Investment Rating - The report assigns an "Accumulate" rating to Sinopec Kantons Holdings Limited (0934.HK) with a target price of HKD 5.33 [3][10]. Core Insights - Sinopec Kantons has shifted focus back to its core business of crude oil terminals and LNG logistics, benefiting from the growth in domestic oil and gas import demand [3][12]. - The company has a strong financial position with healthy cash flow, allowing for consistent shareholder returns and ongoing investments in new projects [3][20]. - The company has divested its natural gas pipeline business to concentrate on crude oil terminals and LNG transportation, enhancing its operational efficiency [3][12][13]. Summary by Sections 1. Profit Forecast and Valuation - The projected EPS for 2024-2026 is HKD 0.54, 0.56, and 0.59, with growth rates of +3%, +4%, and +6% respectively [7]. - The company is expected to benefit from the increasing demand for oil and gas imports, with a total crude oil handling capacity of 290.9 million tons per year [3][28]. 2. Business Focus and Financial Health - Sinopec Kantons has divested its natural gas pipeline business in 2020, focusing on crude oil terminals and LNG logistics [12][13]. - The company has a low debt ratio of approximately 3.2%, with cash and deposits totaling HKD 58.25 billion, representing 36.3% of total assets [19][20]. - The dividend per share has increased from HKD 0.04 in 2007 to HKD 0.25 in 2023, with a dividend payout ratio of 48% in 2023 [20][21]. 3. Growth in Oil and Gas Imports - China's oil and gas import demand has been growing rapidly, with crude oil imports reaching 56.43 million tons in 2023, a 135.8% increase since 2010 [24][25]. - Sinopec has signed multiple large LNG purchase agreements, enhancing its position in the LNG market [25][27]. 4. Terminal Advantages and Project Contributions - The company operates seven domestic storage terminal companies, holding over half of the national VLCC crude oil berths, with a total of 38 berths [3][28]. - The Ma Wan Chau terminal upgrade project is expected to enhance business volume and profitability [35]. - The company has eight LNG vessels and is involved in several LNG transportation projects, ensuring stable revenue contributions [36].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported revenue of approximately HKD 610 million, a year-on-year decrease of about 1.01%[10]. - The company recorded a profit of approximately HKD 1.298 billion, representing a year-on-year increase of about 222.47%, equating to earnings of HKD 0.5223 per share for equity holders[10]. - The company reported a total revenue of approximately HKD 609.87 million for the year ending December 31, 2023, a decrease of about 1.01% compared to HKD 616.06 million in 2022[16]. - Gross profit was approximately HKD 258.32 million, down about 10.23% from HKD 287.76 million in the previous year, primarily due to increased depreciation costs related to the replacement of the subsea pipeline[16]. - The operating profit was approximately HKD 186.92 million, a significant improvement from an operating loss of HKD 179.19 million in 2022, attributed to the cessation of the Batam project[16]. - The company's profit attributable to equity holders for the year ended December 31, 2023, was approximately HKD 1,298,612,000, compared to HKD 434,907,000 in 2022, representing a significant increase[34]. - The net profit for the year was HKD 1,298,486,000, significantly up from HKD 402,666,000 in the previous year, marking an increase of 222.5%[149]. - Basic and diluted earnings per share rose to HKD 52.23 in 2023 from HKD 17.49 in 2022, an increase of 198.4%[148]. Business Operations - The significant increase in profit was primarily due to favorable operating conditions in the tank leasing market, particularly from the company's subsidiaries in Fujairah and Vesta Terminal B.V.[10]. - The company successfully expanded its core business in naphtha unloading and ship leasing and transportation, promoting sustainable development[10]. - The company faced challenges from a weak global economic recovery and geopolitical tensions, impacting international oil prices and operational pressures[10]. - The company has strengthened its refined management practices to reduce costs and improve efficiency[10]. - The company has made efforts to explore development opportunities despite the challenging environment[10]. - The company aims to maintain a safe and stable production operation amidst significant uncertainties in the market[10]. Investments and Acquisitions - The company announced further investment in China Energy Transportation Investment Co., Ltd. for the design, construction, procurement, and operation of three LNG vessels[12]. - The company’s subsidiary Vesta signed an agreement to sell all shares of Vesta Terminal Tallinn for a base consideration of EUR 4.25 million due to ongoing operational challenges[12]. - The group plans to invest approximately USD 95,305,000 in Guande International Investment and USD 99,195,000 in Shanghai COSCO LNG for the construction and operation of three LNG vessels[28]. - A strategic acquisition was announced, with the company acquiring a competitor for 2 billion RMB, expected to enhance its market position and operational capabilities[69]. Financial Position - The group's cash and cash equivalents, along with time deposits with maturities over three months, totaled approximately HKD 5,825,350,000 as of December 31, 2023, an increase of about 6.11% from HKD 5,490,097,000 at the end of 2022[24]. - The group's lease liabilities as of December 31, 2023, amounted to approximately HKD 44,089,000, representing a year-on-year increase of about 25.90% from HKD 35,020,000 in 2022[25]. - The group's accounts receivable and other receivables as of December 31, 2023, were approximately HKD 922,118,000, a year-on-year increase of about 56.12% from HKD 590,647,000 in 2022[23]. - The group's total assets increased to HKD 16,027,223,000 as of December 31, 2023, compared to HKD 15,359,867,000 at the end of 2022, a growth of 4.4%[150]. - The company's equity attributable to shareholders rose to HKD 15,514,788,000 in 2023 from HKD 14,864,462,000 in 2022, an increase of 4.4%[150]. Cash Flow and Dividends - The net cash inflow from operating activities for the year ended December 31, 2023, was approximately HKD 618,128,000, a significant increase of HKD 463,829,000 compared to HKD 154,299,000 in 2022[28]. - The company plans to distribute a final cash dividend of HKD 0.15 per share for 2023, representing a 25% increase compared to the previous year[1]. - The company paid dividends to shareholders amounting to HKD 546,955,000, an increase from HKD 497,232,000 in the previous year[153]. Risk Management and Compliance - The company has adopted risk management and internal control policies to ensure compliance with relevant laws and regulations as of December 31, 2023[32]. - The company has established a whistleblowing policy to maintain high standards of integrity and ethical business conduct, providing channels for reporting misconduct[105]. - The company has implemented strict health, safety, security, and environmental (HSSE) management systems to address the high-risk nature of the oil and petrochemical storage logistics industry[103]. - The company has established a comprehensive risk management framework, with the audit committee overseeing its effectiveness at least annually[96]. Corporate Governance - The company has established an audit committee composed of four independent non-executive directors to oversee risk management and internal control systems[54]. - The board consists of 7 executive directors and 4 independent non-executive directors, with an average tenure of 7.8 years[78]. - The company has a diversity policy for its board, currently comprising 11 members, with 2 female directors, representing approximately 18%[111]. - The company emphasizes clear and transparent communication with shareholders and investors to facilitate understanding of its performance and market environment[123]. Market Outlook - The company expects to face challenges in 2024 due to a weak global economy and geopolitical risks, while aiming to expand core business and explore transformation opportunities[13]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12% driven by new product launches and market expansion strategies[70]. - The company is focusing on integrating safety and operational strategies to improve overall performance and risk management[73].

[Table_StockInfo] 买入 2024年 03月 25日 （维持） 证券研究报告•2023年年报点评 当前价： 3.72港元 中石化冠德（0934.HK） 交通运输 目标价： ——港元 原油码头服务绝对龙头，业绩大幅改善 投资要点 西南证券研究发展中心 [T ab事le件_S：um中m石a化ry冠] 德公布 2023年年报。2023年实现营收 6.1亿港元，同比下降 [分Ta析bl师e_：Au胡th光or怿] 1.01%，实现归母净利润12.99亿港元，同比增长198.6%。 执业证号：S1250522070002 电话：021-58351859  洗净铅华轻装上阵，核心业务有望持续成长。2023 年公司毛利同比减少约 邮箱：hgyyf@swsc.com.cn 10.23%，主要是由于 2023年，华德石化置换了新海底管线，折旧费用同比增 加所致。同时公司实现扭亏为盈，主要是由于2022年公司不再继续进行巴淡项 [相Tab对le指_Q数u表ot现eP ic] 目，需要对PT. West Point非流动资产作减值拨备。 中石化冠德 恒生指数 54%  全年每股现金股息 25港仙，与投资者共享 ...

Financial Performance - For the year ended December 31, 2023, the total revenue was HKD 609,872,000, a decrease of 1.9% from HKD 616,064,000 in 2022[2] - The gross profit for the year was HKD 258,323,000, down 10.2% from HKD 287,762,000 in the previous year[2] - Operating profit for the year was HKD 186,924,000, a significant recovery from an operating loss of HKD 179,194,000 in 2022[2] - The net profit for the year was HKD 1,298,486,000, compared to HKD 402,666,000 in 2022, representing an increase of 222.5%[3] - The basic and diluted earnings per share increased to HKD 52.23 from HKD 17.49 in the previous year[2] - The profit before tax for the year was HKD 1,400,796,000, with a tax expense of HKD 102,310,000, resulting in a net profit of HKD 1,298,486,000 for the year ended December 31, 2023[21][22] - The group reported a total income of HKD 80,611,000 in 2023, compared to HKD 326,856,000 in 2022, indicating a significant decrease of 75.3%[35] - The company's profit before tax for 2023 was HKD 1,400,796,000, a significant increase from HKD 609,734,000 in 2022, representing a growth of approximately 129%[41] - The company's net profit attributable to equity holders for 2023 was HKD 1,298,612,000, compared to HKD 434,907,000 in 2022, representing a growth of approximately 198%[42] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 16,027,223,000, an increase from HKD 15,359,867,000 in 2022[4] - The total liabilities reported were HKD 493,336,000 after adjustments for deferred tax liabilities[14] - The total assets of the company amounted to HKD 16,027,223,000, with total liabilities of HKD 510,492,000 as of December 31, 2023[24] - The group’s total liabilities stood at HKD 493,336,000, with current liabilities including other payables of HKD 94,149,000 and lease liabilities of HKD 5,399,000[29] - Deferred tax liabilities amounted to HKD 177,889,000, contributing to the total liabilities figure[29] Equity and Reserves - The total equity attributable to the company's equity holders was HKD 15,514,788,000, up from HKD 14,864,462,000 in the previous year[4] - The company’s reserves increased to HKD 14,615,846,000 following the adoption of new accounting policies[14] - Total equity attributable to the company's equity holders increased to HKD 14,864,462,000 after accounting for the impact of new accounting standards[14] Cash Flow and Investments - Cash and cash equivalents decreased to HKD 1,837,352,000 from HKD 2,490,097,000 in 2022[4] - The company’s cash and cash equivalents stood at HKD 1,837,352,000, providing a solid liquidity position[24] - The company’s non-current asset additions for the year were HKD 104,751,000, indicating ongoing investment in infrastructure[23] - The company plans to further invest in China Energy Transportation Investment Co., Ltd. for the design, construction, procurement, and operation of three LNG vessels[55] - The group announced a planned investment of approximately USD 95,305,000 by Crown International Investment and USD 99,195,000 by Shanghai COSCO Shipping LNG Investment for the design, construction, procurement, and operation of three LNG vessels[67] Segment Performance - The total revenue for the oil terminal and storage services segment was HKD 609,872,000, with no inter-segment revenue reported[19] - The oil terminal and storage services segment's external customer revenue was HKD 609,872,000, reflecting stable demand in this area[20] - The company reported a significant increase in joint venture performance, with contributions of HKD 798,346,000 from joint ventures in the oil terminal and storage services segment[20] - The group's income from the crude oil terminal and storage segment for the year ended December 31, 2023, was approximately HKD 609,872,000, a year-on-year decrease of about 1.01% from HKD 616,064,000 in 2022[60] - The group's performance in the ship leasing and transportation segment for the year ended December 31, 2023, was approximately HKD 79,017,000, a year-on-year decrease of about 31.89% from HKD 116,013,000 in 2022[61] Tax and Expenses - The company reported a tax expense of HKD 102,310,000 for 2023, a decrease from HKD 207,068,000 in 2022, indicating a reduction of approximately 51%[41] - The income tax expense for 2023 was HKD 102,310,000, down from HKD 207,068,000 in 2022, reflecting a decrease of 50.7%[39] - Depreciation expenses for property, plant, and equipment rose to HKD 132,436,000 in 2023 from HKD 113,123,000 in 2022, an increase of 17.1%[38] Corporate Governance and Compliance - The company has adhered to the Corporate Governance Code and has implemented its principles throughout the fiscal year[71] - The audit committee, composed of four independent non-executive directors, reviewed the audited consolidated financial statements for the year ending December 31, 2023[73] - The remuneration committee consists of six members, with an independent non-executive director serving as the chair[74] - The company conducted training on anti-corruption laws, cybersecurity management, and employee mental health in 2023[70] Employee and Social Responsibility - As of December 31, 2023, the company had a total of 222 employees, focusing on diversity and equal opportunity in recruitment[70] - The company has not established any long-term incentive plans for employees as of December 31, 2023[70] Dividends - The company declared an interim dividend of HKD 10 cents per share for 2023, compared to HKD 8 cents in 2022, and proposed a final dividend of HKD 15 cents per share, up from HKD 12 cents in 2022[45][50] - The company proposed a final cash dividend of HKD 0.15 per share, a year-on-year increase of 25.00%[53] Miscellaneous - The company has not purchased, sold, or redeemed any of its listed securities during the fiscal year ending December 31, 2023[72] - No significant events occurred after December 31, 2023, up to the date of this announcement[73] - The annual performance announcement and report will be available on the stock exchange and the company's website[74]

Financial Performance - For the first half of 2023, the company reported a revenue of approximately HKD 309 million, a year-on-year decrease of about 4.62%[10] - The profit attributable to equity holders was approximately HKD 744 million, with earnings per share of HKD 0.2993, reflecting a significant increase of about 108.73% year-on-year[10] - The group’s gross profit for the first half of 2023 was approximately HKD 152.89 million, down about 11.14% year-on-year[13] - The group's operating profit for the first half of 2023 was approximately HKD 144.56 million, a decrease of about 4.56% compared to the same period in 2022[13] - The company reported a profit of HKD 744,184,000 for the six months ended June 30, 2023, compared to HKD 356,522,000 in the same period of 2022, representing a 108.5% increase[41] - Total revenue for the first half of 2023 was HKD 308,729,000, down from HKD 323,700,000 in 2022, indicating a decrease of 4.3%[41] - Gross profit decreased to HKD 152,888,000 from HKD 172,052,000, reflecting a decline of 11.1%[41] - The profit before tax for the period was HKD 805,712,000, with a tax expense of HKD 61,528,000, resulting in a net profit of HKD 744,184,000[60] Dividends and Shareholder Returns - The company declared an interim cash dividend of HKD 0.10 per share, representing a year-on-year increase of 25%[10] - The board declared an interim cash dividend of HKD 0.10 per share for the year 2023[97] Investment and Financial Position - The company experienced a valuation loss of approximately HKD 281 million related to its stake in Vesta during the reporting period[10] - The company’s investment income totaled approximately HKD 410 million, a year-on-year decrease of about 11.06%[11] - The group's financing income for the first half of 2023 was approximately HKD 127.24 million, a significant increase of about 1,080.07% compared to HKD 10.78 million in the same period of 2022[17] - The group's share of joint venture results for the first half of 2023 was approximately HKD 438.21 million, an increase of about 174.20% year-on-year[18] - The company's total liabilities rose to HKD 725,870,000 from HKD 493,503,000, reflecting a significant increase of 47.2%[46] - The company’s cash and cash equivalents decreased to HKD 750,745,000 from HKD 2,490,097,000, a decline of 69.8%[45] Operational Challenges and Market Conditions - The company faced challenges due to international market volatility, with domestic throughput for six terminal companies totaling approximately 10.5 million tons, a year-on-year decrease of about 4.55%[11] - The subsidiary Huizhou Daya Bay Huade Petrochemical Co., Ltd. completed the unloading of 44 oil tankers, handling approximately 5.98 million tons of crude oil, a year-on-year decrease of about 6.85%[10] Strategic Initiatives and Future Outlook - The company is actively exploring development opportunities to further expand its operational scale and promote sustainable development[10] - The company is enhancing risk management and compliance to ensure stable operations amid market fluctuations[11] - The company is advancing the upgrade project for the Ma Bian Zhou naphtha unloading service, laying the foundation for future revenue growth[10] - The company plans to expand its market presence and enhance its logistics services, focusing on oil and petroleum product terminals and related facilities[52] - The company aims to strengthen its financial position by optimizing cash flow management and reducing operational costs[52] - The company anticipates continued growth in revenue and profitability in the upcoming quarters, driven by increased demand for its services[52] Corporate Governance and Social Responsibility - The company has complied with the corporate governance code as per the listing rules during the reporting period[101] - The remuneration and nomination committees are composed of independent non-executive directors, ensuring governance and oversight[106] - The company has been recognized as a "Hong Kong Green Organization" for several consecutive years, promoting energy conservation and environmental protection[108] - The company actively organized employee participation in community service activities, including support for underprivileged children and families[109]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 308,729,000, a decrease of 4.3% compared to HKD 323,700,000 in the same period of 2022[3] - Gross profit for the same period was HKD 152,888,000, down 11.1% from HKD 172,052,000 year-on-year[3] - Operating profit decreased to HKD 144,563,000, a decline of 4.8% from HKD 151,475,000 in the previous year[3] - Profit attributable to equity holders for the period was HKD 744,189,000, representing a significant increase of 108.3% compared to HKD 356,856,000 in 2022[3] - Basic earnings per share rose to HKD 29.93, up from HKD 14.35, reflecting a growth of 108.3%[3] - The group reported a profit before tax of HKD 805,712,000 for the first half of 2023, with a net profit of HKD 744,184,000 after tax expenses[14] - The company recorded a profit of approximately HKD 744 million, representing a year-on-year increase of about 108.73%, translating to earnings per share of HKD 0.2993[39] Revenue Segments - The total revenue for the first half of 2023 was HKD 308,729,000, generated entirely from the crude oil terminal and storage services segment[14] - The segment profit from the crude oil terminal and storage services was HKD 137,513,000, while the share of profits from joint ventures amounted to HKD 438,209,000[14] - The crude oil terminal and storage services segment accounted for HKD 308,729,000 in revenue, while the ship leasing and transportation services segment reported no revenue[14] - Revenue from crude oil terminal services for the six months ended June 30, 2023, was HKD 238,067, a decrease of 7.4% from HKD 257,127 in the same period of 2022[24] Assets and Liabilities - Total assets as of June 30, 2023, were HKD 15,831,847,000, compared to HKD 15,359,867,000 at the end of 2022[7] - Non-current assets totaled HKD 9,254,178,000, slightly down from HKD 9,275,004,000 at the end of 2022[6] - The total assets of the group as of June 30, 2023, were HKD 15,831,847,000, with total liabilities of HKD 725,870,000[15] - The total liabilities include HKD 376,159,000 in other payables and HKD 185,600,000 in deferred tax liabilities[15] - The accounts payable balance as of June 30, 2023, was HKD 700,070, an increase from HKD 536,086 as of December 31, 2022, reflecting a growth of 30.5%[33] Cash Flow and Financing - The company reported a net cash flow from operating activities of HKD 537,952,000 for the period[5] - The company’s cash and cash equivalents as of June 30, 2023, were HKD 750,745,000, with time deposits exceeding three months amounting to HKD 4,837,766,000[15] - The company’s financing income surged to approximately HKD 127.24 million, an increase of about 1,080.07% from HKD 10.78 million in the same period last year[46] Dividends and Shareholder Information - The interim dividend declared was HKD 248,616, up from HKD 198,893 in the previous year, indicating a growth of 24.9%[28] - The major shareholder, Sinopec Guande International Co., Ltd., holds 1.5 billion shares, representing 60.33% of the issued shares[63] Employee and Community Engagement - As of June 30, 2023, the group had 228 employees, an increase from 223 employees on June 30, 2022[60] - The company actively encourages employees to engage in community service, particularly supporting underprivileged children and families[72] - The company has initiated the "Beautiful You" program to provide academic support for low-income children and youth[72] Corporate Governance and Compliance - The company has complied with the Corporate Governance Code during the six-month period ending June 30, 2023[65] - The audit committee has reviewed the unaudited interim financial report for the six months ending June 30, 2023[68] - The company has maintained sufficient public float as required by the listing rules[70] Strategic Focus and Future Plans - The company continues to focus on expanding its oil terminal and storage services, leveraging its joint ventures and partnerships in the logistics sector[10] - The company is exploring further investment opportunities in China Energy Transportation Investment Co., Ltd. with preliminary consensus reached among shareholders[37] - The company has no significant investments, acquisitions, or disposals planned as of June 30, 2023[55] Environmental and Social Responsibility - The company has been awarded the "Hong Kong Green Organization" honor for several consecutive years, along with energy-saving and waste-reduction certificates[71] - In the first half of 2023, the company organized employee participation in the global event "Earth Hour" and activities focused on coral restoration[71]

Financial Performance - In 2022, the company achieved a revenue of approximately HKD 616 million, a year-on-year decrease of about 3.21%[21] - The net profit for the year was approximately HKD 403 million, representing a year-on-year decline of about 61.64%, equating to a profit of approximately HKD 0.1749 per share[21] - The company recorded a segment revenue of approximately HKD 616 million from Huade Petrochemical, a year-on-year decrease of about 3.21%[21] - The company's investment income for 2022 was approximately HKD 798 million, a year-on-year decrease of about 14.19%[23] - The company recorded impairment losses of approximately HKD 630 million, significantly higher than the previous year's HKD 157 million[28] - Other income and net gains increased by approximately 310% to about HKD 327 million, primarily due to a one-time gain from the exchange of old subsea pipelines[29] - The share of results from joint ventures was approximately HKD 540 million, a year-on-year decline of about 40.06%[31] - The group reported a profit attributable to equity holders of approximately HKD 434,882,000 for the year ended December 31, 2022, down from HKD 1,050,396,000 in 2021[60] Dividends and Shareholder Returns - The company plans to distribute a final cash dividend of HKD 0.12 per share for 2022, maintaining the same level as the previous year[21] - The board proposed a final cash dividend of HKD 0.20 per share for 2022, consistent with the previous year, after an interim dividend of HKD 0.08 per share was distributed[61] - The company has a dividend policy stating that the total cash dividend for the fiscal year should not be less than 20% of the profit attributable to equity holders[188] Operational Efficiency and Strategy - The company aims to enhance operational efficiency by reducing tanker waiting times and improving revenue scale through third-party contracts for port facilities[21] - The company continues to implement refined management practices to control costs and improve production operations amid ongoing challenges[20] - The company is focused on sustainable high-quality development and expanding its core business despite facing inflation risks and geopolitical conflicts[20] - The company aims to reduce operational costs by 5% through efficiency improvements and technology upgrades[103] Investments and Projects - The company decided to discontinue the Batam project in Indonesia due to economic infeasibility, resulting in a provision of approximately HKD 630 million for its investment in PT. West Point Terminal[21] - The company made a provision for a loss of approximately HKD 261 million related to its investment in Vesta Terminal B.V. due to geopolitical conflicts[21] - The group did not engage in any significant investments, acquisitions, or disposals during the year ended December 31, 2022, and there were no authorized plans for major investments or capital assets[43] Risk Management and Compliance - The company has implemented a comprehensive risk management framework that involves all employees and covers various operational areas[152] - The company has established guidelines for anti-corruption, anti-money laundering, and anti-bribery, with regular training provided to employees[160] - The company emphasizes the importance of tracking new energy and technology trends to analyze international oil and gas market demands and industry developments[158] - The company has implemented a risk control management report to discuss risk management and internal control matters[145] Governance and Board Structure - The board of directors consists of 7 executive directors and 4 independent non-executive directors, with an average tenure of 6.9 years[128] - The company has established a board diversity policy that considers various factors, including gender, age, cultural and educational background, race, professional experience, skills, knowledge, and tenure[166] - The company has a structured approach to appointing and dismissing senior management, including the general manager and company secretary[133] - The audit committee consists of four independent non-executive directors and regularly meets with senior management and external auditors[77] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to environmental protection and has implemented measures to reduce emissions and manage waste effectively[79] - The board of directors emphasized the importance of sustainability initiatives, committing to invest 300 million in green technologies[105] - The company has formed an Environmental, Social, and Governance (ESG) task force to develop related goals and report regularly to the board[125] Shareholder Communication and Relations - The company emphasizes clear and transparent communication with shareholders and investors, maintaining dialogue through various channels[178] - The company has a dedicated team for investor relations to facilitate effective communication with shareholders and stakeholders[180] - The company encourages shareholders to submit written requests for resolutions at shareholder meetings, requiring a minimum of 10% voting rights[182] Related Party Transactions - The group established a framework agreement for financial services with Sinopec Finance Guangzhou Branch[83] - The group has ongoing related party transactions with Sinopec Shengjun International Investment Co., Ltd. for overseas financial services[83] - The independent non-executive directors have reviewed and approved the ongoing related transactions, confirming they are conducted on normal commercial terms and in the overall interest of the shareholders[90] Employee and Diversity Policies - The company is committed to diversity and equal opportunity in its hiring practices[49] - The company emphasizes the protection of female employees' rights, including maternity leave regulations and regular health check-ups[167] - The company has implemented a human resources policy to encourage recruitment without considering gender, nationality, race, religion, or cultural background[166]

Financial Performance - The total revenue for the year ended December 31, 2022, was HKD 616,064,000, a decrease of 3.5% from HKD 636,517,000 in 2021[2] - Gross profit increased to HKD 287,762,000, up 1.8% from HKD 283,264,000 in the previous year[2] - The net profit for the year was HKD 402,641,000, a significant decline of 61.6% compared to HKD 1,049,684,000 in 2021[2] - The company reported a loss from operations of HKD 179,194,000, compared to an operating profit of HKD 52,643,000 in the prior year[2] - The profit before tax for 2022 was HKD 609,734,000, a decrease of 47.3% compared to HKD 1,156,943,000 in 2021[35] - The group reported a total income of HKD 326,856,000 in 2022, compared to HKD 79,721,000 in 2021, indicating a significant increase[29] - The company's profit for the year was approximately HKD 403 million, representing a year-on-year decline of about 61.64%, equating to a profit of approximately HKD 0.1749 per share[46] Assets and Liabilities - Total assets decreased to HKD 15,359,867,000 from HKD 15,846,528,000, reflecting a decline of 3.1%[4] - The company's equity attributable to shareholders decreased to HKD 14,864,295,000 from HKD 15,364,863,000, a drop of 3.2%[4] - The total liabilities increased to HKD 447,355,000 in 2022 from HKD 270,894,000 in 2021, reflecting a rise of approximately 65.2%[24] - The total assets as of December 31, 2022, amounted to HKD 15,359,867,000, with total liabilities at HKD 493,503,000[17][19] - Non-current assets totaled HKD 9,275,004,000, down from HKD 10,023,164,000, indicating a decrease of 7.4%[4] - The company's cash and cash equivalents decreased to HKD 2,490,097,000 from HKD 4,197,541,000, a decline of 40.6%[4] Earnings and Dividends - The basic and diluted earnings per share were HKD 17.49, down from HKD 42.25 in the previous year[2] - The total proposed final dividend for 2022 is HKD 298,339,000, maintaining the same per share amount of HKD 12 as in 2021[39] Segment Performance - For the year ended December 31, 2022, the total revenue from the crude oil terminal and storage services segment was HKD 616,064,000, with external customer revenue also at HKD 616,064,000[14] - The segment performance for the crude oil terminal and storage services included a share of losses from joint ventures amounting to HKD 261,112,000 related to Vesta Terminal B.V.[14] - Revenue from crude oil terminal services accounted for over 91% of the group's total income, amounting to approximately HKD 563,617,000 in 2022, down from HKD 580,809,000 in 2021[28] Impairment and Losses - The group's impairment loss for the year ended December 31, 2022, was approximately HKD 629,772,000, a significant increase from HKD 156,551,000 in 2021, primarily due to the decision to discontinue the Batam project and the impairment provision for PT. West Point's non-current assets[52] - The company incurred a loss of approximately HKD 272 million from its investment in Vesta, primarily due to a valuation loss of about HKD 261 million[48] Government Support and Subsidies - The group received government subsidies totaling HKD 566,000 in 2022 under the Employment Support Scheme[31] - Government subsidies for the year ended December 31, 2022, amounted to approximately HKD 53,714,000, a significant increase of about 260.28% from HKD 14,909,000 in 2021, primarily due to local government subsidies related to land planning[62] Corporate Governance - The company adhered to high standards of corporate governance to protect and enhance shareholder interests[69] - The independent auditor, KPMG, confirmed that the financial data disclosed in the performance announcement aligns with the audited financial statements for the year[70] - The Audit Committee consists of four independent non-executive directors responsible for accounting standards, auditing, internal controls, and compliance[71] - The Remuneration Committee is composed of six members, chaired by independent non-executive director Ms. Tam[72] - The Nomination Committee also has six members, chaired by independent non-executive director Dr. Wong[72] - The board of directors includes both executive and independent non-executive members, ensuring diverse governance[73] Other Financial Metrics - The aging analysis of accounts receivable shows that overdue amounts over 12 months were zero in 2022, compared to HKD 87,769,000 in 2021[38] - The company’s income tax expense increased to HKD 207,093,000 in 2022 from HKD 107,259,000 in 2021, an increase of 93.2%[35] - The total accounts payable decreased to HKD 37,218,000 in 2022 from HKD 116,963,000 in 2021, a decrease of 68.2%[41] - The current ratio as of December 31, 2022, was approximately 26.02, compared to 24.34 in 2021, while the debt-to-asset ratio was approximately 3.21%, up from 2.82% in 2021[61]

Financial Performance - For the first half of 2022, Sinopec Kantons Holdings Limited reported revenue of approximately HKD 324 million, a year-on-year decrease of about 2.20%[9]. - The company's profit for the same period was approximately HKD 357 million, representing a year-on-year decline of about 47.11%, equating to earnings per share of approximately HKD 0.1435[9]. - The company's revenue for the six months ended June 30, 2022, was HKD 323.7 million, a decrease of 2.3% compared to HKD 330.98 million in the same period of 2021[50]. - Gross profit for the first half of 2022 was approximately HKD 172.05 million, an increase of about 3.49% from HKD 166.25 million in the first half of 2021[17]. - Operating profit rose to approximately HKD 151.48 million, reflecting a significant increase of about 28.16% compared to HKD 118.20 million in the previous year[17]. - Profit attributable to equity holders of the company for the period was HKD 356.52 million, a decline of 47.2% compared to HKD 674.13 million in the prior year[50]. - The company's share of joint venture results dropped to approximately HKD 159.81 million, a decline of about 68.10% from HKD 501.04 million in the first half of 2021, primarily due to losses related to Vesta and lower throughput at domestic refineries[24]. - Total comprehensive income for the period was HKD 129,674,000, down 80.7% from HKD 670,409,000 in the previous year[52]. Operational Highlights - The subsidiary Huizhou Daya Bay Huade Petrochemical Co., Ltd. handled 44 oil tankers, achieving crude oil unloading of approximately 6.42 million tons, a year-on-year increase of about 3.22%[11]. - The domestic terminal companies collectively achieved a throughput of approximately 110 million tons, a year-on-year decrease of about 9.09%[13]. - The LNG shipping business completed 53 voyages, generating investment income of approximately HKD 55.93 million, a year-on-year increase of about 9.59%[13]. - The segment revenue for crude oil terminal and storage services reached HKD 323,700,000 for the six months ended June 30, 2022, with all revenue coming from external customers[80]. - Revenue from crude oil terminal services was HKD 257,127,000 for the six months ended June 30, 2022, compared to HKD 262,804,000 in the same period of 2021, indicating a decrease of approximately 2.6%[92]. Financial Position - The company's cash and cash equivalents increased to approximately HKD 5.28 billion, a rise of about 25.86% from HKD 4.20 billion at the end of the previous year[27]. - The current ratio as of June 30, 2022, was approximately 13.10, down from 24.34 at the end of 2021, indicating a decrease in liquidity[29]. - The company's total liabilities to total assets ratio increased to approximately 4.14% from 2.82% at the end of the previous year, reflecting a change in financial leverage[29]. - The company's total assets as of June 30, 2022, were HKD 15,888,761,000, slightly up from HKD 15,846,528,000 at the end of 2021[55]. - The company's equity attributable to shareholders decreased to HKD 15,196,532,000 from HKD 15,364,863,000, a decline of 1.1%[55]. - The total liabilities increased to HKD 658,253,000 from HKD 447,355,000, marking a rise of 47%[56]. Cash Flow and Investments - For the six months ended June 30, 2022, the company generated cash from operations amounting to HKD 135,689,000, a significant increase from HKD 16,772,000 in the same period last year[64]. - The net cash generated from operating activities was HKD 69,613,000, compared to a net cash used of HKD 80,879,000 in the previous year, indicating a turnaround in operational cash flow[64]. - The company incurred a loss of approximately HKD 281 million related to its investment in Vesta Terminals B.V. due to geopolitical tensions from the Russia-Ukraine conflict[9]. - The company has secured a refinancing loan of USD 280 million, with 50% of its shares in Fujairah pledged as collateral[38]. Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the absence of the chairman at the annual general meeting due to COVID-19 restrictions[138]. - The audit committee has reviewed the interim financial report for the six months ending June 30, 2022, ensuring compliance with accounting standards[143]. - The company confirmed that all directors have adhered to the securities trading code during the reporting period[140]. - The company is committed to high levels of corporate governance and regularly reviews its practices to enhance shareholder rights[138]. Future Outlook and Projects - The company is actively pursuing the feasibility study for the oil storage and terminal project in Indonesia's Batam Island, currently in the evaluation phase[14]. - The company is closely monitoring the Batam project to protect the interests of the group and its shareholders[127]. - The company has engaged two consulting firms to assist in updating the feasibility study for the Batam project[127]. - The company continues to focus on expanding its oil terminal services and logistics operations, which are expected to drive future growth[66]. Social Responsibility - The company actively practices corporate social responsibility, achieving certifications for energy-saving and waste reduction with "Good Level" ratings[151]. - Employees participated in the global event "Earth Hour" organized by the World Wildlife Fund to promote environmental protection[152].