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 HK797.7 million, accounting for 84.1% of total revenue, with a growth of 46.7%[41]. - Terminal storage business revenue was approximately HK5.3 million, accounting for 0.6% of total revenue, reflecting a decrease of 4.7%[41]. - The Group's revenue for 2023 was approximately 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 601.2 million in 2022, with inventory costs accounting for 90.3% of total direct costs[56]. - Gross profit decreased to approximately 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 55.4 million in 2022, while EBITDA fell to 112.3 million[57]. - Finance costs decreased to approximately 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 US15.7 million of funded capital contribution and US3,200 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].
汉思能源(00554) - 2023 - 年度财报