Downstream Oil and By-Products Sales Business in China

Henan Yanchang currently owns land parcels with an aggregate area of 209 mu, a storage area of 120,000 cubic meters, a privately owned railway line of 2,500 metres in length, as well as the capacity for distribution and sale of more than 2,000,000 tonnes of refined oil per annum. As sales policy of “cash before delivery” was strictly implemented, recovery of receivables was 100%. Besides, the construction of Lanzhou-Zhengzhou-Changsha Refined Oil Pipeline-Xingang Sub-pipeline entered the final stage, pending for local government's environmental approval.

With sufficient and stable supply of refined oil from Yanchang Petroleum Group, Henan Yanchang, which owns dedicated oil storage facilities, railway and oil pipeline, could rapidly enhance its business development and operation to cope with the huge demand of refined oil in Henan Province. Henan Yanchang will have promising prospect and will make significant contribution to the Company.

The Group has established oil products trading companies in Zhoushan, Zhejiang and Shenzhen, China, respectively, for expanding its oil products trading business which will become a new profit driver.

Financial Highlights

For the year ended 31 Dec 2020 2019
Sales volume (tonnes) 6,360,000 3,700,000
Revenue (HKD’000) 27,160,973 7,968,619
Operating profit (HKD’000) 57,342 42,370

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