Financial Performance - Revenue for the six-month period was approximately HKD 488.6 million, with a loss attributable to the company's owners of about HKD 10.2 million[60]. - The gross profit for the six-month period fell to approximately HKD 17.7 million, down from HKD 22.4 million in the same period last year[71]. - The company reported a loss attributable to owners of approximately HKD 10.2 million, compared to a profit of HKD 13.8 million in the first half of 2022[87]. - Revenue for the first half of 2023 reached HKD 488.618 million, an increase of 2% compared to HKD 477.809 million in the same period of 2022[138]. - Gross profit for the first half of 2023 was HKD 17.690 million, down from HKD 22.428 million in the same period of 2022, indicating a decline of approximately 21%[138]. - The company reported a net loss of HKD 10.632 million for the first half of 2023, compared to a profit of HKD 13.651 million in the same period of 2022[139]. - Basic and diluted loss per share for the first half of 2023 was HKD 0.48, compared to earnings of HKD 0.65 per share in the same period of 2022[139]. Assets and Liabilities - As of June 30, 2023, the company's total assets less current liabilities amounted to HKD 1,427,911,000, an increase from HKD 1,397,803,000 as of December 31, 2022, representing a growth of approximately 2.1%[34]. - The company's net current assets were HKD 661,401,000, compared to HKD 645,957,000 as of December 31, 2022, indicating an increase of about 2.4%[34]. - The total liabilities decreased from HKD 80,775,000 as of December 31, 2022, to HKD 56,493,000 as of June 30, 2023, reflecting a reduction of approximately 30%[34]. - The company’s equity attributable to owners decreased from HKD 1,396,495,000 as of December 31, 2022, to HKD 1,374,625,000 as of June 30, 2023, a decline of about 1.6%[34]. - Non-current assets as of June 30, 2023, totaled HKD 766.510 million, an increase from HKD 751.846 million as of December 31, 2022[140]. - Trade receivables decreased to HKD 80.398 million as of June 30, 2023, down from HKD 119.931 million at the end of 2022, representing a decline of approximately 33%[140]. - Inventory as of June 30, 2023, was HKD 31.193 million, a decrease from HKD 35.177 million at the end of 2022, indicating a decline of about 11%[140]. Financial Instruments and Borrowings - The company's bank borrowings had a floating interest rate of 4.4% as of June 30, 2023, which is based on the market lending rate plus 0.2%[6]. - The company’s financial liabilities included derivative financial instruments valued at HKD 10,789,000 as of June 30, 2023, compared to HKD 514,000 as of December 31, 2022, indicating a substantial increase[34]. - As of June 30, 2023, the group had bank borrowings of approximately HKD 53.3 million and total bank credit facilities amounting to approximately HKD 1,406.8 million[88]. - The group's asset-liability ratio was 4% as of June 30, 2023, compared to 0% on December 31, 2022, primarily due to bank borrowings for the construction of a plant in Fujian[108]. Business Operations and Market Conditions - The trading volume of finished oil decreased to 986 metric tons from 1,810 metric tons in the same period last year, while the trading volume of petrochemical products increased from 44,510 metric tons to 53,921 metric tons[67]. - The trading volume of coal decreased from 193,861 metric tons in the same period last year to 155,029 metric tons[67]. - Approximately 69% of the trading revenue came from petrochemical products, while 2% was from refined oil trading, and 29% from coal trading[83]. - The income from general storage and other supporting services related to refined oil and petrochemical products was about HKD 17.7 million, up from HKD 15.5 million in the first half of 2022[85]. - The company maintained a cautious approach in trading operations due to significant fluctuations in the oil market, influenced by various economic factors[76]. - The average price of Brent crude oil rose from USD 79.05 per barrel at the beginning of January to a peak of USD 84.55 per barrel by the end of January, before stabilizing around USD 75 per barrel in June[65]. Strategic Initiatives and Future Outlook - The company is optimistic about the potential growth of its solar energy business and is actively seeking new opportunities in emerging business areas to expand revenue sources[66]. - Nantong Runde Petrochemical Co., Ltd. reported continuous revenue and profit growth due to increased throughput and stable customer growth during the six-month period[78]. - The SEBS project, a petrochemical product production initiative, is expected to have an annual production capacity of 50,000 metric tons and is recognized as a key project by the local government[79]. - The group is establishing a plant in Fujian, expected to commence operations in the first quarter of 2024[113]. - The number of employees increased to 142 as of June 30, 2023, from 93 on December 31, 2022, due to the development of the Fujian plant[114]. Compliance and Governance - The company has complied with the listing rules and regulations as required by the Hong Kong Stock Exchange during the reporting period[15]. - The company’s audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[133]. - The company maintained sufficient public float as required by listing rules during the six-month period[158]. - The company has not entered into any arrangements that would allow directors to benefit from acquiring shares or debentures of the company or any other corporation during the six-month period[133]. - The company did not recommend any interim dividend for the six-month period, consistent with the first half of 2022[110]. Changes in Accounting Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, which may impact future financial reporting[36]. - The company adopted new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial statements[169]. - The company is currently evaluating the impact of new and revised Hong Kong Financial Reporting Standards but has not yet determined their potential significant effects on its operational performance and financial position[187]. - The company’s accounting policies and measurement methods remained consistent with those presented in the annual financial statements for the year ended December 31, 2022[169]. Cash Flow and Financial Position - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 15,836, a significant decrease from HKD 140,864 in the same period of 2022[183]. - The net increase in cash and cash equivalents was HKD 44,928, compared to HKD 141,506 in the previous year[199]. - Bank interest income rose to HKD 2,905 from HKD 121 year-on-year[199]. - Interest income from trade receivables decreased to HKD 5,645 from HKD 15,875[199]. - Government grants received increased to HKD 1,881 from HKD 1,233[199]. - The company reported a foreign exchange loss of HKD 8,500, an improvement from a loss of HKD 16,819 in the previous year[199]. - The cash and cash equivalents balance as of June 30, 2023, was HKD 330,669, up from HKD 285,145 at the end of the previous year[199]. - The company incurred a loss of HKD 1 from the sale of property, plant, and equipment, compared to a gain of HKD 14 in the previous year[200]. - The company did not report any rental income for the current period, while it was HKD 20,260 in the previous year[200].

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佈之內容概不負責，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佈全部或任何部分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。 STRONG PETROCHEMICAL HOLDINGS LIMITED * 海峽石油化工控股有限公司 （於開曼群島註冊成立的有限公司） 852 （股份代號： ） 截至二零二三年六月三十日止六個月之 中期業績公佈 海峽石油化工控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此提呈本公司及 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（「六個月期間」）的未 經審核綜合財務業績。 ...

Financial Performance - For the fiscal year ending December 31, 2022, the company's revenue was approximately HKD 923.1 million, an increase of 13.9% compared to HKD 810.6 million in 2021[19]. - The company reported a profit attributable to owners of approximately HKD 5.7 million for 2022, slightly down from HKD 6.2 million in 2021[19]. - The group's trading revenue for the year was approximately HKD 879.9 million, an increase from HKD 772.1 million in the previous year, with 68% of this revenue coming from petrochemical products trading[33]. - The overall gross profit for the year decreased to approximately HKD 33.4 million from HKD 38.4 million in the previous year, primarily due to adverse economic conditions[46]. - The rental income generated for the year was approximately HKD 12.2 million, slightly down from HKD 12.6 million in the previous year[43]. - The group recorded a total gain of approximately HKD 21.8 million from changes in the fair value of derivative financial instruments, down from HKD 72 million in the previous year[45]. Assets and Liabilities - Total assets decreased to HKD 1,478.6 million in 2022 from HKD 1,628.5 million in 2021, reflecting a decline of 9.2%[3]. - Total liabilities decreased significantly to HKD 82.4 million in 2022 from HKD 189.6 million in 2021, a reduction of 56.5%[3]. - As of December 31, 2022, the equity attributable to the owners decreased by approximately HKD 42,400,000 to about HKD 1,396,500,000, compared to HKD 1,438,900,000 in the previous year[50]. - As of December 31, 2022, the group's cash and cash equivalents totaled approximately HKD 288,000,000, up from HKD 158,200,000 in the previous year[52]. - The group has no bank borrowings as of December 31, 2022, maintaining an asset-to-liability ratio of 0%[53]. Business Strategy and Development - The company plans to continue focusing on the petrochemical trade network in China, aiming to expand sales channels in response to recovering demand[4]. - The company is developing a new petrochemical product, SEBS thermoplastic elastomer, with an expected annual production capacity of 50,000 tons, which is recognized as a key local project in China[23]. - The company aims to monitor macroeconomic changes closely and develop appropriate business strategies to mitigate risks while seeking new opportunities for shareholder returns[5]. - The company is committed to maintaining strong relationships with major clients while exploring new business opportunities amid economic uncertainties[4]. - The company focuses on internal development and selective acquisitions to expand its business scale and geographic coverage[69]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development and regularly reviews its environmental, social, and governance performance[91]. - The board oversees the evaluation of environmental, social, and governance risks and opportunities to align with sustainable development strategies[91]. - The group established an Environmental, Social, and Governance (ESG) working group to collect and analyze ESG data, ensuring compliance with relevant laws and regulations[92]. - The company aims to improve its environmental, social, and governance performance while creating greater value for the broader community[126]. - The company aims to peak carbon emissions by 2030 in alignment with China's 14th Five-Year Plan[149]. Risk Management - The company has established a formal risk management policy to regularly identify, assess, and manage risks faced by the group[82]. - The audit committee reviews the internal control system and risk management processes annually, reporting findings to the board[83]. - The audit committee found no significant violations of risk management policies during the year, affirming the effectiveness of the internal control system[83]. - The company recognizes impairment losses on financial instruments in profit or loss, adjusting the carrying amount through loss provisions[196]. Investments and Financial Instruments - The group expects to benefit from investments in oil and gas assets through the SH Energy fund, with positive cash flow from the Tianjin oilfield project[25]. - The company has invested a total of $25,000,000 in SH Energy as of December 31, 2022, which is approximately HKD 195,000,000, holding about 99% of the shares[67]. - The fair value of SH Energy as of December 31, 2022, is approximately $19,600,000, equivalent to about HKD 152,600,000, representing about 10% of the company's total assets[67]. - The company recognized a loss of approximately $5,700,000 in the fair value of its investment in SH Energy for the year, compared to a gain of about $300,000 in the previous year[67]. Debt and Credit Management - The outstanding trade debt owed by Shandong Shengxing Chemical Co., Ltd. amounts to approximately USD 91,500,000 (approximately HKD 713,700,000)[60]. - As of December 31, 2022, the group received approximately USD 30,500,000 (approximately HKD 237,900,000) as partial repayment of the outstanding debt from Shandong Shengxing[61]. - The group plans to continue actively pursuing the collection of the outstanding debts from Shandong Shengxing[62]. - The group has established a provision matrix for expected credit losses based on historical loss experience and forward-looking factors[191]. Compliance and Transparency - The company ensures compliance with regulatory requirements and maintains transparency in its operations to uphold its reputation[126]. - The company engages stakeholders through various channels, including annual general meetings and financial reports, to address their expectations and concerns[123]. - The company aims to improve transparency and deepen stakeholder understanding of its business development[85].

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佈之內容 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 因本公佈全部或任何部分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。 STRONG PETROCHEMICAL HOLDINGS LIMITED 海 峽 石 油 化 工 控 股 有 限 公 司* （於開曼群島註冊成立的有限公司） （股份代號：852） (1) 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 年 度 業 績 公 佈；及 (2) 建 議 採 納 經 修 訂 及 重 列 的 組 織 章 程 細 則 (1) 截至二零二二年十二月三十一日止年度的年度業績公佈 海峽石油化工控股有限公司（「本公司」）董事會（「董事會」）欣然公佈本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 經 審 核 綜 合 業 績，連 同 截 至 二 零 二 一 年 十 二 月 三 十 一 日 止 年度的經審核比較數據如下： ...

Financial Performance - Revenue for the six-month period ended June 30, 2022, was approximately HKD 477.8 million[10] - Profit attributable to owners of the company for the same period was approximately HKD 13.8 million[10] - The group's trading business revenue for the six-month period was approximately HKD 455.3 million, an increase of about 37% compared to HKD 331.2 million in the same period of 2021[18] - Revenue for the six months ended June 30, 2022, was HKD 477,809 thousand, an increase of 37.6% compared to HKD 347,028 thousand in the same period of 2021[71] - Gross profit for the same period was HKD 22,428 thousand, a decrease of 5.0% from HKD 23,616 thousand in 2021[71] - The net profit for the six months ended June 30, 2022, was HKD 13,651 thousand, compared to a net loss of HKD 5,343 thousand in the same period of 2021[73] - Total comprehensive income for the period was a loss of HKD 12,383 thousand, compared to a loss of HKD 1,216 thousand in the same period of 2021[73] - The group recorded a pre-tax profit of HKD 13,778,000 for the six months ending June 30, 2022, compared to a loss of HKD 5,343,000 in the same period of 2021[133] Operational Highlights - Nantong Runde, a wholly-owned subsidiary, operates 21 oil storage facilities with a total capacity of 139,000 cubic meters, reporting increased revenue and profit due to higher throughput[13] - The expected operational start date for the Fujian plant has been delayed to Q1 2023 due to construction delays caused by the COVID-19 pandemic[14] - The SEBS project, a key petrochemical product development, is expected to have an annual production capacity of 50,000 tons and is recognized as a provincial key project in China[14] - The trading volume of finished oil was 1,810 tons, while the trading volume of petrochemical products decreased from 48,480 tons in the first half of 2021 to 44,510 tons in the current period[20] - Revenue from finished oil and petrochemical product storage and related services was approximately HKD 15.5 million, up from HKD 11 million in the first half of 2021[22] Cash Flow and Financial Position - As of June 30, 2022, the group's bank balances and cash amounted to approximately HKD 285.1 million, an increase from HKD 158.2 million as of December 31, 2021[28] - For the six months ended June 30, 2022, the net cash generated from operating activities was HKD 140,864,000, a significant increase from HKD 26,893,000 in the same period of 2021, representing a growth of approximately 424%[83] - The company reported a net cash increase of HKD 141,506,000 for the period, contrasting with a decrease of HKD 13,254,000 in the same period last year[83] - The company’s cash and cash equivalents at the end of June 30, 2022, amounted to HKD 285,145,000, up from HKD 132,142,000 at the same time last year, reflecting a growth of approximately 115%[83] - The company incurred payments of HKD 49,658,000 for the acquisition of property, plant, and equipment during the reporting period[83] Shareholder and Governance Information - As of June 30, 2022, major shareholders include Forever Winner with 1,041,746,000 shares (49.06%) and Hong Kong Hengyuan Investment Co., Ltd. with 353,603,681 shares (16.65%)[56] - The company has adopted a share option scheme since May 15, 2014, allowing flexibility in granting options to employees and directors[60] - The number of securities available for issuance under the share option scheme is 314,801,840 shares, approximately 14.8% of the total issued shares as of June 30, 2022[63] - The audit committee consists of three independent non-executive directors, overseeing the financial reporting process and internal controls[64] - The company has complied with the corporate governance code as per the listing rules during the six-month period[65] Market and Strategic Outlook - The company maintained a cautious approach in commodity trading due to market uncertainties, focusing on back-to-back trading arrangements and keeping low inventory levels[11] - The company is optimistic about the growth of solar energy business despite challenges such as installation costs and land supply[17] - The company aims to diversify business risks and seek new opportunities to maximize shareholder returns in the challenging environment of 2022[17] - The group anticipates becoming a leading solar system operator in Hong Kong's new energy market through solar system projects[43] - Future outlook includes continued focus on expanding trading operations and enhancing storage services to capture market opportunities[107] Investment and Capital Commitments - The group has a capital commitment of approximately RMB 365.7 million (approximately HKD 427.6 million) for the construction of a plant in Fujian[34] - The group holds a significant investment in SH Energy, amounting to USD 25 million (approximately HKD 195 million), which is expected to diversify its revenue sources[40] - The group completed its total investment commitment of USD 25,000,000 (approximately HKD 195,000,000) to SH Energy[182] Employee and Compensation Information - The number of employees decreased to 89 as of June 30, 2022, compared to 93 on December 31, 2021[45] - The company has a competitive compensation policy, including benefits such as provident fund, life and medical insurance, discretionary bonuses, and stock options[45] Financial Risks and Losses - The company reported a net foreign exchange loss of HKD 16,819,000, compared to a loss of HKD 1,068,000 in the same period last year[116] - The group recognized a significant foreign exchange loss of HKD 16,819,000 for the period, compared to a loss of HKD 1,068,000 in the previous year, highlighting currency volatility impacts[130] - For the six-month period ending June 30, 2022, the group reported a net loss from leasing operations of approximately HKD 20,254,000, compared to a loss of HKD 26,042,000 in the same period of 2021[119]

Financial Performance - For the year ended December 31, 2021, the company's revenue was approximately HKD 810.6 million, a significant decrease from HKD 6,572.3 million in 2020[11] - The profit attributable to the company's owners for the year was approximately HKD 6.2 million, compared to a loss of HKD 93 million in 2020[11] - The total assets of the company as of December 31, 2021, were HKD 1,628.5 million, down from HKD 1,747.9 million in 2020[9] - The total liabilities decreased to HKD 189.6 million in 2021 from HKD 326.3 million in 2020[9] - The company's trading revenue for the year was approximately HKD 772.1 million, a significant decrease from HKD 6.48 billion in the previous year[26] - The overall gross profit of the group decreased to approximately HKD 38,400,000 in 2021, down from HKD 424,000,000 in 2020, primarily due to adverse economic conditions and a cautious trading approach[35] - Rental income for the year was approximately HKD 12.6 million, down from HKD 49.1 million in the previous year[32] - The group generated rental income of approximately HKD 1,600,000 from investment properties, with a total rental income of about HKD 300,000 from short-term leasing earlier in the year[38] Trading and Market Conditions - The company chose not to engage in crude oil trading in 2021 due to limited market opportunities, focusing instead on petrochemical products and coal trading[12] - The company faced challenges in commodity trading due to weak demand for refined oil and petrochemical products in China, leading to a decline in overall revenue[12] - The manufacturing purchasing managers' index in China fell to 49.2 in September 2021, indicating a contraction in the manufacturing sector, which impacted the company's trading activities[12] - The company continues to strengthen its domestic trading network for petrochemical products and refined oil despite weak demand in China[13] - Revenue from petrochemical product trading accounted for about 58% of total trading revenue, up from 11% in the previous year[26] - Coal trading revenue increased to 27% of total trading revenue, compared to 3% in the previous year[26] Investments and Subsidiaries - The storage income and net profit of Nantong Runde, a wholly-owned subsidiary, increased compared to 2020, indicating a stable income source for the company[14] - The company expects to benefit from investments in oil and gas assets through the SH Energy fund, which generated positive cash flow in 2021[14] - The petrochemical subsidiary, Fujian Xiangjiang, is expected to start operations at its production facility in the first quarter of 2023, delayed due to COVID-19[17] - The SEBS project, a key local project, aims for an annual production capacity of 50,000 tons and is expected to generate stable revenue in the future[17] - The company acquired all shares of Changhe Property Investment Limited for HKD 78 million, but recognized impairment losses on investment properties due to unfavorable economic conditions in Hong Kong[16] Debt and Financial Obligations - The total amount owed by Shandong Yuhuang Shengshi Chemical Co., Ltd. was approximately USD 62,500,000, equivalent to about HKD 487,500,000, with an outstanding balance of approximately USD 31,200,000 (HKD 243,400,000)[44] - The total amount owed by Shandong Shengxing Chemical Co., Ltd. was approximately USD 91,500,000, equivalent to about HKD 713,700,000, with an outstanding balance of approximately USD 83,000,000 (HKD 647,400,000)[48] - Shandong Shengxing has an outstanding debt of approximately $17,400,000 (equivalent to about HKD 135,700,000) as of December 31, 2021, with partial payments of about $15,800,000 (equivalent to about HKD 123,200,000) received[49] - The group had no bank borrowings as of December 31, 2021, a decrease from HKD 20,200,000 in 2020, resulting in a debt-to-asset ratio of 0% compared to approximately 8% in 2020[39] Corporate Governance - The company has adopted and fully complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules, with some exceptions noted[71] - The board is committed to high standards of corporate governance, aiming to enhance shareholder value and protect stakeholder interests[71] - The company has a strong management team with extensive experience in the oil and petrochemical industry, including over 30 years of experience in trading and business development[68][69] - The board includes members with significant academic and professional qualifications, enhancing the company's governance and strategic decision-making capabilities[66][67] - The company has a clear structure for its committees, including audit and remuneration committees, to ensure effective oversight and accountability[66][67] - The company has implemented a board diversity policy, considering factors such as gender, age, and professional experience in board composition[76] - The board has established a practice to handle significant transactions involving conflicts of interest at formal meetings[82] - The company has arranged appropriate insurance for directors to assist them in fulfilling their duties[73] Risk Management and Compliance - The company has implemented a robust internal control system to safeguard shareholder investments and the group's assets, with the board responsible for maintaining its effectiveness[143] - The board has established a formal risk management policy to regularly identify, assess, and manage risks faced by the group[145] - The company has a compliance framework in place to ensure adherence to relevant laws and regulations, enhancing overall governance[145] - The audit committee found no significant violations of limits and risk management policies during the year, affirming the effectiveness and adequacy of the risk management and internal control systems[146] - The company has established procedures for handling sensitive data to protect customer and supplier privacy, with no significant complaints regarding data breaches[195] Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the company's sustainable development performance for the period from January 1, 2021, to December 31, 2021[153] - The company is actively improving data collection methods for future reporting on environmental and social impacts[154] - The company has expanded into solar energy and will continue to seek opportunities in green energy business[155] - The board is responsible for overseeing the company's ESG initiatives and decision-making, with support from various departments[155] - The company recognizes the impact of climate change on operations and has developed a climate change policy to manage related risks[179] Employee and Community Engagement - The total number of employees as of December 31, 2021, was 93, with a diverse workforce across various demographics[184] - The company provided training hours totaling 1,461 in 2021, compared to 2,017 in 2020, indicating a focus on employee development despite a decrease in external training[188] - The company reported zero work-related injuries or fatalities during the reporting period[190] - The company has actively participated in community investment, providing scholarships to outstanding students since 2015[196] Sustainability and Resource Management - Total water consumption in 2021 was 34,202 cubic meters, an increase from 24,710 cubic meters in 2020[171] - Total electricity consumption increased from 620,455 kWh in 2020 to 726,604 kWh in 2021, an increase of about 17.1%[176] - The total greenhouse gas emissions rose from 388 tons CO2 equivalent in 2020 to 450 tons CO2 equivalent in 2021, an increase of approximately 15.9%[176] - The company has implemented various energy-saving measures, including the installation of LED lighting and regular energy audits to enhance operational efficiency[175] - The company has established strict guidelines for the handling of hazardous waste, ensuring proper disposal through licensed waste management services[172]

Financial Performance - The company's revenue for the six-month period ended June 30, 2021, was approximately HKD 347 million, with a loss attributable to shareholders of about HKD 5.3 million[7]. - Revenue for the six months ended June 30, 2021, was HKD 347,028 thousand, a significant decrease of 92.9% compared to HKD 4,878,695 thousand in 2020[61]. - The company reported a net loss of HKD 5,343 thousand for the six months ended June 30, 2021, compared to a net loss of HKD 95,049 thousand in 2020, indicating an improvement[64]. - The total comprehensive loss for the period was HKD 1,216 thousand, significantly lower than HKD 101,067 thousand in 2020[64]. - The company reported a loss before tax of HKD 2,168,000 for the six months ended June 30, 2021, compared to a loss of HKD 76,109,000 in the same period of 2020[112]. - The company recorded a loss attributable to owners of approximately HKD 5.3 million, compared to a loss of approximately HKD 98.6 million in the first half of 2020[26]. Revenue Breakdown - The trading business revenue for the six-month period was approximately HKD 331.2 million, a decline of about 93% compared to the same period in 2020, with no revenue from crude oil trade[16]. - Total revenue for the trading business was HKD 331,183,000, with contributions from petrochemical products at HKD 272,668,000 and coal at HKD 58,515,000[87]. - The total revenue from storage services amounted to HKD 11,012,000, bringing the overall revenue to HKD 342,195,000 for the six months ended June 30, 2021[87]. - The trading volume for petrochemical products decreased from 91,382 tons in the first half of 2020 to 48,480 tons due to the sale of Huizhou Meiyu, which contributed 61,027 tons in the first half of 2020[17]. - Coal trading volume declined from 150,307 tons in the first half of 2020 to 126,150 tons due to decreased demand from power plants in Vietnam[17]. Operational Highlights - The company plans to maintain sufficient investment funds for the petrochemical production plant project in Fujian Province, which is considered one of the most favorable future development directions[8]. - The SEBS project, a key production project for the company, is expected to have an annual production capacity of 50,000 tons and has been designated as a provincial-level key project in China[11]. - The expected operational start date for the Fujian plant has been postponed to mid-2022 due to construction delays caused by the COVID-19 pandemic[11]. - The company aims to develop and maintain business relationships with Indonesian coal suppliers to explore new revenue sources[15]. - The company is focusing on back-to-back trading arrangements and maintaining lower inventory levels to mitigate inventory risks[8]. Financial Position - As of June 30, 2021, the bank balance and cash amounted to approximately HKD 132.1 million, down from approximately HKD 144.2 million as of December 31, 2020[27]. - The company had a debt-to-asset ratio of approximately 8% as of June 30, 2021, unchanged from December 31, 2020[28]. - The company's non-current assets totaled HKD 633,126 thousand as of June 30, 2021, compared to HKD 615,874 thousand at the end of 2020[69]. - Current liabilities amounted to HKD 387,915 thousand, an increase from HKD 325,843 thousand at the end of 2020[72]. - Total assets less current liabilities were HKD 1,420,412 thousand, slightly down from HKD 1,422,124 thousand at the end of 2020[72]. Shareholder Information - As of June 30, 2021, Mr. Wang Jian Sheng holds 1,041,746,000 shares, representing approximately 49.06% of the company's issued share capital[44]. - Mr. Yao Guo Liang holds 124,984,000 shares, representing approximately 5.89% of the company's issued share capital[44]. - As of June 30, 2021, the total issued and paid-up shares amounted to 2,123,364,090 shares, with a total capital of 53,084 thousand HKD[16]. - The company has a total of 138,000,000 stock options available for exercise under the stock option plan, which is about 14.8% of the total issued shares as of June 30, 2021[53]. Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[56]. - The company has complied with the corporate governance code as per the listing rules, with some exceptions regarding attendance at the annual general meeting[57]. - The company confirms it has maintained sufficient public float as required by the listing rules during the six-month period[59]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 26,893,000, a significant decrease from HKD 511,470,000 in the same period of 2020[81]. - The company’s financing activities resulted in cash inflows of HKD 20,407,000, while repayments of bank and other borrowings totaled HKD 20,114,000[81]. - The company reported a decrease in cash and cash equivalents, with a net decrease of HKD 13,254,000, compared to a decrease of HKD 237,189,000 in the previous year[81]. Other Income and Expenses - Other income increased to HKD 4,601 thousand from HKD 1,806 thousand, reflecting a growth of 154.5%[61]. - Financial costs decreased to HKD 2,106,000 in 2021 from HKD 11,999,000 in 2020, a reduction of about 82.5%[106]. - The company incurred a loss from joint ventures of HKD 5,901,000 in the first half of 2021, compared to a loss of HKD 1,402,000 in the same period of 2020[112]. - The company reported a significant decrease in rental income, which was HKD 4,833,000 for the six months ended June 30, 2021, down from HKD 22,190,000 in 2020, a decline of approximately 78.2%[99]. Investments and Assets - The company's property, plant, and equipment increased to HKD 102,316,000 as of June 30, 2021, from HKD 84,881,000 at the end of 2020, reflecting a recovery in asset values[119]. - The group recognized a non-listed equity investment in SH Energy valued at approximately HKD 195,000,000, with no significant fair value changes or impairment indications during the reporting period[124]. - The fair value of unlisted equity investments was recorded at 195,000 thousand HKD as of June 30, 2021[147]. - The total fair value of financial assets measured at fair value through profit or loss was 195,000 thousand HKD for unlisted equity investments and 127,505 thousand HKD for derivative financial instruments as of June 30, 2021[151].

Financial Performance - For the year ended December 31, 2020, the company's revenue was approximately HKD 6,572,314,000, a decrease from HKD 17,356,253,000 in 2019[15] - The company reported a loss attributable to owners of approximately HKD 93,000,000 for the year, compared to a profit of HKD 125,000,000 in 2019[15] - The total assets of the company as of December 31, 2020, were HKD 1,747,967,000, down from HKD 3,872,982,000 in 2019[13] - The total liabilities amounted to HKD 326,339,000, compared to HKD 2,365,018,000 in the previous year[13] - The group's trading revenue for the year was approximately HKD 6,481,000,000, a significant decrease from HKD 17,288,200,000 in the previous year, reflecting a decline of about 62.5%[35] - The overall revenue of the group decreased significantly due to weak demand, leading to a substantial decline in crude oil sales volume[18] - The company's financial performance was heavily impacted by the global economic downturn, marking one of the most severe recessions in a century[16] Market Challenges - The company faced significant challenges in 2020 due to the COVID-19 pandemic and geopolitical tensions, leading to a sharp decline in demand for oil and gas[16] - The trading business and expansion efforts of the company encountered obstacles due to the adverse market conditions[16] - The outlook for the company remains uncertain due to ongoing risks and market volatility[16] - Brent crude oil price dropped from $68.91 per barrel in January 2020 to a low of $19.33 per barrel in April 2020, marking the lowest level since June 1999[17] - The company is focused on navigating through the challenges posed by the pandemic and fluctuating oil prices[16] Investments and Acquisitions - The group invested up to $25 million in SH Energy to enhance its investment portfolio and improve profitability, with positive cash flow expected from a Tianjin oilfield project[23] - The group acquired all shares of Cheung Kong Property Investment Limited for HKD 78 million, anticipating long-term value in the Hong Kong property market despite initial price declines[24] - The group completed the acquisition of all shares in Cheung Kong Property on August 27, 2020, expecting stable recurring rental income from the properties[74] - The group sold 51% of its stake in Meiyu Global Limited for $3,300,000, enhancing its overall financial position[75] Operational Developments - The construction of the Fujian plant is expected to commence in Q2 2021, with operations projected to start by the end of 2021, enhancing the group's production capabilities[25] - The group plans to maintain cost competitiveness and manage cash flow effectively to ensure long-term profitability and sustainable development amid ongoing pandemic challenges[27] - The group aims to strengthen trade networks and expand product varieties to adapt to the challenging trading environment[18] Risk Management and Corporate Governance - The company has established a robust risk management framework to mitigate potential market fluctuations and operational challenges[94] - The management team emphasized the importance of maintaining high corporate governance standards, fully complying with the Hong Kong Stock Exchange's guidelines[92] - The audit committee is responsible for ensuring compliance with accounting standards and financial reporting regulations[128] - The company has implemented a formal risk management policy to regularly identify, assess, and manage risks faced by the group, ensuring compliance with relevant laws and regulations[190] Shareholder Communication and Transparency - The company emphasizes the importance of maintaining communication with shareholders through various channels, including reports and announcements[195] - The company aims to improve transparency and gain market recognition and shareholder support[196] - Shareholders can request special meetings if they hold at least 10% of the voting shares[196] Sustainability and Social Responsibility - The company is committed to reducing its environmental and social impact while providing quality energy supply and services[199] - The sustainability report covers the company's performance from January 1, 2020, to December 31, 2020[199] - The report adheres to the principles of materiality, quantification, balance, and consistency[200] - The scope of the report includes the company's headquarters in Hong Kong and offices in Macau, Singapore, and Quanzhou, Fujian Province[200]

Financial Performance - For the six-month period ending June 30, 2020, the company's revenue was approximately HKD 4,878,700,000[6]. - The company reported a loss attributable to owners of approximately HKD 98,600,000 for the same period[6]. - The company's trading revenue for the six-month period was approximately HKD 4,837,300,000, a decrease of about 47% compared to HKD 9,201,500,000 in the same period of 2019[22]. - The company recorded a gross profit of approximately HKD 62,400,000 for the six-month period, a substantial decline from HKD 230,200,000 in the first half of 2019[28]. - The company incurred a loss attributable to owners of approximately HKD 98,600,000 during the six-month period, compared to a profit of approximately HKD 48,100,000 in the same period of 2019[32]. - The company reported a significant impact on financial performance due to the COVID-19 pandemic and the oil price war, leading to reduced revenue from commodity trading[110]. - The company reported a revenue of HKD 9,201,453,000 for the six months ended June 30, 2020, compared to HKD 4,856,505,000 for the same period in 2019, representing an increase of approximately 89.5%[83]. - The gross profit for the six months ended June 30, 2020, was HKD 230,212,000, compared to HKD 62,351,000 in 2019, indicating a significant improvement in profitability[83]. - The company incurred a loss of HKD 95,049,000 for the period, compared to a profit of HKD 47,157,000 in the previous year, reflecting a decline in overall performance[86]. - The total comprehensive loss for the six months ended June 30, 2020, was HKD 101,067,000, compared to a comprehensive income of HKD 46,419,000 in 2019[86]. Revenue Breakdown - Oil trading revenue accounted for approximately 84% of total trading revenue, while refined oil and petrochemical product trading contributed about 6% and 7%, respectively[22]. - Revenue from crude oil was HKD 4,041,688,000, accounting for approximately 83.3% of total revenue[123]. - The revenue from the Chinese market was HKD 4,020,487,000, which constitutes approximately 82.8% of total revenue[123]. - The company reported a revenue of HKD 22,190,000 from operating leases for the six months ended June 30, 2020, compared to HKD 1,000 for the same period in 2019[130]. - The revenue from storage and other ancillary services was HKD 19,162,000, which is a new segment introduced following the acquisition of Meiyu Global Limited[133]. Operational Challenges - The demand for refined oil, petrochemical products, and coal was weak, leading to a decline in overall revenue during the six-month period[10]. - The company has faced challenges in obtaining bank financing due to tightened credit conditions in the Singapore energy sector[10]. - The company experienced an increase in accounts receivable turnover days, indicating potential liquidity challenges[110]. - The company has adjusted its annual trading targets and strategies to adopt a more cautious approach in response to the adverse market conditions[10]. - The company plans to continue monitoring market conditions and adjust strategies accordingly to navigate the ongoing economic challenges[110]. Subsidiary Performance - The company's subsidiary, Nantong Runde Petrochemical Co., Ltd., operates 21 oil depots with a total storage capacity of 139,000 cubic meters, experiencing increased revenue and profitability due to higher utilization rates[11]. - Nantong Runde has established a core business relationship with a customer that accounts for approximately 60% of its revenue, enhancing its profitability outlook[11]. - The company's subsidiary, Huizhou Dayawan Meiyu Chemical Storage Trading Co., Ltd., operates a liquid chemical storage facility with a capacity of 105,000 cubic meters, benefiting from increased demand for storage services during the six-month period[14]. Financial Position - As of June 30, 2020, the bank balance and cash amounted to approximately HKD 119,500,000, a decrease from HKD 358,100,000 as of December 31, 2019, primarily due to reduced operating cash flow and increased prepayments for land use rights for the Fujian factory[33]. - The debt-to-asset ratio as of June 30, 2020, was approximately 12%, down from 26% as of December 31, 2019, mainly due to a reduction in trust receipt loans[34]. - As of June 30, 2020, the group had bank financing of USD 300,000,000 and RMB 35,000,000, totaling approximately HKD 2,378,300,000[33]. - The group had contracted capital expenditures of approximately RMB 10,000,000 (equivalent to about HKD 11,000,000) for the construction of the Fujian factory as of June 30, 2020, compared to RMB 4,600,000 (approximately HKD 5,100,000) as of December 31, 2019[40]. - The company’s total assets amounted to HKD 2,395,723,000 as of June 30, 2020, down from HKD 3,496,206,000 at the end of 2019[89]. Shareholder Actions - The group did not recommend any interim dividend for the six-month period, consistent with the previous year[41]. - The company repurchased a total of 348,000 ordinary shares at a total cost of HKD 129,740 during the six-month period, representing approximately 0.02% of the issued share capital[46]. - The company did not recommend any interim dividend for the six-month period, consistent with the previous year[149]. - The company repurchased a total of 348,000 shares during the six-month period, with all repurchased shares being cancelled[181]. Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[73]. - The company confirmed compliance with the corporate governance code during the reporting period, with some exceptions regarding attendance at the annual general meeting[78]. Future Outlook - The company anticipates the construction of a petrochemical production facility in Fujian to commence by the end of 2020, with operations expected to start by the end of 2021[15]. - The company is exploring opportunities in trading liquefied petroleum gas and other new energy products[10]. - The company plans to implement strict cost control measures and enhance cash flow management to mitigate the impacts of the COVID-19 pandemic[19].

Financial Performance - The company's revenue for the fiscal year ended December 31, 2019, was approximately HKD 17,356 million, a decrease of 24% compared to HKD 22,811 million in 2018[11]. - Profit attributable to the company's owners for the year was approximately HKD 125 million, significantly up from HKD 7.5 million in the previous year[11]. - The group's total trade revenue for the year was approximately HKD 17,288,200,000, a decrease from HKD 22,810,600,000 in 2018[25]. - The total revenue for the year reached approximately HKD 17,288,179.7 thousand, an increase from HKD 22,810,603.9 thousand in the previous year[35]. - The overall gross profit increased to approximately HKD 331,100,000, up from HKD 245,300,000 in the previous year, reflecting improved margins from crude oil trading[43]. - The net profit attributable to the company's owners for the year was approximately HKD 125,000,000, significantly higher than HKD 7,500,000 in the previous year[44]. Assets and Liabilities - The total assets of the company as of December 31, 2019, were HKD 3,873 million, an increase from HKD 3,663 million in 2018[7]. - The total liabilities of the company were HKD 2,365 million, compared to HKD 2,289 million in 2018, indicating a rise in financial obligations[7]. - As of December 31, 2019, the company had bank and other borrowings amounting to approximately HKD 1,006,500,000, a significant increase from HKD 14,800,000 in the previous year[46]. - The company’s current assets totaled approximately HKD 452,400,000, an increase from HKD 359,000,000 in the previous year[45]. Trading Operations - The company focused on back-to-back trading arrangements to mitigate risks associated with volatile oil prices, leading to a strategic shift in operations[12]. - The coal trading business showed continuous revenue growth, supported by the expansion efforts in Thailand, China, and Vietnam[12]. - The petrochemical product sales volume increased due to a recovery in confidence among Chinese customers in the second half of the year[12]. - The oil price fluctuated significantly throughout 2019, impacting trading strategies and market conditions[12]. - The volume of crude oil traded decreased from 37,219,278 barrels in the previous year to 30,167,689 barrels due to reduced demand from Chinese customers[33]. - Finished oil trading volume dropped from 288,896 tons to 23,225 tons, attributed to weak demand in China and Vietnam[33]. - The trading volume of coal increased significantly from 603,140 tons to 1,351,131 tons, driven by market expansion in China and Vietnam[33]. - The company began trading iron ore in September 2019, achieving a trading volume of 175,753 tons[33]. Strategic Initiatives - The company is actively seeking market opportunities by expanding into non-ferrous metal trading, diversifying its product range[12]. - The company aims to maintain a low-risk profile by reducing inventory levels in response to unpredictable oil price trends[12]. - The company plans to focus on core business expansion through internal development and selective acquisitions, aiming for prudent growth in scale and geographic coverage[53]. - The company is optimistic about the growth potential of the property investment acquired for HKD 78,000,000, expected to generate stable rental income[18]. - The establishment of Fujian Xiangjiang Petrochemical in April 2019 aims to start manufacturing operations by the end of 2021, enhancing business value through synergies[18]. Corporate Governance - The management team emphasized the importance of adhering to high corporate governance standards, fully complying with the Hong Kong Stock Exchange's corporate governance code[82]. - The board consists of three independent non-executive directors, ensuring a balance of power and protecting shareholder interests[88]. - The company has adopted a board diversity policy, considering factors such as gender, age, and professional experience in board composition[89]. - The audit committee is responsible for monitoring the integrity of the company's financial statements and annual reports[103]. - The board holds at least four meetings annually, with additional meetings as needed based on business requirements[94]. - The company has established three committees: audit committee, remuneration committee, and nomination committee to oversee various aspects of the company's affairs[96]. Risk Management - The company has a robust strategy for risk management, including hedging strategies to mitigate market volatility[73]. - The independent risk consulting firm has provided assessments and recommendations to enhance the company's risk management framework[178]. - The audit committee has not identified any significant breaches of risk management policies during the year[178]. - The company emphasizes the importance of maintaining effective internal controls and risk management systems to protect shareholder investments and assets[177][178]. Environmental and Social Responsibility - The company focuses on maintaining operational efficiency while minimizing environmental and natural resource impacts[195]. - The supply chain management emphasizes the importance of suppliers, with a transparent selection process and green procurement policy[196]. - The company has established a supplier evaluation system to ensure quality and compliance with international environmental standards like ISO 14001[196]. - Key environmental issues identified include greenhouse gas emissions, waste management, and energy consumption[191]. - The company aims to reduce operational risks through effective supply chain and environmental management[195]. Employee and Management - The employee count increased to 140 as of December 31, 2019, up from 80 in 2018, following the acquisition of Mei Yu Global[60]. - The management team includes experienced professionals with extensive backgrounds in the petrochemical and trading sectors[66][71][72]. - The company has maintained competitive compensation packages for employees, including pension, life and medical insurance, and performance bonuses[60]. - All directors receive ongoing professional training to stay updated on legal and regulatory changes affecting the group's operations[162].