Terminal Operations - The Group operates a liquid product terminal, Dongzhou Petrochemical Terminal, with a total storage capacity of approximately 260,000 cubic metres, including 180,000 cubic metres for gasoline and diesel products[16]. - The terminal is strategically located in the Greater Bay Area, enhancing its appeal to customers for refined oil distribution and temporary storage of hazardous goods[18]. - The terminal is fully licensed to handle a wide range of dangerous and hazardous goods, ensuring compliance with safety and environmental regulations[18]. - The terminal features 94 oil and petrochemical tanks, with specific capacities allocated for different types of products[16]. - The terminal's operational area spans approximately 516,000 square metres, providing ample space for logistics and storage[16]. - The Group's strategic location and comprehensive services position it favorably within the competitive landscape of the energy sector in South China[18]. - The average leaseout rate for oil and petrochemical tanks was 97.8%, a slight decrease of 0.7 percentage points compared to the previous year[26]. - The number of domestic vessels visited increased by 53.5% year-on-year, while the overall transshipment volume decreased by 58.7%[26]. - Terminal throughput decreased by 11.7% to 4,165,000 metric tons from 4,718,000 metric tons in the previous year[24]. - The number of trucks served to pick up cargoes decreased by 4.3% to 64,634 from 67,517 in the previous year[24]. - Transshipment volume of oil decreased significantly by 70.3% to 25,071 metric tons[24]. Financial Performance - The Group's total revenue decreased from HKD 2,481.9 million to HKD 1,972.4 million, a decline of 20.5% year-on-year[39]. - Revenue from sales of oil and petrochemical products was HKD 1,791.1 million, accounting for 90.8% of total revenue, down 22.1% compared to the previous year[40]. - Revenue from terminal, storage, and transshipment activities for liquid chemicals was HKD 168.0 million, a slight increase of 2.2% year-on-year, but a decrease of about 4.7% when excluding currency appreciation effects[39]. - Revenue from operating a filling station decreased from HKD 18.4 million to HKD 13.3 million, a decrease of 27.7% year-on-year due to leasing the station to an independent third party[40]. - The Group expects better operating results and greater profitability in the coming year due to improved overall operating profit and increased net assets from financial investments[42]. - The Group's diversification strategy has begun to yield positive results, contributing to improved financial performance[42]. - Gross profit increased by 57.3% to approximately $104.4 million, with a gross profit margin of 5.3%, up by 2.6 percentage points year-on-year[53]. - Direct costs and operating expenses decreased by 22.7% to approximately $1,867.9 million, with inventory costs from oil and petrochemical products accounting for 94.2% of total direct costs[56]. - EBIT for the year was approximately $46.8 million, an increase of 304.9% from $11.6 million in 2020, driven by net fair value gains on financial assets[57]. - EBITDA increased by 43.3% to $123.0 million, compared to $85.9 million in the previous year[57]. Strategic Initiatives - The Group actively expanded its trading business in Hong Kong to increase customer base and business scale[28]. - The Group plans to enhance its market risk resistance and profitability by leveraging market price fluctuations through centralized procurement[33]. - The Dongzhou Petrochemical project is set to enhance revenue and profitability significantly, as handling and storage charges for LNG are several times higher than those for oil and liquid chemicals[43]. - The Group's international trading business commenced in 2021, compensating for declines in domestic refined oil trading, leading to an increase in overall trading volume and gross profit[44]. - The number of franchised filling stations under the "Hans Energy" brand reached eight by the end of 2021, with plans to continue signing new franchising agreements in 2022[44]. Management and Governance - The company has been led by Mr. Dai Wei as Chairman and Executive Director since July 2002, with extensive experience in petroleum and real estate sectors[83]. - Mr. Yang Dong has served as Executive Director and CEO since July 2016, bringing rich experience in international trade of petroleum and chemical products[83]. - The company has a strong management team with members holding advanced degrees and extensive industry experience, enhancing its operational capabilities[85]. - The independent non-executive directors contribute to the company's governance, with backgrounds in finance, accounting, and corporate advisory services[85]. - The company is focused on expanding its market presence and enhancing its operational efficiency through strategic management and governance[86]. - The management team emphasizes the importance of compliance and financial integrity in its operations, ensuring robust oversight mechanisms[86]. - The company is actively involved in mergers and acquisitions, leveraging its expertise to identify growth opportunities in the market[86]. Risk Management and Compliance - The Group's risk management framework includes both top-down and bottom-up risk review processes to ensure comprehensive risk identification and mitigation[167]. - The Board is responsible for maintaining adequate risk management and internal control systems to safeguard shareholder interests[165]. - The Company has established written guidelines for employees regarding securities transactions to prevent insider trading[161]. - The internal control framework covers all material controls, including financial, operational, and compliance controls[173]. - The Group's internal control system is designed to provide reasonable assurance, minimizing risks and allowing optimal achievement of business objectives[176]. - The Board and Audit Committee reviewed the effectiveness of the internal control system and found it to be operating effectively during the year[179]. Shareholder Communication - Shareholder meetings provide opportunities for communication between shareholders and the Board, with key personnel available to address inquiries[191]. - The Company emphasizes timely and effective communication with shareholders as part of good corporate governance[193]. - The Company maintains a website to provide extensive information on business developments, financial information, and corporate governance practices[194]. - Designated senior management maintains regular dialogue with existing shareholders, potential institutional investors, and analysts to keep them informed of the Company's developments[195].
汉思能源(00554) - 2021 - 年度财报