Performance reviews:

2024 interim results fell short of expectations, with stable dividends:

In the first half of 2024, the company achieved revenue of approximately HK$0.331 billion, up about 7.29% year on year; profit attributable to shareholders was approximately HK$0.685 billion, down about 7.90% year on year, with earnings of 27.57 HK cents per share and an interim dividend of HK10 cents per share, consistent with the same period in 2023. On June 30, 2024, the company's cash and cash equivalents and time deposits with an original maturity date of more than three months totaled approximately HK$6.437 billion, an increase of approximately 10.49% over the previous year.

Huade Petrochemical's revenue performance has been growing steadily, and the naphtha handling transformation project is progressing smoothly:

In the first half of 2024, Huade Petrochemical handled a total of 57 tankers, completing the handling of about 7.39 million tons of crude oil, an increase of about 23.58% over the previous year; it transported about 5.99 million tons of crude oil, an increase of about 3.45% over the previous year. Huade Petrochemical achieved segment revenue of about HK$0.331 billion, up about 7.29% year on year; segment performance was about HK$0.161 billion, up about 17.27% year on year. The Naphtha Handling Upgrading Project at the Verbenzhou Wharf is progressing smoothly according to schedule. It is expected that Huade Petrochemical's revenue scale will be further increased after completion and commissioning.

Domestic joint venture terminal performance declined 6.74% year-on-year in the first half of the year:

In the first half of 2024, the total throughput of the six domestic terminal companies was about 0.1 billion tons, a year-on-year decrease of about 4.76%. Coupled with the impact of the depreciation of the RMB against the Hong Kong dollar, the total investment income was about HK$0.363 billion, a decrease of about 11.46% over the previous year. Affected by the decline in crude oil imports from local refineries and the depreciation of the RMB against the Hong Kong dollar, the joint venture's performance was approximately HK$0.409 billion, a year-on-year decrease of about 6.74%.

The return on investment in overseas warehousing business is growing well:

In the first half of 2024, Fujairah's FOT average rent unit price rose 13% year on year, providing the company with an investment income of about HK$67.05 million, up about 34.67% year on year. Currently, the VLCC terminal connection project has completed 98% and is being completed; since Vesta has sold the Estonian company VTT, which reduced its losses during the reporting period, Vesta achieved an investment income of HK$16.17 million for the company in the first half of 2024, an increase of 60.10% year on year.

Overall, the company's operating performance is basically stable, and various development projects are progressing steadily. In particular, as a net cash company, the margin of safety is high, and there is room for follow-up to increase dividend payout rates.