Financial Performance - The company reported a loss attributable to owners of HKD 138,099,000 for the year ended December 31, 2019, compared to a loss of HKD 115,227,000 in 2018, representing an increase of 19.8%[9] - Revenue decreased by 15% to HKD 60,560,000 in 2019, down from HKD 71,419,000 in 2018, primarily due to a decline in oil business revenue to HKD 24,171,000 from HKD 43,998,000[9] - The company recorded a basic loss per share of HKD 0.0264, which is an increase of 17% from HKD 0.0226 in the previous year[9] - The company reported a revenue decrease of 15% to HKD 60,560,000 for the year ended December 31, 2019, down from HKD 71,419,000 in 2018[17] - The company recorded a loss attributable to owners of HKD 138,099,000, compared to a loss of HKD 115,227,000 in 2018, primarily due to an impairment loss of HKD 42,333,000 related to its Argentine oil and gas assets[17] Oil Exploration and Production - The oil exploration and production segment incurred a loss of HKD 46,610,000, including an operating loss of HKD 4,233,000 and an impairment loss of HKD 42,377,000[10] - The oil exploration and production segment generated revenue of HKD 24,171,000, a decrease from HKD 43,998,000 in 2018, with an operating loss of HKD 4,233,000 compared to an operating profit of HKD 2,921,000 in the previous year[21] - The average selling price of crude oil offered by YPF S.A. dropped from USD 60.8 per barrel in the previous year to USD 50.7 per barrel, contributing to the revenue decline[21] - An impairment loss provision of HKD 42,333,000 was recognized for oil and gas assets, compared to HKD 3,383,000 in 2018, reflecting the challenging market conditions[25] - The overall loss for the oil exploration and production business was HKD 46,610,000, which includes an operating loss and impairment loss provisions[25] Lending Business - The lending business reported a loss of HKD 35,740,000, despite an operating profit of HKD 25,963,000, due to expected credit losses of HKD 61,703,000[10] - The group's lending business revenue increased by 54% to HKD 25,971,000 for the year ended December 31, 2019, compared to HKD 16,814,000 in 2018[27] - The group's lending business operating profit rose by 58% to HKD 25,963,000 for the year ended December 31, 2019, compared to HKD 16,406,000 in 2018[27] - As of December 31, 2019, the group's loan portfolio amounted to HKD 185,688,000, after deducting expected credit loss provisions of HKD 68,755,000[29] - The loan portfolio consisted of 85.42% secured loans and 14.58% unsecured loans[29] Investment Securities - The investment securities segment recorded a loss of HKD 21,460,000, primarily from realized and unrealized losses on securities investments[10] - The group's securities investments recorded an income of HKD 10,418,000 for the year ended December 31, 2019, compared to HKD 10,607,000 in 2018[33] - The group reported a net loss of HKD 32,736,000 from financial assets measured at fair value through profit or loss, compared to a net loss of HKD 80,636,000 in 2018[34] - The group's investment in financial assets measured at fair value through profit or loss was valued at HKD 37,059,000 as of December 31, 2019, down from HKD 71,816,000 in 2018[34] - The group’s securities investments included a debt instrument portfolio valued at HKD 141,826,000 as of December 31, 2019, compared to HKD 130,330,000 in 2018[33] Corporate Governance - The company has adhered to all applicable provisions of the corporate governance code, with noted deviations explained[135] - The company has adopted a standard code for securities trading by directors, confirming compliance for the year ended December 31, 2019[139] - The company’s board of directors includes both executive and independent non-executive members, with some members due for re-election at the upcoming annual general meeting[104] - The company has established a risk management and internal control system aimed at identifying, analyzing, and mitigating risks affecting operational efficiency[167] - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2019, which were formally approved by the board[130] Environmental and Social Responsibility - The company is committed to community contributions and environmental protection, encouraging employee participation in charitable activities[192] - The company has established a comprehensive and effective internal control system to ensure compliance with environmental regulations and responsibilities[192] - The company has a responsibility to comply with environmental protection, labor, and hydrocarbon regulations in its operations in Argentina[193] - The total greenhouse gas emissions for the reporting period amounted to 64.58 tons of CO2 equivalent, which includes 30.53 tons from Scope 1 and 34.05 tons from Scope 2 emissions[195] - The company implemented various energy-saving measures to reduce its carbon footprint, focusing on minimizing emissions from its business activities[195] Future Plans and Market Conditions - The company plans to submit a bid for the Chañares oil field concession in Argentina, viewing it as a valuable investment opportunity for advancing its oil exploration and production business[11] - The bidding process for the Chañares oil field was initially scheduled to start on April 1, 2020, but has been postponed due to COVID-19[11] - The company will provide updates to shareholders regarding the bidding process and related transactions at an appropriate time[11] - The company is adopting a cautious approach to manage its business in light of the uncertain macroeconomic environment due to COVID-19[17] - The company will consider participating in bidding processes based on current market conditions and other relevant factors[17]
长盈集团(控股)(00689) - 2019 - 年度财报