Company Business

Trading is one of the Group's core businesses. The Group has several trading companies throughout Asia. The Group is committed to maintaining strong customer relationships and selecting opportunities in crude oil, refined oil, petrochemical products, and coal. The Group is also looking to diversify its revenue base and seek new areas to expand trading operations.

In June 2024, our Group completed the acquisition of 100% equity interest in Pan-China Resources Ltd. ("Pan-China"). Pan-China operates oil and gas development and production in relation to three blocks — Duannan, West Xiepo, and Xiaoji (collectively, "Kongnan Block") — located in Dagang Oilfield, Hebei Province, the PRC. Pursuant to a petroleum contract signed with China National Petroleum Corporation ("CNPC"), Pan-China holds full participating interest in the entitlement. Following the successful development of oil reserves, crude oil production is shared between Pan-China and CNPC. Pan-China is focused on optimising operations and enhancing production efficiency to maximise value from its oil reserves. With a strategic approach to field development and production planning, Pan-China successfully stabilised crude oil output despite fluctuations in global energy markets.

Fujian Hong Kong Petrochemical Limited ("Fujian Petrochemical"), subsidiary of the Group, advanced the development of its petrochemicals manufacturing plant (the "Fujian Plant") in Quanzhou, Fujian Province, the PRC during the Year. The Fujian Plant commenced trial operations in March 2025, representing a significant step forward in the Group's expansion into petrochemicals manufacturing. While initial operations were affected by start up challenges and market volatility, the company continued to refine its processes and strengthen its foundation for future growth.

The Group's subsidiary, Smart Team Investments Limited ("Smart Team"), made strategic investments in the petrochemical storage and logistics sector. On 28 February 2007, Smart Team partnered with Sinochem Group and Tianjin Port Group to establish two state-owned holding joint ventures Sinochem TianJin Port Petrochemical Terminal Co., Ltd ("Sinochem Storage") and Tianjin Port Sinochem Petrochemical Terminal Co., Ltd. ("Tianjin Port Terminal").

This project represents the Group's deep involvement in petrochemical infrastructure across China's northern ports. Sinochem Storage primarily provides full-chain services including the storage, handling, and transhipment of crude oil, fuel oil, refined oil, and liquid chemicals. The storage area covers approximately 400,000 square meters, with a total tank capacity of 960,000 cubic meters and an annual transhipment capacity of up to 9 million tons. Located in the Nanjiang Port Area of Tianjin Port, this project leverages Tianjin Port's natural geographical advantage in radiating across North and Northwest China.

Tianjin Port Terminal primarily engages in the operation of port terminals and other port facilities, cargo handling operations within the port area, and vessel and port services.

Strong New Energy Limited, a subsidiary of the Group, is engaged in the installation and maintenance of solar energy systems and EV charger systems. The Company have contractual right to a guaranteed portion of the electricity revenue arising from the sale of electricity to the power companies in Hong Kong generated by the solar energy systems according to the Feed-in Tariff Scheme of the Hong Kong government.

The Group holds commercial properties in both Hong Kong, Macau, and Mainland China, available for the Group's own use or generate rental income. Looking ahead, the Group is positive about the value growth of investment properties, continues to monitor commercial property investment opportunities, and expects that the properties will generate a stable and recurrent rental income for the Group.