China New Consumer Group (08275) announced that the group is a foundation specializing in borehole pile engineering and other foundation works...
According to the Zhitong Finance App, China New Consumer Group (08275) announced that the group is a foundation contractor specializing in borehole pile projects and other foundation projects. As stated in the company's interim report for the six months ended September 30, 2023, the COVID-19 pandemic continued over the years, causing uncertainty in Hong Kong's economy and had a negative impact on the ground-based industry, including supply chain disruptions, labor shortages due to disease and quarantine prevention, and work stoppages due to government measures. The company's board of directors believes that the overall outlook for the Group's industry and business environment will remain challenging. Therefore, the Board of Directors believes that the Group needs to diversify its business development strategies by exploring new business opportunities.
According to the “China Petroleum Market Situation and Prospects” issued by the China Petroleum Group Economic and Technological Research Institute, 2023 is a recovery year for the Chinese petroleum market after experiencing weak supply and demand in 2022. Demand for refined oil products is expected to increase by 9.3% year-on-year for the whole year, basically returning to 2019 levels. As an important global supplier and consumer of petroleum and petrochemical products, the Chinese oil market will continue to be deeply integrated with the world market and play a positive role in the stability of the world oil market.
The Organization of Petroleum Exporting Countries (OPEC) expects China's oil demand to increase by 3.2% per year to 16.41 million b/d in the first half of 2024, while the International Energy Agency (IEA) predicts that China's oil demand will increase by 3.9% per year to 17.1 million b/d in 2024. Energy consulting agency Wood Mackenzie (WoodMac), Norway's Rystad Energy Consulting (Rystad Energy), and energy analysis agency Energy Aspects Ltd., each forecast that China's oil demand in the first half of 2024 will grow by 3.7%, 4.0%, and 4.4% compared to the same period in 2023. The estimated increase is between 57.8 million to 700,000 b/d, and the estimated total demand is between 16.2 million b/d and 16.82 million b/d.
The board of directors believes that this is a good opportunity for the Group to develop its crude oil trading business to further develop and diversify the Group's business activities, thereby expanding the Group's revenue sources, and this move is in the overall interests of the Company and shareholders.