Investment Rating - The report assigns a stable investment rating to Sinopec Kantons Holdings Limited (0934.HK) based on its consistent dividend policy and cash position [2][3]. Core Insights - The company's mid-year performance for 2024 was below expectations, with a revenue of approximately 331 million HKD, reflecting a year-on-year increase of about 7.29%. However, the net profit attributable to shareholders decreased by approximately 7.90% to 685 million HKD [3]. - The company maintained a stable interim dividend of 10 HKD per share, consistent with the same period in 2023, indicating a commitment to shareholder returns despite fluctuating profits [3]. - The cash and cash equivalents, along with time deposits maturing beyond three months, totaled approximately 6.437 billion HKD as of June 30, 2024, representing a year-on-year growth of about 10.49% [3]. Financial Performance Summary - Total revenue for the years 2020 to 2024H1 shows a slight decline from 601 million HKD in 2020 to 610 million HKD in 2023, with a projected revenue of 331 million HKD for the first half of 2024 [1]. - The net profit attributable to shareholders saw a significant drop from 2.302 billion HKD in 2020 to 435 million HKD in 2022, followed by a recovery to 1.299 billion HKD in 2023, and a projected 685 million HKD for 2024H1 [1]. - Earnings per share (EPS) decreased from 0.9259 HKD in 2020 to 0.1749 HKD in 2022, with a recovery to 0.5223 HKD in 2023 and a projected 0.2757 HKD for 2024H1 [1]. - The dividend per share remained stable at 0.2 HKD from 2020 to 2022, increased to 0.25 HKD in 2023, and is projected to decrease to 0.1 HKD in 2024H1 [1]. Segment Performance Summary - The petrochemical segment showed stable revenue growth, with a total of 57 oil tankers unloaded in the first half of 2024, achieving a crude oil unloading volume of approximately 7.39 million tons, a year-on-year increase of about 23.58% [4]. - The domestic joint venture terminal performance declined by 6.74% in the first half of 2024, attributed to a decrease in crude oil imports and the depreciation of the RMB against the HKD [5]. - The overseas storage business reported a significant increase in investment income, with average rental prices in Fujairah rising by 13%, leading to an investment income of approximately 67.05 million HKD, a year-on-year increase of about 34.67% [6].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% within the next 6-12 months [5]. Core Insights - The company reported a revenue of HKD 331 million for H1 2024, representing a year-on-year growth of 7.3%, while the net profit attributable to shareholders was HKD 685 million, a decline of 7.9% compared to the previous year [1]. - The revenue and gross profit growth were primarily driven by the company's utilization of excess capacity at its terminals to provide unloading services for third-party clients, resulting in a 23.58% increase in crude oil unloading volume [1]. - Investment income decreased due to reduced returns from domestic terminals and foreign exchange losses, with total investment income for H1 2024 at HKD 510 million, down 5.3% year-on-year [1]. - The company is progressing well with various projects, including the upgrade of the Ma Bian Zhou terminal, which is expected to enhance revenue and profit margins once operational [1]. Financial Summary - For the fiscal years 2024 to 2026, the company is projected to achieve net profits of HKD 1.36 billion, HKD 1.42 billion, and HKD 1.47 billion respectively, reflecting a steady growth trajectory [3]. - The company's revenue is expected to grow from HKD 616 million in 2023 to HKD 654 million in 2025, with a compound annual growth rate of approximately 6.12% [3]. - The diluted earnings per share are forecasted to increase from HKD 0.52 in 2023 to HKD 0.57 in 2025, indicating a positive outlook for shareholder returns [3].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 331,236,000, an increase of 7.3% compared to HKD 308,729,000 for the same period in 2023[3] - Gross profit for the same period was HKD 177,610,000, up 16.2% from HKD 152,888,000 year-on-year[3] - Operating profit decreased to HKD 118,846,000, down 17.8% from HKD 144,563,000 in the previous year[3] - Profit attributable to equity holders for the period was HKD 685,367,000, a decrease of 7.9% compared to HKD 744,189,000 in 2023[3] - Basic and diluted earnings per share were both HKD 27.57, down from HKD 29.93 in the previous year[3] - The company reported a net profit of HKD 685,362,000 for the six months ended June 30, 2024, compared to HKD 744,184,000 for the same period in 2023[15][19] - The total profit before tax for the company was HKD 752,810,000, with tax expenses of HKD (67,448,000)[15] - For the first half of 2024, the group's profit before tax was approximately HKD 752.81 million, a decrease of about 6.57% compared to HKD 805.71 million in the same period of 2023[46] - The group's net profit for the first half of 2024 was approximately HKD 685.36 million, down about 7.90% from HKD 744.18 million in the first half of 2023[46] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 16,177,786,000, compared to HKD 16,027,223,000 at the end of 2023[6] - Non-current assets totaled HKD 9,438,174,000, an increase from HKD 9,276,280,000 at the end of 2023[6] - Current assets decreased slightly to HKD 6,739,612,000 from HKD 6,750,943,000 at the end of 2023[6] - Total equity attributable to equity holders increased to HKD 15,803,872,000 from HKD 15,514,788,000 at the end of 2023[6] - The total liabilities for the company were HKD 371,976,000, with segment liabilities for the oil terminal and storage services at HKD 146,631,000[18][22] - The company’s total liabilities as of June 30, 2024, were not explicitly stated but can be inferred to have changed in relation to the increase in total assets[24] Cash Flow and Investments - The company reported a net cash flow from operating activities of HKD 662,003,000 for the period[5] - The company’s cash and cash equivalents as of June 30, 2024, were HKD 1,266,428,000, with time deposits exceeding three months amounting to HKD 5,170,291,000[16] - The company invested HKD 17,746,000 in non-current segment assets during the reporting period[15] - As of June 30, 2024, the group's cash and cash equivalents totaled approximately HKD 6.44 billion, an increase of about 10.49% from HKD 5.83 billion at the end of 2023[51] Revenue Segments - The total revenue for the oil terminal and storage services segment reached HKD 331,236,000 for the six months ended June 30, 2024, representing an increase from HKD 308,729,000 for the same period in 2023[15][19] - The profit from the oil terminal and storage services segment was HKD 161,261,000, while the profit from joint ventures amounted to HKD 357,935,000, leading to a total segment performance of HKD 607,873,000[15] - Revenue from crude oil terminal services for the six months ended June 30, 2024, was HKD 252,078 thousand, up from HKD 238,067 thousand in the same period of 2023, reflecting a growth of 5.4%[26] - The group's income from the crude oil terminal and storage segment was approximately HKD 331.24 million, an increase of about 7.29% compared to HKD 308.73 million in the same period of 2023[48] - The group's performance in the crude oil terminal and storage segment was approximately HKD 607.87 million, remaining stable compared to HKD 607.19 million in the first half of 2023[48] Customer and Market Insights - All revenue generated during the six months ended June 30, 2024, came from customers located in China[23] - The major customer, Sinopec Group, accounted for over 92% of the group’s revenue, totaling approximately HKD 305,698 thousand for the six months ended June 30, 2024, compared to HKD 286,527 thousand in 2023[25] Dividends and Shareholder Information - The company declared an interim dividend of HKD 248,616 thousand for the six months ended June 30, 2024, consistent with the same amount declared in 2023[30] - The company announced an interim cash dividend of HKD 0.10 per share for 2024, consistent with the same period in 2023[40] - The major shareholder, Sinopec Guande International Co., Ltd., holds 1,500,000,000 shares, representing approximately 60.33% of the issued shares[66] Operational Highlights - The subsidiary Huizhou Daya Bay Huade Petrochemical Co., Ltd. handled 57 oil tankers, achieving a crude oil unloading volume of approximately 7.39 million tons, a year-on-year increase of about 23.58%[41] - The total throughput of the six domestic terminal companies decreased by approximately 4.76% to about 10 million tons in the first half of 2024[41] - The investment income from the subsidiary Fujairah Oil Storage Company increased by approximately 34.67% to about HKD 67.05 million in the first half of 2024[41] - The share of results from joint ventures was approximately HKD 408.66 million, a decrease of about 6.74% compared to HKD 438.21 million in the first half of 2023[45] Strategic Initiatives - The company aims to enhance its core business and explore business transformation to become a leading international petrochemical storage and logistics company[42] - The company decided to cease the Batam project due to economic infeasibility influenced by energy transition and increasing competition in the oil storage market from the Greater Singapore area[62] Compliance and Governance - The company has maintained compliance with the Corporate Governance Code during the six-month period ending June 30, 2024[67] - No purchases, sales, or redemptions of the company's listed securities occurred during the six-month period ending June 30, 2024[71] - The company has implemented a biodiversity policy and successfully introduced green electricity, with plans to complete ISO 45001 certification by September 2024[71] Employment and Workforce - As of June 30, 2024, the company had a total of 221 employees, down from 228 employees on June 30, 2023[63]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of 5.36 HKD [2][3]. Core Insights - The company is the largest petrochemical storage and terminal company in China and the only red-chip subsidiary of Sinopec, focusing on petrochemical storage and logistics, including oil unloading, storage, and transportation, as well as LNG shipping [1][4]. - In 2023, the company reported a total throughput of 220 million tons, accounting for 40% of the national crude oil import volume, with a stable gross profit margin above 40% since 2017 [1][4]. - The company plans to expand its business by developing new services for third-party naphtha unloading, which is expected to increase revenue by 0.32-0.63 million HKD annually [1][25]. Summary by Sections Company Overview - The company specializes in petrochemical storage logistics and has a total unloading capacity of approximately 300 million tons per year across seven domestic terminals [1][20]. - In 2023, the company achieved a revenue of 610 million HKD, a slight decrease of 1% year-on-year, while net profit surged by 199% to 1.3 billion HKD due to a low base from the previous year [1][14]. Petrochemical Storage Logistics - The company is expanding its domestic operations by developing naphtha unloading services, which could increase business volume by 20%-40% [1][20]. - The company has divested from loss-making projects and is optimizing its overseas asset layout, which is expected to enhance investment returns [1][29]. LNG Transportation Business - The company currently operates eight LNG vessels, with plans to add three more, which will increase total capacity by 38% and is expected to boost investment returns [1][3]. - The average annual investment return from the existing LNG fleet has been 0.93 billion HKD since 2018 [1][3]. Financial Forecast and Valuation - The company forecasts net profits of 1.36 billion HKD, 1.42 billion HKD, and 1.47 billion HKD for 2024, 2025, and 2026, respectively [1][3]. - The valuation methods used include the price-to-book ratio and the dividend discount model, leading to a target price of 5.36 HKD [1][3].

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]