Financial Performance - The company's revenue for the year was approximately HKD 22,810,604,000, an increase from HKD 12,162,601,000 in 2017, representing an increase of 88%[10] - Profit attributable to owners of the company for the year was approximately HKD 7,500,000, down from HKD 21,200,000 in 2017, indicating a decrease of 64%[10] - The company reported a profit from continuing operations of HKD 7,451,000, compared to HKD 20,964,000 in the previous year, a decrease of 64%[8] - The overall gross profit increased to approximately HKD 245,300,000 from HKD 187,100,000 in 2017, although the gross margin declined due to a focus on lower-margin back-to-back trading arrangements[32] - The profit attributable to the company's owners for the year was approximately HKD 7,500,000, down from HKD 21,200,000 in 2017[33] Assets and Liabilities - The total assets of the company as of December 31, 2018, were HKD 3,663,110,000, a slight decrease from HKD 3,766,064,000 in 2017[8] - Total liabilities amounted to HKD 2,289,159,000, down from HKD 2,387,064,000 in 2017, reflecting a decrease of 4%[8] - The total equity of the company was HKD 1,373,951,000, a slight decrease from HKD 1,379,000,000 in 2017[8] - As of December 31, the group's cash and cash equivalents totaled approximately HKD 204,300,000, down from HKD 715,100,000 in 2017[36] - The group had bank borrowings of approximately HKD 14,800,000 as of December 31, 2018, compared to none in 2017[36] Market Conditions and Strategies - The company faced significant challenges due to fluctuating oil prices, which impacted overall performance in 2018[11] - The company plans to continue monitoring market conditions and adjust strategies accordingly to navigate the volatile oil market[11] - The company is exploring new strategies for market expansion and product development in response to changing market dynamics[11] - The company aims to develop appropriate trading strategies to mitigate risks in the volatile oil market while actively exploring investment opportunities to enhance shareholder value[17] - Future growth strategies include exploring new markets and potential acquisitions to enhance market presence and operational capabilities[50] Revenue Sources - Approximately 90% of the company's revenue in 2018 came from crude oil trading, with 6% from refined oil and 3% from petrochemical products[23] - The company's refined oil and coal businesses saw increasing revenues, with refined oil revenue increasing 2.5 times compared to the previous year, and petrochemical product revenue rising approximately 95% due to improved market conditions in China[21] - Crude oil trading volume increased from 25,963,313 barrels last year to 37,219,278 barrels this year, driven by rising demand from Chinese customers[29] - The petrochemical product trading volume rose from 67,235 metric tons to 124,868 metric tons, attributed to increased demand in China[29] Corporate Governance - The company has adopted and fully complied with the corporate governance code as per the Hong Kong Stock Exchange rules, with one exception regarding attendance at the annual general meeting[60] - The board consists of three independent non-executive directors to ensure a balance of power and protect shareholder interests[65] - The company has implemented a board diversity policy, considering factors such as gender, age, and professional experience in board composition[66] - The board reviews its delegation of responsibilities to various committees annually to ensure appropriateness and benefit to the company[69] - The audit committee is composed of three independent non-executive directors with relevant business and financial management experience, ensuring independence from the company's auditors[74] Risk Management - The company is actively involved in hedging activities to mitigate risks associated with oil price fluctuations, which is crucial for maintaining profitability[54] - The risk management system is implemented to regularly identify, assess, and manage risks faced by the group, ensuring compliance with relevant laws and regulations[138] - An independent risk consulting firm was engaged to assess the effectiveness of the risk management system, providing recommendations to enhance the company's risk management framework[139] Environmental and Social Responsibility - The company is committed to sustainable development, integrating environmental and social considerations into its business operations[147] - The company has established environmental policies aimed at reducing emissions and optimizing resource use[152] - The company has successfully reduced total water consumption by 2% compared to the previous reporting period, with total water consumption at 1,742 cubic meters in 2018, down from 1,781 cubic meters in 2017[163] - The company achieved an 8% reduction in electricity consumption density compared to the previous reporting period, contributing to a decrease in greenhouse gas emissions[170] - The company has implemented measures to reduce emissions and has reported on the outcomes of these initiatives[197] Employee and Community Engagement - Employee training hours increased to 3,181.5 hours in 2018 from 2,990 hours in 2017, representing an increase of about 6.4%[187] - The average training hours per employee in 2018 were 40 hours, consistent with the company's commitment to employee development[187] - The company maintained a zero-accident safety record during the reporting period, emphasizing its commitment to employee health and safety[186] - Donations to the Nantong Development Zone Charity amounted to approximately RMB 12,000 (around HKD 13,000) to support vulnerable communities[193] - The company provided scholarships totaling HKD 50,000 to 25 students in collaboration with the Vocational Training Council since 2015[193]

Financial Performance - The company's revenue for the year was approximately HKD 22,810,604,000, an increase from HKD 12,162,601,000 in 2017, representing an increase of 87.5%[10] - Profit attributable to the company's owners for the year was approximately HKD 7,500,000, down from HKD 21,200,000 in 2017, a decrease of 64.7%[10] - The company reported a pre-tax profit from continuing operations of HKD 8,227,000, compared to HKD 20,985,000 in 2017, indicating a decline of 60.8%[8] - The gross profit for the year increased to approximately HKD 245,300,000 from HKD 187,100,000 in 2017, although the gross margin was partially offset by a focus on lower-margin back-to-back trading arrangements[32] - The net profit attributable to the company's owners for the year was approximately HKD 7,500,000, down from HKD 21,200,000 in 2017, indicating a decline of about 64.7%[33] - As of December 31, the group's cash and cash equivalents totaled approximately HKD 204,300,000, down from HKD 715,100,000 in 2017, reflecting a decrease of about 71.5%[36] - The group has bank borrowings of approximately HKD 14,800,000 as of December 31, 2018, compared to none in 2017[36] Assets and Liabilities - The total assets of the company amounted to HKD 3,663,110,000, while total liabilities were HKD 2,289,159,000, resulting in equity of HKD 1,373,951,000[8] - The company’s total liabilities decreased slightly from HKD 2,387,064,000 in 2017 to HKD 2,289,159,000 in 2018, a reduction of 4.1%[8] - The company’s equity remained relatively stable, with a slight decrease from HKD 1,379,000,000 in 2017 to HKD 1,373,951,000 in 2018, a decrease of 0.4%[8] Market Conditions - The company experienced significant volatility in oil prices, with Brent crude reaching a high of USD 86.29 per barrel in October 2018, before dropping to USD 50.47 per barrel by December 2018[11] - The company highlighted the impact of U.S. sanctions on Iran, which reduced Iranian oil exports by approximately 35%[11] - The company noted that the increase in U.S. oil inventories led to a global oversupply, contributing to the decline in oil prices towards the end of 2018[11] Revenue Sources - Approximately 90% of the company's revenue came from crude oil trading, 6% from refined oil trading, and 3% from petrochemical products trading in the reporting year[23] - The company's revenue from refined oil trading increased 2.5 times compared to the previous year, benefiting from an improved market atmosphere in China[21] - The petrochemical products revenue rose approximately 95% during the year due to the recovery of customer confidence in China[21] Business Development and Strategy - The company plans to use the net proceeds from the sale of shares in GSR GO, amounting to $10 million, for future business development investment opportunities[15] - The company acquired a 51% stake in Meiyu Global for $3 million, which is expected to enhance its storage business in China[17] - The company aims to develop appropriate trading strategies to mitigate risks in the fluctuating oil market in 2019[17] - The group plans to focus on core business and selectively invest in potential acquisition projects to cautiously expand its business scale and geographic coverage[40] - The company is exploring potential mergers and acquisitions to enhance its market position and expand its operational capabilities[54] Corporate Governance - The company has adopted and fully complied with the corporate governance code as per the Hong Kong Stock Exchange rules, with one exception regarding the attendance of independent non-executive directors at the annual general meeting[60] - The board consists of three independent non-executive directors, ensuring a balance of power between executive and non-executive directors[65] - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, to oversee various aspects of corporate governance[73] - The audit committee is composed of three independent non-executive directors with relevant business and financial management experience, ensuring independence from the company's auditors[74] Risk Management - 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[138] - The internal audit team regularly reviews the internal control and risk management systems, reporting findings and recommendations to the audit committee[139] - The company emphasizes the importance of maintaining effective internal controls to safeguard shareholder investments and assets, with regular reviews and updates to the risk management system[138][139] Sustainability and Environmental Impact - The group is committed to sustainable development, integrating environmental and social considerations into its business operations during the reporting period from January 1, 2018, to December 31, 2018[147] - The company has successfully reduced total water consumption by 2% compared to the previous reporting period, with total water consumption at 1,742 cubic meters in 2018, down from 1,781 cubic meters in 2017[163] - The company achieved an 8% reduction in electricity consumption density compared to the previous reporting period, contributing to a decrease in greenhouse gas emissions[170] - The total greenhouse gas emissions decreased from 382 tons of CO2 equivalent in 2017 to 357 tons in 2018, a reduction of about 6.5%[171] Employee Development and Community Engagement - Employee training hours increased from 2,990 hours in 2017 to 3,181.5 hours in 2018, representing an increase of about 6.4%[187] - The average training hours per employee were 40 hours in 2018, consistent with the company's commitment to employee development[187] - Donations to the Nantong Development Zone Charity amounted to approximately RMB 12,000 (around HKD 13,000) to support vulnerable communities[193] - The company provided scholarships totaling HKD 50,000 to 25 students in collaboration with the Vocational Training Council since 2015[193]