Business 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 [11]. - The Group is expanding its trading business in Hong Kong to increase its customer base and business scale, maintaining long-term relationships with major energy companies like CNOOC and Sinopec [16]. - The Group's strategy includes expanding its customer base to end customers of filling stations by prioritizing fuel supply agreements, enhancing unit profit from the trading business [18]. - The Group owns a filling station in Guangzhou with a site area of approximately 12,500 square meters, which has been leased to an independent third party for rental income [19]. - Currently, there are nine filling stations under the "Hans Energy" brand located across Guangdong Province and Guangxi Province in the PRC [19]. - The Group is seeking various development opportunities to diversify its business and increase revenue sources, continuing its established business diversification strategies [20]. - The Group submitted an application for the second phase development of Dongzhou Petrochemical Terminal, utilizing approximately 150,000 square meters of vacant land for LNG storage facilities [13]. - The Group aims to maximize shareholder value by utilizing spare capacity from jetties and vacant land in its terminal storage business [13]. - The Group's terminal storage business is focused on generating more revenue through diversification and maximizing the use of existing resources [13]. - The Group actively expands its share of the refined oil retail market through various means, including leasing and brand management services [19]. Financial Performance - The Group recorded total revenue of $371.9 million for the six months ended June 30, 2022, a significant decrease of 77.6% compared to the same period last year [38]. - Revenue from the sale of oil and petrochemical products was $294.1 million, accounting for 79.1% of total revenue, with a decrease of 81.1% on a half-year basis [38]. - Terminal storage revenue was $74.9 million, representing 20.1% of total revenue, down 20.5% compared to the previous year [38]. - EBITDA increased by 26.5% compared to the same period last year, indicating effective cost reduction and efficiency improvement measures [45]. - The gross profit ratio improved by 9.3 percentage points over the same period last year, reflecting better operational efficiency [45]. - The Group plans to focus on reviving the terminal storage business and continue cost reduction efforts in the second half of 2022 [46]. - The decrease in trading revenue was attributed to the consumption tax on refined oil products and the impact of COVID-19 lockdowns in China [38]. - The Group's revenue for the six months ended 30 June 2022 was $371.9 million, a decrease of 77.6% compared to $1,659.1 million in the same period of 2021 [51]. - Gross profit margin increased to 13.1%, up by 9.3 percentage points from the previous year, primarily due to a reduction in low-margin trading activities [51]. - Direct costs and operating expenses were $323.2 million, representing a decrease of 79.8% from $1,596.3 million in the prior year [54]. - EBIT for the period was $15.4 million, an increase of 420.0% compared to a loss of $4.8 million in the same period last year [58]. - Basic and diluted losses per share improved to $0.35 cents from $0.87 cents in the prior year, reflecting a 59.8% reduction in losses [61]. Cash Flow and Liquidity - As of 30 June 2022, total cash and bank balances increased to $247.5 million from $118.2 million at the end of 2021, attributed to cash inflow from reduced working capital [63]. - The Group's total assets were $2,273.8 million, slightly down from $2,286.7 million at the end of 2021, with net current assets at $236.7 million [63]. - The gearing ratio remained stable at 40.9% as of 30 June 2022, unchanged from the end of 2021 [63]. - The Group is confident in its financial resources to meet future debt repayments and support working capital and expansion needs [63]. - The cash and cash equivalents as of June 30, 2022, were $247,528,000, an increase from $63,121,000 at the end of 2021 [164]. - The net increase in cash and cash equivalents for the six months ended June 30, 2022, was HK$190,133,000, compared to a decrease of HK$1,616,000 in 2021, showing improved liquidity [104]. - Cash generated from operations for the six months ended June 30, 2022, was HK$216,256,000, compared to HK$51,914,000 in 2021, representing a significant increase [102]. - Proceeds from new bank loans amounted to HK$113,431,000 in the first half of 2022, up from HK$23,980,000 in the same period of 2021, reflecting enhanced financing activities [102]. Employee and Shareholder Information - The Group's workforce decreased to approximately 180 employees as of June 30, 2022, down from 230 employees as of December 31, 2021 [74]. - The Group did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year [82]. - The Group has adopted a share option scheme and share award scheme to incentivize employees based on performance [74]. - Equity-settled share-based payment expenses recognized for the six months ended June 30, 2022, amounted to $15,872,000, a decrease from $29,378,000 for the same period in 2021 [189]. - The total number of issued ordinary shares remained at 3,956,638,000 as of June 30, 2022, unchanged from December 31, 2021 [184]. Segment Reporting and Compliance - The Group's segment reporting includes three reportable segments: Terminal Storage, Trading, and Other, allowing for detailed performance assessment [111]. - The measure used for reporting segment profit is "adjusted (losses)/profits before taxation," providing a clearer view of operational performance [112]. - The Group's interim financial report is prepared in accordance with HKAS 34, ensuring compliance with relevant accounting standards [109]. - The financial information for the year ended December 31, 2021, included in the interim report does not constitute statutory annual consolidated financial statements, but is derived from them [109]. - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period, ensuring consistency in financial reporting [109].
汉思能源(00554) - 2022 - 中期财报