss of HKD 12,343,000 in the same period last year, showing an improvement[3] - The basic and diluted loss per share improved from HKD 0.91 to HKD 1.30, indicating a recovery in earnings per share[3] - The company reported a loss before tax of HKD 7,610,000 for the six months ended June 30, 2023, compared to a profit before tax of HKD 15,955,000 in the same period of 2022, indicating a shift of approximately 147.7%[23] - Basic and diluted loss per share for the six months ended June 30, 2023, was HKD (0.91), compared to earnings per share of HKD 1.30 for the same period in 2022[29] - The company incurred financing costs of HKD 6,879,000 for the six months ended June 30, 2023, compared to HKD 48,000 in the same period of 2022, reflecting a significant increase[23] Cash Flow and Assets - For the six months ended June 30, 2023, the net cash generated from operating activities was HKD 18,521,000, compared to a net cash outflow of HKD 13,658,000 in the same period of 2022[8] - The net cash generated from investing activities was HKD 110,000, a significant improvement from a net cash outflow of HKD 69,000 in the previous year[8] - The net cash outflow from financing activities decreased to HKD 1,092,000 from HKD 2,774,000 year-over-year[8] - The cash and cash equivalents at the end of the period increased to HKD 24,708,000 from HKD 5,662,000 at the end of June 2022[8] - Current assets increased from HKD 138,284,000 as of December 31, 2022, to HKD 158,557,000 as of June 30, 2023, reflecting a growth of 14.6%[4] - The company's total assets decreased slightly from HKD 515,397,000 to HKD 502,138,000, a decline of 2.5%[4] - The net asset value attributable to the owners of the company was HKD 459,647,000 as of June 30, 2023, compared to HKD 447,304,000 at the end of 2022, an increase of 2.7%[4] - The company reported cash and bank balances of approximately HKD 5,662,000 as of June 30, 2023, down from HKD 15,147,000 at the end of 2022[55] Liabilities and Equity - Current liabilities increased from HKD 30,140,000 to HKD 38,101,000, representing a rise of 26.2%[4] - The company reported a total liability of HKD 83,959,000 as of June 30, 2023, down from HKD 92,836,000 as of December 31, 2022[22] - The company’s total liabilities included deferred tax liabilities of HKD 51,754,000 as of June 30, 2023, unchanged from the previous year[22] - The debt-to-asset ratio was approximately 15.77% as of June 30, 2023, a slight decrease from 16.77% at the end of 2022[55] Operational Highlights - The company maintained stable operations and maintenance at the Utah oil and gas field, despite uncertainties affecting the local service providers[42] - The company plans to continuously evaluate the situation at the Utah oil and gas field and adjust its development direction and strategy as necessary[42] - The company has reviewed its pricing policy to mitigate the impact of price volatility on its operations[47] - The company is exploring new business opportunities in international oil trade and considering investments in clean and renewable energy for long-term sustainability[52] Market Conditions - The company faces price risks that could negatively impact its revenue and performance due to fluctuations in natural gas and oil prices[45] - Future oil and gas price volatility is expected due to global economic growth uncertainties and geopolitical tensions[47] - Brent crude oil prices fluctuated between $72 and $89 per barrel in the first half of 2023, with a peak of $89.9 in January and a drop to $75.41 by June[46] - WTI crude oil prices experienced a range of approximately 24% during the same period, starting at $80.5 per barrel and falling to $70.6 by June[50] - Henry Hub natural gas prices decreased by about 123%, from $4.4 per million British thermal units at the beginning of 2023 to $2.8 by June[50] Corporate Governance - The company has adhered to the corporate governance code as per the listing rules during the reporting period[80] - The board of directors has adopted a set of standards for securities trading that comply with the listing rules[76] - As of June 30, 2023, the company has complied with the listing rules regarding the composition of the board, with four independent non-executive directors, meeting the requirement of one-third[83] - The audit committee has confirmed that the financial statements for the six months ending June 30, 2023, have sufficient disclosure as per listing rules[84] - The board of directors consists of five executive directors and four independent non-executive directors as of the report date[89] Shareholder Information - As of June 30, 2023, the company has 841,879,482 issued shares[65] - New China Oil (Hong Kong) Limited holds 580,172,014 shares, representing approximately 68.91% of the issued share capital[69] - The ownership of New China Oil (Hong Kong) Limited is distributed among Yu Zhibo (46.28%), Chen Junyan (34.92%), and Chen Yaxin (18.80%)[65] Other Information - The company did not recommend the payment of an interim dividend for the current period, consistent with the previous year[28] - The company has not purchased, sold, or redeemed any listed securities during the reporting period[78] - No significant events occurred after June 30, 2023, up to the report date[88] - The company has no significant contingent liabilities or major acquisitions during the reporting period[57][59] - The company incurred approximately HKD 1,010,000 in costs related to the Utah oil and gas field during the reporting period[75] - No further exploration or development activities were conducted in the Utah oil and gas field during the reporting period[75] - The group has maintained a competitive employee compensation structure, with approximately 25 employees as of June 30, 2023[74] - The company is currently evaluating the potential impact of new accounting standards on its financial performance and position[14] - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[11]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 * （於百慕達註冊成立之有限公司） （股份代號：632） 二零二三年中期業績公告 中港石油有限公司*（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其 附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月（「本期間」）之未 經審核簡明綜合業績，與二零二二年同期的比較數字如下： 簡明綜合中期損益及其他全面收益表 截至六月三十日止六個月 二零二三年 二零二二年 （未經審核） （未經審核） 附註 千港元 千港元 收益 4 39,952 368,222 銷售成本 (39,460) (342,434) 毛利 492 25,788 其他收入 137 93 ...

Financial Performance - Total revenue for the year ended December 31, 2022, was approximately HKD 355 million, a significant decrease from HKD 1,528 million in 2021[6] - The company reported a loss of HKD 1.193 million for the year, compared to a profit of HKD 147.82 million in the previous year[6] - Average return on equity decreased to -0.3% in 2022 from 37.5% in 2021[6] - The company recorded a gross profit of approximately HKD 15 million for the year[9] - The basic and diluted loss per share for the year was HKD 0.14, compared to a profit of HKD 17.56 per share in the previous year[30] - Gross profit for the year was approximately HKD 15,277,000, down from HKD 95,807,000 in 2021, primarily due to decreased sales in oil and related products[30] - The company reported a loss attributable to owners of approximately HKD 1,193,000, compared to a profit of HKD 147,820,000 in the previous fiscal year[30] - The trading business's revenue from oil and related products in China decreased from HKD 1,509,395,000 in 2021 to HKD 355,269,000 in 2022, a decline of 76%[31] - The trading segment's profit dropped by 79% from HKD 93,506,000 in 2021 to HKD 19,186,000 in 2022, with a gross margin decrease from 6.3% to 4.8%[31] Market and Business Strategy - The company plans to focus on increasing trading volumes of oil and oil-related products in the domestic market[9] - Future strategies include exploring new business opportunities in international trade of oil and related products, and potential acquisitions of high-quality assets[10] - The company is considering providing oil field development and maintenance services, including oil exploration and management[10] - Long-term plans involve potential investments in clean and renewable energy to achieve emission reductions and sustainable development[10] - The company is actively involved in international sales and marketing strategies, as evidenced by Yu Jiyuan's previous roles[15] Leadership and Management - The annual salary of the CEO, Yu Jiyuan, has been adjusted from HKD 1,083,000 to HKD 2,123,000 starting April 17, 2023[15] - Lin Qingyu has transitioned from Executive Director to Non-Executive Director as of April 17, 2023[16] - Chen Junyan has also moved from Executive Director to Non-Executive Director on April 17, 2023[17] - The company has a strong leadership team with extensive experience in the petrochemical industry, including over ten years of experience from Yu Zhibo[22] - Zheng Ye has nearly 30 years of experience in the oil industry, contributing to the company's strategic direction[23] - The company is focused on expanding its market presence and enhancing its operational efficiency through experienced management[20] - The financial management team includes professionals with qualifications such as CPA and tax advisor certifications, ensuring robust financial oversight[20][25] - The leadership team has a diverse educational background, including degrees from prestigious institutions like Harvard University[15] Environmental, Social, and Governance (ESG) Initiatives - The company is actively addressing climate change and preparing for energy transition in response to China's 30-60 carbon goals[62] - The company has set environmental targets since 2021, focusing on emissions reduction, waste management, and resource conservation[63] - The board is responsible for overseeing the company's environmental, social, and governance (ESG) issues and evaluating their impact on overall strategy[66] - A working group has been established to systematically manage ESG matters, consisting of an executive director and senior management with relevant expertise[67] - The company emphasizes stakeholder engagement to understand emerging risks and opportunities, integrating stakeholder expectations into operations and ESG strategy[68] - The company has developed effective management policies and monitoring systems for ESG issues, ensuring compliance with reporting guidelines[67] - The company is committed to sustainable development, which is seen as crucial for long-term business prosperity[62] - The board conducts annual discussions on ESG issues to review their significance and related risks and opportunities[66] - The company aims to create shareholder value and pursue a sustainable future by integrating ESG principles into its business strategy[64] Employee and Workforce Management - The total employee count as of December 31, 2022, is 25, down from 36 in 2021, representing a decrease of approximately 30.6%[100] - The employee turnover rate increased significantly to 52% in 2022 from 18% in 2021, with male turnover at 65% and female turnover at 40%[108] - In mainland China, the employee turnover rate skyrocketed to 111% in 2022 compared to 9% in 2021, indicating severe workforce instability[108] - The company has a total of 17 male employees (68%) and 8 female employees (32%) as of December 31, 2022[101] - The company adheres to fair employment principles, ensuring equal opportunities regardless of gender, race, or other factors[107] - There were zero work-related fatalities or lost workdays due to injuries in the past three years, indicating a strong safety record[111] - The company has implemented multiple COVID-19 preventive measures, including increased cleaning frequency and temperature checks[114] - The employee benefits include mandatory provident fund contributions and various paid leave types, ensuring compliance with labor laws[107] - The company emphasizes team-building activities to enhance employee interaction and morale[110] - The percentage of trained employees increased significantly from 61% in 2021 to 92% in 2022[116] Community Engagement and Social Responsibility - The company actively participates in community investment and has established a social welfare system to select appropriate donation partners[135] - The company has engaged employees in community service activities, including road cleaning and pandemic support, to enhance environmental awareness[136] - The company has established a policy to protect customer privacy and ensure the confidentiality of personal data collected[128] - The company has a strict policy against downloading software or using any materials that infringe on copyright, monitoring for trademark infringements[130] - The company has not faced any legal cases related to corruption against its employees during the reporting period[132] - The company is committed to maintaining a high level of ethical corporate culture and regularly evaluates the effectiveness of its monitoring mechanisms[133] Financial Position and Shareholder Information - The company reported no final dividend for the year ended December 31, 2022, consistent with the previous year[155] - As of December 31, 2022, the company had 841,879,482 shares issued, with 580,172,014 shares (68.91%) held by major shareholders[167] - The company maintains compliance with environmental regulations and standards, focusing on reducing paper and electricity consumption[151] - The company has no distributable reserves available for distribution to shareholders as of December 31, 2022[159] - Major shareholder New China Petroleum (Hong Kong) Limited holds 580,172,014 shares, representing approximately 68.91% of the issued share capital as of December 31, 2022[171] - The total number of issued shares as of December 31, 2022, is 841,879,482[171] - The stock option plan allows for the issuance of a total of 61,227,598 shares, which is about 7.27% of the issued shares as of the report date[175] - No stock options have been granted under the stock option plan as of the report date[179] - The company has not entered into any significant transactions or agreements involving directors' interests during the year[181] - The company has not purchased, sold, or redeemed any of its listed securities during the year[192] - There have been no significant related party transactions that require disclosure under the listing rules during the year[190]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 * 632 年 度 業 績 公 告 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 中港石油有限公司*（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附屬公 司（「本集團」）截至二零二二年十二月三十一日止年度之綜合業績如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收入 5 355,277 1,528,065 銷售成本 (340,000) (1,432,258) 毛利 15,277 95,807 其他收入 7,016 1,900 ...

Financial Performance - The company reported a revenue of HKD 368,222,000 for the six months ended June 30, 2022, a decrease of 46.3% compared to HKD 684,138,000 in the same period of 2021[4]. - Gross profit for the period was HKD 25,788,000, down 47.4% from HKD 49,065,000 year-on-year[4]. - The net profit attributable to shareholders was HKD 10,982,000, a decline of 64.0% from HKD 30,509,000 in the previous year[4]. - The total comprehensive income for the period was HKD 4,567,000, significantly lower than HKD 31,382,000 in the prior year[4]. - The operating profit before tax for the six months ended June 30, 2022, was HKD 15,955 thousand, down 60.5% from HKD 40,343 thousand in the same period of 2021[37]. - For the six months ended June 30, 2022, the total revenue was HKD 368,222 thousand, a decrease of 46.1% compared to HKD 684,138 thousand for the same period in 2021[35]. - The profit attributable to the company's owners for the same period was approximately HKD 10,982,000, down 64.1% from HKD 30,509,000 in the prior year[69]. - Basic earnings per share for the period were HKD 1.30, a decline of 64.1% from HKD 3.62 in the previous year[49]. - The gross profit for the period was approximately HKD 25,788,000, compared to HKD 49,065,000 in the same period last year, indicating a significant decrease[69]. Cash Flow and Liquidity - The company experienced a net cash inflow from operating activities of HKD 18,521,000, compared to a cash outflow of HKD 4,042,000 in the same period last year[23]. - The company's cash and cash equivalents increased to HKD 24,708,000 from HKD 9,069,000, marking a significant improvement[23]. - The current ratio was 4.62 as of June 30, 2022, compared to 2.45 at the end of 2021, indicating improved liquidity[84]. - The group maintained a healthy financial position with cash and bank balances of approximately HKD 24,708,000 as of June 30, 2022, up from HKD 9,069,000 at the end of 2021[84]. Assets and Liabilities - Current assets decreased to HKD 183,428,000 from HKD 233,888,000 at the end of 2021, reflecting a decline of 21.5%[10]. - Current liabilities were reduced to HKD 39,663,000 from HKD 95,420,000, indicating a decrease of 58.5%[12]. - The total equity attributable to shareholders rose to HKD 475,457,000 from HKD 470,890,000, showing a slight increase of 1.2%[17]. - Trade receivables from third parties as of June 30, 2022, amounted to HKD 25,282,000, a decrease of 66.1% from HKD 74,534,000 at the end of the previous year[55]. - Trade payables to third parties as of June 30, 2022, were HKD 10,529,000, a decrease of 76.6% from HKD 44,877,000 at the end of the previous year[63]. Market Conditions - The significant decline in revenue was primarily due to strict pandemic control measures and travel restrictions in mainland China, affecting the transportation of oil and related products[70]. - Brent crude oil prices increased from USD 79.0 per barrel at the beginning of 2022 to USD 99.6 per barrel by early August 2022, representing a rise of approximately 26.1%[79]. - Natural gas prices surged from USD 3.8 per million British thermal units at the start of 2022 to over USD 9.6 in early June, before dropping to USD 5.4 and then rising again to USD 8.8 by early August, indicating significant volatility[76]. - The group anticipates continued volatility in oil and gas prices due to global economic growth uncertainties and geopolitical tensions, necessitating cautious reassessment of project investment progress[80]. Corporate Governance - The board of directors is committed to high standards of corporate governance and regularly reviews governance practices to ensure compliance with applicable laws and regulations[107][108]. - The audit committee, consisting of three independent non-executive directors, reviewed and confirmed the accounting principles and practices adopted by the group, ensuring adequate disclosure in the interim financial information[112][113]. - The company has confirmed that all directors complied with the standards of the code of conduct for securities transactions during the reporting period[104]. - The board of directors is responsible for ensuring the financial statements present a true and fair view of the group's financial position[114]. Future Outlook - The group plans to explore new business opportunities in international trade of oil and related products, as well as potential acquisitions of quality assets closely related to existing operations[81]. - The group has no major acquisitions or investments planned beyond those disclosed in the report, focusing on maintaining and developing existing operations[89]. - The average forecast for Brent crude oil prices is projected to be USD 105 per barrel for 2022 and USD 95 for 2023 according to the EIA[79].

Financial Performance - Total revenue for the year ended December 31, 2021, was approximately HKD 1,528 million, an increase of about 107% compared to HKD 736 million in 2020[11]. - Net profit for the year was HKD 147.82 million, compared to HKD 8.72 million in the previous year[11]. - Average return on equity was 37.5%, significantly up from 3.0% in 2020[11]. - Average return on capital employed was 34.0%, compared to 2.7% in the previous year[11]. - The company recorded a gross profit of approximately HKD 96 million, up from HKD 42 million in 2020[15]. - The company reported a significant increase in revenue, with a year-over-year growth of 15% in 2021[30]. - For the year ended December 31, 2021, the company recorded consolidated revenue of approximately HKD 1,528,065,000, a significant increase from HKD 736,762,000 in 2020, representing a growth of over 100%[37]. - The basic and diluted earnings per share for the year were HKD 0.1756, compared to HKD 0.0138 in 2020, based on a weighted average of approximately 842 million shares issued during the year[37]. - The gross profit for the year was approximately HKD 95,807,000, up from HKD 42,279,000 in 2020, primarily driven by the trading of oil and related products in mainland China[37]. - The net profit attributable to shareholders for the year was approximately HKD 147,820,000, compared to HKD 8,716,000 in 2020, reflecting a substantial increase due to higher sales and improved cost control measures[37]. Market and Business Strategy - The company plans to focus on maintaining and developing its existing business while exploring new opportunities in international oil and related products trading[16]. - The company is considering potential investments in clean and renewable energy for long-term sustainable development[16]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share by 2025[30]. - A strategic acquisition of a local competitor is expected to be finalized by Q3 2022, which will enhance the company's distribution network[30]. - The company will continue to monitor the impact of the Omicron variant on the oil market and adjust its business strategies accordingly[16]. Environmental, Social, and Governance (ESG) Initiatives - The group is committed to achieving carbon peak by 2030 and carbon neutrality by 2060, aligning with China's 30-60 goals[76]. - The board has authorized a dedicated team to collect and track environmental, social, and governance (ESG) data, ensuring compliance with relevant laws and regulations[82]. - The group aims to enhance its ESG performance by setting targets related to emissions reduction, waste management, and resource conservation[76]. - The group follows the ESG reporting guidelines set by the Hong Kong Stock Exchange to ensure consistency and comparability in reporting[70]. - The company has implemented a climate change and environmental protection policy at the group level during the reporting period[76]. - The dedicated team is responsible for monitoring and evaluating the group's ESG performance and progress towards set goals[82]. - The group emphasizes the importance of integrating ESG principles into its business strategy and management systems for long-term value creation[77]. Employee and Community Engagement - The company has a total of 36 full-time employees, with 9 males (25%) and 27 females (75%)[139]. - The employee turnover rate for the reporting period was approximately 18%[146]. - The company emphasizes the importance of employee development and offers diverse training opportunities to enhance job-related skills[159]. - The company conducts regular emergency drills to prepare for potential disruptions caused by extreme weather events[133]. - The company has established a community engagement program to fulfill corporate social responsibility, encouraging employee donations to recognized charities[185]. - The group actively engaged in community support activities, including approximately 13 hours of street snow removal during the reporting period[186]. Environmental Impact and Compliance - The company's greenhouse gas emissions increased significantly, with total emissions rising from 21.6 tons of CO2 equivalent in 2020 to 124.40 tons in 2021[106]. - The company aims to replace all company vehicles with electric vehicles by December 31, 2025, to reduce emissions[104]. - The company has established a data collection system to monitor natural gas consumption in its U.S. office, contributing to the increase in reported emissions[109]. - The company is committed to complying with environmental laws and regulations, with no significant violations reported during the period[103]. - The total amount of harmless waste generated was 0.31 tons, with a density of 0.20 kg per million HKD in revenue, down from 0.41 kg per million HKD in the previous year[117]. Risk Management - The company has identified significant risks related to climate change that could impact its business operations and is taking steps to mitigate these risks[134]. - The company is committed to monitoring and mitigating climate-related risks, identifying potential risks from extreme weather events that could disrupt operations and increase costs[133]. - The company has reviewed its pricing policy to mitigate the negative impacts of price volatility in oil and gas markets, ensuring contracts include necessary price adjustment mechanisms based on market quotations[44].

Financial Performance - The company reported revenue of HKD 684,138,000 for the six months ended June 30, 2021, compared to HKD 87,447,000 in the same period of 2020, representing a significant increase of 681%[11] - Gross profit for the period was HKD 49,065,000, compared to HKD 1,825,000 in the previous year, indicating a substantial improvement[11] - The net profit attributable to the company's owners was HKD 30,509,000, a turnaround from a loss of HKD 13,375,000 in the prior year[11] - The total comprehensive income for the period was HKD 31,382,000, compared to a loss of HKD 13,829,000 in the same period last year[12] - Basic and diluted earnings per share were HKD 3.62, compared to a loss per share of HKD 2.18 in the previous year[13] - The company reported a significant increase in current tax expense, with a tax charge of HKD 9,834,000 for the six months ended June 30, 2021, compared to HKD 180,000 in the same period of 2020[48] - The profit attributable to the company's owners was approximately HKD 30,509,000, a turnaround from a loss of HKD 13,375,000 in the prior year[75] - The gross profit for the period was approximately HKD 49,065,000, up from HKD 1,825,000 in the same period last year, primarily driven by increased sales of oil and related products[74] Cash Flow and Assets - Cash and cash equivalents at the end of the period were HKD 23,374,000, down from HKD 27,948,000 at the beginning of the period[18] - The company experienced a net cash outflow from operating activities of HKD 4,042,000, an improvement from HKD 26,304,000 in the previous year[18] - Total assets decreased to HKD 379,012,000 from HKD 348,470,000, while total liabilities decreased to HKD 134,654,000 from HKD 194,148,000[14] - Trade receivables as of June 30, 2021, were HKD 8,084,000, a decrease from HKD 56,428,000 as of December 31, 2020, indicating improved cash flow management[59] - As of June 30, 2021, the group's cash and bank balance decreased from HKD 27,948,000 to approximately HKD 23,374,000, primarily due to net cash outflow from operating activities[86] - The current ratio as of June 30, 2021, was approximately 1.79, an increase from 1.38 as of December 31, 2020[86] - The debt-to-asset ratio was approximately 31.95% as of June 30, 2021, down from 41.37% as of December 31, 2020[86] Business Operations - The company continues to focus on oil and gas exploration, extraction, and sales, with plans for market expansion and potential new product development[21] - For the six months ended June 30, 2021, the company reported revenue from oil, petroleum-related, and other product sales of HKD 684,138,000, a significant increase from HKD 87,447,000 in the same period of 2020, representing a growth of approximately 681%[33] - The company recorded a segment profit of HKD 48,460,000 from petroleum-related and other product trading, compared to a segment loss of HKD 771,000 from oil and gas sales[34] - The company’s revenue from external customers in China reached HKD 665,472,000, while revenue from Hong Kong was HKD 18,666,000 for the six months ended June 30, 2021[44] - The subsidiary Dongfang Mingzhu Petroleum (Daqing) Co., Ltd. achieved revenue of approximately HKD 665,472,000, a 661% increase compared to the same period last year[80] - The company expects steady economic growth in China, which is anticipated to lead to increased oil consumption and demand[81] - The company plans to explore new business opportunities in international markets related to oil and petroleum products and consider potential acquisitions of quality assets[82] Market Conditions - Oil and gas prices have rebounded strongly, with WTI and Brent crude prices rising approximately 48% since the beginning of 2021[85] - The company remains cautious about the outlook for the third and fourth quarters of 2021 due to uncertainties related to the Delta variant of COVID-19[85] - The company anticipates a potential decline in international oil and gas prices in the near term, influenced by various pandemic-related factors[85] - The company will prioritize the stable operation of oil and gas fields while closely monitoring developments in the international market[85] Corporate Governance - The board is committed to high standards of corporate governance and believes it has complied with the corporate governance code throughout the reporting period[108] - The audit committee has confirmed that the accounting principles and practices adopted by the group are adequate as of June 30, 2021[114] - The directors are responsible for ensuring the financial statements present a true and fair view of the group's financial position[117] - The company has ensured compliance with all statutory requirements and applicable accounting standards in preparing its financial statements[117] - The board has confirmed that there have been no changes in the directors' information that require disclosure under the listing rules since the latest annual report[111] Employee and Shareholder Information - The group had 24 employees as of June 30, 2021, with a competitive compensation package including monthly salary, mandatory provident fund, and medical insurance[90] - The major shareholder, Xinhua Petroleum (Hong Kong) Limited, held 580,172,014 shares, representing approximately 68.91% of the issued share capital as of June 30, 2021[100] - The company did not recommend any interim dividend for the period, consistent with the previous year[51]