Strong Petrochemical Holdings Limited (STRONG PETRO) reported a wider net loss attributable to shareholders of HK$327.55 million for the year ended 31 December 2024, compared with a HK$95.41 million loss a year earlier. The auditor issued a qualified opinion, citing scope limitations on certain crude-oil transactions, missing documentation at a Macau subsidiary and the inability to obtain bank confirmations.
Revenue and margins • Group revenue rose 26.2% year-on-year to HK$1.60 billion. • Trading of commodities remained the core business, contributing HK$1.51 billion, up 25.0%. Petrochemicals accounted for 78 % of trading sales, petroleum products 11 %, and crude oil 11 %; no coal sales were recorded. • Storage and ancillary services revenue fell sharply to HK$5.25 million (2023: HK$39.89 million) after a major contract ended. • The newly acquired upstream oil unit generated HK$69.34 million in revenue from June to December 2024. • Group gross profit declined to HK$24.14 million (2023: HK$41.64 million), and gross margin shrank to 1.5 % (2023: 3.3 %).
Key profit-line movements • Impairment charges totalled HK$235.22 million, including HK$158.38 million for property, plant and equipment and HK$44.98 million against an associate interest. • Net finance costs rose to HK$2.53 million (2023: HK$1.03 million). • Fair-value loss on financial assets at FVTPL narrowed to HK$1.46 million (2023: HK$102.19 million loss). • Derivative trading recorded a HK$1.01 million loss versus a HK$17.64 million gain in 2023.
Balance-sheet highlights • Total assets stood at HK$2.07 billion; equity attributable to owners was HK$960.37 million. • Cash, restricted deposits and broker margins totalled HK$1.14 billion. • Bank and other borrowings climbed to HK$335.63 million, lifting the gearing ratio to 16 % (2023: 10 %). • Capital commitments contracted but not provided reached RMB35.9 million (HK$38.79 million), mainly for the Quanzhou petrochemical plant.
Auditor’s qualified opinion BDO Limited could not obtain sufficient evidence to verify: 1) the commercial substance of HK$1.51 billion crude-oil trades executed by subsidiary Strong HK; 2) HK$132.69 million of sales and HK$131.87 million of cost of sales at Strong Macao due to lost source documents; 3) bank-balance confirmations for two accounts where signatory and company-seal issues arose.
Dividends and outlook No final dividend was proposed; an interim payout of HK$169.9 million had been declared earlier in the year. Management will focus on strengthening controls, completing the Fujian petrochemicals plant and seeking resumption of trading on the Hong Kong Stock Exchange, which has been suspended since 31 December 2024 pending satisfaction of the exchange’s resumption guidance.
Corporate and legal matters • A new board and management team was installed on 25 January 2025. • Several legal actions are underway against former directors over alleged misconduct and for recovery of losses tied to disputed transactions. • Controlling shareholder Forever Winner was placed into liquidation in December 2025; its 49.06 % stake is subject to a sale process that could trigger a mandatory general offer. • The company is addressing HKEx resumption requirements, including completion of forensic investigations, internal-control review and publication of outstanding financial information.
Shares of STRONG PETRO remain suspended from trading pending fulfilment of resumption conditions.