达力普控股公告，公司河北沧州制造基地新建的两条油管智能生产线已试车成功，将于近期正式投产运 营。该生产线全面集成物联网与实时信息监控等先进系统，实现全流程智能制造、数字化管理。油管产 品规格实现全覆盖，可满足国内外多元化市场需求。生产效率可提升35%，人工配置可减少30%。公司 可大幅提升油管高端产品的生产能力，实现油管产品结构向高端化、定制化转型。董事会认为，新生产 线是公司技术迭代与产能升级的重要里程碑，预期对中长期收益产生积极影响。 ...

Share Incentive Plan - A total of 3,539,589 shares were vested to five highest-paid employees and other employees under the share incentive plan adopted on May 31, 2022[3] - The weighted average closing price per share before the vesting date was HKD 5.00[3]

Financial Performance - The company reported a revenue of $150 million for the fiscal year 2024, representing a 20% increase compared to the previous year[2]. - The Group recorded total revenue of RMB3,292.3 million for the Year, a decrease of 14.5% from RMB3,850.0 million in 2023[90]. - Revenue from oil and gas pipes decreased to RMB2,196.4 million, down 10.7% from RMB2,459.9 million in 2023[92]. - Revenue from new energy pipes and special seamless steel pipes fell to RMB1,095.9 million, representing a decrease of 17.7% from RMB1,331.9 million in 2023[92]. - The Group recorded a loss of RMB 77.1 million for the year, a decrease in profit of RMB 211.6 million compared to a profit of RMB 134.5 million in 2023[107][113]. - The Group recorded an adjusted net loss of RMB 56.8 million for 2024, a significant decline from an adjusted net profit of RMB 141.9 million in 2023, resulting in an adjusted net profit margin of -1.7% compared to 3.7% in the previous year[118]. - Gross profit fell to RMB 263.4 million, a decrease of RMB 264.8 million from RMB 528.2 million in 2023, resulting in a gross profit margin of 8.0%, down 5.7 percentage points[98][101]. Market Expansion and Strategy - Market expansion efforts have led to a 25% increase in sales in the Asia-Pacific region[2]. - In 2024, Dalipal launched its Middle East development strategy, establishing a presence in Saudi Arabia to access high-quality markets across the Middle East, Africa, and the Americas[26]. - The company is exploring potential acquisitions to enhance its market position, with a budget of $10 million allocated for this purpose[2]. - The company aims to expand its market presence and enhance product offerings through strategic management and R&D initiatives[44]. - The Middle East is identified as a strategic development area, leveraging its oil production and reserves for market expansion[82]. Research and Development - The company is investing $5 million in R&D for new technologies aimed at enhancing product efficiency[2]. - The Group's business model focuses on "production determined by sales," emphasizing technology accumulation and self-R&D in collaboration with well-known domestic universities[64]. - The Group is committed to "adjusting structure, improving efficiency, and reducing costs" to enhance core competitiveness and expand the coverage of non-API specialty pipe products[67]. - The Group's R&D efforts have led to the successful development of high-strength, corrosion-resistant casing products, which are now widely used in domestic shale gas blocks[68]. Sustainability and ESG Initiatives - The board of directors emphasized a commitment to sustainability, with plans to reduce carbon emissions by 30% over the next five years[2]. - The company has an ESG committee established to oversee environmental, social, and governance matters[20]. - The company is committed to improving product performance through technological innovation and digital transformation to meet high-end market needs[79]. - The company has introduced advanced technologies for energy conservation and emission reduction, achieving emissions far below Hebei Province's ultra-low standards[73]. - The Group has maintained compliance with environmental laws and regulations, ensuring sustainable development of its business[164]. Operational Efficiency - The company has implemented cost-cutting measures that are expected to save approximately $2 million annually[2]. - The company plans to enhance on-site management and promote standardized operations to improve cost capabilities[34]. - The introduction of intelligent manufacturing equipment is expected to significantly enhance the Group's core competitiveness, including real-time tracking of production and quality data[69]. - The Group's operational and financial management is overseen by experienced professionals with extensive backgrounds in the industry[54]. Leadership and Governance - The company has a strong board with independent non-executive directors who bring extensive industry experience and expertise in various sectors, including oilfield operations and corporate finance[48]. - The company is focused on enhancing its governance structure through the involvement of experienced directors in key committees such as Audit and Risk Management, Remuneration, and Nomination[49]. - The leadership team includes members with advanced degrees, such as an MBA from Peking University, indicating a strong educational background[42]. - The company is committed to adhering to the highest ethical standards and has complied with all relevant laws and regulations during the year[149]. Challenges and Future Outlook - Looking ahead to 2025, the company anticipates operational pressures due to overlapping economic and industry cycles but remains optimistic about future development opportunities[30]. - The seamless steel pipe industry faced challenges such as intensified homogeneous competition and declining capacity utilization, leading to a shift in focus towards high-value-added and high-tech specialty products[57]. - The management is cautiously optimistic about the overall industry recovery and improvement for 2025 despite ongoing uncertainties[86]. - The company aims to improve product quality, increase variety, and strengthen brand presence in response to market challenges[32].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 3,292.3 million, a decrease of 14.5% compared to RMB 3,850.0 million in 2023[3]. - Gross profit fell to RMB 263.4 million, down 50.1% from RMB 528.2 million, resulting in a gross margin of 8.0% compared to 13.7% in the previous year[3]. - Operating profit plummeted to RMB 0.5 million, a decline of 99.8% from RMB 241.4 million in 2023[3]. - The company reported a net loss of RMB 77.1 million for the year, a significant drop from a profit of RMB 134.5 million in 2023, representing a 157.3% change[3][4]. - Adjusted net loss (non-IFRS measure) was RMB 56.8 million, compared to a profit of RMB 141.9 million in the previous year, marking a 140.0% decrease[3]. - Basic and diluted loss per share was RMB (0.05), compared to earnings of RMB 0.09 per share in 2023, reflecting a 155.6% decline[3]. - The company reported a pre-tax loss of RMB 86,319,000 for 2024, compared to a profit of RMB 152,368,000 in 2023, indicating a significant decline in performance[31]. - The group recorded a net loss of RMB 77.1 million for the year, a decrease of RMB 211.6 million compared to a profit of RMB 134.5 million in 2023[74]. Revenue Breakdown - Revenue from the sale of oil and gas pipes was RMB 2,196,399,000, down 10.7% from RMB 2,459,943,000 in 2023[16]. - Revenue from the sale of new energy pipes and special seamless steel pipes was RMB 1,095,865,000, a decrease of 17.7% from RMB 1,331,897,000 in 2023[16]. - The total external customer revenue for 2024 was RMB 3,292,264, down 14.5% from RMB 3,850,020 in 2023[22]. - The total revenue from the Middle East region decreased significantly to RMB 236,750 in 2024 from RMB 560,066 in 2023[22]. - Domestic sales increased by 1.8% to RMB 2,913.9 million, while overseas sales plummeted by 61.7% to RMB 378.4 million due to global economic downturns and political instability[66]. Assets and Liabilities - Total assets decreased from RMB 2,541.4 million in 2023 to RMB 2,348.7 million in 2024[6]. - Current liabilities reduced from RMB 2,481.9 million in 2023 to RMB 2,046.5 million in 2024[6]. - The company's equity increased from RMB 1,315.0 million in 2023 to RMB 1,461.1 million in 2024[6]. - Trade receivables decreased to RMB 466,922,000 in 2024 from RMB 584,533,000 in 2023, reflecting a reduction of approximately 20%[36]. - The company’s total trade payables increased to RMB 837,921,000 in 2024, up from RMB 724,571,000 in 2023, representing a growth of about 15.6%[41]. - The debt-to-equity ratio increased to 136.9% as of December 31, 2024, up 45.5 percentage points from 91.4% as of December 31, 2023, primarily due to increased borrowing and reduced equity[80]. Operational Highlights - The company has been expanding its customer base and markets while maintaining strong relationships with existing major customers to generate more operating cash flow[13]. - The company is actively developing high-end, specialized products to meet the growing demand in the energy sector, particularly in oil and gas applications[51][52]. - The company aims to enhance its core competitiveness by focusing on "structural adjustment, efficiency improvement, and cost reduction" strategies[53]. - The company has successfully developed and mass-produced high-strength, corrosion-resistant casing products, which are widely used in domestic high-sulfur hydrogen gas fields[54]. - The company has implemented a comprehensive intelligent manufacturing system, enhancing production efficiency and product quality through real-time tracking and automation[54]. Strategic Initiatives - The company has obtained an industrial investment license from the Saudi Arabian Ministry of Investment, marking a significant step in expanding its international market operations[57]. - The company has signed a letter of intent with a wholly-owned subsidiary of Saudi Aramco, SPARK, to establish production facilities in Saudi Arabia[57]. - The company is committed to sustainable development through technological innovation and green production practices[60]. - The company has established a strategic cooperation to build a green supply chain, integrating environmental management into supplier evaluation systems[55]. Employee and Cost Management - Employee costs increased to RMB 252,934 in 2024, up 11.1% from RMB 227,596 in 2023[25]. - Administrative expenses rose by 7.4% to RMB 187.9 million, mainly due to increased labor costs and impairment losses[71]. - Financing costs for 2024 were RMB 86,858, slightly down from RMB 88,994 in 2023[24]. Future Outlook - The management remains cautiously optimistic about the overall industry recovery and the company's strategic execution for 2025[63]. - The company plans to enhance its product strategy by focusing on high-end, corrosion-resistant products and expanding into new markets[61].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 10.88 [6][3][4] Core Insights - The company is set to commence construction of its Middle East production base in September 2025, which is expected to contribute to revenue and profit starting in 2028 [1][3] - The company has a strategic plan to establish a regional headquarters and R&D center in the Middle East, leveraging the region's energy resources and geographical advantages [1][2] - The company's overseas sales have rapidly increased, with over 25% of total sales coming from international markets, primarily in the Middle East and North Africa [1][3] Financial Projections - The company forecasts net profits of RMB -95.49 million, RMB 136 million, RMB 345.2 million, and RMB 733.5 million for the years 2024, 2025, 2026, and 2027 respectively [4][13][14] - Sales revenue is projected to grow from RMB 3.66 billion in 2024 to RMB 9.47 billion by 2027, reflecting a compound annual growth rate of approximately 60% [4][14] - The gross profit margin is expected to improve from 9% in 2024 to 16.5% by 2027 [4][14] Project Details - The first phase of the Middle East project will have a production capacity of 300,000 tons per year, with a total design capacity of 1.1 million tons per year [3][10] - The project is located in the Salman King Energy City (SPARK) in Dammam, Saudi Arabia, which is strategically positioned near the world's largest onshore oil field [2][3] Market Position - The company’s products, including OCTG and hydrogen transport pipes, are expected to meet significant market demand in the Middle East, particularly due to Saudi Arabia's leading position in oil production and its green hydrogen development plans [2][3]

Financial Performance - Dalipal Holdings Limited reported a revenue of HK$XXX million for the interim period, representing a year-on-year increase of XX%[14]. - The company achieved a net profit of HK$XXX million, reflecting a growth of XX% compared to the previous period[43]. - The Group achieved total revenue of RMB1,539.5 million during the Reporting Period, a decrease of 26.2% from RMB2,087.3 million in the corresponding period of 2023[53][54]. - Revenue from oil and gas pipes decreased by 24.9% to RMB1,004.4 million, down from RMB1,337.4 million in the same period last year[55][56]. - Revenue from new energy pipes and special seamless steel pipes declined by 22.6% to RMB535.1 million, compared to RMB691.7 million in the previous year[55][56]. - Domestic sales revenue fell by 18.2% to RMB1,228.0 million, down from RMB1,501.4 million in the corresponding period of 2023[58]. - Overseas sales decreased by 46.8% to RMB311.5 million, compared to RMB585.9 million in the same period last year[59]. - The decline in revenue was attributed to a slowdown in investment in energy exploration, leading to insufficient market demand and significant drops in both sales volume and prices[56]. - The Group's total gross profit was RMB124.5 million, a decrease of RMB158.6 million from RMB283.1 million for the corresponding period of 2023, resulting in a gross profit margin of 8.1%, down 5.5 percentage points from 13.6%[64]. - The company reported a loss from operations of RMB 35,699, compared to a profit of RMB 108,230 in the previous year[140]. - Loss attributable to equity shareholders for the period was RMB 69,680, compared to a profit of RMB 56,800 in 2023[140]. - Total comprehensive income for the period attributable to equity shareholders was RMB (69,849), a decline from RMB 57,532 in the prior year[140]. Market and Strategic Outlook - The company provided a positive outlook for the next quarter, projecting a revenue growth of XX% driven by new product launches[14]. - Market expansion plans include entering two new regions, expected to contribute an additional HK$XXX million in revenue[14]. - The company is considering strategic acquisitions to enhance its market position, with potential targets identified[14]. - The Group's strategic direction emphasizes specialization and differentiation to navigate the competitive landscape of the seamless steel pipe industry[25]. - The Group plans to establish production facilities in the Middle East to better serve local customers and enhance its international brand presence[51][52]. - The strategic development plan for the Middle East aligns with China's "Belt and Road Initiative," aiming to leverage local policy and financing support[51]. Research and Development - Dalipal is investing in R&D for new technologies, with an allocated budget of HK$XXX million for the upcoming fiscal year[14]. - The Group's self-designed high-grade steel-grade hydrogen sulfide corrosion-resistant casings have been widely used in domestic high-containing hydrogen sulfide shale gas blocks, demonstrating its R&D capabilities[34]. - The Group has built an intelligent production line that includes robots and CNC machine tools, achieving multiple unmanned production units and reducing manpower requirements[37]. - The Group's implementation of a product process big data analysis platform marks it as the first company in the industry to adopt such technology, enhancing operational efficiency[37]. - The Group's strategy focuses on strengthening oil and gas API products while diversifying into non-API pipe special products, aiming to build core competitiveness through structural adjustments and cost reductions[31]. Operational Efficiency and Cost Management - The gross margin improved to XX%, up from XX% in the previous period, indicating better cost management[43]. - The Group has integrated lean improvement with professional management, promoting on-site visualization and 6S activities to enhance operational efficiency[41]. - The Group has promoted differentiated design of products and processes, implementing several cost reduction and efficiency improvement measures[41]. - The Group's sales volume of customized products significantly increased during the Reporting Period, highlighting the effectiveness of its sales-oriented production model[30]. Financial Position and Liquidity - As of 30 June 2024, the Group's cash at bank and on hand amounted to RMB425.0 million, a slight decrease from RMB432.6 million as of 31 December 2023[75]. - Interest-bearing borrowings increased to RMB2,043.8 million as of 30 June 2024, up from RMB1,767.5 million at the end of 2023, with long-term borrowings decreasing to RMB392.4 million[79]. - The gearing ratio rose to 120.7% as of 30 June 2024, an increase of 29.3 percentage points from 91.4% at the end of 2023, attributed to higher borrowings and reduced equity[79]. - The current ratio decreased from 1.15 as of 31 December 2023 to 0.96 as of 30 June 2024, indicating a decline in liquidity[79]. - The Group's net current liabilities amounted to RMB116,892,000, including bank and other borrowings of RMB1,651,376,000 due for repayment within the next twelve months[158]. Shareholder Information and Corporate Governance - As of June 30, 2024, Mr. Meng held a controlling interest in the company with 706,353,600 shares, representing 47.01%[97]. - The audit committee reviewed the interim financial statements without disagreement, ensuring compliance with accounting principles[95]. - The company has complied with all code provisions set out in part 2 of the Corporate Governance Code during the reporting period[94]. - The Share Option Scheme aims to incentivize eligible participants, including employees and directors, to enhance performance efficiency for the Group's benefit[106]. - The Group's share award movement details during the reporting period indicate changes in unvested shares[137]. Environmental and Social Responsibility - The Group's emission levels of sulfur oxides, nitrogen oxides, and particulate matter are far below Hebei Province's ultra-low emission standards due to substantial energy conservation and emission reduction initiatives[40]. - The Group's API products have passed green product certification, and the "green content" of product manufacturing has been continuously improved, with five product carbon footprint evaluation certificates obtained[39]. - The Group aims to create "specialized, refined, exceptional, and innovative" products while adhering to the business philosophy of "intelligent, green, and differentiated"[47]. - The Group has implemented various energy-saving transformation projects, effectively reducing emissions and promoting clean energy supply through photovoltaic power generation[40].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,539.5 million, a decrease of 26.2% from RMB 2,087.3 million in the same period of 2023[2] - Gross profit for the same period was RMB 124.5 million, down 56.0% from RMB 283.1 million year-on-year[2] - Operating loss for the six months was RMB (35.7) million, compared to an operating profit of RMB 108.2 million in the prior year, representing a decline of 133.0%[2] - Loss before tax was RMB (77.2) million, a significant increase from a profit of RMB 65.1 million in the previous year, marking a 218.6% change[2] - Net loss attributable to equity shareholders for the period was RMB (69.7) million, compared to a profit of RMB 56.8 million in the same period last year, reflecting a 222.7% increase in losses[2] - Adjusted net loss margin was (4.5%) for the current period, compared to a margin of 2.8% in the previous year[2] - Basic and diluted loss per share for the period was RMB (0.05), compared to earnings of RMB 0.04 per share in the same period of 2023[2] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 2,534.9 million, an increase from RMB 2,348.7 million as of December 31, 2023[6] - Current liabilities increased to RMB 2,651.8 million from RMB 2,046.5 million at the end of 2023[6] - Net assets attributable to equity shareholders decreased to RMB 1,341.2 million from RMB 1,461.1 million at the end of 2023[6] - As of June 30, 2024, the group's net current liabilities amounted to RMB 116,892,000, including bank and other borrowings of RMB 1,651,376,000, which are due within the next twelve months[9] Revenue Breakdown - The group reported revenue of RMB 1,004,396,000 from the sale of oil and gas pipes, a significant contribution to the total revenue of RMB 2,087,283,000 for the six months ended June 30, 2024[13] - Revenue from the sale of new energy pipes and special seamless steel pipes was RMB 535,058,000, showing a decrease from RMB 691,746,000 in the same period last year[13] - Revenue from mainland China for the six months ended June 30, 2024, was RMB 1,227,931,000, a decrease of 18.2% from RMB 1,501,348,000 in 2023[18] - Domestic sales revenue decreased by 18.2% to RMB 1,228.0 million, compared to RMB 1,501.4 million in the same period of 2023[47] - International sales revenue decreased significantly by 46.8% to RMB 311.5 million, down from RMB 585.9 million in the same period of 2023[47] Cost and Expenses - Total sales cost for the period was RMB 1,415.0 million, a decrease of 21.6% from RMB 1,804.1 million in the same period of 2023, mainly due to reduced sales volume and lower raw material prices[49] - Selling expenses were RMB 79.2 million, a decrease of approximately 8.7% from RMB 86.7 million in the same period of 2023, primarily due to reduced sales[52] - Administrative expenses increased by 16.6% to RMB 108.3 million from RMB 92.9 million in the same period of 2023, mainly due to increased labor costs and share-based payment expenses[53] - Financial costs decreased by 3.8% to RMB 41.5 million from RMB 43.2 million in the same period of 2023, mainly due to optimized financing structure and lower loan interest rates[54] Strategic Initiatives - The group is implementing various strategies to expand into new markets while maintaining stable relationships with existing major customers to generate additional cash flow[10] - The group plans to establish production facilities in the Middle East to better serve local customers and enhance international brand development[43] - The group aims to focus on oil and gas pipes, new energy pipes, and special seamless steel pipes to meet and lead customer demand[42] - The group emphasizes "intelligent, green, and differentiated" business concepts to drive the development of specialized products[42] - The group is committed to enhancing core competitiveness and optimizing the structure of market product users[42] Research and Development - Research and development costs for the six months ended June 30, 2024, were RMB 16,547,000, down 26.9% from RMB 22,645,000 in the same period of 2023[20] - The group has collaborated with domestic universities to develop high-corrosion-resistant materials and high-precision mechanical processing techniques, achieving notable results in technology advancement[36] - The group has developed an economic special coupling product that has completed testing and is now in mass supply, showcasing its commitment to innovation[36] Corporate Governance and Future Outlook - The board considers the preparation of the condensed consolidated financial statements on a going concern basis to be appropriate[10] - The group has implemented corporate governance practices in accordance with the relevant guidelines[68] - There were no significant events occurring after the reporting period up to the date of this announcement[68] - The company adopted a share reward plan for directors and senior management on May 31, 2022, which was revised on December 19, 2022[71]

Financial Performance - Dalipal Holdings Limited reported a revenue increase of 15% year-over-year, reaching approximately HKD 1.2 billion for the fiscal year 2023[2]. - The company achieved a net profit margin of 10%, translating to a net profit of around HKD 120 million, compared to HKD 100 million in the previous year[2]. - The company has set a revenue guidance of HKD 1.5 billion for the next fiscal year, representing a projected growth of 25%[2]. - The Group achieved revenue of approximately RMB 3.85 billion and profit of approximately RMB 134.5 million for the year[17]. - The Group recorded total revenue of RMB3,850.0 million for the year, representing a decrease of 8.9% from RMB4,227.8 million in 2022[74]. - Revenue from oil and gas pipes decreased by 6.6% to RMB2,459.9 million, while revenue from new energy pipes and special seamless steel pipes decreased by 15.1% to RMB1,331.9 million[76]. - The profit for the year decreased to RMB 134.5 million in 2023 from RMB 151.6 million in 2022, representing a decline of approximately 11.6%[85]. - Adjusted net profit for 2023 was RMB 141.9 million, down from RMB 154.5 million in 2022, indicating a decrease of about 8.1%[85]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share within the next two years[2]. - A strategic acquisition of a local competitor is in progress, expected to enhance market capabilities and increase customer base by 30%[2]. - The company plans to expand its production capacity by 30% in the Bohai New District factory as part of its Phase Two Expansion strategy[13]. - A new market expansion strategy targeting Southeast Asia is expected to contribute an additional HK$300 million in revenue by 2024[12]. - The company aims to expand its market presence in the Middle East, which is identified as a key overseas market with significant demand for oil and gas pipes[26][28]. - The Group plans to establish a regional headquarters, R&D center, intelligent factory, and data control center in the Middle East to enhance its long-term strategy in the region[70]. Research and Development - Dalipal Holdings Limited is investing HKD 50 million in R&D for new product development, focusing on sustainable technologies[2]. - Dalipal Holdings Limited is investing HK$200 million in new product development, focusing on advanced drilling technologies[12]. - Investment in research and development was maintained, with the launch of high-end oil drilling and energy equipment pipe production projects[22]. - The Group has increased its investment in research and development to facilitate innovation and smart technology manufacturing[184]. Operational Efficiency - The company has reported a 5% reduction in operational costs due to improved efficiency measures[2]. - The Group focused on optimizing internal management and governance to improve production efficiency and operational benefits[19]. - The Group's management team includes experienced professionals with backgrounds in various sectors, enhancing its operational capabilities[39]. - The Group's focus on technical management and operational efficiency is expected to yield positive results in future financial performance[41]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to enhancing its ESG initiatives, with plans to allocate 10% of profits towards sustainability projects[2]. - Dalipal Holdings Limited's ESG initiatives have led to a 10% reduction in carbon emissions, demonstrating commitment to sustainability[12]. - The Group aims to promote green and low-carbon transformation through smart manufacturing and technological innovation[68]. - The Group is committed to achieving net zero emissions and promoting good health and well-being of employees as part of its ESG initiatives[184]. Corporate Governance - The Group is committed to maintaining high standards of corporate governance, as evidenced by the establishment of various committees including Audit and Risk Management, Nomination, and ESG[44]. - The Board consists of nine Directors, including an Executive Chairman and a CEO, ensuring a balanced composition for effective leadership[194]. - All independent non-executive directors have confirmed their independence according to the listing rules, providing strong governance oversight[196]. - The Board is accountable to the Company's shareholders and stakeholders, overseeing strategic decisions and performance[200]. Shareholder Information - A final dividend of HK$ 0.04 per share was declared by the Board of Directors[17]. - The Company recommended a final dividend of HK$0.04 per ordinary share for the year, consistent with the previous year[100]. - As of December 31, 2023, cash at bank and on hand was RMB 432.6 million, a decrease from RMB 464.9 million in 2022, reflecting a decline of approximately 6.5%[86]. - The total number of issued shares as of December 31, 2023, is 1,502,668,000[169]. Management and Leadership - Mr. Zhang Hongyao has over 18 years of experience in the oil pipe manufacturing industry and has been the Chief Executive Officer since April 2022[34]. - Ms. Xu Wenhong has more than 30 years of experience in commercial legal advisory and over 20 years in oil pipe manufacturing management[36]. - The management team is well-equipped to drive the company's strategic initiatives and enhance shareholder value through effective oversight and governance[45]. - The leadership team is committed to leveraging their extensive industry experience to drive growth and innovation within the Group[41].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 3,850.0 million, a decrease of 8.9% compared to RMB 4,227.8 million in 2022[2] - Gross profit was RMB 528.2 million, with a gross margin of 13.7%, down from 14.5% in the previous year[2] - Operating profit decreased to RMB 241.4 million, a decline of 15.5% from RMB 285.8 million in 2022[2] - Profit before tax was RMB 152.4 million, down 13.8% from RMB 176.9 million in the prior year[2] - Net profit attributable to equity shareholders was RMB 134.5 million, a decrease of 11.3% compared to RMB 151.6 million in 2022[2] - Basic and diluted earnings per share were RMB 0.09, down from RMB 0.10 in the previous year, representing a decrease of 10.0%[2] Revenue Breakdown - Revenue from oil and gas pipes was RMB 2,459,943 thousand, down 6.6% from RMB 2,635,098 thousand in 2022[15] - Revenue from new energy pipes and special seamless steel pipes was RMB 1,331,897 thousand, a decrease of 15.0% from RMB 1,567,886 thousand in 2022[15] - Revenue from mainland China was RMB 2,862,847 thousand, a decrease of 7.0% from RMB 3,077,736 thousand in 2022[23] - Revenue from the Middle East was RMB 560,066 thousand, down 15.6% from RMB 663,745 thousand in 2022[23] - Revenue from Africa increased to RMB 322,605 thousand, up 15.9% from RMB 278,034 thousand in 2022[23] Assets and Liabilities - Total assets decreased to RMB 2,348.7 million from RMB 2,354.9 million in 2022[5] - Total liabilities increased to RMB 2,046.5 million from RMB 1,988.1 million in the previous year[5] - Net assets increased to RMB 1,461.1 million, compared to RMB 1,404.3 million in 2022[5] Accounting Policies and Standards - The consolidated financial statements for the year ended December 31, 2023, are prepared based on historical cost, except for derivative financial instruments and equity securities which are measured at fair value[8] - The group has adopted new and revised International Financial Reporting Standards (IFRS), including IFRS 17 on insurance contracts, which does not significantly impact the group's financial statements as there are no relevant contracts[9] - The revised IAS 8 provides further guidance on distinguishing between changes in accounting policies and changes in accounting estimates, but it does not have a significant impact on the group's financial statements[9] - The revised IAS 1 requires entities to disclose significant accounting policy information, and the group has reviewed its disclosures to ensure compliance with this requirement[10] - The revised IAS 12 reduces the scope of initial recognition exemptions, which does not affect the group as it did not apply initial recognition exemptions for lease transactions[11] Operational Highlights - The company continues to focus on the development and manufacturing of oil and gas pipes, new energy pipes, and special seamless steel pipes[6] - The company has established itself as a qualified supplier for several well-known domestic enterprises, enhancing its competitive edge in the market[45] - The company achieved a historic breakthrough in the China National Offshore Oil Corporation market, winning a bid for nearly 180,000 tons in the 2023-2024 tender[47] - The company completed certifications with five overseas oil companies, achieving full coverage across six continents in the overseas market[47] - The company developed innovative high-strength and high-toughness oil casing, which is widely used in major domestic oil and gas fields[48] Research and Development - Research and development costs increased slightly to RMB 40,397,000 in 2023 from RMB 39,792,000 in 2022, an increase of about 2%[29] - The company is committed to research and development initiatives to enhance product offerings[88] - The company has obtained 12 patents for low-carbon technologies and products, significantly reducing carbon emissions and surpassing Hebei Province's ultra-low emission standards[49] Financial Management - Total financing costs decreased to RMB 88,994,000 in 2023 from RMB 108,828,000 in 2022, a reduction of approximately 18%[25] - The effective tax expense decreased to RMB 17,845,000 in 2023 from RMB 25,362,000 in 2022, a reduction of approximately 30%[31] - The group's income tax for the year was RMB 17.8 million, down from RMB 25.4 million for the year ended December 31, 2022, a decrease of RMB 7.6 million due to lower pre-tax profits[64] Employee and Corporate Governance - The group had a total of 1,658 employees as of December 31, 2023, down from 1,777 employees a year earlier, with total employee costs amounting to RMB 227.6 million[69] - The company has adhered to the corporate governance code and all applicable regulations during the fiscal year[79] - The company operates under the Cayman Islands Companies Law, ensuring compliance with corporate governance standards[87] Future Plans - The company plans to establish a regional headquarters, R&D center, smart factory, and data control center in the Middle East to enhance its long-term strategy in the region[52] - The company aims to drive green low-carbon transformation through intelligent manufacturing and equipment upgrades, focusing on automation and digitalization[51] - The company plans to strengthen relationships with key customers and expand its customer base in overseas markets[75]

Financial Performance - Dalipal Holdings Limited reported a revenue of HK$XXX million for the first half of 2023, representing a year-on-year increase of XX%[4] - The company achieved a net profit of HK$XXX million, reflecting a growth of XX% compared to the same period last year[4] - The company reported a cash flow from operations of HK$XXX million, indicating strong liquidity position[4] - Dalipal's gross margin improved to XX%, up from XX% in the previous year, reflecting better cost management[4] - The Group achieved total revenue of RMB2,087.3 million during the Reporting Period, representing an increase of 7.6% from RMB1,940.1 million in the corresponding period of 2022[37] - The Group's total gross profit was RMB283.1 million, representing an increase of approximately 35.5% from RMB209.0 million for the corresponding period of 2022[44] - The Group's profit for the period was RMB56.8 million, representing an increase of approximately 82.6% compared to RMB31.1 million for the corresponding period of 2022, mainly due to increased revenue and gross profit[51] - The revenue for the six months ended June 30, 2023, was RMB 2,087,283, an increase of 7.6% compared to RMB 1,940,124 for the same period in 2022[116] - Gross profit for the same period was RMB 283,134, representing a gross margin increase from 10.8% in 2022 to 13.6% in 2023[116] - Profit for the period attributable to equity shareholders was RMB 56,800, up 82.7% from RMB 31,125 in the previous year[116] Market Expansion and Strategy - The company provided a positive outlook for the second half of 2023, projecting a revenue growth of XX%[4] - Dalipal is investing in new product development, with a budget allocation of HK$XXX million for R&D initiatives[4] - The company plans to expand its market presence in Southeast Asia, targeting a market share increase of XX% by the end of 2024[4] - Dalipal is exploring potential acquisitions to enhance its product portfolio, with a focus on companies in the technology sector[4] - The Group's business strategy focuses on strengthening oil and gas pipes while diversifying moderately into exclusive leading products[21] - The Group aims to enhance its product strategy by focusing on specialized, innovative, and new products, particularly in oil and gas pipes and new energy pipes[34] - The Group intends to increase its market share in the international market by accelerating certification processes with overseas oil companies[34] - The Group has significantly increased its overseas market sales proportion compared to the previous year, achieving excellent results in market expansion[24] Operational Efficiency and Innovation - The management highlighted a strategic shift towards digital transformation, aiming to improve operational efficiency by XX%[4] - The Group's lean operation concept has been implemented to enhance efficiency and customer service[22] - The Group has established intelligent production lines with over 12 types of industrial software, becoming the first in the industry to utilize a product process big data analysis platform[26] - The Group has obtained 12 patents related to low-carbon processes and products, contributing to significant reductions in carbon emissions and achieving a carbon footprint certificate for its products[28] - The Group's emission indicators for sulfides, nitrogen oxides, and particulate matter are far below the stringent emission standards of Hebei Province[29] Financial Position and Liquidity - As of June 30, 2023, cash and cash equivalents amounted to RMB462.8 million, slightly down from RMB464.9 million as of December 31, 2022[53] - Interest-bearing borrowings totaled RMB1,903.0 million as of June 30, 2023, a decrease from RMB1,939.1 million as of December 31, 2022, with long-term borrowings at RMB774.9 million and short-term borrowings at RMB1,128.1 million[54] - The gearing ratio was 103.4%, a decrease of 1.6 percentage points from 105.0% at December 31, 2022, due to a reduction in interest-bearing borrowings[55] - The current ratio increased from 1.18 as of December 31, 2022, to 1.20 as of June 30, 2023[55] - The company reported basic and diluted earnings per share of RMB 0.04 for the six months ended June 30, 2023, compared to RMB 0.02 in the same period of 2022[116] Shareholder Information and Corporate Governance - The Board does not recommend the payment of an interim dividend for the Reporting Period[64] - The net proceeds from the IPO were approximately HK$426.3 million (approximately RMB 383.7 million) and are intended for various uses including funding the Phase Two Expansion[65] - The audit committee reviewed the accounting principles and practices adopted by the Group without disagreement[73] - The Company has complied with all code provisions in the CG Code during the Reporting Period[72] - The interests and short positions of directors and their associates are recorded in compliance with the SFO[79] Share Option and Incentive Plans - The Share Option Scheme aims to incentivize eligible participants, including full-time or part-time employees, non-executive Directors, suppliers, and customers, to enhance performance efficiency for the benefit of the Group[87] - The total number of Shares that may be allotted and issued upon the exercise of all options under the Share Option Scheme must not exceed 10% of the total number of Shares in issue as of November 8, 2019, which is 150,000,000 Shares[96] - The vesting period of options granted under the Share Option Scheme is determinable by the Directors and must not exceed 10 years from the date of grant[94] - The Share Award Plans were adopted on May 31, 2022, to recognize and reward contributions from eligible participants and to attract suitable personnel[111] - The Group aims to retain key personnel for continual operation and development through these incentive plans[111] Segment Performance - The Group operates three reportable segments: oil and gas pipes, new energy pipes and special seamless steel pipes, and other products, with no inter-segment sales reported for the periods ended June 30, 2023, and 2022[154] - Revenue from oil and gas pipes increased by 20.1% to RMB1,337.4 million, while revenue from new energy pipes and special seamless steel pipes decreased by 13.7% to RMB691.7 million[40] - The Group's total revenue from overseas markets was RMB 585,935 for the six months ended June 30, 2023, compared to RMB 339,186 in 2022, indicating a growth of approximately 72.8%[166] Compliance and Accounting Standards - The interim financial report has been prepared in accordance with International Accounting Standards ("IAS") 34, and was authorized for issue on August 17, 2023[133] - The interim financial report is unaudited but has been reviewed by KPMG, ensuring compliance with Hong Kong Standard on Review Engagements 2410[135] - The Group has applied new and amended IFRSs, including IFRS 17 related to insurance contracts and amendments to IAS 8 and IAS 12, for the current accounting period[137] - The financial information for the year ended December 31, 2022, included in the interim report does not constitute the statutory annual consolidated financial statements but is derived from those statements[138]