Financial Performance - For the fiscal year ending December 31, 2022, the company's revenue was approximately HKD 923.1 million, an increase of 13.9% compared to HKD 810.6 million in 2021[19]. - The company reported a profit attributable to owners of approximately HKD 5.7 million for 2022, slightly down from HKD 6.2 million in 2021[19]. - The group's trading revenue for the year was approximately HKD 879.9 million, an increase from HKD 772.1 million in the previous year, with 68% of this revenue coming from petrochemical products trading[33]. - The overall gross profit for the year decreased to approximately HKD 33.4 million from HKD 38.4 million in the previous year, primarily due to adverse economic conditions[46]. - The rental income generated for the year was approximately HKD 12.2 million, slightly down from HKD 12.6 million in the previous year[43]. - The group recorded a total gain of approximately HKD 21.8 million from changes in the fair value of derivative financial instruments, down from HKD 72 million in the previous year[45]. Assets and Liabilities - Total assets decreased to HKD 1,478.6 million in 2022 from HKD 1,628.5 million in 2021, reflecting a decline of 9.2%[3]. - Total liabilities decreased significantly to HKD 82.4 million in 2022 from HKD 189.6 million in 2021, a reduction of 56.5%[3]. - As of December 31, 2022, the equity attributable to the owners decreased by approximately HKD 42,400,000 to about HKD 1,396,500,000, compared to HKD 1,438,900,000 in the previous year[50]. - As of December 31, 2022, the group's cash and cash equivalents totaled approximately HKD 288,000,000, up from HKD 158,200,000 in the previous year[52]. - The group has no bank borrowings as of December 31, 2022, maintaining an asset-to-liability ratio of 0%[53]. Business Strategy and Development - The company plans to continue focusing on the petrochemical trade network in China, aiming to expand sales channels in response to recovering demand[4]. - The company is developing a new petrochemical product, SEBS thermoplastic elastomer, with an expected annual production capacity of 50,000 tons, which is recognized as a key local project in China[23]. - The company aims to monitor macroeconomic changes closely and develop appropriate business strategies to mitigate risks while seeking new opportunities for shareholder returns[5]. - The company is committed to maintaining strong relationships with major clients while exploring new business opportunities amid economic uncertainties[4]. - The company focuses on internal development and selective acquisitions to expand its business scale and geographic coverage[69]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development and regularly reviews its environmental, social, and governance performance[91]. - The board oversees the evaluation of environmental, social, and governance risks and opportunities to align with sustainable development strategies[91]. - The group established an Environmental, Social, and Governance (ESG) working group to collect and analyze ESG data, ensuring compliance with relevant laws and regulations[92]. - The company aims to improve its environmental, social, and governance performance while creating greater value for the broader community[126]. - The company aims to peak carbon emissions by 2030 in alignment with China's 14th Five-Year Plan[149]. Risk Management - The company has established a formal risk management policy to regularly identify, assess, and manage risks faced by the group[82]. - The audit committee reviews the internal control system and risk management processes annually, reporting findings to the board[83]. - The audit committee found no significant violations of risk management policies during the year, affirming the effectiveness of the internal control system[83]. - The company recognizes impairment losses on financial instruments in profit or loss, adjusting the carrying amount through loss provisions[196]. Investments and Financial Instruments - The group expects to benefit from investments in oil and gas assets through the SH Energy fund, with positive cash flow from the Tianjin oilfield project[25]. - The company has invested a total of $25,000,000 in SH Energy as of December 31, 2022, which is approximately HKD 195,000,000, holding about 99% of the shares[67]. - The fair value of SH Energy as of December 31, 2022, is approximately $19,600,000, equivalent to about HKD 152,600,000, representing about 10% of the company's total assets[67]. - The company recognized a loss of approximately $5,700,000 in the fair value of its investment in SH Energy for the year, compared to a gain of about $300,000 in the previous year[67]. Debt and Credit Management - The outstanding trade debt owed by Shandong Shengxing Chemical Co., Ltd. amounts to approximately USD 91,500,000 (approximately HKD 713,700,000)[60]. - As of December 31, 2022, the group received approximately USD 30,500,000 (approximately HKD 237,900,000) as partial repayment of the outstanding debt from Shandong Shengxing[61]. - The group plans to continue actively pursuing the collection of the outstanding debts from Shandong Shengxing[62]. - The group has established a provision matrix for expected credit losses based on historical loss experience and forward-looking factors[191]. Compliance and Transparency - The company ensures compliance with regulatory requirements and maintains transparency in its operations to uphold its reputation[126]. - The company engages stakeholders through various channels, including annual general meetings and financial reports, to address their expectations and concerns[123]. - The company aims to improve transparency and deepen stakeholder understanding of its business development[85].
海峡石油化工(00852) - 2022 - 年度财报