Terminal Operations - The Group operates a liquid product terminal, Dongzhou Petrochemical Terminal, with a total storage capacity of approximately 260,000 cubic meters, including 180,000 cubic meters for gasoline and diesel [6]. - The Group is in the process of developing the second phase of Dongzhou Petrochemical Terminal, which includes the construction of liquefied natural gas (LNG) storage tanks on approximately 150,000 square meters of vacant land [7]. - The total land and coastal site area of Dongzhou Petrochemical Terminal exceeds 830,000 square meters [6]. - The application for the second phase development of the terminal is still in progress with local government approval pending [7]. - The Group aims to maximize shareholders' value by utilizing spare capacity from jetties and vacant land at the terminal [7]. Trading Business - The trading business focuses on expanding the customer base to end customers of filling stations, enhancing unit profit through key fuel supply agreements and brand management services [9]. - The Group's strategy includes prioritizing supply to filling stations to enhance profitability in the trading business [9]. - The trading business saw a significant increase, with the number of sales contracts rising by 114.7% to 541 and sales volume of oil and petrochemical products increasing by 58.0% to 109,000 metric tons during the first half of 2024 [18]. - Revenue from the sale of oil and petrochemical products was approximately $675.0 million, accounting for 91.1% of total revenue, with an increase of 81.3% year-on-year [21]. - The increase in trading revenue was attributed to a significant rise in the number of sales contracts and sales volume of oil and petrochemical products [22]. Financial Performance - For the six months ended June 30, 2024, the Group recorded total revenue of approximately $741.3 million, an increase of 65.7% compared to the same period last year [21]. - Terminal storage business revenue decreased by 12.1% to $63.6 million, primarily due to a decline in the leaseout rate of storage tanks [21]. - The gross profit margin decreased to 3.9%, down 6.2 percentage points from 10.1% in the previous year, despite the revenue increase [30]. - Direct costs and operating expenses rose to approximately $712.1 million, a 77.1% increase from $402.2 million in 2023, with inventory costs from oil and petrochemical products accounting for 94.2% of total direct costs [32]. - The Group reported a loss before interest and tax (LBIT) of approximately $6.5 million, a decline of 148.7% compared to EBIT of approximately $13.3 million in the same period last year [34]. Acquisition and Investments - The Group acquired approximately 54.44% of Bravo Transport Holdings Limited (BTHL) for approximately HK$2,722 million, increasing its total holdings to 70% [13]. - The Group completed the acquisition of BTHL on July 31, 2024, acquiring 70% of its total issued shares, expanding its core business into public transportation [23]. - The acquisition of BTHL is expected to consolidate its assets and liabilities into the Group, leading to new breakthroughs in financial performance and business prospects [28]. - The Group is confident in having adequate financial resources to meet future debt repayment and support working capital and expansion requirements [41]. Cash Flow and Liquidity - As of June 30, 2024, the Group's total cash and bank balances amounted to approximately $318.9 million, a decrease from $374.9 million as of December 31, 2023, primarily due to cash outflow from investing activities [40]. - The current ratio as of June 30, 2024 was 0.78, down from 2.38 as of December 31, 2023, mainly due to the reclassification of certain bank loans from long-term to short-term [40]. - The Group had outstanding bank and other loans of approximately $659.4 million as of June 30, 2024, with $612.6 million repayable within one year [40]. - The Group reported net current liabilities of HKD 173,924,000 as of June 30, 2024, indicating a need for careful cash flow management [75]. Shareholder Information - The directors do not recommend any interim dividend for the six months ended June 30, 2024 [62]. - The basic and diluted loss per share for the six months ended 30 June 2024 was $0.55 cent, compared to $0.11 cent for the same period in 2023 [40]. - The total equity of the Group as of 30 June 2024 was approximately $1,148.0 million, down from $1,233.1 million as of 31 December 2023 [40]. - The Group's total financing facilities rose to $762,600,000 as of June 30, 2024, compared to $574,443,000 as of December 31, 2023 [114]. Compliance and Governance - The Group's financial report is prepared in accordance with HKAS 34, ensuring compliance with relevant accounting standards [75]. - The interim financial report has been reviewed by KPMG, ensuring an additional layer of credibility to the financial information presented [75]. - The Group's interim financial report for the six months ended June 30, 2024, was reviewed by KPMG and complies with Hong Kong Accounting Standard 34 [150]. - All Directors have confirmed full compliance with the Model Code regarding securities transactions for the six months ended June 30, 2024 [194]. Employee and Management Information - As of June 30, 2024, the Group had a workforce of approximately 174 employees, with remuneration based on industry practices and individual performance [56]. - Key management personnel remuneration for the six months ended June 30, 2024, includes short-term employee benefits of HKD 4,817,000, a decrease from HKD 7,176,000 in 2023 [19]. - The remuneration for key management personnel includes post-employment benefits of HKD 90,000 for both 2024 and 2023 [19]. Segment Reporting - The Group operates through three reportable segments: Terminal Storage, Trading, and Other, with specific activities outlined for each segment [77]. - Total reportable segment revenue for the six months ended June 30, 2024, was $741,255,000, compared to $447,367,000 for the same period in 2023, reflecting a growth of approximately 65.7% [83]. - Reportable segment profit before taxation decreased to $7,427,000 in 2024 from $15,083,000 in 2023, indicating a decline of approximately 50.8% [86].
汉思能源(00554) - 2024 - 中期财报