Dear Shareholders,
In 2025, the slowdown in global economic growth was intertwined with structural transformation. Geopolitical conflicts and rising trade protectionism resonated with each other, exacerbating cyclical fluctuations in the industry. As a result, the Company faced an increasingly complex and challenging business environment, and its business performance remained under persistent pressure. In active response to these complex international market conditions and pressures arising from cyclical industry fluctuations, the Company systematically made efforts in “deployment among upstream assets, expansion of trading business, and improvement in production and operation”, deepened our “Investment + Trade” dual-wheel-driven development model, consolidated its fundamental operations, and fostered new growth drivers, demonstrating strong operation and development resilience. During the year, the Company achieved revenue of approximately HK$14.96 billion, representing a year-on-year increase of approximately 57.6%. Profit attributable to ordinary shareholders of the Company was approximately HK$170 million, a year-on-year decrease of approximately 70.2%. As at 31 December 2025, the Company’s total assets amounted to approximately HK$14.61 billion, and the net assets attributable to ordinary shareholders of the Company amounted to approximately HK$8.79 billion. The gearing ratio was approximately 38.8%, the interest-bearing debt ratio was approximately 23.5%, and the return on equity was approximately 2.2%.
Looking back on 2025, these results were achieved with considerable efforts. Challenges posed by the complex external environment with all colleagues of the Company forged ahead with strong strategic resolve and perseverance, rose to difficulties, broke new ground, maintained a stable operation foundation, and forged a more resilient core for development. On behalf of the Board, I wish to express our sincerest gratitude to every management and staff for their commitment to excellence. I truly appreciate our Shareholders for their longstanding trust, our partners for working hand in hand with us, and all friends from various sectors of society for their ongoing support!
The Company will continue to focus on key areas including oil and gas development, production and trading, investment in the aluminum industry chain, and new energy. We will further enhance the synergy among trading, investment, and production operations, and consistently implement the business strategy of“consolidating existing core businesses while pursuing dual expansion through investment + trade”. Regarding the consolidation of our core businesses, the Company will continue to deepen lean production and operations management to boost reserve and output, and steadily expand the production and sales volumes. Concurrently, we introduce the application of new processes and technologies, empower the high-quality development of our main businesses through technological innovation to solidify the foundation for our core businsess. In terms of the “Investment + Trade” dual expansion, the Company will persistently track and position ourselves in high-quality oil and gas assets and the critical metal industry chain, with aluminum at its core. We will seek opportunities to acquire upstream projects with cost advantages with investment potential, thereby expanding our equity production and reserving strategic “supplies” for future development. At the same time, The Company will give full play to the market-sensing role of our trading business, seize structural opportunities arising from regional price differentials, product rotations and logistics time lags, and maximize the value of equity oil and self-produced aluminum products. The investment and trading segments empower each other and cooperate efficiently. Investment locks in the cost and stock of resources, while trade realizes market value and incremental growth, forming a virtuous cycle of “securing resources via investment, realising value via trading”.
In 2025, the Company remained committed to unlock current investments potential through technological innovation and enhance operational efficiency via refined management. Steady production and reserve growth in the core oil and gas business progressed steadily; the trading business achieved breakthroughs in both scale and value, and new opportunities were opened up for oil sales.
The Company’s oil and gas investments operated in a table and orderly manner. With refined reservoir management and sustained research and development as core priorities, the Company achieved stable production and increased reserves. By comprehensively intensifying lean management throughout the production process, the Company rolled out cost reduction and efficiency enhancement measures, driving continuous improvement in management standards and operational performance across exploration, development, and production stages of our oil and gas projects. For Yuedong oilfield, technological innovations yielded remarkable results, with key breakthroughs achieved in water shutoff extraction technology. The development of the Hainan-20 well block progressed steadily, and the commissioning of new wells and the enhanced exploitation of existing wells worked well in synergy to secure stable production and increase reserves. For Karazhanbas oilfield, the Company strove to maintain production through development measures including optimising the injection-production well pattern, expanding water injection, and promoting the application of micro-fracturing, so as to offset the adverse impact of insufficient power supply at the project site on output. The Company also advanced research projects on the optimisation of the surface production and transmission system and other initiatives to improve production quality and efficiency. For Seram oilfield in Indonesia, production enhancement initiatives such as zone additions in shallow wells were steadily implemented. New technologies and processes were applied to tap into remaining oil potential, striving to slow the overall field decline rate. Commercialisation plans for natural gas production in the Lofin block were also discussed and studied.
The Company steadily expanded its oil trading business. During the year, trading volume exceeded 20 million barrels, generating trading revenue of over HK$10 billion, which significantly enhanced the market value of our equity oil. The oil trading business will continue to function as a market sensor, directly providing real-time, frontline information on supply and demand dynamics, price fluctuations, counterparty behavior and other developments in the oil and gas industry. This serves as a sensitive and reliable market benchmark for the Company's investment decisions, resource acquisition, and asset operations. Furthermore, the Company can more precisely grasp regional market differences, product price spread patterns, and logistics cost structures, thereby enabling more scientific and forward-looking arrangements in areas such as oil sales, new project investments, and assets optimisation.
For non-oil businesses, as a minority shareholder in investments in joint operations, the Company has always refined and proactive management of these investees as a core task, and spread the philosophy of improving quality and efficiency to the operators. For PAS, phased progress was achieved in capacity restoration construction. In active response to the situation of rising alumina supply, the Company reduced procurement costs by self-purchasing alumina and engaging in swap trades with the operator. Capitalising on periods of high electricity prices, the Company sold surplus power from electricity price hedging contracts to increase income. In response to the long-term downturn in the coal market price, the Company exerted influence on the operator through multiple communications and management interventions, urging the operator to optimise production plans and adjust maintenance schedules for mining equipment, thereby striving to control production costs and enhance operational efficiency.
The Company has always integrated the principles of Environment, Social and Governance (ESG) into the DNA of our sustainable development, and embedded them throughout the entire process of strategic decision-making and daily operations. The Company has continuously strengthened its environmental management system, striving to minimize its environmental footprint while ensuring energy security, so as to so as to support the coordinated development of the economy, society and natural ecology. The Company is committed to building a harmonious and symbiotic relationship between resource development and environmental protection, promoting business growth in a responsible manner and giving back to society actively. Its ESG performance is industry-leading with a MSCI ESG rating of BBB and a Wind ESG rating of A). The Company was awarded the 2025 Climate Action Award by the World Green Organization, as the only integrated resources and energy enterprise to receive this honor this year.
Work safety is the bottom line and lifeline of the Company’s development. The Company unwaveringly adheres to the policy of “Safety, Prevention Priority, Comprehensive Management”. The Company fully implements safety responsibilities at all levels and deepens the development of risk prevention and control mechanisms, integrating intrinsic safety requirements into every operational procedure. With the goal of “zero accidents and zero injuries”, the Company has continuously increased safety investments to fortify our safety foundation, creating a healthy and safe working environment for our employees and safeguarding the Company's stable operations.
The Company is committed to building a modern governance system with clear authority and responsibilities, and coordinated operations. The Company strictly complies with laws, regulations and regulatory requirements of the jurisdictions where we operate, and continuously update our internal control systems and codes of conduct. By laying a solid foundation through high-standard compliant operations, the Company ensures its steady and long-term development in compliance with the rule of law and standardised procedures amid a complex and volatile market environment.
Looking ahead to 2026, the external environment will remain complex and volatile. The pace of global economic recovery may still stay slow, and the commodities market will continue its pattern of supply-demand rebalancing and price divergence. The rising trade protectionism and the accelerating energy transition will continue to exert pressure on the prices of commodities such as oil, gas and coal. However, risks coexist with opportunities. With the escalation of tensions in the Middle East, the pricing of the oil and gas market is gradually shifting from being driven by supply-demand fundamentals to being dominated by geopolitical risk premiums. The investment value and country-specific risks of high-quality oil and gas assets in the region have become prominent, bringing opportunities to resilient and flexible enterprises. Meanwhile, the application boundaries of the aluminum industry chain continue expand. From high-end manufacturing sectors such as new energy vehicles and rail transit to renewable energy applications like photovoltaics, wind power, and energy storage equipment, substantial market demand is being unleashed. The global aluminum market is expected to sustain growth amidst structural transformation. The Company will actively address challenges and seize development opportunities. We will continue to implement our business strategy of “consolidating existing core businesses while pursuing dual-wheel expansion through investment + trade”, strive to build the Company into a first-class listed company specialised in the resources and energy sector, and continuously deliver long-term and stable returns to our Shareholders.
Chairman
Hao Weibao
Hong Kong, 13 March 2026