HK Stock Market Move | SINOPEC KANTONS (00934) falls more than 2%, Rizhao Shihua is included in the SDN list by OFAC.

SINOPEC KANTONS (00934) fell by more than 2%, dropping to 2.68% to HK$4 as of the time of writing, with a turnover of HK$23.5594 million. On the news front, SINOPEC KANTONS announced last night that the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has designated Rizhao Sinopec Crude Oil Terminal Co., Ltd. (Rizhao Sinopec, of which the company holds 50% of the shares) to the Specially Designated Nationals List (SDN List). Rizhao Sinopec mainly operates in the business of crude oil terminals and related facilities. In the 2024 fiscal year, Rizhao Sinopec accounted for approximately 12% of the group's investment income before tax, with the group's pre-tax profit being approximately HK$1.287 billion in the 2024 fiscal year. The announcement stated that, according to the company's preliminary assessment, after Rizhao Sinopec is included in the SDN List, its related business may be restricted, which could subsequently have a corresponding impact on the overall performance of the group. The group's other business operations remain normal.