Strong Petrochemical Holdings Limited released its unaudited interim results for the six months ended 30 June 2026, showing a sharp swing into a consolidated gross loss and deeper bottom-line deficit amid volatile crude prices and lower trading volumes.
Key financials • Revenue fell 24.13 % year on year to HK$719.52 million. • Gross loss reached HK$82.19 million versus a gross profit of HK$4.34 million in 1H 2025. • Loss attributable to shareholders widened to HK$145.90 million from HK$64.00 million. • Basic loss per share increased to 6.87 HK cents (1H 2025: 3.01 HK cents).
Segment trends • Trading of commodities contributed HK$592.83 million, down 29.80 % as crude-oil volume rose 13 % but average prices retreated and petrochemical trading shrank. • Storage and ancillary services generated HK$1.32 million, broadly flat; lease income rose to HK$3.67 million from HK$0.94 million. • Exploration, exploitation and operation of crude oil delivered HK$58.39 million, down 10.22 % on lower sales to China National Petroleum Corporation. • Petrochemicals manufacturing revenue more than doubled to HK$63.31 million following ramp-up of the Fujian Plant, although the unit reported a segment loss amid start-up costs.
Balance-sheet position • Cash, restricted deposits and broker balances declined to HK$205.30 million (31 December 2025: HK$300.60 million), reflecting higher supplier prepayments. • Interest-bearing borrowings rose to HK$364.94 million; gearing eased slightly to 24 % (31 December 2025: 26 %). • Capital commitments totalled HK$4.41 million, mainly for further work at the Fujian Plant.
Operational highlights • Crude prices fluctuated between US$60 and US$114 per barrel, prompting a “disciplined and cautious” trading approach. • Strong Nantong’s throughput increased 15 % to 319,000 metric tonnes, but pricing pressure persisted. • Fujian Petrochemical’s SEBS project (planned 50,000-tonne annual capacity) remains a provincial key project and continues to receive government support. • Pan-China is negotiating with CNPC to extend the Kongnan Block petroleum contract beyond its September 2027 expiry.
Regulatory and legal matters • Trading in Strong Petrochemical’s shares has been suspended since 31 December 2024. The Hong Kong Stock Exchange’s 18-month remedial period formally expired on 30 June 2026; the company is in ongoing dialogue to satisfy resumption requirements. • Multiple legal actions are underway, including claims against former directors for alleged unauthorised transactions and an outstanding writ from EuroAmerican International Energy L.L.C. seeking US$34.20 million relating to an arbitral award against a former subsidiary. • The controlling shareholder, Forever Winner International Ltd., is in liquidation. A sale and purchase agreement for its 49.06 % stake was signed on 29 May 2026 with Speed Success Group Limited, wholly owned by non-executive director Mr. Wang Jian Sheng; completion is pending.
Outlook Management intends to prioritise resumption of share trading, improve storage-facility utilisation, pursue selective trading opportunities, and finalise the extension of its PRC oil-field contract, while continuing to stabilise the recently commissioned petrochemical operations.