The firm was formerly headquartered in Hong Kong before moving to mainland China. File Image / Pixabay
Bunker supplier NewOcean Energy has said it is unable to function properly and effectively because of the COVID-19 outbreak, and that further delays can be expected to the publication of its 2021 results.
In an exchange filing on Wednesday the firm set out more details on its financial troubles.
"Due to the catastrophic credit freeze by the banks in year 2020, the Group was under tight cashflow," the company said in the filing.
"From year 2021 onward, the Group has gradually downsized its operating size and focused on generating lease income through leasing out the Group's terminal facilities in Zhuhai and other fixed assets.
"Following the relocation of the headquarters function of the Group's regional offices in Mainland China and the departure of a considerable number of Hong Kong management and account staff who were unable to accept the relocation of their place of work, the Group experienced difficulties in preparing preliminary annual results announcement of the Group for the year ended 31 December 2021.
"Due to the Covid-19 pandemic in the first half year of 2022, there were serious entrance restrictions imposed by the government in Hong Kong, and other regions in Mainland China, Hong Kong staff are not easy moving over to work in the headquarter in Mainland China.
"Moreover, the staff recruitment process have been severely affected as well.
"As at the date of this announcement due to the outbreak of the Covid-19, the Group is unable to function properly and effectively.
"As a result of the current situation of the Group, the unaudited consolidated management account of the Group for the year ended 31 December 2021 remains unavailable."
The firm is facing winding-up petitions in Bermuda and Hong Kong on July 8 and 27, respectively.