Company Overview - Victory Pipeline Holdings Limited is one of the largest manufacturers of oil and gas pipelines in China, primarily producing spiral submerged arc welded pipes (SAWH) and straight seam submerged arc welded pipes (SAWL) [3][4] - The company has over 40 years of experience in producing SAWH pipes and operates in key locations such as Zibo, Shandong Province, and Xiangtan, Hunan Province [3][4] Financial Performance - As of December 31, 2024, the company reported total revenue of 570 million yuan, a year-on-year decrease of 3.69%, while the net profit attributable to shareholders was -42.564 million yuan, showing a year-on-year increase of 56.75% [2] - The gross profit margin stands at 10.37%, and the debt-to-asset ratio is 59.86% [2] Production Capacity - The company operates 12 SAWH production lines with an annual capacity of 1.33 million tons and one SAWL production line with a capacity of 400,000 tons [4] - It also has five external anti-corrosion lines and four internal coating lines, capable of handling over 10 million square meters of anti-corrosion work annually [4] Industry Position - The average price-to-earnings (P/E) ratio for the oil and gas industry is -2.3 times, with a median of 1.73 times; Victory Pipeline's P/E ratio is -3.54 times, ranking 38th in the industry [3] - The company has participated in nearly all major long-distance oil and gas pipeline projects in China, providing over 3 million tons of quality welded pipes for significant domestic and international pipeline projects [4] Business Philosophy - The company emphasizes a customer-first philosophy and a continuous service model, which helps establish long-term customer relationships and sustain business operations [5] - It aims to collaborate with domestic and international partners to build a vast oil and gas pipeline network to meet the increasing energy demand and support national development [5]

港股油气股持续拉升，山东墨龙(00568.HK)涨超100%，中石化油服(01033.HK)涨超7%，胜利管道 (01080.HK)等跟涨。 ...

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately RMB 570,069,000, a decrease of about RMB 21,816,000 compared to 2023[9] - The gross profit margin for the fiscal year was approximately 10.4%, an increase of about 4.7 percentage points from 2023[9] - The net loss attributable to shareholders for the fiscal year was approximately RMB 42,564,000, a reduction of about RMB 55,850,000 compared to the previous year[9] - The total comprehensive loss attributable to shareholders for the fiscal year was approximately RMB 77,209,000, a decrease of about RMB 21,205,000 from 2023[9] - The basic and diluted loss per share attributable to shareholders was approximately RMB 1.10, a decrease of about RMB 1.44 compared to the previous year[9] - The company did not recommend the declaration of any final or interim dividends for the fiscal year ending December 31, 2024[9] - The group's revenue for the year ended December 31, 2024, decreased by approximately 3.7% to about RMB 570,069,000, primarily driven by a 0.8% increase in SAWH pipe sales revenue to approximately RMB 514,921,000[35] - The gross profit increased by approximately 76.7% to about RMB 59,136,000, with the gross profit margin rising from approximately 5.7% to about 10.4%[37] - The group's other income and gains fell to approximately RMB 7,657,000, down from about RMB 17,838,000, primarily due to a significant reduction in material sales revenue[38] - The total comprehensive loss for the year ending December 31, 2024, was approximately RMB 77,993,000, compared to RMB 99,233,000 for the year ending December 31, 2023[48] Market Expansion and Client Acquisition - The company achieved significant success in bidding projects with major clients, including ranking first in the annual procurement bid for welded steel pipes from China National Petroleum Corporation[13] - The company successfully expanded its market share by acquiring five new clients and optimizing its overall order structure[13] - The company aims to expand its market presence by optimizing order structures and focusing on high-end oil and gas pipeline markets, targeting stable growth in both social pipeline orders and national pipeline orders[22] - The group successfully expanded its customer base by adding 5 new social clients, particularly in the clean heating project in Fugu County, laying a foundation for future independent development in the insulation market[28] Operational Efficiency and Technological Innovation - The company aims to enhance operational efficiency and service quality while continuing to pursue high-quality development in the face of industry challenges[12] - The company implemented 20 equipment technology upgrades, improving operational safety and production efficiency, while also publishing 16 technical papers and obtaining 4 patents[18] - The company is focused on technological innovation and safety improvements, with ongoing automation upgrades to enhance production processes[18] - The company passed various quality management certifications, including API 5L and API Q1, and completed carbon footprint evaluations for spiral welded pipes, enhancing its market competitiveness[16] Financial Management and Cost Control - The company has strengthened internal management mechanisms to improve operational efficiency and reduce inventory pressure, thereby enhancing liquidity[17] - Sales and service costs decreased by approximately 8.5% to about RMB 510,933,000, mainly due to cost-cutting measures implemented during the year[36] - Administrative expenses decreased from approximately RMB 94,281,000 for the year ending December 31, 2023, to approximately RMB 78,334,000 for the year ending December 31, 2024, due to effective cost management[40] - Financial expenses for the year ending December 31, 2024, were approximately RMB 13,872,000, a slight decrease from RMB 14,503,000 for the year ending December 31, 2023[44] Shareholder and Corporate Governance - The board of directors does not recommend the distribution of a final dividend for the fiscal year ending December 31, 2024[84] - The company has maintained good relationships with employees, ensuring competitive compensation and ongoing professional training[88] - The board of directors includes key executives such as the Chairman Wei Jun and CEO Zhang Bijuan, with terms of three years[95] - The company has adopted the corporate governance code principles and provisions as per the listing rules, ensuring compliance with all applicable standards[139] - The company has established clear guidelines for management's authority in decision-making and reporting to the board[154] Environmental, Social, and Governance (ESG) Initiatives - The group has established a quality, environmental, and occupational health and safety management system at its production base in Zibo, Shandong Province, ensuring product quality and achieving environmentally friendly, healthy, safe, and civilized production[186] - The board of directors oversees the group's environmental, social, and governance (ESG) risks and opportunities, formulating sustainable development strategies and goals[193] - A total of 26 ESG issues were identified, with 18 rated as very important, 7 as generally important, and 1 as minor, indicating a strong focus on sustainability[200] - The group conducts internal audits twice a year, including assessments of ESG-related risks, to ensure compliance and risk management[195] Employee and Board Diversity - The company aims for at least one-third of the board members to be independent non-executive directors, with measurable targets including at least one female board member and 75% of members having over ten years of industry experience[166] - As of December 31, 2024, female employees accounted for 24.1% of the total workforce, reflecting the company's commitment to diversity and inclusion[166] - The company has set measurable goals for board diversity, including a commitment to increasing the proportion of female board members in future selections[166] Risk Management and Internal Controls - The company has implemented various risk management and internal control systems to identify, assess, and manage significant risks, ensuring the protection of shareholder interests and assets[173] - The board believes that the risk management and internal control systems are effective and sufficient, with no significant risks affecting the group's operations identified during the year[175]

Financial Performance - For the fiscal year ending December 31, 2024, revenue was approximately RMB 570,069,000, a decrease of about RMB 21,816,000 compared to 2023[3] - Gross profit margin for the fiscal year was approximately 10.4%, an increase of about 4.7 percentage points from 2023[3] - The loss attributable to owners of the company for the fiscal year was approximately RMB 42,564,000, a reduction of about RMB 55,850,000 compared to 2023[3] - Total comprehensive loss attributable to owners of the company for the fiscal year was approximately RMB 77,209,000, a decrease of about RMB 21,205,000 from 2023[3] - Basic and diluted loss per share was approximately RMB 1.10, a decrease of about RMB 1.44 compared to 2023[3] - The group reported a total loss of RMB 43,348,000 for the year ended December 31, 2024, compared to a loss of RMB 99,233,000 for the previous year[20] - The company reported a loss of RMB 42,564,000 for the year ended December 31, 2024, compared to a loss of RMB 98,414,000 for the year ended December 31, 2023[41] - The total comprehensive loss for the year ended December 31, 2024, was approximately RMB 77,993,000, an improvement from a loss of approximately RMB 99,233,000 in the previous year[117] Assets and Liabilities - Non-current assets totaled RMB 549,733,000, a decrease from RMB 579,355,000 in 2023[7] - Current assets amounted to RMB 514,764,000, an increase from RMB 504,224,000 in 2023[7] - Total liabilities increased to RMB 530,122,000 from RMB 485,356,000 in 2023[8] - Net assets attributable to owners of the company decreased to RMB 418,182,000 from RMB 495,199,000 in 2023[8] - Total assets as of December 31, 2024, amounted to RMB 1,064,497,000, with segment assets for the welding pipe business at RMB 949,785,000 and for the trading business at RMB 24,103,000[22] - The group’s total liabilities as of December 31, 2024, were RMB 637,168,000, with segment liabilities for the welding pipe business at RMB 324,250,000[22] - As of December 31, 2024, the group's current liabilities exceed current assets by approximately RMB 15,358,000[12] - As of December 31, 2024, the company's net current liabilities amounted to approximately RMB 15,358,000, a decrease from net current assets of approximately RMB 18,868,000 as of December 31, 2023[118] Revenue Breakdown - Total revenue for the year ended December 31, 2024, was RMB 570,069,000, with sales to external customers from the welding pipe business at RMB 559,375,000 and from the trading business at RMB 10,694,000[18] - Revenue from major customer A in the welding pipe business increased to RMB 375,443,000 in 2024 from RMB 200,100,000 in 2023, representing an increase of 87.5%[26] - Total revenue from the welding pipe business reached RMB 559,375,000 in 2024, up from RMB 547,827,000 in 2023, reflecting a growth of 2.0%[26] - Trade business revenue decreased to RMB 10,694,000 in 2024 from RMB 44,058,000 in 2023, a decline of 75.7%[26] - The company's revenue for the year ended December 31, 2024, decreased by approximately 3.7% to about RMB 570,069,000 from approximately RMB 591,885,000 in the previous year[102] Cost and Expenses - The cost of goods sold decreased to RMB 483,265,000 in 2024 from RMB 533,468,000 in 2023, a decline of 9.4%[35] - Administrative expenses decreased from approximately RMB 94,281,000 to about RMB 78,334,000, attributed to effective cost management[108] - Total financial expenses decreased to RMB 13,872,000 in 2024 from RMB 14,503,000 in 2023, a reduction of 4.4%[33] - The total payroll and related costs for the year ended December 31, 2024, were approximately RMB 56,765,000, a decrease from RMB 68,522,000 in 2023, primarily due to workforce optimization and reduced overtime pay[130] Investments and Capital Expenditures - Capital expenditures for the year were approximately RMB 15,435,000, compared to RMB 13,355,000 in the previous year[24] - The total cost for acquiring property, plant, and equipment was approximately RMB 15,435,000 for the year ended December 31, 2024, up from RMB 13,355,000 in 2023[45] - The company sold a 2% stake in Zhejiang Shengguan for a cash consideration of RMB 1,890,000, while retaining 98% ownership[66] - The company’s bank loans with collateral amounted to RMB 276,040,000 in 2024, down from RMB 280,800,000 in 2023, a decrease of 1.4%[69] Market and Operational Highlights - The company successfully secured the top position in the annual procurement tender for welded steel pipes from China National Petroleum Corporation (CNPC) and maintained a leading position in multiple projects with China Petroleum & Chemical Corporation (Sinopec)[78] - The company expanded its market presence by successfully acquiring five new clients during the year, enhancing its competitive edge in the domestic and international markets[78] - The company implemented 20 equipment technology upgrades, significantly improving operational safety and production efficiency[85] - The company achieved a successful completion of major pipeline projects, including the HuLin-Changchun natural gas pipeline and the Lianyungang-Yizheng crude oil pipeline, ensuring timely delivery and quality[81] - The company improved its energy consumption management, contributing to the national "dual carbon" goals by increasing the use of green energy through photovoltaic projects[87] Compliance and Governance - The board of directors did not recommend any final or interim dividends for the fiscal year[3] - The company maintained compliance with all corporate governance codes during the review year[136] - The audited consolidated financial statements for the year ending December 31, 2024, have been reviewed by the audit committee[144] Future Outlook - The company aims to achieve comprehensive coverage of national pipeline projects by expanding its market research and product range, targeting both social and national pipeline orders for steady growth[90] - The company plans to enhance its patent applications and technology research efforts to drive innovation and product development[90] - The company is committed to contributing to national energy construction while pursuing sustainable development and long-term value creation for investors[95]

SHENGLI OIL & GAS PIPE HOLDINGS LIMITED 勝利油氣管道控股有限公司 (於 開 曼 群 島 註 冊 成 立 的 有 限 公 司) 股份代號: 1080 勝利 管道 SHENGLI PIPE 2024 中期朝 目 錄 公司資料 2 財務摘要 3 行 政總裁報告 4 管理層討論與分析 9 董事會報告 17 企業管治 28 未經審核簡明合併損益及 其他綜合收益表 29 未經審核簡明合併財務狀況表 31 未經審核簡明合併權益變動表 33 未經審核簡明合併現金流量表 35 未經審核簡明合併中期財務報表註釋 37 1 勝利油氣管道控股有限公司 公司資料 | --- | --- | --- | --- | --- | --- | |-----------------------|---------------|-----------------------------------------|------------------------------------------------------|-------------|-------| | | | | | | | | | | 中 ...

[Financial Highlights and Interim Results Announcement](index=1&type=section&id=Financial%20Highlights%20and%20Interim%20Results%20Announcement) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) As of June 30, 2024, the company's revenue increased by 3.5% year-on-year, and gross profit margin significantly improved by 6.8 percentage points to 11.0%. Loss attributable to owners of the company narrowed substantially to RMB 23.716 million, but the Board did not recommend an interim dividend 2024 Interim Performance Key Financial Indicators | Indicator | 2024 Interim | 2023 Interim | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | approx. RMB 333,604,000 | approx. RMB 322,269,000 | +3.5% | | Gross Profit Margin | approx. 11.0% | approx. 4.2% | +6.8 percentage points | | Loss for the Period Attributable to Owners of the Company | approx. RMB 23,716,000 | approx. RMB 57,348,000 | Loss narrowed by 58.6% | | Basic Loss Per Share | approx. 0.61 cents | approx. 1.48 cents | Loss narrowed | | Interim Dividend | Not recommended | None | - | [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Financial statements show gross profit increased by 169.0% year-on-year due to controlled sales costs, and pre-tax loss significantly narrowed from RMB 57.924 million to RMB 24.086 million. However, other comprehensive loss of RMB 25.589 million was recorded due to fair value adjustment of a financial asset. Total assets and net assets decreased, and cash and cash equivalents significantly reduced [Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the review period, revenue was RMB 334 million, up 3.5% year-on-year. Gross profit significantly increased to RMB 36.794 million from RMB 13.677 million in the prior period. Administrative expenses decreased, but total comprehensive loss for the period was RMB 49.70 million due to a fair value loss of RMB 25.589 million on a financial asset designated at fair value through other comprehensive income Condensed Consolidated Statement of Profit or Loss Key Items (RMB thousands) | Item | 2024 H1 (Unaudited) | 2023 H1 (Unaudited) | | :--- | :--- | :--- | | Revenue | 333,604 | 322,269 | | Sales and Services Costs | (296,810) | (308,592) | | **Gross Profit** | **36,794** | **13,677** | | Administrative Expenses | (39,763) | (48,913) | | Finance Costs | (6,601) | (6,821) | | **Loss Before Tax** | **(24,086)** | **(57,924)** | | Loss for the Period | (24,106) | (57,944) | | Other Comprehensive Loss | (25,589) | – | | **Total Comprehensive Loss for the Period** | **(49,695)** | **(57,944)** | | **Loss Attributable to Owners of the Company** | **(23,716)** | **(57,348)** | [Statement of Financial Position](index=4&type=section&id=Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were RMB 959 million, a decrease from RMB 1.084 billion at the end of 2023. Total liabilities decreased to RMB 506 million, and net assets were RMB 454 million. Cash and cash equivalents significantly dropped from RMB 137 million to RMB 47.37 million Condensed Consolidated Statement of Financial Position Key Items (RMB thousands) | Item | 2024 June 30 (Unaudited) | 2023 December 31 (Audited) | | :--- | :--- | :--- | | **Non-current Assets** | 555,698 | 579,355 | | **Current Assets** | 403,620 | 504,224 | | *Of which: Cash and Cash Equivalents* | *47,366* | *137,318* | | **Total Assets** | **959,318** | **1,083,579** | | **Current Liabilities** | 397,588 | 485,356 | | **Non-current Liabilities** | 107,993 | 94,791 | | **Total Liabilities** | **505,581** | **580,147** | | **Net Assets** | **453,737** | **503,432** | [Management Discussion and Analysis](index=24&type=section&id=Management%20Discussion%20and%20Analysis) [CEO's Report](index=24&type=section&id=CEO%27s%20Report) The CEO's report highlights the company's stable operations despite a challenging external environment, achieved through strengthened cooperation with key clients like China Oil & Gas Piping Network Corporation, active market expansion, optimized production layout, and enhanced management efficiency. The company achieved significant results in quality management and technological innovation, maintaining confidence in the future development of the domestic oil and gas industry, and will continue to focus on its core business and explore new ventures to create shareholder value [Operational Review](index=24&type=section&id=Operational%20Review) During the review period, the company made progress in market, production, management, quality, and technology. Market efforts solidified cooperation with key clients and expanded to new social customers. Production efficiently completed national pipeline supply tasks. Management optimized labor and incentive systems. Quality and technology achieved API certifications, carbon footprint verification, and advanced equipment upgrades with new patents - Strengthened cooperation with China Oil & Gas Piping Network Corporation and "Three Barrels of Oil" (Sinopec, PetroChina, CNOOC) key clients, achieving excellent results in PetroChina and Sinopec tenders[56](index=56&type=chunk) - Actively expanded into the social market, successfully developed **5 new customers**, and increased processing orders, optimizing order structure and profitability[57](index=57&type=chunk) - Successfully completed steel pipe production and anti-corrosion tasks for multiple large-scale projects, including the China Oil & Gas Piping Network Corporation's Hulin-Changchun natural gas pipeline[58](index=58&type=chunk) - Passed API 5L and API Spec Q1 annual audits, and obtained carbon footprint and Type III environmental declaration certifications for spiral submerged arc welded pipes and anti-corrosion steel pipes[61](index=61&type=chunk) - Steadily advanced **8 key equipment technology upgrades** and obtained **1 invention patent** and **1 utility model patent** authorization[63](index=63&type=chunk) [Future Outlook](index=27&type=section&id=Future%20Outlook) Looking ahead, with global economic resilience and China's economy expected to meet growth targets, the company sees opportunities in the domestic oil and gas industry. Despite challenges from new energy alternatives, national support policies for oil and gas exploration provide positive signals. The company will leverage its advantage as a key supplier to China Oil & Gas Piping Network Corporation, deepening strategic adjustments, technological innovation, and market expansion for stable and sustainable growth - Global oil demand growth is expected to slow, but domestic crude oil and natural gas production will grow steadily, supporting industry development[64](index=64&type=chunk) - The company will continue to leverage its capacity and technological advantages as a key supplier to China Oil & Gas Piping Network Corporation, striving for more project orders and actively planning for the second half's framework agreement tenders[65](index=65&type=chunk) - The company's strategy will focus on deepening cooperation with core clients, promoting technological upgrades, and pursuing long-term development by expanding into new businesses to create shareholder value[65](index=65&type=chunk) [Financial Review](index=31&type=section&id=Financial%20Review) During the review period, the Group's total revenue increased by 3.5% to RMB 334 million, primarily driven by strong growth in anti-corrosion treatment and new trading business revenue, offsetting a slight decline in welded pipe sales. Gross profit and gross profit margin both increased significantly, mainly due to a higher proportion of high-margin national pipeline and anti-corrosion businesses. Administrative expenses were effectively controlled, but sales costs increased due to higher transportation fees. Ultimately, total comprehensive loss for the period narrowed to RMB 49.70 million Revenue Composition Analysis (RMB thousands) | Business Segment | 2024 H1 | 2023 H1 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | SAWH Welded Pipe Sales | 293,963 | 305,226 | -3.7% | | Anti-corrosion Treatment | 28,947 | 16,973 | +70.5% | | Trading Business | 10,694 | 0 | - | | **Total Revenue** | **333,604** | **322,269** | **+3.5%** | - Gross profit increased by **169.0%** to **RMB 36.794 million**, and gross profit margin improved from **4.2%** to **11.0%**, mainly due to a significant increase in the proportion of high-margin national pipeline and anti-corrosion treatment businesses[74](index=74&type=chunk) - Sales and distribution costs increased due to higher transportation fees, while administrative expenses decreased due to cost control[76](index=76&type=chunk)[77](index=77&type=chunk) - Due to the reclassification of the investment in Xinfeng Energy as a financial asset designated at fair value through other comprehensive income, a fair value change loss of **RMB 25.589 million** was recognized[82](index=82&type=chunk) [Capital & Risk Management](index=35&type=section&id=Capital%20%26%20Risk%20Management) As of June 30, 2024, the Group's total borrowings were approximately RMB 325 million, slightly lower than the end of 2023. The gearing ratio increased from 46.0% to 50.1%, mainly due to a decrease in equity. The Group's business is primarily denominated in RMB, with limited foreign exchange risk and no hedging activities. Some bank loans are secured by property, plant, equipment, and right-of-use assets Borrowing Situation (RMB thousands) | Borrowing Type | 2024 June 30 | 2023 December 31 | | :--- | :--- | :--- | | Bank Loans - Secured | 276,250 | 280,800 | | Other Loans - Unsecured | 48,767 | 48,767 | | **Total** | **325,017** | **329,567** | - The gearing ratio increased from **46.0%** at the end of 2023 to **50.1%** as of June 30, 2024[93](index=93&type=chunk) - The Group pledged property, plant and equipment of approximately **RMB 119 million** and right-of-use assets of approximately **RMB 69.08 million** as collateral for bank loans of **RMB 276 million**[96](index=96&type=chunk) - The Group's business is primarily transacted and settled in RMB, with minimal foreign exchange risk, and no hedging instruments are used[98](index=98&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) [Segment and Customer Information](index=7&type=section&id=Segment%20and%20Customer%20Information) The Group's business is divided into two reportable segments: welded pipe business and trading business. The welded pipe business is the absolute dominant segment in terms of revenue and assets, contributing the vast majority of revenue. During the review period, trading business revenue was RMB 10.694 million, compared to zero in the prior period. The Group's revenue is almost entirely from the Chinese market, and there is a significant concentration risk with major customers, where customer A's revenue accounts for over 75% of total revenue Segment Revenue and Results (RMB thousands) | For the six months ended June 30, 2024 | Welded Pipe Business | Trading Business | Total | | :--- | :--- | :--- | :--- | | **Segment Revenue** | 322,910 | 10,694 | 333,604 | | **Segment Results** | (10,699) | (1,652) | (12,351) | - Revenue from major customer A was **RMB 250,151,000**, accounting for **75%** of the Group's total revenue[20](index=20&type=chunk) [Key Balance Sheet Items Analysis](index=17&type=section&id=Key%20Balance%20Sheet%20Items%20Analysis) Among key balance sheet items, financial assets designated at fair value through other comprehensive income (investment in Xinfeng Energy) recorded a fair value decrease of RMB 25.589 million. Total trade receivables remained stable, with the aging structure showing most due within one year. Total borrowings slightly decreased to RMB 325 million, with secured bank loans accounting for the majority - The fair value of financial assets designated at fair value through other comprehensive income (unlisted equity investment in Xinfeng Energy) decreased from **RMB 97.264 million** to **RMB 71.675 million**, resulting in a fair value change loss of **RMB 25.589 million**[34](index=34&type=chunk)[35](index=35&type=chunk) Trade Receivables Aging Analysis (Net, RMB thousands) | Aging | 2024 June 30 | 2023 December 31 | | :--- | :--- | :--- | | Within 3 months | 45,534 | 39,894 | | 3 to 6 months | 44 | 5,152 | | 6 months to 1 year | 11,003 | 10,673 | | 1 to 2 years | 1,459 | 381 | | **Total** | **58,040** | **56,100** | - As of June 30, 2024, the Group's total borrowings were **RMB 325 million**, of which **RMB 276 million** were secured bank loans and **RMB 48.77 million** were unsecured other loans. Approximately **RMB 219 million** of borrowings are repayable within one year[47](index=47&type=chunk) [Other Corporate Information](index=37&type=section&id=Other%20Corporate%20Information) [Dividends and Corporate Governance](index=37&type=section&id=Dividends%20and%20Corporate%20Governance) The Board did not recommend any interim dividend for the review period. The company complied with the Corporate Governance Code under the Listing Rules and maintained sufficient public float. The Audit Committee reviewed the unaudited financial statements for the period - The Board did not recommend the declaration of any interim dividend for the six months ended June 30, 2024[100](index=100&type=chunk) - The company complied with all code provisions of the Corporate Governance Code during the review period[102](index=102&type=chunk) - The Audit Committee, comprising three independent non-executive directors, reviewed the Group's unaudited financial statements, risk management, and internal control systems[107](index=107&type=chunk)

Financial Performance - For the year ended December 31, 2023, the company's revenue was approximately RMB 591,885,000, a decrease of about RMB 455,006,000 compared to 2022[7]. - The gross profit margin for the year was approximately 5.7%, a decrease of about 4.0 percentage points from the previous year[7]. - The net loss attributable to shareholders for the year was approximately RMB 98,414,000, an increase of about RMB 65,410,000 compared to 2022[7]. - Basic and diluted loss per share attributable to shareholders was approximately RMB 2.54, an increase of about RMB 1.69 compared to the previous year[7]. - The group's sales revenue decreased by approximately 43.5% to about RMB 591,885,000 for the year ended December 31, 2023, down from approximately RMB 1,046,891,000 in the previous year[48]. - The group's gross profit decreased from approximately RMB 101,981,000 to about RMB 33,463,000, resulting in a gross margin decline from approximately 9.7% to about 5.7%[53]. - The total comprehensive loss for the year ended December 31, 2023, was approximately RMB 99,233,000, compared to RMB 29,395,000 for the year ended December 31, 2022[71]. Dividends and Shareholder Returns - The board of directors did not recommend the payment of any final or interim dividends for the year ended December 31, 2023[7]. - The board does not recommend the distribution of a final dividend for the year ended December 31, 2023[116]. Operational Efficiency and Production - The company aims to secure more orders and enhance its performance by leveraging its strong operational capabilities and advanced technology[11]. - The production efficiency was maximized, ensuring timely and quality completion of various pipeline production tasks, with a historical high first-pass yield achieved during the production of key national pipeline specifications[18]. - The company implemented multiple equipment upgrades, including a new hydraulic system and modifications to pressure testing machinery, to enhance production quality and efficiency[19]. - The company adopted a comprehensive contracting model for its five major grassroots units, significantly improving production efficiency and product quality[21]. - The group has strengthened internal management and steadily advanced technological projects and equipment renovations to improve production automation levels[38]. Market and Customer Relations - The company maintained strong relationships with key clients such as Sinopec and China National Petroleum Corporation while expanding its market presence[14]. - The company expanded its social market by acquiring 8 new customers, particularly in the insulation industry, despite a significant reduction in order volume due to delays in the national pipeline framework bidding[14]. - The company anticipates a peak in pipeline construction market demand due to national energy strategies and infrastructure development plans[31]. - The company aims to optimize order structure and focus on large-diameter thermal pipeline markets to ensure stable growth in orders[33]. Financial Management and Investments - The group recognized an impairment loss of approximately RMB 39,044,000 related to its investment in a joint venture, New Feng Energy Group[60]. - The group recognized a tax rebate of approximately RMB 15,122,000 for the year ended December 31, 2023, compared to a tax expense of approximately RMB 186,000 in 2022[70]. - The group currently has limited foreign exchange risk and does not have any hedging arrangements in place to manage this risk[80]. - The effective annual interest rate for bank loans ranged from 3.97% to 4.38% in 2023, compared to 4.00% to 4.44% in 2022[78]. Sustainability and Environmental Initiatives - The photovoltaic power generation project generated approximately 3.265 million kWh, equivalent to a CO2 reduction of 3,200 tons, contributing to national carbon neutrality goals[25]. - The management team emphasized a commitment to sustainability, aiming for a 30% reduction in carbon emissions by 2025[94]. - The group has obtained ISO 14001 environmental management system certification, indicating good environmental performance[114]. Corporate Governance - The board of directors consists of five executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced structure with diverse industry knowledge and experience[184]. - The audit committee consists of three independent non-executive directors, including Mr. Chan, Mr. Ng, and Mr. Chiu, with Mr. Chan serving as the chairman[200]. - The company has adopted the corporate governance principles and code provisions set out in Appendix C1 of the Listing Rules from January 1, 2023, to December 31, 2023[182]. Employee and Management Information - The total employee compensation and related costs were approximately RMB 68,522,000 as of December 31, 2023, a decrease from RMB 76,004,000 in 2022[166]. - The group employed 513 staff members as of December 31, 2023, down from 539 in 2022[166]. - Each director has entered into a service contract or appointment letter with the company for a term of three years, with provisions for termination with prior written notice[192].

Financial Performance - For the year ended December 31, 2023, revenue was approximately RMB 591,885,000, a decrease of about RMB 455,006,000 compared to 2022[3]. - Gross profit margin for the year was approximately 5.7%, a decrease of about 4.0 percentage points from 2022[3]. - The loss attributable to owners of the company for the year was approximately RMB 98,414,000, an increase of about RMB 65,410,000 compared to 2022[3]. - Basic and diluted loss per share attributable to owners of the company was approximately RMB 2.54, an increase of about RMB 1.69 compared to 2022[3]. - The total loss for the fiscal year 2023 was RMB 99,233,000, compared to a loss of RMB 29,258,000 for the fiscal year 2022, indicating a significant increase in losses[20][18]. - The company reported a pre-tax loss of RMB 114,355,000 compared to a pre-tax loss of RMB 29,072,000 in 2022[4]. - The company reported a pre-tax loss of RMB 98,414,000 for 2023, compared to a loss of RMB 33,004,000 in 2022, reflecting an increase in losses[44]. - The group's total audited comprehensive loss for the year ended December 31, 2023, was approximately RMB 99,233,000, compared to RMB 29,395,000 for the year ended December 31, 2022[138]. Revenue Breakdown - For the fiscal year ending December 31, 2023, the total revenue from the welded pipe business was RMB 547,827,000, while the trading business generated RMB 44,058,000, resulting in a total revenue of RMB 591,885,000[18]. - Revenue from the welding pipe business decreased to RMB 510,914 thousand in 2023 from RMB 952,702 thousand in 2022, a decline of approximately 46.4%[29]. - Revenue from trading business increased to RMB 44,058 thousand in 2023 from RMB 8,935 thousand in 2022, a growth of approximately 392.5%[29]. - The revenue from SAWH welded pipes decreased by approximately 35.6% to about RMB 510,914,000, while the SAWL welded pipe segment reported zero revenue compared to RMB 159,386,000 in 2022[118]. - The company's sales revenue decreased by approximately 43.5% to about RMB 591,885,000 from approximately RMB 1,046,891,000 in the previous year[118]. Assets and Liabilities - Total assets decreased to RMB 598,223,000 from RMB 606,168,000 in 2022[8]. - Net assets attributable to owners of the company decreased to RMB 495,199,000 from RMB 593,538,000 in 2022[8]. - Current liabilities decreased to RMB 485,356,000 from RMB 550,230,000 in 2022[7]. - Total assets decreased from RMB 1,288,105,000 in 2022 to RMB 981,949,000 in 2023, reflecting a decline of about 24%[59]. - The total liabilities increased significantly, with current liabilities rising to RMB 716,663,000 in 2023 from RMB 128,460,000 in 2022[59]. Impairment and Provisions - The company recorded a loss from impairment provisions of RMB 39,044,000 for investments in associates, compared to RMB 8,570,000 in 2022[4]. - The company recognized a provision for impairment losses on investments in an associate amounting to RMB 39,044,000 in 2023, compared to RMB 8,570,000 in 2022, highlighting increased financial strain[18][20]. - The net asset value of investments in associates decreased from RMB 235,634,000 in 2022 to RMB 92,778,000 in 2023, a decline of approximately 60.7%[46]. - Impairment losses recognized amounted to approximately RMB 39,044,000 for the year ended December 31, 2023, primarily due to the impairment of investments in New Feng Energy[128]. Dividends and Shareholder Returns - The board of directors did not recommend the declaration of any final or interim dividend for the year ended December 31, 2023[3]. - The company did not declare any final or interim dividends for the years ended December 31, 2023, and December 31, 2022[43]. - The board does not recommend the payment of a final dividend for the year ended December 31, 2023[151]. Operational Efficiency and Future Outlook - The company aims to enhance its operational efficiency with a centralized control rate of 98% for the natural gas pipeline network[86]. - Future economic growth is projected at 4% for 2023 and 4.2% for 2024, despite ongoing global uncertainties[85]. - The company plans to leverage its advanced equipment and technology to secure more orders and improve performance[86]. - The company aims to optimize order structure and focus on both social pipeline orders and national pipeline orders in 2024[105]. - The company plans to enhance core profitability and business sustainability through refined operations and a focus on main business units[105]. Compliance and Governance - The company has adhered to all corporate governance principles and rules as of December 31, 2023[155]. - All directors confirmed compliance with the standard code for securities trading as of December 31, 2023[156]. - The audit committee reviewed the audited consolidated financial statements for the fiscal year ending December 31, 2023[161].

Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately RMB 322,269,000, a decrease of about 27.3% compared to the same period in 2022[6]. - The gross profit margin for the same period was approximately 4.2%, down by about 4.3 percentage points year-on-year[6]. - The loss attributable to the company's owners was approximately RMB 57,348,000, compared to a profit of RMB 38,410,000 in the same period of 2022[6]. - Basic loss per share for the period was approximately RMB 1.48, compared to basic earnings per share of RMB 0.99 in the same period of 2022[6]. - The group recorded unaudited revenue of approximately RMB 322,269,000, a decrease of about 27.3% compared to RMB 443,281,000 in the same period last year[38]. - Gross profit for the review period was approximately RMB 13,677,000, a decrease of about 63.7% from RMB 37,626,000 in the same period last year, with a gross margin decline from 8.5% to 4.2%[41]. - The group's comprehensive loss for the review period amounted to approximately RMB 57,944,000, a decline from a profit of approximately RMB 34,736,000 for the six months ended June 30, 2022[50]. - The company reported a loss before tax of RMB 57,924 thousand, compared to a profit of RMB 34,972 thousand in the previous year[110]. - The company incurred financial expenses of RMB 6,821 thousand, down from RMB 9,909 thousand in the previous year[122]. - The company reported a significant increase in impairment losses on investments in associates, amounting to RMB 28,722 thousand for the current period[122]. Operational Highlights - The company is focusing on key clients such as the National Pipeline Network Group and Sinopec, while also actively expanding into the social market, resulting in a significant increase in local market orders[10]. - Strategic collaborations with domestic insulation companies and coating processing plants are being formed to optimize the overall order structure and maximize processing profits[10]. - The company aims to achieve high-quality development by leveraging its advantages in production, technology, economy, and management[8]. - Shandong Shengli Steel Pipe successfully completed multiple large pipeline projects, ensuring timely and quality production and delivery[11]. - The company has established a dedicated after-sales service team, enhancing customer satisfaction and project coordination[12]. - The company achieved a 15.32% reduction in electricity consumption per ton in the pipe manufacturing division, saving 883,200 kWh of electricity[16]. - Five technology projects and eleven equipment renovation projects are currently being implemented to enhance production automation[19]. - The company is involved in several major pipeline projects, including the National Pipeline Group's East Gas Transmission Project and various regional gas supply projects[34]. Market and Industry Trends - The domestic energy production enterprises are implementing energy supply and price stability policies, with industrial crude oil production increasing by 2.1% year-on-year to 105 million tons[7]. - The National Energy Administration aims to increase oil and gas exploration and production, indicating a sustained demand for pipeline construction in the coming years[20]. - The crude oil production in China increased from 189 million tons to 205 million tons over the past five years, highlighting the growth in energy resource development[20]. - In the first half of 2023, China's GDP grew by 5.5% year-on-year, indicating a recovery in market demand and economic stability[27]. - The oil and gas industry saw an increase in production, with crude oil output reaching 105 million tons, a year-on-year growth of 2.1%, and natural gas production at 115.5 billion cubic meters, up 5.4% year-on-year[28]. Financial Position - As of June 30, 2023, total assets were approximately RMB 1,090,815,000, down from RMB 1,156,398,000 as of December 31, 2022; net assets decreased to approximately RMB 544,721,000 from RMB 602,590,000[52]. - The group's net current assets improved to approximately RMB 30,661,000 as of June 30, 2023, compared to net current liabilities of approximately RMB 22,920,000 as of December 31, 2022, primarily due to the conversion of some bank borrowings from short-term to medium- and long-term[53]. - The capital debt ratio increased to approximately 47.2% as of June 30, 2023, compared to 37.0% as of December 31, 2022[62]. - Cash and cash equivalents significantly decreased to approximately RMB 38,159,000 as of June 30, 2023, from RMB 158,776,000 as of December 31, 2022, due to increased inventory and prepaid expenses[61]. - The group’s total liabilities as of June 30, 2023, were RMB 546,094,000, compared to RMB 553,808,000 as of December 31, 2022, indicating a slight decrease[142]. Shareholder Information - Mefun Group Limited holds 620,000,000 shares, accounting for approximately 16.003% of the company's issued shares, making it the largest single shareholder[18]. - Goldmics Investments Limited owns 153,130,224 shares, representing about 3.952% of the issued shares[18]. - The company must seek shareholder approval if the total number of options granted to any individual exceeds 1% of the company's issued share capital within any 12-month period[82]. - The maximum number of shares that may be issued upon the exercise of all options granted under the new plan and any other plans cannot exceed 30% of the company's issued share capital[84]. - The company has the right to terminate the new plan at any time through a resolution at a shareholders' meeting[79]. Corporate Governance - The company has adopted good corporate governance practices and complies with all relevant rules and guidelines[103]. - No significant contracts were entered into with the controlling shareholder during the review period[91]. - The company did not have any major investments or acquisitions during the six months ending June 30, 2023[98]. - No major events related to the company's business or financial performance have occurred after the review period[101].

B_table indent_4.5 mm N_table indent_4 mm 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因 本公告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失 承擔任何責任。 SHENGLI OIL & GAS PIPE HOLDINGS LIMITED 勝 利 油 氣 管 道 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1080） 截至二零二三年六月三十日止六個月之中期業績公告 財務摘要 • 截至二零二三年六月三十日止六個月（「回顧期內」）收入約為人民幣 322,269,000元，較二零二二年同期減少約27.3%。 • 回顧期內毛利率約為4.2%，較二零二二年同期減少約4.3個百分點。 ...