Financial Performance - Revenue for the six-month period was approximately HKD 488.6 million, with a loss attributable to the company's owners of about HKD 10.2 million[60]. - The gross profit for the six-month period fell to approximately HKD 17.7 million, down from HKD 22.4 million in the same period last year[71]. - The company reported a loss attributable to owners of approximately HKD 10.2 million, compared to a profit of HKD 13.8 million in the first half of 2022[87]. - Revenue for the first half of 2023 reached HKD 488.618 million, an increase of 2% compared to HKD 477.809 million in the same period of 2022[138]. - Gross profit for the first half of 2023 was HKD 17.690 million, down from HKD 22.428 million in the same period of 2022, indicating a decline of approximately 21%[138]. - The company reported a net loss of HKD 10.632 million for the first half of 2023, compared to a profit of HKD 13.651 million in the same period of 2022[139]. - Basic and diluted loss per share for the first half of 2023 was HKD 0.48, compared to earnings of HKD 0.65 per share in the same period of 2022[139]. Assets and Liabilities - As of June 30, 2023, the company's total assets less current liabilities amounted to HKD 1,427,911,000, an increase from HKD 1,397,803,000 as of December 31, 2022, representing a growth of approximately 2.1%[34]. - The company's net current assets were HKD 661,401,000, compared to HKD 645,957,000 as of December 31, 2022, indicating an increase of about 2.4%[34]. - The total liabilities decreased from HKD 80,775,000 as of December 31, 2022, to HKD 56,493,000 as of June 30, 2023, reflecting a reduction of approximately 30%[34]. - The company’s equity attributable to owners decreased from HKD 1,396,495,000 as of December 31, 2022, to HKD 1,374,625,000 as of June 30, 2023, a decline of about 1.6%[34]. - Non-current assets as of June 30, 2023, totaled HKD 766.510 million, an increase from HKD 751.846 million as of December 31, 2022[140]. - Trade receivables decreased to HKD 80.398 million as of June 30, 2023, down from HKD 119.931 million at the end of 2022, representing a decline of approximately 33%[140]. - Inventory as of June 30, 2023, was HKD 31.193 million, a decrease from HKD 35.177 million at the end of 2022, indicating a decline of about 11%[140]. Financial Instruments and Borrowings - The company's bank borrowings had a floating interest rate of 4.4% as of June 30, 2023, which is based on the market lending rate plus 0.2%[6]. - The company’s financial liabilities included derivative financial instruments valued at HKD 10,789,000 as of June 30, 2023, compared to HKD 514,000 as of December 31, 2022, indicating a substantial increase[34]. - As of June 30, 2023, the group had bank borrowings of approximately HKD 53.3 million and total bank credit facilities amounting to approximately HKD 1,406.8 million[88]. - The group's asset-liability ratio was 4% as of June 30, 2023, compared to 0% on December 31, 2022, primarily due to bank borrowings for the construction of a plant in Fujian[108]. Business Operations and Market Conditions - The trading volume of finished oil decreased to 986 metric tons from 1,810 metric tons in the same period last year, while the trading volume of petrochemical products increased from 44,510 metric tons to 53,921 metric tons[67]. - The trading volume of coal decreased from 193,861 metric tons in the same period last year to 155,029 metric tons[67]. - Approximately 69% of the trading revenue came from petrochemical products, while 2% was from refined oil trading, and 29% from coal trading[83]. - The income from general storage and other supporting services related to refined oil and petrochemical products was about HKD 17.7 million, up from HKD 15.5 million in the first half of 2022[85]. - The company maintained a cautious approach in trading operations due to significant fluctuations in the oil market, influenced by various economic factors[76]. - The average price of Brent crude oil rose from USD 79.05 per barrel at the beginning of January to a peak of USD 84.55 per barrel by the end of January, before stabilizing around USD 75 per barrel in June[65]. Strategic Initiatives and Future Outlook - The company is optimistic about the potential growth of its solar energy business and is actively seeking new opportunities in emerging business areas to expand revenue sources[66]. - Nantong Runde Petrochemical Co., Ltd. reported continuous revenue and profit growth due to increased throughput and stable customer growth during the six-month period[78]. - The SEBS project, a petrochemical product production initiative, is expected to have an annual production capacity of 50,000 metric tons and is recognized as a key project by the local government[79]. - The group is establishing a plant in Fujian, expected to commence operations in the first quarter of 2024[113]. - The number of employees increased to 142 as of June 30, 2023, from 93 on December 31, 2022, due to the development of the Fujian plant[114]. Compliance and Governance - The company has complied with the listing rules and regulations as required by the Hong Kong Stock Exchange during the reporting period[15]. - The company’s audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[133]. - The company maintained sufficient public float as required by listing rules during the six-month period[158]. - The company has not entered into any arrangements that would allow directors to benefit from acquiring shares or debentures of the company or any other corporation during the six-month period[133]. - The company did not recommend any interim dividend for the six-month period, consistent with the first half of 2022[110]. Changes in Accounting Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, which may impact future financial reporting[36]. - The company adopted new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial statements[169]. - The company is currently evaluating the impact of new and revised Hong Kong Financial Reporting Standards but has not yet determined their potential significant effects on its operational performance and financial position[187]. - The company’s accounting policies and measurement methods remained consistent with those presented in the annual financial statements for the year ended December 31, 2022[169]. Cash Flow and Financial Position - The net cash generated from operating activities for the six months ended June 30, 2023, was HKD 15,836, a significant decrease from HKD 140,864 in the same period of 2022[183]. - The net increase in cash and cash equivalents was HKD 44,928, compared to HKD 141,506 in the previous year[199]. - Bank interest income rose to HKD 2,905 from HKD 121 year-on-year[199]. - Interest income from trade receivables decreased to HKD 5,645 from HKD 15,875[199]. - Government grants received increased to HKD 1,881 from HKD 1,233[199]. - The company reported a foreign exchange loss of HKD 8,500, an improvement from a loss of HKD 16,819 in the previous year[199]. - The cash and cash equivalents balance as of June 30, 2023, was HKD 330,669, up from HKD 285,145 at the end of the previous year[199]. - The company incurred a loss of HKD 1 from the sale of property, plant, and equipment, compared to a gain of HKD 14 in the previous year[200]. - The company did not report any rental income for the current period, while it was HKD 20,260 in the previous year[200].
海峡石油化工(00852) - 2023 - 中期财报