The operating environment for the business remained challenging in 2018. Oil prices (WTI) expected to grow in early 2018 because it was USD50 per barrel in 2017 but rebounded gradually to around USD70 per barrel. Most of the projections have indicated that oil prices are on the recovery path. Nevertheless, the markets are still confronted with ongoing uncertainties and challenges. Therefore, we will make correct assessment of the situation, and as opportunities arise, will consider seeking new investors to expand our gas and oil business and/or to explore new business developments.
In response to this overall situation, the Company will continue to bring in new investors, on one hand develop 4 drilling wells in US oilfield, as well as maintain and improve the existing oil wells so as to take advantage of the mitigation of Sino-US trade war. The Company fully utilized the favourable policy introduced to the public arising from US election to increase its production, sales and efficiency. Meanwhile, the Company strictly controlled the operation
cost and achieving breakthroughs in its original operating status, as well as using the domestic foreign investment law so as to take advantage of introducing new investors to commence petrochemical trade with domestic and international companies, thereby creating more advantages for the future development of the group company.
On behalf of the board of directors of the Company, I would like to take this opportunity to express my appreciation to our customers, suppliers, business associates and shareholders for their support, I would also like to offer special thanks to our staff for their invaluable service and contributions throughout the year.
Liu Gui Feng
Hong Kong, 29 March 2019