CONTENTS 目錄 | 2-3 | Corporate Information | | --- | --- | | | 公司資料 | | 4-7 | CEO's Report | | | 行政總裁報告 | | 8-9 | Key Franchised Bus Network in Hong Kong | | | 香港主要專營巴士網絡 | | 10-37 | Management Discussion and Analysis | | | 管理層討論及分析 | | 38-45 | Profile of Directors and Senior Management | | | 董事及高級管理人員簡歷 | | 46-66 | Corporate Governance Report | | | 企業管治報告 | | 67-92 | Directors' Report | | | 董事報告 | | 93-100 | Independent Auditor's Report | | | 獨立核數師報告 | | 101 | Consolidated Income Statement | | | 綜合損益表 | | 1 ...

金十期货4月10日讯，马来西亚棕榈油局MPOB：马来西亚3月棕榈油出口为1005547吨，环比增长 0.91%。 ...

Financial Performance - Revenue increased by 274.4% to HKD 3,551,066,000 (2023: HKD 948,510,000) [4] - Operating profit increased by 486.1% to HKD 14,372,000 (2023: HKD 2,452,000) [4] - EBITDA increased by 425.2% to HKD 302,928,000 (2023: HKD 57,676,000) [4] - Loss attributable to shareholders increased by 414.0% to HKD 180,550,000 (2023: HKD 35,125,000) [4] - Total comprehensive loss for the year was HKD 242,487,000 (2023: HKD 26,051,000) [6] - The company reported a significant increase in depreciation expenses, totaling HKD 194,924,000 for owned properties, plants, and equipment in 2024, compared to HKD 41,801,000 in 2023 [30] - The company experienced a net loss of HKD 181,605,000, which is a 449.2% increase from a loss of HKD 33,069,000 in 2023 [78] - The company reported a basic and diluted loss per share of 4.52 cents for the year, compared to 0.91 cents in 2023 [86] Assets and Liabilities - Non-current assets increased significantly to HKD 8,654,017,000 (2023: HKD 1,307,383,000) [7] - Total liabilities increased to HKD 7,036,116,000 (2023: HKD 450,482,000) [8] - The company’s total assets reached HKD 9,870,154,000 in 2024, a substantial increase from HKD 1,957,023,000 in 2023, representing a growth of approximately 404% [25] - The company’s total liabilities increased to HKD 8,800,074,000 in 2024 from HKD 723,946,000 in 2023, reflecting a growth of approximately 1,116% [25] - As of December 31, 2024, the group's bank loans totaled HKD 2,316,795,000, a significant increase from HKD 564,026,000 in 2023 [45] - The total bank and other loans amounted to 2,394,795 thousand in 2024, up from 564,026 thousand in 2023, reflecting increased borrowing [44] Revenue Sources - Revenue from the sale of oil and petrochemical products in mainland China for 2023 was approximately HKD 272,704,000 [16] - Total revenue from customer contracts for 2024 was HKD 3,456,437,000, compared to HKD 836,919,000 in 2023, representing a significant increase [15] - Total external customer revenue for 2024 reached HKD 3,551,066,000, a significant increase from HKD 948,510,000 in 2023, representing a growth of approximately 274% [24] - Trade business revenue reached 1.649 billion HKD in 2024, up 106.8% from 797.703 million HKD in 2023, driven by increased sales contracts and volumes of oil and petrochemical products [80] Acquisition and Growth - The acquisition of BTHL resulted in a total revenue contribution of HKD 1.743 billion and a total loss of HKD 12 million from August 1, 2024, to December 31, 2024 [47] - If the acquisition had occurred on January 1, 2024, the group's annual revenue would have been approximately HKD 5.884 billion, with a post-tax loss of about HKD 355 million [47] - The identifiable net assets acquired from BTHL amounted to HKD 2,859,010,000, with goodwill recognized at HKD 1,638,770,000 [48] - The total consideration for the acquisition of BTHL was HKD 4,497,780,000, with a net cash outflow of HKD 142,082,000 after accounting for cash acquired [50] - Following the acquisition, Glorify holds 70% of BTHL's total issued shares [94] Operational Metrics - The average storage tank utilization rate for oil and petrochemical products was 94.6%, a decrease of 1.2 percentage points compared to the previous year [63] - The throughput volume for the terminal decreased by 6.4% to 2,830,000 tons in 2024, down from 3,023,000 tons in 2023 [62] - The total number of sales contracts established increased by 40.9% to 1,161 in 2024, compared to 824 in 2023 [66] - The sales volume of oil and petrochemical products rose by 33.2% to 249,000 tons in 2024, up from 187,000 tons in 2023 [66] Financing and Capital Management - The group secured new loan financing of up to HKD 2,800,000,000 on March 5, 2025 [11] - The group has an unused bank financing capacity of HKD 161,621,000 as of December 31, 2024 [11] - The group secured new bank financing of up to HKD 2.8 billion, including HKD 2 billion in term loans and HKD 800 million in revolving loans, to refinance existing loans and provide additional working capital [56] - The group has provided various properties, equipment, and receivables as collateral for bank financing [103] Corporate Governance and Compliance - The group has adopted high standards of corporate governance in compliance with the Hong Kong Stock Exchange's listing rules [108] - The group's financial results for the year ending December 31, 2024, have been reviewed by the audit committee [112] Future Outlook - The company plans to continue expanding its refined oil trade and customer base while optimizing procurement processes to ensure sustainable growth [65] - The advertising business managed by Huida Media is expected to be a new growth point, with plans to participate in multiple large outdoor advertising projects in 2025 [75] - The company aims to transition to a "zero-emission" bus fleet by 2045, with 70% being hydrogen buses and 30% electric buses [75]

Investment Rating - The report does not provide a specific investment rating for the company [4] Core Insights - The company is expected to achieve a turnaround and consider dividend distribution once its related business becomes profitable [2][98] - The acquisition of BTHL has increased the company's stake to 70%, enhancing its revenue and cash flow sources [2][12] - A fare adjustment of 7.5% for city and New Territories routes has been approved, effective January 5, 2025, which is anticipated to positively impact profitability [2][90] Business Overview - The company, through its subsidiary Glorify, acquired approximately 54.44% of BTHL for HK$ 2.72 billion, raising its ownership to 70% [2][12] - BTHL focuses on providing public bus and tourism-related services under the Citybus brand and is the exclusive advertising agent for Citybus vehicle advertising [2][12] - The merger of Citybus and Newbus is expected to optimize routes, enhance operational efficiency, and reduce costs [3][7] Financial Data and Peer Comparison - BTHL generated total revenue of HK$ 34.9 billion in 2023, accounting for 78.6% of the group's total revenue [98] - The company has a market capitalization of approximately HK$ 1 billion, with a potential dividend yield of 6% to 7% based on a 95% profit distribution [2][98] - The financial performance of the bus industry improved significantly in 2023, with a recovery in passenger numbers post-pandemic [98][101] Industry Overview - The Hong Kong public bus industry consists of both franchised and non-franchised bus services, with franchised buses serving areas not easily accessible by rail [60] - The number of franchised bus routes in Hong Kong increased from 670 in 2018 to 750 in 2023, with Citybus operating 233 routes [60][92] - The industry size was approximately HK$ 10.64 billion in 2023, with Citybus holding a market share of about 27.9% [92][93]

Investment Rating - The report does not provide a specific investment rating for the company [4] Core Insights - The company, Hans Group Holdings (00554.HK), has acquired an additional 54.44% stake in BTHL for HK$ 2.72 billion, increasing its ownership to 70% [2][12] - The acquisition is expected to lead to a turnaround and potential dividend distribution, with a 7.5% fare increase approved for Citybus routes, effective January 5, 2025, which is anticipated to have a minimal impact on demand [2][98] - The merger of Citybus and New World First Bus is expected to enhance operational efficiency and reduce costs through route optimization and resource sharing [3][7] Business Overview - The acquisition of BTHL is valued at approximately HK$ 5.0 billion, with HK$ 500 million paid in cash and HK$ 220 million in shares [12] - BTHL focuses on providing public bus and tourism-related services in Hong Kong, as well as advertising services [13] - Citybus operates 233 franchised bus routes, with a fleet of 1,495 licensed buses, primarily serving the Hong Kong Island area [23] Financial Data and Peer Comparison - In 2023, BTHL generated total revenue of HK$ 3.49 billion, accounting for 78.6% of the group's total revenue [98] - The company reported a net loss of HK$ 73.6 million in 2023, with an operating profit margin of 3.4% [101] - The financial performance of the franchised bus industry improved significantly in 2023, with a recovery in passenger numbers post-pandemic [101] Industry Overview - The Hong Kong franchised bus industry is projected to reach a market size of approximately HK$ 10.64 billion in 2023, with Citybus holding a market share of about 27.9% [92] - The number of franchised bus routes in Hong Kong increased from 670 in 2018 to 750 in 2023, with Citybus routes growing from 205 to 233 [60] - The report highlights that the demand for franchised bus services remains relatively inelastic, suggesting that fare increases will not significantly affect ridership [98]

Investment Rating - The report assigns a stock rating of NR (Not Rated) for Hans Group Holdings Limited (00554.HK) [6] Core Insights - The acquisition of 54.44% of BTHL by Hans Group for HKD 2.7 billion increases its stake to 70%, with BTHL valued at approximately HKD 5 billion [4][15] - A fare adjustment of 7.5% for Citybus routes is expected to help the company return to profitability by increasing revenue without significantly impacting demand [5][90] - The potential for dividend distribution exists if Citybus achieves net profit, with a possible yield of 6% to 7% based on a 95% payout ratio [5][90] Business Overview - BTHL provides public bus services under the Citybus brand, including advertising and tourism services [4][15] - The company operates a fleet of 1,495 buses across 233 routes, with a significant increase in passenger numbers post-pandemic [25][26][68] Financial Performance - BTHL reported total revenue of HKD 34.9 billion in 2023, a 35.1% increase year-on-year, with ticket revenue contributing 87.3% of total income [26][46] - The company aims to improve operational efficiency and reduce costs through the merger with NWFB, which is expected to optimize routes and enhance resource utilization [7][97] Industry Overview - The Hong Kong franchised bus industry is dominated by four operators, with Citybus being the sole operator for routes on Hong Kong Island [58] - The industry faced challenges during the pandemic but is recovering, with a projected market size of HKD 10.6 billion in 2023 [86] Investment Thesis - The anticipated fare increase and potential for dividend distribution are key factors for investment consideration, as Citybus is the main revenue source for Hans Group [90] - The merger with NWFB is expected to create synergies and improve financial performance through cost savings and operational efficiencies [97]

Investment Rating - The report does not provide a specific investment rating for Hans Group Holdings (00554.HK) [5] Core Insights - Hans Group Holdings acquired a 54.44% stake in BTHL for HKD 2.7 billion, increasing its ownership to 70% [2][12] - The fare adjustment of 7.5% for Citybus is expected to facilitate a financial turnaround and potential dividend distributions [3][91] - The merger between Citybus and NWFB is anticipated to create economies of scale and operational synergies [4][96] Business Overview - Hans Group Holdings primarily provides integrated facilities for petroleum and liquid chemicals, including terminal storage and trading services [52] - BTHL, a subsidiary of Hans, specializes in public bus services in Hong Kong, operating under the Citybus brand [14][18] - The acquisition of BTHL is valued at approximately HKD 5.0 billion, with a structured payment plan [12] Financial Performance - BTHL generated HKD 3.49 billion in revenue in 2023, accounting for 78.6% of the Group's total revenue [91] - The fare revenue from BTHL increased by 35.1% year-on-year, reaching HKD 3.0 billion in 2023 [24][45] - The Group's market capitalization is approximately HKD 1 billion, with potential dividend returns estimated at 6% - 7% based on net profit [3][91] Industry Overview - The franchised bus industry in Hong Kong is valued at HKD 10.6 billion, with BTHL holding a 27.9% market share [87] - The number of franchised bus routes increased from 670 in 2018 to 750 in 2023, with Citybus operating 233 routes [61][62] - The number of franchised bus passengers rebounded to 1.34 billion in 2023, although still below pre-pandemic levels [66] Investment Thesis - The anticipated fare adjustment is expected to positively impact Citybus's financial performance and facilitate dividend distributions [91] - The merger with NWFB is projected to enhance operational efficiency and reduce costs through resource sharing [96][98] - The Group's reliance on Citybus as its primary revenue stream positions it favorably for future growth [91]

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].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 741,255,000, a 65.7% increase from HKD 447,367,000 in the same period of 2023[1] - Gross profit decreased to HKD 29,162,000 from HKD 45,171,000, representing a decline of 35.5% year-over-year[1] - The company reported a loss before tax of HKD 19,245,000, compared to a loss of HKD 2,599,000 in the previous year, indicating a significant deterioration in performance[1] - Total comprehensive loss for the period was HKD 85,032,000, compared to a comprehensive income of HKD 51,565,000 in the same period last year[2] - The reported segment profit before tax for the six months ended June 30, 2024, was 7,427 thousand HKD, down from 15,083 thousand HKD in 2023, indicating a decrease of 50.8%[10] - Interest income for the six months ended June 30, 2024, was 9,675 thousand HKD, compared to 2,807 thousand HKD in 2023, marking a significant increase of 245.5%[11] - The basic and diluted loss per share for the six months ended June 30, 2024, was (0.55) cents, compared to (0.11) cents for the same period in 2023[15] - The company incurred financial costs of 12,782 thousand HKD for the six months ended June 30, 2024, down from 15,866 thousand HKD in 2023, representing a decrease of 19.5%[12] - The company recorded a loss before interest and tax (LBIT) of approximately HKD 6.5 million, a decrease of 148.7% compared to a profit of HKD 13.3 million in the same period last year[38] - EBITDA for the six months was approximately HKD 20.9 million, a decrease of 48.3% from HKD 40.4 million in the previous year[38] Assets and Liabilities - Current liabilities exceeded current assets by HKD 173,924,000, reflecting a negative working capital position[3] - Non-current assets decreased to HKD 1,391,786,000 from HKD 1,307,383,000, indicating a reduction in long-term asset value[3] - The company’s cash and bank balances were HKD 318,920,000, down from HKD 374,862,000, showing a decline in liquidity[3] - The total assets for the reporting segments as of June 30, 2024, amounted to 957,651 thousand HKD, an increase from 932,613 thousand HKD as of December 31, 2023, reflecting a growth of 2.7%[9] - The total liabilities for the reporting segments as of June 30, 2024, were 717,086 thousand HKD, compared to 636,745 thousand HKD as of December 31, 2023, showing an increase of 12.6%[9] - As of June 30, 2024, the company's total assets were approximately HKD 20.2 billion, with a current ratio of 0.78, down from 2.38 at the end of the previous year[42] - The company’s total cash and bank balances decreased to approximately HKD 318.9 million, primarily due to cash outflows from investment activities[42] Trade and Receivables - Trade and other receivables increased significantly to HKD 151,999,000 from HKD 90,065,000, suggesting a rise in credit sales or delayed collections[3] - As of June 30, 2024, trade receivables aged within one month increased to HKD 19,040,000 from HKD 8,972,000 as of December 31, 2023, representing a 112.9% increase[18] - The total trade receivables, net of loss allowances, amounted to HKD 151,999,000 as of June 30, 2024, compared to HKD 90,065,000 as of December 31, 2023, indicating a 68.5% increase[18] Business Segments and Operations - The business is segmented into three reportable segments: Dock Storage, Trading, and Others, with no consolidation of operating segments[6] - Revenue from the sale of oil and petrochemical products accounted for 91.1% of total revenue, amounting to approximately 675.0 million HKD, an increase of 81.3% year-on-year[33] - Sales volume of oil and petrochemical products rose by 58.0% to 109,000 tons in the first half of 2024, up from 69,000 tons in the same period last year[31] - The number of sales contracts established in the trade business increased by 114.7% to 541 in the first half of 2024 compared to 252 in the same period of 2023[31] - The throughput of the terminal decreased by 4.1% to 1,410,000 tons in the first half of 2024 compared to 1,471,000 tons in the same period last year[30] Investments and Acquisitions - The company completed the acquisition of BTHL, holding 70% of its issued shares, which is expected to diversify its core business into public transportation[34] - The group has committed to business acquisitions amounting to HKD 2,547,045,000 as of June 30, 2024, with no prior commitments reported[24] - On July 31, 2024, the group paid HKD 325,000,000 as part of the acquisition of approximately 54.44% of the issued shares of Bravo Transport Holdings Limited (BTHL)[25] - Glorify acquired 54.44% of BTHL's issued shares for approximately HKD 2.72 billion (USD 348 million) on July 31, 2024[45] - Following the acquisition completion, Glorify holds 7,000 shares of BTHL, representing 70% of BTHL's issued shares[45] - The fair value loss recorded for the investment in BTHL was HKD 62 million for the period, compared to a gain of HKD 62 million for the six months ended June 30, 2023[45] Employee and Governance - The group has approximately 174 employees as of June 30, 2024, unchanged from December 31, 2023[49] - The board of directors currently has only two independent non-executive directors, below the minimum required number[63] - The company is actively seeking suitable candidates to appoint new independent non-executive directors within three months from July 31, 2024[63] - The company has complied with the standard code of conduct for securities trading by all directors during the reporting period[64] Dividends and Share Options - The group does not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[54] - The total number of unexercised share options under the 2012 Share Option Scheme that could potentially be issued is 711,427,600 shares, representing 18.0% of the total shares issued as of June 30, 2024[57] - The group has adopted a new share option scheme effective from May 31, 2023, which will be valid for ten years[56] - The 2023 stock option plan allows for a maximum of 395,663,800 shares, representing 10% of the issued share capital as of the plan's adoption date[59] - The 2023 stock award plan also allows for a maximum of 395,663,800 shares, which is 10% of the issued share capital at the time of adoption[61] - The 2019 stock award plan has been terminated, with 78,590,000 shares transferred to the 2023 stock award plan[60] Risk Management - The group does not foresee significant foreign exchange and price fluctuation risks, believing that no hedging instruments are necessary[48] - The group has not disclosed any significant foreign exchange and price risks other than those mentioned above[48] - As of June 30, 2024, the group has no significant contingent liabilities[52] Future Plans - The group plans to develop liquefied natural gas storage tanks and related facilities on approximately 150,000 square meters of vacant land at the Dongzhou Petrochemical Warehouse[27] - The group plans to continue diversifying its business while expanding into other sectors, including increasing investments in Bravo Transport Holdings Limited (BTHL) to enhance revenue sources[29] - The group has actively sought various development opportunities to broaden its revenue base and enhance business diversification[29] - The company plans to expand its bus services overseas and develop autonomous driving and smart mobility technologies in Hong Kong[34] Reporting and Compliance - The interim results for the six months ending June 30, 2024, will be published on the company's website and the Hong Kong Stock Exchange website[66] - The company will provide its 2024 interim report to shareholders upon request[66]

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[13]. - The terminal is located in the Greater Bay Area, which enhances its attractiveness to customers for the distribution of refined oils and storage of hazardous materials[17]. - The Group is in the process of developing the second phase of the terminal, which includes the construction of liquefied natural gas storage tanks on approximately 150,000 square meters of vacant land[14]. - Revenue from the terminal storage business is generated through leasing storage tanks and handling charges for cargo movement, along with ancillary services such as tank cleaning[18]. - The terminal is fully licensed to handle a wide range of dangerous and hazardous goods, ensuring compliance with safety and environmental regulations[17]. - The terminal has 94 oil and petrochemical tanks, with specific capacities allocated for different types of petroleum products[13]. - The application for the second phase development has been submitted to the local government, with approval still in progress as of the reporting date[14]. - The Group's strategic location in Guangdong province positions it as a key player in the energy sector, attracting various customers including those with manufacturing plants[17]. - The terminal's management team is experienced and maintains high standards in safety and environmental protection[17]. Financial Performance - The Group recorded total revenue of approximately HK$948.5 million for the year ended December 31, 2023, representing a 36.5% increase compared to the previous year[41]. - Revenue from the sale of oil and petrochemical products was approximately HK$797.7 million, accounting for 84.1% of total revenue, with a growth of 46.7%[41]. - Terminal storage business revenue was approximately HK$145.5 million, accounting for 15.3% of total revenue, showing a slight decrease of 0.1%[41]. - Rental income from a filling station was approximately HK$5.3 million, accounting for 0.6% of total revenue, reflecting a decrease of 4.7%[41]. - The Group's revenue for 2023 was approximately $948.5 million, a 36.5% increase from $694.9 million in 2022, primarily driven by a 46.7% increase in sales of oil and petrochemical products[53]. - Direct costs and operating expenses rose to approximately $859.3 million, a 42.9% increase from $601.2 million in 2022, with inventory costs accounting for 90.3% of total direct costs[56]. - Gross profit decreased to approximately $89.2 million, down 4.7% from $93.6 million in 2022, resulting in a gross profit margin of 9.4%, a decline of 4.1 percentage points year-over-year[54]. - EBIT for 2023 was approximately $2.5 million, a significant decrease of 95.6% from $55.4 million in 2022, while EBITDA fell to $57.7 million, down 48.6% from $112.3 million[57]. - Finance costs decreased to approximately $31.7 million from $51.9 million in 2022, mainly due to a reduction in the average bank borrowing rate[58]. Operational Metrics - The average leaseout rate for oil and petrochemical tanks was 95.8% in 2023, a decrease of 1.7 percentage points from the previous year[24]. - Terminal throughput increased by 43.4% to 4,726,000 metric tons in 2023 compared to 3,295,000 metric tons in 2022[24]. - Port jetty throughput rose by 33.9% to 3,023,000 metric tons in 2023, up from 2,257,000 metric tons in 2022[24]. - The number of sale contracts entered in the trading business surged by 1,320.7% to 824 in 2023, compared to 58 in 2022[29]. - Sales volume of oil and petrochemical products increased by 61.2% to 187,000 metric tons in 2023 from 116,000 metric tons in 2022[29]. - The number of domestic vessels visited increased by 27.5% to 899 in 2023, while foreign vessels decreased by 7.2% to 64[24]. - The number of trucks serving to pick up cargoes rose by 60.1% to 66,470 in 2023, compared to 41,512 in 2022[24]. - Transshipment volume of oil increased by 65.7% to 90,421 metric tons in 2023, while petrochemicals decreased by 80.4% to 17,952 metric tons[24]. Strategic Initiatives - The Group aims to maximize shareholder value by utilizing spare capacity from jetties and vacant land at the terminal[14]. - The Group aims to enhance unit profit by expanding its customer base to include end customers of filling stations through key fuel supply agreements[28]. - The Group is actively seeking development opportunities to diversify its business and increase revenue sources[34]. - The Group plans to strengthen cooperation with major state-owned enterprises in Guangdong, aiming for operational volumes of gasoline, diesel, and fuel oil between 250,000 to 300,000 metric tons in 2024[45]. - The Group aims to maintain a storage tank leaseout rate of over 95% in 2024, targeting continuous growth in revenue and profits[45]. Investments and Acquisitions - The Group disposed of its limited partnership interest in Templewater I, L.P. to concentrate investments on local bus companies with strong cash flow[47]. - Future investments will prioritize projects with strong cash flow and promising prospects in the field of new energy[49]. - The Group's significant investments included unlisted equity securities and financial assets, with the latter representing a capital commitment of US$20 million in Templewater I, L.P.[89][90]. - The Limited Partnership Interest in Templewater included US$15.7 million of funded capital contribution and US$4.3 million of capital commitment yet to be funded[90]. - The Group's acquisition of Bravo Transport Holdings Limited (BTHL) involved a total consideration of HK$3,200 million, completed in October 2020[81]. Corporate Governance - The Company has been committed to high standards of corporate governance practices in compliance with the CG Code throughout the year[141]. - The Board has provided leadership and approved strategic policies to enhance shareholders' interests while delegating day-to-day operations to management[149]. - The Company regularly reviews its corporate governance practices to ensure compliance with the CG Code[142]. - The Company emphasizes a corporate culture built on accountability, transparency, fairness, and responsibility[144]. - The Company has a strong focus on risk management and internal control as part of its corporate governance framework[141]. - The Company is led by an effective Board that is collectively responsible for promoting its success[144]. - The Company has adopted written terms on the division of functions reserved to the Board and delegated to management[149]. - The Board comprises six members as of December 31, 2023, including three executive Directors and three independent non-executive Directors[156]. - The Audit Committee consists of three members, all of whom are independent non-executive Directors, ensuring appropriate financial management expertise[162]. - The Company has established formal procedures for the appointment and succession planning of Directors[167]. Employee and Remuneration Policies - As of December 31, 2023, the Group employed approximately 174 employees, an increase from 172 in 2022[102]. - The Group's remuneration policy includes a budget for total salary and bonus plans to encourage employee performance[102]. - The company encourages Directors to participate in training courses at the company's expense to ensure ongoing professional development[174]. Risk Management and Compliance - The Company has provided certain property, plant, and equipment as collateral for banking facilities granted[107]. - No material contingent liabilities were reported as of December 31, 2023[109]. - The company does not recommend any final dividend for the year ended December 31, 2023, consistent with the previous year[116]. - The company has provided several properties, factories, and equipment as collateral for bank financing[112]. - The Company Secretary provides advice and services to ensure compliance with applicable rules and regulations[151]. Future Outlook - The first hydrogen refueling station in Hong Kong was officially opened on November 30, 2023, supporting the operation of hydrogen buses[46]. - The Group will focus on research and development in hydrogen technologies, including production, storage, and refueling, to transition towards a balanced energy model[46].