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].